May 2017 exams
This query is : Resolved
02 February 2017
Sir I had given my first ipcc (group1) attempt in November 2014 but I failed. I could not give any further exams due to some personal reasons. Now I have decided to give exams in may 2017. So Can you please tell me what changes have been made in ipcc curriculum since 2014? And do I have to give both the groups?
02 February 2017
Applicability of Standards/Guidance Notes/Legislative Amendments etc. for May, 2017 – Intermediate (IPC) Examination
Paper 1: Accounting
Accounting Standards
AS 1 : Disclosure of Accounting Policies
AS 2 : Valuation of Inventories
AS 3 : Cash Flow Statements
AS 7 : Construction Contracts (Revised 2002)
AS 9 : Revenue Recognition
AS 10 : Property, Plant and Equipment (2016)
AS 13 : Accounting for Investments
AS 14 : Accounting for Amalgamations
Paper 5: Advanced Accounting
Accounting Standards
AS 4 : Contingencies and Events occurring after the Balance Sheet Date
AS 5 : Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
AS 11 : The Effects of Changes in Foreign Exchange Rates (Revised 2003)
AS 12 : Accounting for Government Grants
AS 16 : Borrowing Costs
AS 19 : Leases
AS 20 : Earnings Per Share
AS 26 : Intangible Assets
AS 29 : Provisions, Contingent Liabilities and Contingent Assets.
Common Note for Paper 1 “Accounting” and Paper 5 “Advanced Accounting”
I. Applicability of the Companies Act, 2013 and other Legislative Amendments for May, 2017 Examination
The relevant notified Sections of the Companies Act, 2013 and legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 31st October, 2016 will be applicable for May, 2017 Examination.
II. Applicability of Amendments made by MCA in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015
Amendments made by MCA on 30.3.2016 in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015 are applicable for May, 2017 examination.
III. Non-Applicability of Ind ASs for May, 2017 Examination
The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Rules, 2015 on 16th February, 2015, for compliance by certain class of companies. These Ind AS have not been made applicable for May, 2017 Examination.
Paper 2: Business Laws, Ethics and Communication
The Companies Act, 2013:
The relevant sections of the Companies Act, 2013, along with significant Rules/ Notifications/ Circulars/ Clarifications/ Orders issued by the Ministry of Corporate Affairs upto 31st October, 2016.
For updates, see http://www.mca.gov.in/
Non-applicability of the following sections of the Companies Act, 2013
S.No. Section No. Section title
1. Section 48 Variation of shareholders’ right
2. Section 66 Reduction of share capital
Paper 4: Taxation
Applicability Of the Finance Act, Assessment Year etc. for May, 2017 Examination
The provisions of income-tax and indirect tax laws, as amended by the Finance Act, 2016, including circulars and notifications issued upto 31st October, 2016, are applicable for May, 2017 examination. The relevant assessment year for income-tax is A.Y. 2017-18.
Students may note that the new ICDS would be relevant from May, 2017 examinations.
Paper 6: Auditing and Assurance
I. Standards on Auditing (SAs)
S.No SA Title of Standard on Auditing
1 SA 200 Overall Objectives of the Independent Auditor
and the Conduct of an Audit in Accordance with Standards on Auditing
2 SA 210 Agreeing the Terms of Audit Engagements
3 SA 220 Quality Control for Audit of Financial Statements
4 SA 230 Audit Documentation
5 SA 240 The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements
6 SA 250 Consideration of Laws and Regulations in An Audit of Financial Statements
7 SA 260 Communication with Those Charged with Governance
8 SA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
9 SA 299 Responsibility of Joint Auditors
10 SA 300 Planning an Audit of Financial Statements
11 SA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
12 SA 320 Materiality in Planning and Performing an Audit
13 SA 330 The Auditor’s Responses to Assessed Risks
14 SA 402 Audit Considerations Relating to anEntity Using a Service Organization
15 SA 450 Evaluation of Misstatements Identified during the Audits
16 SA 500 Audit Evidence
17 SA 501 Audit Evidence - Specific Considerations for Selected Items
18 SA 505 External Confirmations
19 SA 510 Initial Audit Engagements-Opening Balances
20 SA 520 Analytical Procedures
21 SA 530 Audit Sampling
22 SA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
23 SA 550 Related Parties
24 SA 560 Subsequent Events
25 SA 570 Going Concern
26 SA 580 Written Representations
27 SA 600 Using the Work of Another Auditor
28 SA 610 (Revised) Using the Work of Internal Auditors
29 SA 620 Using the Work of an Auditor’s Expert
30 SA 700 Forming an Opinion and Reporting on Financial Statements
31 SA 705 Modifications to the Opinion in the Independent Auditor’s Report
32 SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
33 SA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements
34 SA 720 The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements
II. Statements
Statement on Reporting under Section 227(1A) of the Companies Act, 1956 (Section 143(1) of the Companies Act, 2013).
III. Guidance Notes
1. Guidance Note on Audit of Inventories.
2. Guidance Note on Audit of Debtors, Loans and Advances.
3. Guidance Note on Audit of Investments.
4. Guidance Note on Audit of Cash and Bank Balances.
5. Guidance Note on Audit of Liabilities.
6. Guidance Note on Audit of Revenue.
7. Guidance Note on Audit of Expenses.
8. Guidance Note on Reporting under section 143(3)(f) and (h) of the Companies Act, 2013
IV. Applicability of the Companies Act, 2013:
(i) The relevant notified Sections of the Companies Act, 2013 and other legislative amendments including relevant Notifications
/ Circulars / Rules / Guidelines issued by Regulating Authorities,
cut-off date will be 31st October, 2016.
(ii) Companies (Auditor’s Report) Order, 2016
issued by Ministry of Corporate Affairs on 29th March, 2016 is applicable for May, 2017 Examination.
Paper 1: Accounting
Accounting Standards
AS 1 : Disclosure of Accounting Policies
AS 2 : Valuation of Inventories
AS 3 : Cash Flow Statements
AS 7 : Construction Contracts (Revised 2002)
AS 9 : Revenue Recognition
AS 10 : Property, Plant and Equipment (2016)
AS 13 : Accounting for Investments
AS 14 : Accounting for Amalgamations
Paper 5: Advanced Accounting
Accounting Standards
AS 4 : Contingencies and Events occurring after the Balance Sheet Date
AS 5 : Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
AS 11 : The Effects of Changes in Foreign Exchange Rates (Revised 2003)
AS 12 : Accounting for Government Grants
AS 16 : Borrowing Costs
AS 19 : Leases
AS 20 : Earnings Per Share
AS 26 : Intangible Assets
AS 29 : Provisions, Contingent Liabilities and Contingent Assets.
Common Note for Paper 1 “Accounting” and Paper 5 “Advanced Accounting”
I. Applicability of the Companies Act, 2013 and other Legislative Amendments for May, 2017 Examination
The relevant notified Sections of the Companies Act, 2013 and legislative amendments including relevant Notifications / Circulars / Rules / Guidelines issued by Regulating Authority up to 31st October, 2016 will be applicable for May, 2017 Examination.
II. Applicability of Amendments made by MCA in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015
Amendments made by MCA on 30.3.2016 in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015 are applicable for May, 2017 examination.
III. Non-Applicability of Ind ASs for May, 2017 Examination
The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Rules, 2015 on 16th February, 2015, for compliance by certain class of companies. These Ind AS have not been made applicable for May, 2017 Examination.
Paper 2: Business Laws, Ethics and Communication
The Companies Act, 2013:
The relevant sections of the Companies Act, 2013, along with significant Rules/ Notifications/ Circulars/ Clarifications/ Orders issued by the Ministry of Corporate Affairs upto 31st October, 2016.
For updates, see http://www.mca.gov.in/
Non-applicability of the following sections of the Companies Act, 2013
S.No. Section No. Section title
1. Section 48 Variation of shareholders’ right
2. Section 66 Reduction of share capital
Paper 4: Taxation
Applicability Of the Finance Act, Assessment Year etc. for May, 2017 Examination
The provisions of income-tax and indirect tax laws, as amended by the Finance Act, 2016, including circulars and notifications issued upto 31st October, 2016, are applicable for May, 2017 examination. The relevant assessment year for income-tax is A.Y. 2017-18.
Students may note that the new ICDS would be relevant from May, 2017 examinations.
Paper 6: Auditing and Assurance
I. Standards on Auditing (SAs)
S.No SA Title of Standard on Auditing
1 SA 200 Overall Objectives of the Independent Auditor
and the Conduct of an Audit in Accordance with Standards on Auditing
2 SA 210 Agreeing the Terms of Audit Engagements
3 SA 220 Quality Control for Audit of Financial Statements
4 SA 230 Audit Documentation
5 SA 240 The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements
6 SA 250 Consideration of Laws and Regulations in An Audit of Financial Statements
7 SA 260 Communication with Those Charged with Governance
8 SA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
9 SA 299 Responsibility of Joint Auditors
10 SA 300 Planning an Audit of Financial Statements
11 SA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
12 SA 320 Materiality in Planning and Performing an Audit
13 SA 330 The Auditor’s Responses to Assessed Risks
14 SA 402 Audit Considerations Relating to anEntity Using a Service Organization
15 SA 450 Evaluation of Misstatements Identified during the Audits
16 SA 500 Audit Evidence
17 SA 501 Audit Evidence - Specific Considerations for Selected Items
18 SA 505 External Confirmations
19 SA 510 Initial Audit Engagements-Opening Balances
20 SA 520 Analytical Procedures
21 SA 530 Audit Sampling
22 SA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
23 SA 550 Related Parties
24 SA 560 Subsequent Events
25 SA 570 Going Concern
26 SA 580 Written Representations
27 SA 600 Using the Work of Another Auditor
28 SA 610 (Revised) Using the Work of Internal Auditors
29 SA 620 Using the Work of an Auditor’s Expert
30 SA 700 Forming an Opinion and Reporting on Financial Statements
31 SA 705 Modifications to the Opinion in the Independent Auditor’s Report
32 SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
33 SA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements
34 SA 720 The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements
II. Statements
Statement on Reporting under Section 227(1A) of the Companies Act, 1956 (Section 143(1) of the Companies Act, 2013).
III. Guidance Notes
1. Guidance Note on Audit of Inventories.
2. Guidance Note on Audit of Debtors, Loans and Advances.
3. Guidance Note on Audit of Investments.
4. Guidance Note on Audit of Cash and Bank Balances.
5. Guidance Note on Audit of Liabilities.
6. Guidance Note on Audit of Revenue.
7. Guidance Note on Audit of Expenses.
8. Guidance Note on Reporting under section 143(3)(f) and (h) of the Companies Act, 2013
IV. Applicability of the Companies Act, 2013:
(i) The relevant notified Sections of the Companies Act, 2013 and other legislative amendments including relevant Notifications
/ Circulars / Rules / Guidelines issued by Regulating Authorities,
cut-off date will be 31st October, 2016.
(ii) Companies (Auditor’s Report) Order, 2016
issued by Ministry of Corporate Affairs on 29th March, 2016 is applicable for May, 2017 Examination.
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02 February 2017
Announcement on Applicability of Amendments in Accounting Standards for Intermediate May, 2017
Examination
The Ministry of Corporate Affairs (MCA) has notified Companies (Accounting Standards) Amendment
Rules, 2016 (G.S.R. 364(E) dated 30.03.2016) [These rules have come into force on the date of their publication in the Official Gazette (ie. 30 March 2016) (Link:http://mca.gov.in/Ministry/pdf/Notification_30032016.pdf)]
MCA has omitted AS 6, Depreciation Accounting and
amended the following Accounting Standards issued under Companies (Accounting Standards) Rules,
2006:
i. AS 2, Valuation of Inventories
ii. AS 4, Contingencies and Events Occurring After the Balance Sheet Date
iii. AS 10, Property, Plant and Equipment
iv. AS 13, Accounting for Investments
v. AS 14, Accounting for Amalgamations
vi. AS 21, Consolidated Financial Statements (AS 21 is not covered at Intermediate level)
vii. AS 29, Provisions, Contingent Liabilities and Contingent Assets
It may be noted that these amendments are applicable for May, 2017 Examination.
Paper 1 Accounting at Intermediate Level
The revisions in AS 2, AS 10, AS 13 and AS 14 are relevant for Students appearing for Paper 1
“Accounting” in May, 2017 Examinations. Those students who have July 2015 Edition of Paper 1
“Accounting” are advised to ignore Para 2.4.4 on Deprecation Accounting and Para 2.4.7 on
Accounting for Fixed Assets because AS 6 ‘Deprecation Accounting’ And AS 10 ‘Accounting for Fixed
Assets’ have been withdrawn after issuance of AS 10 ‘Property, Plant and Equipment’. The students
are also advised to ignore the questions numbered 21 to 33 (based on AS 6) and 46 to 55 (based on
AS 10) given in April, 2016 Edition of Practice Manual. They are also suggested to refer the
Supplementary material on AS 10, Property, Plant and Equipment uploaded on the link
http://resource.cdn.icai.org/44440bos34351.PDF along with the RTP for May, 2017 Examination.
Paper 5 Advanced Accounting at Intermediate level
The revisions in AS 4, AS 14 and AS 29 are applicable for Students appearing for Paper 5 “Advanced
Accounting” in May, 2017 Examinations. Those students who have July 2015 Edition of Paper 5
Advanced Accounting are advised to refer the RTP for May, 2017 Examination.
For easy reference of students, the changes in the above-mentioned Accounting Standards are tabularized as follows:
Name of the standard Para no. As per the Companies (Accounting Standards) Rules, 2006 As per the Companies (Accounting Standards) Amendment Rules, 2016 Implications
AS 2 4 (an extract) Inventories do not include machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular; such machinery spares are accounted for in accordance with Accounting Standard (AS) 10, Accounting for Fixed Assets. Inventories do not include spare parts, servicing equipment and standby equipment which meet the definition of property, plant and equipment as per AS 10, Property, Plant and Equipment. Such items are accounted for in accordance with Accounting Standard (AS) 10, Property, Plant and Equipment. Now, inventories also do not include servicing equipment and standby equipment other than spare parts if they meet the definition of property, plant and equipment as per AS 10, Property, Plant and Equipment.
27 Common classifications of inventories are raw materials and components, work in progress, finished goods, stores and spares, and loose tools. Common classifications of inventories are: (a) Raw materials and components (b) Work-in progress
(c) Finished goods (d) Stock-in-trade (in respect of goods acquired for trading)
(e) Stores and spares
(f) Loose tools
(g) Others (specify nature)”. Para 27 of AS 2 requires disclosure of inventories under different classifications. One residual category has been added to the said paragraph i.e. ‘Others’.
AS 4 Footnote to AS 4 Pursuant to AS 29, Provisions, Contingent Liabilities and Contingent Assets, becoming mandatory in respect of accounting periods commencing on or after 1-4-2004, all paragraphs of this Standard that deal with contingencies (viz. paragraphs 1(a), 2, 3.1, 4 (4.1 to 4.4), 5 (5.1 to 5.6), 6, 7 (7.1 to 7.3), 9.1 (relevant portion), 9.2, 10, 11, 12 and 16) stand withdrawn except to the extent they deal with impairment of assets not covered by other Indian Accounting Standards. For example, impairment of receivables (commonly referred to as the provision for bad and doubtful debts), would continue to be covered by AS 4. All paragraphs of this Standard that deal with contingencies are applicable only to the extent not covered by other Accounting Standards prescribed by the Central Government. For example, the impairment of financial assets such as impairment of receivables (commonly known as provision for bad and doubtful debts) is governed by this Standard. Footnote has been modified.
8.5 There are events which, although they take place after the balance sheet date, are sometimes reflected in the financial statements because of statutory requirements or because of their special nature. Such items include the amount of dividend proposed or declared by the enterprise after the balance sheet date in respect of the period covered by the financial statements There are events which, although they take place after the balance sheet date, are sometimes reflected in the financial statements because of statutory requirements or because of their special nature. For example, if dividends are declared after the balance sheet date but before the financial statements are approved for issue, the dividends are not recognised as a liability at the balance sheet date because no obligation exists at that time unless a statute requires otherwise. Such dividends are disclosed in the notes. No liability for proposed dividends has to be created now. Such proposed dividends are to be disclosed in the notes.
14 Dividends stated to be in respect of the period covered by the financial statements, which are proposed or declared by the enterprise after the balance sheet date but before approval of the financial statements, should be adjusted. If an enterprise declares dividends to shareholders after the balance sheet date, the enterprise should not recognise those dividends as a liability at the balance sheet date unless a statute requires otherwise. Such dividends should be disclosed in notes. No liability for proposed dividends has to be created now. Such proposed dividends are to be disclosed in the notes.
AS 10 All Fixed Assets Property, Plant and Equipment Entire standard has been revised with the title AS 10: ‘Property, Plant and Equipment’.
AS 13 20 The cost of any shares in a cooperative society or a company, the holding of which is directly related to the right to hold the investment property, is added to the carrying amount of the investment property. An investment property is accounted for in accordance with cost model as prescribed in Accounting Standard (AS) 10, Property, Plant and Equipment. The cost of any shares in a co-operative society or a company, the holding of which is directly related to the right to hold the investment property, is added to the carrying amount of the investment property. Accounting of investment property was not stated in this para but now incorporated i.e. at cost model.
30 An enterprise holding investment properties should account for them as long term investments. An enterprise holding investment properties should account for them in accordance with cost model as prescribed in AS 10, Property, Plant and Equipment Accounting of investment property shall now be in accordance with AS 10 i.e. at cost model
AS 14 3(a) Amalgamation means an amalgamation pursuant to the provisions of the Companies Act, 1956 or any other statute which may be applicable to companies. Amalgamation means an amalgamation pursuant to the provisions of the Companies Act, 2013 or any other statute which may be applicable to companies and includes ‘merger’. Definition of Amalgamation has been made broader by specifically including ‘merger’.
18 and 39 39 In such cases the statutory reserves are recorded in the financial statements of the transferee company by a corresponding debit to a suitable account head (e.g., ‘Amalgamation Adjustment Account’) which is disclosed as a part of ‘miscellaneous expenditure’ or other similar category in the balance sheet. When the identity of the statutory reserves is no longer required to be maintained, both the reserves and the aforesaid account are reversed. In such cases the statutory reserves are recorded in the financial statements of the transferee company by a corresponding debit to a suitable account head (e.g., ‘Amalgamation Adjustment Reserve’) which is presented as a separate line item. When the identity of the statutory reserves is no longer required to be maintained, both the reserves and the aforesaid account are reversed. Corresponding debit on account of statutory reserve in case of amalgamation in the nature of purchase is termed as ‘Amalgamation Adjustment Reserve’ and is now to be presented as a separate line item since there is not sub-heading like ‘miscellaneous expenditure’ in Schedule III to the Companies Act, 2013
AS 29 35 (An extract) The amount of a provision should not be discounted to its present value The amount of a provision should not be discounted to its present value except in case of decommissioning, restoration and similar liabilities that are recognised as cost of Property, Plant and Equipment. The discount rate (or rates) should be a pre-tax rate (or rates) that reflect(s) current market assessments of the time value of money and the risks specific to the liability. The discount rate(s) should not reflect risks for which future cash flow estimates have been adjusted. Period in unwinding of discount should be recognised in the statement of profit and loss. Now discounting of provision for decommissioning, restoration and similar liabilities has to be done as per the pre-tax discount rate as mentioned therein.
73 Transitional Provisions All the existing provisions for decommissioning, restoration and similar liabilities (see paragraph 35) should be discounted prospectively, with the corresponding effect to the related item of property, plant and equipment. Discounting of above existing provisions and similar liabilities should be prospectively, with the corresponding effect to the related item of property, plant and equipment.
Examination
The Ministry of Corporate Affairs (MCA) has notified Companies (Accounting Standards) Amendment
Rules, 2016 (G.S.R. 364(E) dated 30.03.2016) [These rules have come into force on the date of their publication in the Official Gazette (ie. 30 March 2016) (Link:http://mca.gov.in/Ministry/pdf/Notification_30032016.pdf)]
MCA has omitted AS 6, Depreciation Accounting and
amended the following Accounting Standards issued under Companies (Accounting Standards) Rules,
2006:
i. AS 2, Valuation of Inventories
ii. AS 4, Contingencies and Events Occurring After the Balance Sheet Date
iii. AS 10, Property, Plant and Equipment
iv. AS 13, Accounting for Investments
v. AS 14, Accounting for Amalgamations
vi. AS 21, Consolidated Financial Statements (AS 21 is not covered at Intermediate level)
vii. AS 29, Provisions, Contingent Liabilities and Contingent Assets
It may be noted that these amendments are applicable for May, 2017 Examination.
Paper 1 Accounting at Intermediate Level
The revisions in AS 2, AS 10, AS 13 and AS 14 are relevant for Students appearing for Paper 1
“Accounting” in May, 2017 Examinations. Those students who have July 2015 Edition of Paper 1
“Accounting” are advised to ignore Para 2.4.4 on Deprecation Accounting and Para 2.4.7 on
Accounting for Fixed Assets because AS 6 ‘Deprecation Accounting’ And AS 10 ‘Accounting for Fixed
Assets’ have been withdrawn after issuance of AS 10 ‘Property, Plant and Equipment’. The students
are also advised to ignore the questions numbered 21 to 33 (based on AS 6) and 46 to 55 (based on
AS 10) given in April, 2016 Edition of Practice Manual. They are also suggested to refer the
Supplementary material on AS 10, Property, Plant and Equipment uploaded on the link
http://resource.cdn.icai.org/44440bos34351.PDF along with the RTP for May, 2017 Examination.
Paper 5 Advanced Accounting at Intermediate level
The revisions in AS 4, AS 14 and AS 29 are applicable for Students appearing for Paper 5 “Advanced
Accounting” in May, 2017 Examinations. Those students who have July 2015 Edition of Paper 5
Advanced Accounting are advised to refer the RTP for May, 2017 Examination.
For easy reference of students, the changes in the above-mentioned Accounting Standards are tabularized as follows:
Name of the standard Para no. As per the Companies (Accounting Standards) Rules, 2006 As per the Companies (Accounting Standards) Amendment Rules, 2016 Implications
AS 2 4 (an extract) Inventories do not include machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular; such machinery spares are accounted for in accordance with Accounting Standard (AS) 10, Accounting for Fixed Assets. Inventories do not include spare parts, servicing equipment and standby equipment which meet the definition of property, plant and equipment as per AS 10, Property, Plant and Equipment. Such items are accounted for in accordance with Accounting Standard (AS) 10, Property, Plant and Equipment. Now, inventories also do not include servicing equipment and standby equipment other than spare parts if they meet the definition of property, plant and equipment as per AS 10, Property, Plant and Equipment.
27 Common classifications of inventories are raw materials and components, work in progress, finished goods, stores and spares, and loose tools. Common classifications of inventories are: (a) Raw materials and components (b) Work-in progress
(c) Finished goods (d) Stock-in-trade (in respect of goods acquired for trading)
(e) Stores and spares
(f) Loose tools
(g) Others (specify nature)”. Para 27 of AS 2 requires disclosure of inventories under different classifications. One residual category has been added to the said paragraph i.e. ‘Others’.
AS 4 Footnote to AS 4 Pursuant to AS 29, Provisions, Contingent Liabilities and Contingent Assets, becoming mandatory in respect of accounting periods commencing on or after 1-4-2004, all paragraphs of this Standard that deal with contingencies (viz. paragraphs 1(a), 2, 3.1, 4 (4.1 to 4.4), 5 (5.1 to 5.6), 6, 7 (7.1 to 7.3), 9.1 (relevant portion), 9.2, 10, 11, 12 and 16) stand withdrawn except to the extent they deal with impairment of assets not covered by other Indian Accounting Standards. For example, impairment of receivables (commonly referred to as the provision for bad and doubtful debts), would continue to be covered by AS 4. All paragraphs of this Standard that deal with contingencies are applicable only to the extent not covered by other Accounting Standards prescribed by the Central Government. For example, the impairment of financial assets such as impairment of receivables (commonly known as provision for bad and doubtful debts) is governed by this Standard. Footnote has been modified.
8.5 There are events which, although they take place after the balance sheet date, are sometimes reflected in the financial statements because of statutory requirements or because of their special nature. Such items include the amount of dividend proposed or declared by the enterprise after the balance sheet date in respect of the period covered by the financial statements There are events which, although they take place after the balance sheet date, are sometimes reflected in the financial statements because of statutory requirements or because of their special nature. For example, if dividends are declared after the balance sheet date but before the financial statements are approved for issue, the dividends are not recognised as a liability at the balance sheet date because no obligation exists at that time unless a statute requires otherwise. Such dividends are disclosed in the notes. No liability for proposed dividends has to be created now. Such proposed dividends are to be disclosed in the notes.
14 Dividends stated to be in respect of the period covered by the financial statements, which are proposed or declared by the enterprise after the balance sheet date but before approval of the financial statements, should be adjusted. If an enterprise declares dividends to shareholders after the balance sheet date, the enterprise should not recognise those dividends as a liability at the balance sheet date unless a statute requires otherwise. Such dividends should be disclosed in notes. No liability for proposed dividends has to be created now. Such proposed dividends are to be disclosed in the notes.
AS 10 All Fixed Assets Property, Plant and Equipment Entire standard has been revised with the title AS 10: ‘Property, Plant and Equipment’.
AS 13 20 The cost of any shares in a cooperative society or a company, the holding of which is directly related to the right to hold the investment property, is added to the carrying amount of the investment property. An investment property is accounted for in accordance with cost model as prescribed in Accounting Standard (AS) 10, Property, Plant and Equipment. The cost of any shares in a co-operative society or a company, the holding of which is directly related to the right to hold the investment property, is added to the carrying amount of the investment property. Accounting of investment property was not stated in this para but now incorporated i.e. at cost model.
30 An enterprise holding investment properties should account for them as long term investments. An enterprise holding investment properties should account for them in accordance with cost model as prescribed in AS 10, Property, Plant and Equipment Accounting of investment property shall now be in accordance with AS 10 i.e. at cost model
AS 14 3(a) Amalgamation means an amalgamation pursuant to the provisions of the Companies Act, 1956 or any other statute which may be applicable to companies. Amalgamation means an amalgamation pursuant to the provisions of the Companies Act, 2013 or any other statute which may be applicable to companies and includes ‘merger’. Definition of Amalgamation has been made broader by specifically including ‘merger’.
18 and 39 39 In such cases the statutory reserves are recorded in the financial statements of the transferee company by a corresponding debit to a suitable account head (e.g., ‘Amalgamation Adjustment Account’) which is disclosed as a part of ‘miscellaneous expenditure’ or other similar category in the balance sheet. When the identity of the statutory reserves is no longer required to be maintained, both the reserves and the aforesaid account are reversed. In such cases the statutory reserves are recorded in the financial statements of the transferee company by a corresponding debit to a suitable account head (e.g., ‘Amalgamation Adjustment Reserve’) which is presented as a separate line item. When the identity of the statutory reserves is no longer required to be maintained, both the reserves and the aforesaid account are reversed. Corresponding debit on account of statutory reserve in case of amalgamation in the nature of purchase is termed as ‘Amalgamation Adjustment Reserve’ and is now to be presented as a separate line item since there is not sub-heading like ‘miscellaneous expenditure’ in Schedule III to the Companies Act, 2013
AS 29 35 (An extract) The amount of a provision should not be discounted to its present value The amount of a provision should not be discounted to its present value except in case of decommissioning, restoration and similar liabilities that are recognised as cost of Property, Plant and Equipment. The discount rate (or rates) should be a pre-tax rate (or rates) that reflect(s) current market assessments of the time value of money and the risks specific to the liability. The discount rate(s) should not reflect risks for which future cash flow estimates have been adjusted. Period in unwinding of discount should be recognised in the statement of profit and loss. Now discounting of provision for decommissioning, restoration and similar liabilities has to be done as per the pre-tax discount rate as mentioned therein.
73 Transitional Provisions All the existing provisions for decommissioning, restoration and similar liabilities (see paragraph 35) should be discounted prospectively, with the corresponding effect to the related item of property, plant and equipment. Discounting of above existing provisions and similar liabilities should be prospectively, with the corresponding effect to the related item of property, plant and equipment.
03 February 2017
is GST applicable in May 2017 exams??
03 February 2017
GST is not applicable for May 2017 Examination.
03 February 2017
so it means that the old course of 2014 will be applicable with some amendments?
03 February 2017
Have the latest material, as 2014 books would be too old and you don't have time to do reconciliation between 2014 book and amendments.
05 February 2017
StraightForward Reply-------> Buy Latest Amended Books For TAX , LAW , AUDIT & ACCOUNTS..... Rest for other subjects read old books alongwith latest ICAI RTP & COMPILERS.
Go for One Group Only & clear it.
Go for One Group Only & clear it.
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- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
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