Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Suggested Hints to CA Final Advanced Auditing Paper

Kamal Garg (CA) (1630 Points)

13 November 2010

Dear All

For Old Syllabus please click at:

https://auditingforcafinal.blogspot.com/2010/11/suggested-hints-to-ca-final-advanced_13.html

For New Syllabus please click at:

https://auditingforcafinal.blogspot.com/2010/11/suggested-hints-to-ca-final-advanced.html

All the Best

Kamal Garg

Reply
Follow
Share

4 Replies

George (Chartered Accountant) (649 Points)
Replied 13 November 2010

Thanks a lot sir........

Upgrade to CAclubindia Pro. Subscribe Now!

Avinash B (.) (79 Points)
Replied 14 November 2010

Sir can question No. 1(b) of New Course be answered with reference to following Guidance Note to AS 9 :

Guidance Note on
Recognition of Revenue by Real Estate Developers

3. The real estate sales take place in a variety of ways and may be subject to different terms and conditions as specified in the agreement for sale. Accordingly, the point of time at which all significant risks and rewards of ownership can be considered as transferred, is required to be determined on the basis of the terms and conditions of the agreement for sale. In case of real estate sales, the events, such as, transfer of legal title to the buyer or giving possession of real estate to the buyer under an agreement for sale, usually, provide an evidence to the effect that all significant risks and rewards of ownership have been transferred to the buyer. It may, however, be noted that in case of real estate sales, the seller usually enters into an agreement for sale with the buyer at initial stages of construction. This agreement for sale is also considered to have the effect of transferring all significant risks and rewards of ownership to the buyer provided the agreement is legally enforceable and subject to the satisfaction of all the following conditions which signify transferring of significant risks and rewards even though the legal title is not transferred or the possession of the real estate is not given to the buyer: (a) The significant risks related to the real estate have been transferred to the buyer; in case of real estate sales, price risk is generally considered to be one of the most significant risks. (b) The buyer has a legal right to sell or transfer his interest in the property, without any condition or subject to only such conditions which do not materially affect his right to benefits in the property. 4. Once the seller has transferred all the significant risks and rewards of ownership to the buyer and other conditions for recognition of revenue specified in paragraphs 10 and 11 of AS 9 are satisfied, any further acts on the real estate performed by the seller are, in substance, performed on behalf of the buyer in the manner similar to a contractor. Accordingly, in case the seller is obliged to perform any substantial acts after the transfer of all significant risks and rewards of ownership, revenue is recognised by applying the percentage of completion method in the manner explained in AS 7, Construction Contracts.

Kamal Garg (CA) (1630 Points)
Replied 15 November 2010

Yes, it can be answered with reference to the Guidance Note but alongwith cross reference to AS 7

Coolanna (CA Job) (67 Points)
Replied 22 November 2010

Sir,

HOW A 8 MARK QUESTION LIKE BUY BACK IN OLD COURSE WILL BE SUBJECT TO STEP MARKING?

Join CCI Pro

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

CCI Pro

Trending Online Classes

Certification Course on GST Invoice Management System (IMS)

CA Pratibha Goyal

Enroll Now

28 November 2024
Certificate course on Income Taxation of Indians in the US

Saniya Mushrif

Enroll Now

30 November 2024
Basics of UAE Corporate Tax and VAT(With Recording)

CA Mohd Asim

Enroll Now

07 December 2024

view all classess

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads

Recent Posts

Unreplied Threads

Settings