Accounting standards
This query is : Resolved
07 September 2012
Hi i am sandeep pursuing ca final . i m doing self study got some doubts. please resolve and guide me thank you.
1. The accounts of a co for the yr 2009-10 were adopted by BOD on 31/8/2010.the auditors also audited the a/c s and signed on 1/9/2010.these audited a/c s were adopted at shareholders AGM on 30.9.2010. later directors found that position reflected in the annual a/c s is not reflected in books and there is variation in fig of sales in reported a/c s & in books. they decided to rectify this mistake. state as an auditor whether the co can re open and revise audited & adopted a/c s for the yr 2009-10. ( AS 5 Problem).
2. XETA ltd has set up its main plant in coastal land. in view of corrosive climate, the co felt that its machine life was reducing faster. can the co charge a higher rate of depreciation ? ( AS 6 Problem).
1. The accounts of a co for the yr 2009-10 were adopted by BOD on 31/8/2010.the auditors also audited the a/c s and signed on 1/9/2010.these audited a/c s were adopted at shareholders AGM on 30.9.2010. later directors found that position reflected in the annual a/c s is not reflected in books and there is variation in fig of sales in reported a/c s & in books. they decided to rectify this mistake. state as an auditor whether the co can re open and revise audited & adopted a/c s for the yr 2009-10. ( AS 5 Problem).
2. XETA ltd has set up its main plant in coastal land. in view of corrosive climate, the co felt that its machine life was reducing faster. can the co charge a higher rate of depreciation ? ( AS 6 Problem).
07 September 2012
In both the cases answer is yes.
1. In this case the relevant provisions of Companies Act are applicable.
Statement Of amendments could be prepared and that can be signed by Auditors and directors both. To adopt changes, you have to call the EGM .Enclosed suitable Explanatory Statement for such amendments. Auditors can sign after this process.
2. In this case this is change in accounting policy and need disclosure.
Thanks
1. In this case the relevant provisions of Companies Act are applicable.
Statement Of amendments could be prepared and that can be signed by Auditors and directors both. To adopt changes, you have to call the EGM .Enclosed suitable Explanatory Statement for such amendments. Auditors can sign after this process.
2. In this case this is change in accounting policy and need disclosure.
Thanks
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07 September 2012
Thanks a lot sir grateful to you.
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