Board of Studies

The Institute of Chartered Accountants of India

10th July, 2020

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CORRIGENDUM

Paper 1: Financial Reporting-Corrigendum to Study Material [August, 2019

Edition] –Printed copy

Module Chapter Page Remarks

No. No. No.
1 2 2.6 Roadmap for implementation of Ind AS for ‘Insurance
companies’ has been revised.
2.56 In Illustration 16, read ‘Dividend declared by A Limited’
as ‘Dividend declared and paid by A Limited’
2.56 & In solution to Illustration 16, ‘Cash and cash equivalents’
2.57 has been grouped under ‘Financial assets’ and ‘Dividend
payable’ has been grouped under ‘Financial liabilities’ in
the Balance Sheet.
2.93 In Illustration 1, in sr. no. 3, read ‘Acquired on 29th
January 20X1…’ as ‘Acquired on 31 st January 20X1…’.
2.94 In solution to Illustration 1, in Sr. no. 2, against ‘Fixed
deposit with HDFC’, read the Decision as ‘Exclude as
original maturity is not less than 90 days from the date
of acquisition’.
2.98 In Illustration 3, in sr. no. 13, read ‘New cars purchased
from Honda dealer, in exchange of old cars’ as ‘New cars
purchased from Honda dealer, in exchange of old cars
and remaining amount paid in cash’.
2.99 In solution to Illustration 3, ‘Deposits accepted’ given in
point 3 shall be considered as ‘Operating–in case of
financial institutes’ instead of ‘Exclude-financing activity’.
2.100 In Illustration 4, in sr. no. 9, read ‘Interest received from
2.101 the advances given’ as ‘Interest received from loans and
the advances given’.
In solution to Illustration 4, in sr. no. 9, read ‘Operating’
as ‘Investing’.
2.104 In Illustration 5, read non current liabilities as 33,000
(instead of 25,000) in 20X2 and 35,000 (instead of
30,000) in 20X1.
Provisions amount would be Nil for both the years.
 Board of Studies
The Institute of Chartered Accountants of India

Module Chapter Page Remarks

No. No. No.
4 4.7 In para 1.5.1, ignore point (b) ‘Method of depreciation-
Straight Line method or written down value method?’
given under examples of Accounting policies
4.38 In solution 5 of ‘Test Your Knowledge’ part ignore
“Relevant extracts of balance sheet, statement of profit
and loss and statement of changes in equity.”
5 5.59 & In question 8 of Test Your Knowledge, read “1 st January,
5.62 20X1”, as‘1 st January, 20X0’.
Also, in its solution, read the columns headings of first
table as follows:
‘1 st January, 20X1’ as ‘1 st January, 20X0’
‘31st December, 20X1’ as ‘31 st December, 20X0’
‘31st December, 20X2’ as ‘31 st December, 20X1’
2 7 7.56 In Illustration 11, ignore the following phrase given in the
bracket of the third last line of the question:
‘which meets the definition of qualifying asset as per Ind
AS 23’
7.58 In Illustration 13, read the sentence
“The factory was completed on 30 th November, 20X1 and
production began on 1 st February, 20X2.”
as
“The factory was completed on 30 th November, 20X1
(which is considered as substantial period of time as per
Ind AS 23) and production began on 1 st February, 20X2.”
3 9 9.102 Read the requirement of Question 1 of Test your
Knowledge as follows:
“Draft the note assuming that the discounting rate is 2%”
11 11.54/ Adjusted earnings to Equity and adjusted number of
11.55 shares in Solution to Illustration 9 have been revised
4 13 13.85 In balance sheet of Illustration 36, read -
"Share capital - Equity shares of Rs. 100 each"
as
"Share capital - Equity shares of Rs. 100 each of Dynamic
Ltd and Rs. 10 each of Professional Ltd"
14 14.80/ In Balance Sheet as on 31 st March, 20X2 of Illustration
14.81 19, read the following figures as follows:
‘Non-current investment – 40,820’ as ‘Non-current
investment – 42,500’ and ‘Other equity – 1,43,100’ as
‘Other equity – 1,44,780’.
Accordingly, the total of the balance sheet will be
‘2,15,430’ instead of ‘2,13,750’ and ‘Total Assets’ would
be ‘1,64,780’ instead of ‘1,63,100’
 Board of Studies
The Institute of Chartered Accountants of India

Module Chapter Page Remarks

No. No. No.
105 Under ‘Investment’ given in the balance sheet of
Illustration 33, read -
"16 lakhs shares in S Ltd.” and “12 lakhs shares in SS
Ltd.”
as
"32 lakhs shares in S Ltd.” and “24 lakhs shares in SS
Ltd.”
15 15.14 In case study 2, read 31 st March, 20X4 as ‘30th
September, 20X3’ in the first table.
15.26 In second last table of the answer 4 of Test Your
Knowledge, read the figure ‘33,0532,999’ as ‘33,053’.
The above corrections have been incorporated in the respective webhosted Chapter /
Unit.

Director,
Board of Studies, ICAI