solutions of financial reporting & sfm

This query is : Resolved

Guest

Guest (Querist)

20 May 2011 hi everybody
I HAVE NOTIFIED THAT THE ANSWERS GIVEN BY DIFFERENT AUTHORS AND ANSWERS GIVEN BY INSTITUTE VARY PARTICULARLY IN CASE OF CONSOLIDATION AND AMALGAMATION
MOREOVER SAME THING I HAVE FOUND IN CASE SFM SOLUTIONS
CAN ANYONE GUIDE ME THAT SOLUTIONS OF GIVEN BY DIFFERENT AUTHORS AND ANSWERS GIVEN BY INSTITUTE ARE BOTH CORRECT

Pankaj

Pankaj (Expert)
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20 May 2011
Sadly, the situation is like this.

Mute point is that if not all information is given elaborately in question, there is scope for assumption and thereafter the author solves such problem by assuming something and he is correct for such way.

For example, it is given that a machine was purchased during 2010-11. Depreciation rate is 10%.

Now, some will assume that it was purchased on 01/04/2010, some will assume that it was purchased on 01/10/2010. WDV will change with the assumption.

Try to look whose assumption was most reasonable and solve problem in that way after giving a note on the assumptions taken.

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