Taxmann's Students' Guide To Ind ASs [Converged IFRSs] by Taxmann

About the Authors Dr. D.S. Rawat was a Chartered Accountant, taught/guided the C.A. students (PE-II/Final) for 35 years. He has been awarded Ph.D. in IFRS. He was a visiting faculty to ICAI for the courses on Accounting Standards and IFRS and associated with the ICAI in convergence of Indian Accounting Standards with International Financial Reporting Standards (IFRS). He had more than 35 years of practical experience in accounts/ audits of various organizations/companies. He has also authored the books “Students’ Guide to Auditing Standards and Students’ Guide to Accounting Standards” published by the Taxmann. He has been an active participant and speaker in various Seminars and Conferences on Accounting and Finance. CA Pooja Patel, is a young dynamic Chartered Accountant, well equipped with the knowledge of Ind-AS, IFRS, GAAP, etc. is advisor to numerous entities on Indian Accounting Standards. She is actively engaged in guiding the CA Final Students in Surat at CA Ravi Chhawchharia’s Academy Credent Professional Studies and has mentored more than 1200 Chartered Accountants on this subject.

I-5

Contents E G A P

About the Authors

I-5

1 R E T P A H C 

2 R E T P A H C

Introduction of Indian Accounting Standards (Ind AS)



3 R E T P A H C

Framework for the Preparation and Presentation of Financial Statements in accordance with Indian Accounting Standards 17 Presentation of Financial Statements (Ind AS-1)



Inventories (Ind AS-2)



Statement of Cash Flows (Ind AS-7)



Accounting policies, changes in accounting estimates and errors (Ind AS-8) 122



4 R E T P A H C 5 R E T P A H C 6 R E T P A H C

104

7 R E T P A H C

Events after the reporting period (Ind AS-10)



Construction Contracts (Ind AS-11) (Deleted) [Not in CA Final Syllabus] 149



Income taxes (Ind AS-12)

150



Property, plant and equipment (Ind AS-16)

199

8 R E T P A H C



139

9 R E T P A H C

0 1 R E T P A H C

I-7

S T N E T N O C

I-8 E G A P

1 1 R E T P A H C

Leases (Ind AS-17) (Deleted) [Not in CA Final Syllabus]

237



Revenue (Ind AS-18) (Deleted) [Not in CA Final Syllabus]

238



Employee benefits (Ind AS-19)

239



Accounting for Government grants and disclosure of Government assistance (Ind AS-20) 275

2 1 R E T P A H C



3 1 R E T P A H C 4 1 R E T P A H C 5 1 R E T P A H C

The effects of changes in Foreign Exchange Rates (Ind AS-21)

297



Borrowing cost (Ind AS-23)

322



Related party disclosure (Ind AS-24)

341



Separate financial statements (Ind AS-27)

354



Investments in associates and joint ventures (Ind AS-28)

362



Financial reporting in hyperinflationary economies (Ind AS-29) (Deleted) [Not in CA Final Syllabus]

389



Earnings per share (Ind AS-33)

390



Interim financial reporting (Ind AS-34)

417



Impairment of assets (Ind AS-36)

438



Provisions, contingent liabilities and contingent assets (Ind AS-37) 486

6 1 R E T P A H C



7 1 R E T P A H C 8 1 R E T P A H C 9 1 R E T P A H C 0 2 R E T P A H C 1 2 R E T P A H C 2 2 R E T P A H C 3 2 R E T P A H C 4 2 R E T P A H C

S T N E T N O C

I-9

E G A P

5 2 R E T P A H C

Intangible assets (Ind AS-38)

511



Investment property (Ind AS-40)

547



Agriculture (Ind AS-41)

569



First-time adoption of Indian Accounting Standards (Ind AS-101)

579



Share-based payment (Ind AS-102)

602



Business combinations (Ind AS-103)

628



Insurance contracts (Ind AS-104) (Deleted) [Not in CA Final Syllabus]

668



Non-current assets held for sale and discontinued operations (Ind AS-105) 669

6 2 R E T P A H C



7 2 R E T P A H C 8 2 R E T P A H C 9 2 R E T P A H C 0 3 R E T P A H C 1 3 R E T P A H C 2 3 R E T P A H C 3 3 R E T P A H C 

4 3 R E T P A H C

Exploration for and evaluation of mineral resources (Ind AS-106) (Deleted) [Not in CA Final Syllabus]

684-696

Operating segments (Ind AS-108)



Financial instruments: Recognition, presentation and disclosure (Ind AS-32, Ind AS-107 & Ind AS-109) 721

5 3 R E T P A H C



697

6 3 R E T P A H C

Consolidated financial statements (Ind AS-110)

848



Joint arrangements (Ind AS-111)

896



Disclosure of interests in other entities (Ind AS-112)

908

7 3 R E T P A H C



8 3 R E T P A H C

S T N E T N O C

I-10 E G A P

9 3 R E T P A H C

Fair value measurement (Ind AS-113)

916



Regulatory deferral accounts (Ind AS-114) (Deleted) [Not in CA Final Syllabus]

931



Revenue from contracts with customers (Ind AS-115)

932



Leases (Ind AS-116)

0 4 R E T P A H C



1 4 R E T P A H C 2 4 R E T P A H C

1017

SOLVED PAPER : CA FINAL DECEMBER 2021 (NEW SYLLABUS) (SUGGESTED ANSWERS) 1081

SOLVED PAPER : CA FINAL JULY 2021 (NEW SYLLABUS) (SUGGESTED ANSWERS)

OLVED PAPER : CA FINAL JANUARY 2021 (NEW SYLLABUS) (SUGGESTED S ANSWERS) 1138

SOLVED PAPER : CA FINAL NOVEMBER 2020 (SUGGESTED ANSWERS)

SOLVED PAPER : CA FINAL NOVEMBER 2019 (SUGGESTED ANSWERS)

SOLVED PAPER : CA FINAL MAY 2019 (SUGGESTED ANSWERS)

1108

1169 1194 1221

C H A P T E R

FRAMEWORK FOR THE PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS IN ACCORDANCE WITH INDIAN ACCOUNTING STANDARDS

.s. ded s dd ehr r t s r a daaa d d bn d nn n eaa r a dtat t a ess s srg l l Sanga n p i Ae t i f t o drnn u npo ud I e o r c r a ea cd cc hs aa t n t n a hn t aes ce d h i tt r h mo ea wt en hhd ctn s na s i i a otih t pskwks l r r ua o c i nof i sc t nwowc i e p eaepme cnmua p i a nf sr s e o rl fy cwFp en i ec ha eoh h t hs e t Tn d i e sn .r i p e n i r i d bm r le a i e r rtas v r c n e ao e s t on bt e e c e o ddy gen b khe ln rch el i a oit h whntwc t s s ewo i e e e i mc r t dve l anai e v r emvs e o Fh rr mw edop eo f hn hH n tt Tai I

2.1 What is Framework

i.e.,

srI nsege d doAgi h u n n a rt rfCt i i s t a s kI ta,n r e n i dr uedrud n noyo c u on a awbc t ca et t u edcr cs Sf S e gmuAagrAd r nasgenaga s i r nriend t t e n Fi i (t i n n t h n n s gss un u i T t I i a oi os x . x n t .c ct eS eet d i cs c eg i m e rh Ax oAa ht n et gdti net aea rsnnrt n o i i htoet af d u S . c t s s nT fn kod i S l e . x I r c a e k g v r en i oc fr r i a c o t e e A w i d toncfh t e n e w a e n x n t r f nf a eei a rumi t t o e n a o mF d n S i f crn oafi na e tkcFIh cro eF anrAert hsnmoonhof f o i t ecwatk o i h i e h r t nt s d t s rt a i dmn or o oe dott etn aaIbws r e e e s e r d eh F s e ht un a e t t mo a n pcr aer r i h ab enP t t o g e t r s n f r err do pe enktFo i n sf c s srnef i i e o h l e keal ot k rrnihcwt r t n w n o oi esdo i s e a ) wt t0 menw a r a en e asae o 0 r f r moa 0sf psm d d F i p2r or ace a adera r y r y r Fe drhpdF l o t I ne shPunn dA i t an a eJt i h nCt sh nSm Ta So aI ti

: o t s i k r o w e m a r F e h t f o e s o p r u p e h T

2.2 Purpose and Status

ng n oi i t t a n t u n o ec s c e A r p n da ni ad n nI oe i t h a t r a h pi t ew r p e ec hn t a ed i l r r o e dc; ncs r uae ns ti a u sl ht t a n se n t r p e emt cex t na e ot r cso lf ea s hi t cd r tna u ad onn s fia t t fS e o s

TAXMANN®

: h t i w s l a e d k r o w e m a r F e h T

: s n o i t s e u q l a t n e m a d n u f f o s e i r e s a o t s r e w s n a s e d i v o r p k r o w e m a r F e h T

? s t n e m e t a t s ? l r a i o c f n y a e n h fi t e r e r a a t a t a h h W W

m r o o f r n f i s f t o n s e s m e n e l l e u f e e s h t u f e o h t t . e n e n e; c d i n m e m t a e c r n r e u e u t r t s ; e t n s a s d t i en a n t o m e a c m m h l ; t de a s e s nr i t t t cn aa p a i e t t s a s n s t c l im on r e a i e e d t i t i t c m a n n n ct a e a g s a r l ot a l a n a a ct t fi h i es i c p r f cn l a o ,a c e a i n vn e i oc f v t n fi i o i t a a t i t n s c n n i i t e l a p j n fifi e e b u h o d c o qi c t i n e ea eh o h t hm t hw C t u

h t i w s d r a d n a t S g n i t . n n ui o ot ca cl Au m nr ao i d f ni r I e nh i t do et t s h e c r a e t o n r i p ep r a a t ou ho wb ea s n oo ht i t ea dm i r v o of rn pi u

nn oi a i t d a n mI rh oi t f w n i y ei t hm t r go nf i n t e o r c pn ri e d t e n i r a np i e sr t p n s et mn ee t m a d en t s t laa t a ; s i s l c d a ni r ac a nnd fia n na f fi t o S ng si r n di e s et ui nn u ao tt s i nc s oc s a cA u

s t n e m e t a t s l a i c n a n fi r e h t ; e s hd wr a od t n sa a t nS og i n n i i p t on u no ac gc nA i mn ri a o d f n nI i sh r t oi t w i d um ar o tf s i n s o s a c u

t gc ne i j t b n uu os ce ch At nm ar i o d f no I t gt ne i y y l e p v pa ah nt i a sh t t n s; ec d mir p eo a t t d a hn t s t a lit w a S i c g g nnn i al i t na n fie u fdo o nc sic r dA e nn r aa a si pd er d r n paI dn tn s i a af s t s S o a u

S F F O N O I T A T N E S E R P & N O I T A R A P E R P R O F K R O W E M A R F

s g d; n s rt i t a n dn u e nm o ae c t s t c ga a t ns e i l i t vs ; a n d ui tr oc aa n cn r d ca e n an l t a , fi a s t nf fS oo o g i n t rn o a e i i l t t bn u ga mu t en uo r e n c fs o e ec nr hA op tn i e ga t i h a nd t z i i n o cI n u ot d y g mn e b r ri d t a re a hl ot t ge fi sm nr i i s s t r e ae o r bp mu od at s r e gn p c n e no i r i d m p v i t t s a i d oe s n r s r a a pt u

d n a s d r a d n a t S ; gs nd i r t a n d un oa ct cS Ag nn at i i n d nu I o ec r c uA t u n fa i fd o n tI n eg n mi t ps i ox l e ve ef do ew e hi t v ne i r ts s t i i s s n a i u

? r o f y e h t e r a o h W

? l u f e s u m e h t s e k a m t a h W

,esa l l r a h i e i t c c s n r r a e oun m ei r c f i a ml f obeo r cue e lph c l e tr a h u ho ft cs o i n sihr t o rwj n e eh ra om mt eefr h y t i t a w e i t t h s ,n t s es le a i i na t c i ntat s ansn neie i y gt f m ni t ei e htnt r a t . oet y pgs t oe i t n t l i a n t srr i e s e c o s i ne l e pa p h ne pi t rnt i s au Afu k . e o rbs hb odr t a wno n n t eac oo mle t i y a s ai l a r r e e m r t Fta s r vof o eui d hn rhn Ti pwi

2.4 Application

TAXMANN®

18 Para 2.4

2.3 Scope

S T N E M E T A T S L A I C N A N I F F O E V I T C E J B O

,t ,s se s s r r ne oe eh t mmT s e oe. vt t n ns a o i us t i lc t l a a a i ,i t m s cr n r no eo t af t o i nn pd i i f deer nrso acuf ys ee td n d he eaT s r e t e .n c r i prl t n eebe h u dt r p uo e ef l c f hi ndt n i dd san r t i ae n s s h r ee e t i mi : c l f g ep n o n t e p i a e g t ua w s m s o l, rol l i a s e s i o c r h f y net e f adds h nnni t i eate a f l ssd f, t o u snol seetc r e m r n e y e i s nd or s ul r d e oe epv hmo e nn Tegi Lenders

ei d na i mp re e b t l e l i dw o, t mm e eh ht t o st e l g b n ai nh ec ta a t t ha t t ns oe i t r a e t mn ri oe f h n t i nd i n da es , t s n e a r o e l t n r i i e eh . r e t a ru se d r e h dtn nee ehh Lww Suppliers and Other Trade Creditors

l t tl a inn hwae t nd nmin o de e e p i ht t e t s a d. e r mor e rteem r t ogn a f o ni y n t i es i weh u nobt c i osr s t so dt ye enl j la t uen s ok um e r mi a s l e aers t e r n d a r i a e n y s eh ei t r r l t t o a e nn t hi ae sw d r ehe t oer h t i ncdt d o i f ei em ro d r e r c ap n e r o rt Tri e e t hd.ea t e r t u uo o o n dh t i t d sn nmn o a aeer c hhe st w e v r h sdo e t i e i l l y a p n b t pt i pa o un p en Sebeu Customers

, fh o t ei cw nt an ue nm i t e n v ol co v en hi t tm u r oe bt ag nn oo i l t a a me rv oa f h . n y y i t e i nh t i n t t e s n e e eh r h e t t w, n n i yo nl l aa t n eie vcd aen p hs e se p r ,e e y d t mt ie on r t ea s unr Cao

Governments and their agencies

feer o a rnl i i i nu mm oqr i i ee t s r a td coe os dn l l l ,a a s a e e y i ee tm hh i t o t Tn c n. en i s i defl o i et a isn t t e s n i o e t i ei r t v e fi a t o tn n c s i r eeao i e t r f i a hs v t i i st s ea e ct i aa c b nele ehuh g gt et ,r ae s rr oa i ot e f d he rn t e r deda nhrs o t e a, i nc di sn i t l n n o eaop i . mst e s c ncani o r m ru t i s t e r i a o vs o t xa f oe as t n Gr t i

dg n ni ak e ca nm an i ms rr oe f s r u e f po ,e n og i n t i a s r oe pd li a w i c na at o nl fiu ee f hs t tu u s i ot ba ah nt oy i t . t is t a n mno e i rns oa i c f fe n i o d esc dw i i v om o o r fln pho s oa c Tc e

rl yde aya oc g o nn l Fo maa p .l sr s emsd y t e e h nh n at ye et wo em r fth td t e n o en t ea ol ha yi tpttt y s t o u ti e lu i t rbea p i n o i a r fc be t vn o na e aora h cennt n biof l i i mFt a o i .a ct us y i nn rmt l a e b i rr e i t us l oe hp f pb t p pn s euguio hsns r g i t a d p n l i a uc fel e d o k i h co an v t sm ilon r sfri e byyops maaeyt emwgbn a e msyncm n e i . tiaolpe s r t b t i o c ma t ul i en t e f i f npp v e v i a i ,yreet i e d h c e sl m t p e ta oh n i t t tmn s s i ei t i t d a o cf s n xcns eo Ee eaar

Public

. s s ns t s i r i e f e s e dy s n eo t lae s b epot rmtn eeme t e r ni hm i et e r ehsi rtet l f ao e b r , syan ptno e i lh ui i t ob c a rt ah ir gi e f n eowu n r vp i om t i t a da e t nn r m e ear ds y st i e ov ei i f t rl o i i n pb rn i ea u npt rt i or rsdto e e y i p e t ht i p htst e o ttr n uee t dot n nbnee aaihm t o f so y snl o o ei a yp l et t e i yar l m i oma b l e rya p o e d en mf hh nT Ei ta Employees

, hyy h t e c u i i hb . wT h s d d.dwn esl e t u n nn od oi re i ht e v cmsai ntymd oser y ceho a v t f p enr n i r e i o a rh i nt se t y r heii t e d h t t s en , i w y t v s e dbee e adnr i h e em rd t t i n e f i r i o hv e t o t o y e st rd dp l i a nn l i ar meb r lu a e a thae t t i e s h p prt arl e s cde d n s l kaho e s ohs s, i t n r ea i nr ft a o o o n i ht set S a r r m e e .e l dhml r h e i no t v s i f ok s re n rs o i l pr i ddb ee a el hh eo n Tt nhe Investors

Needs Users

2.6 The objective of financial statements

TAXMANN®

Para 2.6 19

2.5 Users and their information needs

t n u o c c a

, n o i t i s o P l a i c n a n i F -

d n a e c n a m r o f r e P l a i c n a n i F -

n o i t i s o p l a i c n a n fi n i s e g n a h C -

g fin i ,t g a nr i e t s p e vO nd i n sas s e g e i n s t i i s c v a i nt oac Tna

y t i l i b a t i f o r p r a l u c i t r a P n I

l o s d n a y t i d y i c u n qe i L v -

t p a d a os t e yg t n i c a ah pc ao Ct -

ssl t sae nenb o e i n t th mei g v di gi dm dt uca e jf hs ce fi d me ce r hry otwuo fu ol h o sp t obi em Tawr e

sh ohd s s ta e ycea tdnc i e l nds i bano hah as st sat scn e z el et ei sa l a sr . ts vi ae i w nuuo oe qo Tg fl et

c u r t s l a i c n ae nr iu Ft -

e osc t wr you t lo i f c s a e phr asg a cc n i t t c ei s i t d x eae r r eme pn s oa oer Tgf b d el e rl o r ct in o mc os e nc or u co Es -

t d f e n e a t aa s i vt sn es e l g i t e d o n r c i sn a e a i t r t te r a t e he co h t nn ns us oe n i do c t n n i a t aa ma l . ) g s ra s i kl ob e s b f v e i n or r h i e t l eds a n h e n ni t ar os l t a i s t u m e i r oc d e e rn b dt aui ai e om ss nh i e es t a r t t ura n u syh oo onc cb. l au c yas s s d( ass i o n d t r l me ae e ysd eyh eun dt u s i hfa l t t e ot cn , fi c nen e s o i l dr e p a yh ep l me at a anf mgb x o ne eet yi h rhn ett t e c h oo en m T Ft f i

tf c eo f m f e r o ef he t h dt nn ai sd t n e ed i mv go er s p ye r b t s o us dl na i dy na am ls a e cc i i. h r n ppo agt i r na g oim egr gno a th f u n oci y bfr aoa y ni t t n ot i e n t a em mel e rhp ot p f nu n os I

TAXMANN®

: y b d e t c e f f A

: n o i t a r e n e g r i e h t f o y t n i a t r e c d n a g n i m i T

s e l u d e h c s y r a t n e m e l p p u s d n a s e t o n n i a t n o c o s l a s t : n n eo i mt ea t m a t r s o lf a n i i c r ne ah nt i o f ed hn Ta

Statement of Cash Flows Statement of Profit and Loss Balance Sheet

Changes in Financial Position Financial Performance Financial Position

u u

S F F O N O I T A T N E S E R P & N O I T A R A P E R P R O F K R O W E M A R F

; s t n e l a v i u q e h s a c d n a h s a c e t a r e n e g o t y t i t n e f o y t i l i b A u

( t n e m e g a n a m f) o . t pi i o h st dd re a t s wu er t t s n ee hs t e fc o r u so t l s u e sr e r e h et hr t o wf oy ht i si l ob Ta : e t a u l a v e o t s r e s u s e l b a n e t a h t n o i t a m r o f n I u

i.e.,

20 Para 2.7

2.7 Financial position, performance and cash flows

2.7-1 Note and supplementary schedule

l a i c n a n fi e h t n i d e. t e r t ol a pe er r y de nh at s dh rc oi ch ew r o gt ns i d t o n i ur oe cp ce ah et hf t o ns i t dn ee dm re ot ca es t r dhe ecb. euod nst e s feo ei h; vc l t sas nhi ro oi yd nt s aai nr m d oe e i pss t t o n n u ese s t t i m n i s i e a f t eo b a het e t sh l ra lt e ci a , hsc o t s i enf e hai nt n, d sl y fin a l a e hi a hs t yr i e t ,s i t s a t t a n s b i emx t n lee ei ha d r t t e e r tu f ef a i hcnd t rr dooa e nn e o o mt i d uat e sdnr i e s u t a a qn p i i sl e i nr oa tt p I

ned vn oi i a t t a a n t mi o i rlt oaa u f t q n n i e s eee hhr t : Tpe e.or ks ta ar s ec met s i a t l tue s i a r hore y t tl t c s l a l a e cr u t i fs a u e h bs a i bc r u t e s t t v a s n i t t e en a t he mi t l mea t ee u a r t t q a s a l stla a s c p i i i c t l c s n a i n i a r i c e n r t nf i p c a r an fu r o i a o sf hfc cnt ie h eisT i vdr i e . t e t t a dc n t i a i e l v r t a a n o ur ho Qp cc

y t i l i b a d n a t s r e d n U

e c n a v e l e R

y t i l a i r e t a M

: n o t n e d n e p e d s i y t i l i b a i l e R

n o i t a t n e s e r p e r l u f h t i a F -

m r o f r e v o e c n a t s b u S -

y t i l a r t u e N -

e c n e d u r P -

s s e n e t e l p m o C -

y t i l i b a r a p m o C

TAXMANN®

r no of i t n p o mi t ua sr s e a p eo hn t i ne ou n di en t r a o pc el r l i pw y l d l a n ma rn or ne c en r o a c sg t n . ne ei r mou g t eau t f a se t i s l yb lt a a i i t e c e nns aee nnr fia o f ete a hh h Tt t u

s i t n e l a v i u q e s t i r o h s a c s a t o n d n a ( r u c c o y e h t ) nd ei ha wp dr eo s d i e n v gi oe cc e er r er e de uh l t c nk i r to o w ne sm e oa dr f 0s 1i . 0hn t 2r r e ne i c pn Bso SAc A.g In n oi ei to hp t g ymf buo dsn s ea o ug i t sn p s i i m y kl u rr s oes wda eng n mui s aa y r l r f se i ls d a an ub t p lu eae cun nro c oc y ca l n e o e hh s Tt i u

t tha o sh na t scs r fe e o c s r utu p i o me s rce oer f rf n do i nd sa i n s a ta bne ler a u. umt e ryu a r c fu cpe t aeh u ehtf htne t gih nnht oisn v a i dlc d eo e v y r nav a i pipe s en oc r t e o pi sr t n sc e t o b n a i est o a n ma gt i et h r ls t b a a toc t s s ft a o lp n a i e fos c s l noa e al r yt p nn ue i F obr u

S T N E M E T A T S L A I C N A N I F F O S C I T S I R E T C A R A H C E V I T A T I L A U Q

: e r a s t n e v e r e h t o d n a s n o i t c a s n a r t f o s t c e f f e e h t , s i s a b s i h t r e d n U u

’

‘

2.9 Qualitative characteristics of financial statements

Para 2.9 21

2.8 Underlying assumptions 2.8-1 Accrual Basis

2.8-2 Going Concern

. r.eeyn y i hteo t a a i t vi f i t t na ,r dns p o neto cm p ane rt r eacpaf o ufnphn a t o ro i t s c f t sh h o aw n c deu c go unms nf ls i aef whh sto os a c t t i i w ha s t w sc e s l i i a sdyr v i a e l c nt r t i na dac c e ea af e r bc r nd i i i r ndaf n c alhna c s e ma ie e e s drd t vl u o i r yf ut t t l a sa o r t t e ni e n r ep l s u,saya e u l l qno d qa odl ei o r t o f i kamt r s p ri eo s or o r c n pw e a ns d i le sa r dn t p i r m n u c a en a e dl y marhn l enFtaa i f t s t r f o i a s e h t et n nge s lh ong t h i i a t gt i f s n a c u i c ut noo i oa l awh p ch nel t pc i iA F v aaw l rca i e i hmc t n oa o dnn o i nc f ae f s o nrs i oet i h t n t c e aom t s ngl e an e r i t d e fr h o ot sc d t ce c eam f s f r e e e s ls t a ae i l c r nca ads nae i os s f r eb a l ho c t t yn d ai a r o t mr r oeb phe s ste t gh n nT ei mp. eus c o t i r a t : t g s s s i t r lye n a bte i c scm a t nn e r ae t a nv a ht i F ecs , s t e s s A -

d n a s e i t i l i b a i L -

. y t i u q E -

. s e s n e p x E -

dk nr ao tw i e f o m ra pr fF o ti s n h et m, yt . el t gn a e n t i s m d fr e o t o sc a t t c n s eas i m;h s t en t l o e e smt t e c e u l ee q l f i tn e e r eu yh e l l sr a a uet sca unh a tl t n s eat b m n n e ei t m s a e e t l g s ne wa o oh n l f c s h e d sn i f a i t can ese s ho d Tl i

y t i t n e e h t y b d e l l o r t n o c e c r u o s e r a

e h t o t w o fl o t d e t c e p x e e r a s t fi e n e b c i m o n o c e e r u t u f h c i h w. y t mi t on re f

d n a s t n e v e t s a p f o t l u s e r a s a

n i e c n a m r o f r e p f o t n e m e r u s a e m : ee hr t a os t s o dl ed t a n l a e r t y fi l o t r c ep r f d i o n d t a sn t e e n em m o me c et n a l I t e s ee hh Tt u

n o i t i s o p l a i c n a n fi f o t n e m e r u s a e m e h t o t d e t a : l e e r r a yt l t e c e eh r i s d e sc t n n a el ma eb l e e h et hn Ti u

s c i t s i r e t c a t r s a o h c c d e n v a i t t a fi t i e l n a e u b q n n e e e e w w t e t e b b e e c c n n a l a l a a B B u

S F F O N O I T A T N E S E R P & N O I T A R A P E R P R O F K R O W E M A R F

s s e n i l e m i T u

TAXMANN®

22 Para 2.11

2.9-1 Constraints on relevant and reliable information

2.10 True and fair view

2.11 The elements of financial statements

2.11-1 Asset

y t i t n e e h t f o n o i t a g i l b o t n e s e r p a

t s e r e t n i l a u d i s e r e h t

g n i c n a l a B e h t o t s t n u o m a t i t e e h S e c n a l a B n i s m e t i r e h t o f o s m r e t n i d. er e nu i f g e i DF u

f o s e s a e d r o c i e r d e p r g o n s i t t e n s u s o a c c f a o s e t h n t e g m n e i r c u n d a s h t n fi e e n r e o b s c w i m o o fl n n o i c f e o n m i s rs o e e f s i t a e i l e h i r t b c a nl n i i i

i r t n o c) s oe t r a gh ns i t a w l e e r n ee s s oa hh t c nr au hp t o rt e h t o ( s yt t i n u a qp ec i ni t i r sa e p s y a et i r u c q ne i nm i o tr l f u ss e n r o i tt a u hb t u

er e mh ot ( cos nns I o il . r t d e eo ed t hu i f Sc lo enr cip nen aba l h a yt Ba r e emh hyt t a er hy nt i t i shu mgq u eo e t i n hi fty o nl t ec sv e me r r,i e s d t nr i o na i ge ddm en o na ) c i s f enu e uip l dn e vr ses i u vis sene i r e h hu se t e n re ,d n pv u i me l a c gn or Ai ca

a i l f o s e d c o n i r e e r p r u g c n n i t i n r u o o s c t c e a s s e a h f t o g s n n i r o u t i d e l s p t e fi e d n r e o b s c w i m o o fl n t o u c o e f n o i m s r e o s f a s e ei e r ht c t i l e ni d i b

o t g n i t a l e r e s o h t n a h t r e h t o y t . i s t u n qa ep i nc i i t sr ea sp ay et ri cu eq de o nt i s tn l o u i st eu b ri r tt a s hi td

s e i t i l i b a i l s t i l l a g n i t c u d e d r e t f a u

y t i t n e e h t f o s t e s s a e h t n i u

y t i t n e e h t m o r f w o fl t u o n . as t n fi i te l n u e sb e r c oi t m do en t o c ec pe xg en i sy i hd co i b h wm e fs o e tc n r eu mo s ee l t r t e f So u

s t n e v e t s a p m o r f g n i s i r a u

S T N E M E T A T S L A I C N A N I F F O S T N E M E L E

c ei sc y m ero kun o so le a c r e ca i s e s y r i he u pc t u hr t of i f e wk h rt ,o e l r we p mdv aeo l l xl i o ek r rs t oA n f o ( .c e) . s tt uwn e a s es tl i c f c a i o i r f t n tf s a r e uus s r o oc ea t t vi eaae l nhi b s aio n etg gl n nb o i lc al e e ei bc r srwo noyt t afi t ent i f meno e s lt t o h nf i rg ae t i n r tn oru e Co bb u

‘

’

TAXMANN®

”

“

e.g.,

Para 2.11 23

2.11-2 Liability

2.11-3 Equity

2.11-4 Income

e.g.,

2.11-5 Expenses

tdf n o enn mao i ett n t i en a t i mf s ree old tee e enh hat sft s eoe cne no m ai l tt a i a n bi h ee f t hd t m nee i t ghi ntn i sA t t a e r .: oenf pmoi i r t d oti e cani s g ho nt n i f g co o ec mr se s tre e cior onfe raab p i d r s l es e u t ho i o t l r sdc h i s nnet oahn i t tte i i s n m f e gof i e ors l cpt ie efa n Ro sa

tme a h hot t rh f et c l l i b u h as w be ort rl la pi t swn i s u t t fi . oy i l nemb en a heal i ee wbh ctr ti d e emde r honu snas eona cco e nei t m g an a l e a igb i l byb d n eo oa hb tc t nmne e i e c s a dsel eerp c p s i r e n a u k go f a os o t ce l erti l r fnw e som i t n ywee t iol tm fl l t i t e b u e s l ao t i e t l nh e Aat s

thd nee ndi h e e c or t ua stms i tee t l r e i d e e t nr r or iea I l po f .o o iman ryb i a o y r prl n i i e a o t o i t yt i i n l t nsmr l i a ea cgn uvds og qnennco o o e s eii c i i r t t e i erna r r o n r g gg os f a oi f l l o i cb se te ya a ocf t hi ln tr ei t i thrae l e c u o si s b t uh e n q c t a s i ai y t y,da ll i r l r t l e , i e a m e n b d v i olre a , v i s cpew l n oe f rme orco a e dxgHpnn , a nee.d t o urrs nsi t soatami nf)nsun g e o(dei co i r demt . t c v i ei s e a l c i e t i e gme r a b s r i c t l , a a n r es s b l i o e l r e u of lf p ccx rta ,e o n i i e e t c ae r cpyn na t i r n t o t a pso i c t auoni s emt u r y n fin e pl t fih c s t e e r uh en s t i na bt di a c I

.n si cd a i oe hmi rs eoe n r n e uopp t cgx i e ne d i ntt ea nn ph a xtuf e oo c e nlcn b a ea o i t hb t n i woe n rr tp g ro e e uc hmce sier edh e cet r h ne dt adn n l ioi a s bnys t l . eoeu s hcbs s t ye o st nii rl t t i d nn dino e h a ec i t s t iec i h h fi n ao t gwo s r o t n p r co a ef r f wt r o t oat d fl o el n he nr l c i r su wum i e tcsst e ntda s i fia t s nees a t n e e s ne en h AbbI t

ts a a hh t t ee l s b s aa be oh rt pd sn i ta i y nt i et hn . wey eb l th e a etl i hoe str ewd c e o n flr al u l l s ia a bwe sm et h fi t e eb nn i en dba ecc s it i ma n g h oot cne eou c r l ea se v i r tro u e t s t u s s fo a ec nh At a u

e h . t y t h i l t i i b w a i l d e e r t a h i t c i o w s s d a e r t fi u e s a n e e b m c e i d mn b n oa a n; c oy t t i ct a en h ee t r e e uh u t t a l u fm v yo r nr o af t r s to o a ho c t t a ew s l b o a a fl h bl m ol e ri t pw i sm e i e h ti t T I u

S F F O N O I T A T N E S E R P & N O I T A R A P E R P R O F K R O W E M A R F

-en gs ba ne i s n t y s r ooao plmi t ee c r dei f l ume a l i . c ody c nnsni t i as ou hi ne gt q i suae f fnol un o eh i a wptv y l exset E s i r c v oa .l e ds r eSr i t Ao d n r t o edi ( i nfe) r o oIr s mu tgpop l n e cr einn hdii u n d s Sa e e eti v d z i csn e r s t ne r gno ad oep l n a che e Buer r orp st y e l e s nlbmu a o i lc ftl o n i e i rv dewe e kmhh rac tr od iop wn h na e i w u h t mffdi ew so ai dt r t f s ue l eisc h o s ht s na T-mi u

’

‘

TAXMANN®

24 Para 2.12

e.g.,

2.12 Recognition of the elements of financial statements

2.12-1 Recognition of assets

2.12-2 Recognition of Liabilities

nn i a sf s oo l n do ni t ai. n s tge fi o s oc i r re a pr y fet o hn tta t n r u r eo a mh w et i t t wc a t u s dd eo er hr r t up nca i nr die esd i s n i y n t u i gl i y ob t ca i l el i i r b a oai s nl le a a hn sw i e esh s ew ns eas pca xet , es e os s nh At a

sfe deefre e g t. d,s lsdc sh, i i l i fi o o e a r c t hmnt ha e nd i nna s e i t a aee noriw dm edn t o h w r n a u i bg oa, l n o s n d n t c d twc p e l a y ua l i a en ddo urf fi en s rllo dt r ee ooo hr oro tb oe ootps no c c e o . c t t p c r . i m t g y r a , e e e s s o a t s h e p c l e s r y ne e r r i a , e h d d n r u t d a f e i r i e . oe i f xotctt i t eod fi p aepctf a n n l l h o o m e i sh r e ea n o a eteg x t o l ser ste s s trn nus lr ooii rrmns e c o h od e b m e s n e u e r b off a r i qa as su l f t cr e a v t g i pi bt t i dnel o eeaasi efo nml n h t ; m d e o d e c naru t c e u b s r s i s r d s i t e s e na t s em adymt o h qn i o r y e cwe t o v l s l n n c e te e f l l iae i eon n a oa ha cr s v t e, fi o s n t prim todt p t oro hveea t n s l s u p se x n x rrmete d ne oona m h u d ot s s e h s o i e n pc neaeno s n e c fih rt s i t e e l m a o d t a i i e o e e fi no pm o hees s i ep r r i sn i cet o hn hu ht c tene f a e h e s , n t t scv tt eo go go oeiatytape irec c n r f b u n l p t c , s o m r t n g o g n y o r ess o n t e g x r n c d o a c l l i s o n d e o n u s ve l a i ok i on mc e i e i net i a s t l fm ecc pa nd a eeci t saeori n asoc t a n i o m e e e t h c i n o n i m rhs cn h , n t ue d nob a t h rs fi e i r i oes t a ai t e t pe e phetgpceot esnh s o i h c o t a t r s a i wd xi csuTce mect ensusc l c e a a c m e e n w i n s e e p a s he oe e .ae h eep n ser eus mue l t h n n h n i l w e m d e p t T r v n nt e nxiaat aossnciohh iorn e i t a u i . u d ; y t i i t t t n t r s o s t t s s a deervre eo e e h e p t i n a u s t t e b m h e t f e h n e fi i pfy kzi t s r r r i f i i i o e e n t m s o c t t o e s x m a i n s , i t oc noessearew nra n e wfmsar g g u o i t o m s i s e t s s s t n e d ga o t h , a o o s n s s e i sns i emne d t oi c a cd a eevdo ba t f cc o e s enhe n c ebc daet e tr e n k p a f e n o i a n eo ot r hotwro ih enor xi ree i r i c s o c m d r s t o p t t mh ptoeo i ess ntpa o n x f o x m a g r d rte f mm Hwh n udnes ee e, o n s d a s c e eooo . e n s tt t i i a y nef c gc oes i ontof t se g n a n a c m i r h d e c s e nef son ags eehl i i i s t o a d s e c s r w r s i i t s h p n c o s t r u d a s y o n i fih l o fi oi no yl x t ece t e unr oggFe u edicdt l ewd e o s e i i t pacten q s d s n i p h r r r e t e c c e e a n i s i xfp e no eo a no e a i h ehh enhhp o Eo dt b Al vr at smbj tts WpraTt u

at. i n y e e nslne b a esa s t hal i a l e u wne r a r mc sndi e s sd i e oe r l sa r s u da sur ne a c o ar ec s c o te m e fi i s t odee i l r bs i pan nb o a ft ael i o dcpn x tete i t n a f a e el h o s t me a e ernnr o t t e i fi a c s t i t i er n s n i n a gn ees oa hba cf t c e o nihr y i m t n t a d i o o l h eni i t b t s i oa i , n c n t i g c gel o o aec e f cr fe f e euo r r t ne ei u ef s h r ,t a s a ne sirnh t a c e e ei s n s . naimws y t een l e prass i c s xe h us rT Edo oa u

S F F O S T N E M E L E F O N O I T I N G O C E R

f f, no to i c eeen f s s o f a a i e t ee i r rnn c c ig ne ,o i dsc n ne a eae r r ho e mh wt aest i s h ss h t s i oaTw n . l y dal y nnb l s au aii tel o s i e f a e r . o s e n rr d e ai pc e t t l r i fi nu l u i o b tnsma n aaii l eoes s n mtmr i edeu s t e bce a t cs t a no s a l e eea r hrcec m s t t t e a i o nf d hc i r detno n i n ee f e s s bs i o t i n cr e ns gi s omaoa i s coa t i en n hni r so gs y c o i e t cs eei le ei a mr r b e ou atr i a ct c l ua nf hn I t i u

TAXMANN®

Para 2.12 25

2.12-3 Recognition of Income

2.12-4 Recognition of Expenses

te n d eu r l e c f n f i i d y e oh t T ds . et yn oe l p m e mt ea t es r l a a i c sn e a s a n i bf n ti n s en mo et i r a un si a b em mo tc n g en r i e y f r f a i d v n: fi g o dn rni e aw bs o l me l o ef ur ng e eh Adt

h c i h wd . te a g tn n a uh oc mx ae ee hb t d tl a u do ec i r y r e a h Ct h c i h wd . te a g tn n a uh oc mx ae ee hb t d tl a u do ec i r y r e a h Ct

l ggtu nnaf i i e ts e d nu rbe ot cs me co er ac ro Slum a ss Ac ae i ed dr o nt mv i I s o i rh tr e n dtep naui t uyqe les db su ea ba s i uc r ua Se ev.b ne) bi ysv6 i 1 ai t mncS . e e oj Av ei b t i s i dt on e n c hg e t odIj fcn b o ea u r (s hl ed e l ca r eo at ibt atm ei i i n l ,I e mt e vs i .rre oe ;eb bc p y l an ssa , daain eteno s t i myot a i l t cue a a i v c m d u i r l ni r t a i o ca v l f soe en At rr i

e.g.

TAXMANN®

, sree s s e y t t s f do l n s r efmpne i u t e omul a o ces oas c v og ami l oa rnnxau t m paieeq dr hrrhei o t fcof ao ox,( thpn a s e e t ns,aeh o ) e t b c nni s c n e uitn . s xrois t y o aa o g a t t e i t i d mdl l s e n h i e i avbmes b t s o i ma c a u u i e c l ee c o b c pe e c rn he fxh f hi Tr oet o tci

-e tdee s s hr et i nt d u eceo trel c nupt etxtl sueea efesm reror phat o t t n a efh de hot e e h tu s r t i tlwun. s a o a qi s l v ese f n ddtre i eeu is t o t e i i u l n r i hbb b r us ao af aoi Cc ct lo -eme s r h i et ut d t . i ns s tu i nfee e n e ht i seta s t eha ru rth e pft nb o ef e sgo hewoe u o s tl l r ftu a tv d n a i eo t c ddhcl eesea a t i cpm n r x r ute r ao eso Cc ni n

Fair value

. tdhens ne s sbie et s a n mncoei i u ti t s eo u l r l c i t odb b s t e i e af d t i sn o hc l s e e es rua ph i ecx r e tu h ht eyo ts ,f f c iossl tt i t a a nta a s ht es m l dt r e;naoo s u t v i e n r i o d u r u i e almq a h Ca ept v a . hdga l slns u i a l o l coe p fcs s o t yi a th bd n y l utdr e s ot e nd n i me a r al t o eabn v o hi ea t u n tqbi a y e t l e t dhn s ese s i ara r cr r e a ruh Co ct

Present value

dhen esbi o t a t n a dg ucl i oru l co b o s i wo d e nh h t s t ua ae l echt t h te t f s s tot o n a y tetl t dnldn e a euv r i i e oiu r r u r r qu amqe Caer c hdnd l su e ar a fi coo u fweq o t c tama a n h s s ute a s w ot h t mn f t ei al e ai ds s ev hi a a t tupt. q e n a y eb l et l dhoa n es t e vr i ae r i c r v u r a aqu rh Co ec Realizable (settlement) value

Liabilities hrnf sieo a a v e im cfg eni rh t ot oe i h th srat r o a e t cdd a . i n fis a o nmi o p e oh t tsc i n ti s ute u onheq r t e i f ml c u a o a q av ec r i ua i eu l e hq a h ot Tev t

Current cost

S F F O N O I T A T N E S E R P & N O I T A R A P E R P R O F K R O W E M A R F

hd ci e i r h r wa tc a d sn t n a ud oe z mi an g yo r a cs . t es e o nrl oed mbn o a et hei t t f gro a n r s i p t n n i f meo rmn t e e t t e e a m dt e fst l o a a sc i t s s e nd ca n on ri a pf t eee he ht t h sfs i oe t n sc et n a mnl e ema r b ee ul se h a eet hn Mt i Historical cost

Assets

26 Para 2.13

2.13 Measurement of the elements of financial statements

E C N A N E T N I A M L A T I P A C & L A T I P A C F O S T P E C N O C

f o y t i c a p a c . ey va i d t c r ue dp ot ru pp t eu ho t sf a o s dt ei dn ru a , gl e ep r sm i a lx a e t i r p o af C, n o d e s a b y t i t n e e h t . e c n a n e t n i a m l a t i p a c f o s t p e c n o c e h t o t e s i r e v i g s t p e c n o c o w t e s e h T

lse, a dhm i et c o nefr acof nx s g n fie n o edit i n o hr i n u t i b e g fp i er i t yebn l heo n t hc of t dotd edan nnsa t re , e o a s e t eh s s a st n i to te ta i fi n t os u t f re b o Ps s i tt r n a s ui to d e nmy . eand h)ao t y i g r fe ne o ni p tod n ue umlh orct x g moe ( n alri a r e )i t u y c f d en a na s ,r on d e on m fii rw ee rh ot po ( leefs a hhon ct t o i gi s t yrfnu o i o h( n b d py nr i ni t e t gn ei eo ht eb t nh fetec i t d yeahn h l )ta t t n y a t ofi , o o yt d ct e)ais c p y nt aan ri cpi o l ai at tc eba u sah b p e i t i v r taet i c t fi vci s ogi eu rn hdd. Pt i coyd a n ar o ro pai e r ptlge oda p n c i i e res d ody t h u e ( l ehc g ynpx t n seei i c h r ru adt n e pu d st af df s cr ear e,e eoc dn ve sx ow i i t cer c o urde, duopm o i os r eo e re hf r pr pt Physical capital maintenance:

Financial capital maintenance:

h t i w s u o m y n o n y s s i ) d e t s e v n i y e. ny t oi t mn e e (h lt a f t o i p y ai t Cu q e r o s t e s s a t e n e h t Financial Concept u

Physical Concept -

i.e.,

r se, ta t cn i l n n eu ua c nmt i yeer r r t a u n a p i t s a e a y nme n ol ma ma r fo t i o lp f a l s a l nc i a i s c mlat a b oc o i ns e n hs y rh t e e s o hPa t . d i r e d e e ec nwt n i pa o dpon d ega e r t n n ui ei ss a a abm eh t s mr co l a t euci bptp n . as te nn cs i r aa la r a cs t ui b cc sn t t otnn p ecaae cfhnm n o t fie s s ose r t au ci r e i s n r hu u a e t qh e o re Bo rwm

TAXMANN®

Para 2.14 27

2.14 Concepts of capital and capital maintenance 2.14-1 Capital

’

2.14-2 Concepts of capital maintenance and the determination of profit

Historical cost accounting uses financial capital maintenance in money terms.

S F F O N O I T A T N E S E R P & N O I T A R A P E R P R O F K R O W E M A R F

S U T A T S D N A E S O P R U P u

ILLUSTRATIONS

? t i r o f t e s s a n a s i A y t i t n e y b d l e h t n e m t s e v n i e h t r e h t e h W

TAXMANN®

S C EI VT IS TI AR TE IT LC AA UR QA H C

Understandability u

Comparability u

Relevance u

reliability

F S OLT SAN TIE C NN M EA E MNT EIA LFT E S

L A T IE FP C OAN SCA T N PDE ENT CAN NLI AA OT CI M P A C

gAg. n nB y i i t d d y i l l to t o i t hnhn e re ydo bnf o aet B, s seg yn f t en i oe t i o s n l te i s ec reub r odt s t f t n enae n eer t m m s t utas e s re l e t l v i svw n n a i i Ae tl l c h yt aat s i oe t m t n o tkEr a n . f ems ) m ns B o s eyi o t gt l c ( ni t u / an ri t r Et f r s .n o a f r li la p a ghsr eeBo l bys a t s d i o t n B n t e n ed y i t ov i it st r i n gd e en t y n nin d eo rA so Ae . cs yr e t acr i t aa h t n sc h Eda s el le t ih s i wt l

’

Q1:

E VLS IAT TI CCN ENE JAM BNE OIT F A EFT HO S T

GS NN IO YI LT RP EM DU S NS UA

Principal qualitative characteristics Going Concern

Asset Liability Equity Income Expense u

Financial position, performance & changes Accrual basis

u u

Purpose Scope Application Users & their information needs u

Capital

Capital maintenance and determination of profit

Overview of Framework

S N O I T A R T S U L L I

si ceo i ed tms t i s houe gnrr uota ocah hess d e t ne r rt nu a . et t ese i vu l ef Aee tsyh h e t ts t s , i n e s t mc en a r n t imeol a t f d ss r a a ene b vap sn s e B s i r e A e a yr hhi t y at stt hi dlnst eoe n r e t t he ot s n t i n l o i ecwwt e htl oos t of hs ent fa s o sn i n e n esa go s odmef c tlo eAsda r yerr i v a t tt nge i o i t i nn er Eerc h s d. e l str e u e m h a or ht o ha t rse shf ee Assh e t tm i yh f t ge , te i t f nnr n o eio d EnB f l o e o.h r i s e s t r s i h f ot e e f s , n s t eo oee n pbf

sd she e l s u i e a r y o oco h t ep l c S r au . f me t s su ei t foc i r et fc e o ex eude d an ne or m o i eoet vt a r oee c o mlwl b e oasr t t sn e sie h e d t dnmf i y a c e ao s p t t ds ? r t ya to e I cps .cn s s g asa nn dan oi y n t i a t a urs a o r dt r a e e c e d ppRae o f oe .t z o i s n n tcse u i g gs o gdn ec nei r r i o pe n od r i e l t e m yhb a t b i as t nn ey y i l r e at t gm l n s a ny a s i iMck a i .oi rp f d oy t n t Lagwc i i n s ya Ad l Dnwt d n oe n NIl mf ru t r d ou ue ro cr f

et lf i hu d se Te z . ri tt n e ig s ho s gc a ue nor he at l b sa a ,y e l dcn r eu o z i d ol n gsu oeo crh a er s r e t e vs eo bl s a ton r o t nn A . dos c l .w u d o ot l hLf s t A u tDo. n s he eNs c ear mv c yi u ag o e t po s r e u r ynt csu n nefi aota ddit r ntge unnc dei cl s emu o r ydr ae t ep rn hy o .c Tc d nty aLt dAi t n n uDe dNe enh r it eeen r ha uht s sT a r i . e e y l vd t e an o s fuli o o n or g tct o n eenc o h e mt c r p s e n oi a b l h e y vm.t d est r i e dr p euLo h Ar o t t Dp reN e os f h a d t te nd n ra ec l u mndo nieh r rou e t S v sn . otao grei o f mt mf a r oeye l rsb p f t a o yn i l t d ee r rn e pm a e n or t b re ? n pv e n e u aml ao a sgc v p e e o veu l t i h e a lv e t a h cf vew eo r rdt i .ta sa d r f k t s La re s p a y Asyp tei f Da r e , r Nkp t ue roi ss a re s ppl a ’

’

Solution:

Q2:

’

Solution:

Q3:

, . t r e e d n e r vtha o T L r o f .g e lAd r o t en e rDr t hn Nue t , oosm d cta . l n e u r swm 0 e oa 2 o v hhl eo S fb s. g d yt A oo t t ed r Ld sh e l n pAea TI t oDc .h nt r t Neae p i e.pc w h)xeme 0 t 2euhc ; l e t t a n o r n aSavba A r d y s e g t d r t r i r tn o f a e n c Ie t e( c npe a meeos n nubrsi p l a ra c eet e vi hh e vl mT oa te o gn . h ainnfs e smoooc c i i a yoeti n a r n t er a e r tr l et e i a a u p pr rb t oc oo u r e nnh p efi o h t euc si tn lii ha i t i hkn v f r gd o rwa oe ti t a n mpcn af eee o r t r r ru s a g de edfsn r y i he e ap t l Trr e e u enb o sph i a ot t d er i l nn u mpe i o f eh eh e h wd bt s Solution:

tenee s r ca on r imi i t f p t ae a sel n i r hfep h n t t i n , ntl i e I a Ar a c .s .e s mn r a hnln a kea ca e gtt dl;in n0spi a0haa h0kcm a l 2 l a d 0 l i c a nr0 t oo i 2np a cf na ei t1i s c ssfg gl r i l ne n sei i r d s l t l a na d e cU r s nt e dan .p nse%o 0 ahl1 a k d vs ga n i nl ia u i 0q y g) u0ens 0 i b1 m nl lr e s as e s g r t e ndl oi nf na. i y ssu t en ar ur b g a e bc fnnm i i aa o e tydt sss t a y unt r uobas a t bcfse o s e mm eh rh er tt e o d,saec agrdtn a n y r i i e c t r d h s a eaet r t l h r e e o t nn t d sf seo a l e r Aol rewmt s a tne eee h it yhb( Q4:

Solution: Capital maintenance concept (Income Statement)

` in lakhs

Financial Capital Maintenance

0 0 0 , 2

s e l a S

) 0 0 0 , 1 (

0 0 0 , 1

) 0 0 1 (

) 0 0 0 0 2 8 , 1 (

0 0 9

0 0 8

s n i a G l a t o T

0 0 0 , 1

g n i t a r e p o o t t n e m t s u j d a n ol i a t t a i l p f a nc I

0 0 0 , 1

t i f o r P g n i t a r e p O

) 0 0 0 , 1 (

s e l a s f o t s o C

TAXMANN®

Operating Capital Maintenance

General Purchasing Power

Monetary Capital

S F F O N O I T A T N E S E R P & N O I T A R A P E R P R O F K R O W E M A R F

s ssedne s e hniv ket l a ac aa s x t 0 t e i w , l e 0 p s s 0a o, i nh s h i 1ck a bts ga n t fi nl. dun o r eoe n0e l s e0w a ummt p9o i yat l espo p u f a n g ohjceon h d t t l t msaa i i f i s i g o m nc a h n r oni h oki avpc cat r tlanreu e l i h s 0 f f s o0 Tp n e m0igr.t s n r e1ei tpei h r a hft w n e r t i o t a so,ef p t i topa n i w hf o gi yn te co a l i i rnh n h sm wpmtoao h eeundc t chloer s nTosru s e c . u e an pn cs no i n a l i r I et i. a s per t u l a n m e n a l i i f nb t a se i n ei e p mi s h tgt lfaaf i sn c o e a oti t r tlc i ris a c f p aennpoh i f i t cf l g k ma a a le i h a r r l ere i t e c 0 hon t en s nt 0 er s afe gui1 non ess1 i s t i n f h s n eef yu t u n r o f i o b o a s l t ceotu a t e s ch t c na i kbp e t oo e ea f ff ehc Mn o es t ykdi n t cn i coag at e pssb afho k t coa s e l r vm a 0 e i 0 t t i c 8c e u e s dh fa oto h ret c pc ir eafu o l hp rp t o gept nrat i o s v t n a r e h y e i t s c r i i l e e f id r f b pa u as r hst t s i rei we hh ddtc eaei nrch rtnw e e as chn h nte k o t s a n ci l i sa si 0 i h m0 et 2 c, l1 ne a t as i nap f ecao t . c e s n i sd i g s h a nea t i r n mn t t i a s lI s r a u . e t s d i pbo s p e o e i an r he ci r t gsen p nudi t i x tbnle a a eUt r . h in e d t p e l pf ah o Oo sct `

dennndse i h uai al oes oi g t ha l t n o l r t p i t i o hvn o mat i d h csi l i tdn5cc o h i as w ea1es r s b r e nd a e rb l a n l t hfi e r a t bmn.ow t e i d 8 s e1 mt t sh .L oi ifd 0 t t cht2 o f gyLFaTo .t. h nt i c iFnae r d t l n o . sa oa i oa5 r l i r l su1i r a M e q a e 0m e s es2 ps t ya s i 5 l e e b 1 i thr 1e h3 t u e t r cfp h hr n A t r t oo foto tef o esfx v r yg1ae ee. a i r notbn b a n t d or mo eari nh t i oOI l n metl . t i s ehn f e a nub vso o hm i n t n i o kh l 5 i t l i ntnek2 nem aiahc au BwrTaf e .bo dD0oep e t m a.2t l h e i%a ho r t c g s 2 goe i .a lur d tbyta n o p a t Lrnmatnbd i a i e ts . g e Festa e d i t i y e r r t c re 5 rhe e toLp 1odt 0walbneFx 2thlmih.e e t d % i ln st f8 eo i n r 5o t o 1 e a a e pi l0thl e br Al t i2ttu n o a k o tml f md iec t s r y maued 1 2p a c hed n1Aebc t g y atc O tn e e tsausmp 1 m b s r uox otr l a op res at ca f ’

sd t n c aa r 7 t 1 x e0. s 2 d e, r n 6 a e 1 p0 r e2 a r e phy ce ,r d s eao t M c h ett ps t x1a e3) soh a ts esa crc a ae e l r p y o een khi g at( t rn soo nfi ost i i s tso o c alp r s oa l nt af i ic r t n o era vpi n onf bi f aso nt eo hi n t te c ga m ns e i na t ma t urs ste s eh Ah t t td c n ea l f 8 e r 1 0 o2 t d n a m r o f l a g e l r i e h t n i s n o i t c a s n a r t e h t d e t a e r t . d t L F f I ) (

. d e d r o c e r s i s n o i t c a s n a r t e h t f o e c n a t s b u s e h t f I ) (

h c r a M t s 1 3 o t r a e y s s o l r o t i f o r P . d t L F

`’

0 0 0 , 0 4

) 5 6 9 , 9 1 (

) 5 6 9 , 1 3 (

5 3 0 , 8

5 3 0 , 5

0 0 0 , 3

t i f o r p s s o r G

d n u o p m o c s u l p 5 1

f o e c i r p g n i l l e s l a n i g . s i r r oa e ey he t e sr i h 2t 1s 0u 2o ri a v er e yp ee hh t t nr i o sf e l % a 0 s f1 o t a tt s s oe cr et e hn Ti

h c r a M t s 1 3 t a s a n o i t i s o p l a i c n a n i f f o t n e m e t a t S . d t L F

) 0 0 0

( . t m A

`’

) 0 0 0 ( . t m A

0 0 0 , 5 2

s e l a S f o t s o C

) 0 0 0 , 2 1 (

l i l l i i N N N

0 0 0 , 5 1

s e u n e v e R

l i l i N N

n a o L

l i l i N N

y r o t n e v n I

TAXMANN®

2012

2011

2010

Total

2018

2017

2016

’

Q5:

Required:

ii i

Solution: (i) Legal Form

S N O I T A R T S U L L I

`’

0 0 0 , 5 2 ) 0 0 0 , 2 1 (

) 0 0 0 , 2 1 ( 0 0 0 , 3 1

0 0 0 , 3 1 ) 5 1 8 , 1 (

) 5 6 9 , 4 ( 5 3 0 , 8

5 8 1 , 1 1 ) 0 5 6 , 1 ( ) 0 0 5 , 1 (

h c r a M t s 1 3 t a s a n o i t i s o p l a i c n a n i f f o t n e m e t a t S . d t L F

) 0 0 0 ( . t m A

`’

) 0 0 0 ( . t m A 0 0 0 , 5 2

l l l 0 ) i i i N N N 5 6 , 1 (

l l l 0 ) i i i N N N 0 5 , 1 (

) s s o l ( / t i f o r P t i f o r p s s o r G

) % 0 1 @ d e u r c c A ( t s e r e t n I s e l a S f o t s o C

0 5 1 , 3

5 6 9 , 4

0 0 0 , 5 1

t s e r e t n i d e u r c c a s u l P

0 0 5 , 1

n a o L

0 0 0 , 5 1

l 0 i 0 N 0 , 5 1

0 0 0 , 2 1

y r o t n e v n I

5 6 9 , 9 1

tni s l i ) i i h 5 d t t 6 N e s ; i 9 e l n , r p 9 o pet 1 i ( ah i sts i 6o n1p l 8 o0a i 2i 1 t 0 c c hn 2 ac s a h nrn c i aaf r M r a t f t M o es h1 t t t s 3 n 1 foe 3 o m t d e mrt i a a re a oy p t f s e lee R a hh gt t en l . ng eii n heri t r aa fmee o i )spg p ,a (t y i l nf r i osa ernu l a p r u oc l e i gh t rr i to f a ef p hoy, r t s oo gt nn mi i t ea od ravr f eny nrin epoa esn s a m o ens s bi le A v ns. o at l r 8 cu 1p s0 se m Ar 2i

reedl y e r l hehea t htuu r n o t t c ;ic n s2 e tav d1s 0 t ge on L2l s id Fn d s i i uo gi t) l h c nf t ( i ne on r i ( ori m nph nh eca gg t i ( rioo dahlb nlwee ,ht ade ngto na d N r o8 n. a i n t 1hao c 0cyi a2 t s tri o n s s adeto n n r r p taeel t v a e6n n i h1ii c t 0nen f2ah a o nstn eiwhi f cso tf ne o o h as sbt t s n s one bos o i ull m t snai e tdt ei I d a hs. at t t l gns. t su e n i e I si f ho i e .t he l r r p t p ornp s i u i o ah re ga mf )t i m ()s ea p s s tni teps s o lae f a a i h o )t t r rst c t t n apfsr os oeo r o t n ca e s n p t on e nt ri sc I ir

TAXMANN®

”

“

’

2018 2017 2016

Total 2018 2017 2016 s e u n e v e R

’

”

“

‘

h c r a M t s 1 3 o t r a e y s s o l r o t i f o r P . d t L F

(ii) Substance

Students’ Guide To

Ind ASs

[Converged IFRSs] AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO PAGE NO. BINDING TYPE

: : : : : : :

D.S. RAWAT, POOJA PATEL TAXMANN FEBRUARY 2022 8TH EDITION 9789393656858 1250 PAPERBACK

Rs. 1395 | USD 56

Description This book is prepared exclusively for the Final Level of Chartered Accountancy Examination requirement. It covers the entire revised syllabus as per ICAI. This book serves as a guide for students & professionals. It has been written with the objective to present the complex text of Ind ASs in a simple language and to develop the ability of the students to apply these Ind ASs in their given situation. The Present Publication is the 8th Edition, authored by Dr. D.S. Rawat & CA Pooja Patel, for CA/ CMA Final & Updated till 30-10-2021 for May/Nov. 2022 Exams, with the following noteworthy features: u

[Simplified Language with Examples] for explaining the text of Ind ASs

[Questions with their Solutions] at the end of each chapter

[Comparison of each Ind AS with corresponding IFRS] is covered in this book

[Coverage of Past Exam Questions]

Solved Paper: CA Final December 2021 | New Syllabus (Suggested Answers)

Solved Paper: CA Final July 2021 | New Syllabus (Suggested Answers)

Solved Paper: CA Final January 2021 | New Syllabus (Suggested Answers)

Solved Paper: CA Final November 2020 (Suggested Answers)

Solved Paper: CA Final November 2019 (Suggested Answers)

Solved Paper: CA Final May 2019 (Suggested Answers)

[Suggested Answers for the Paper on Financial Reporting] has been incorporated along with more problems and examples to make it as per the examination pattern for the forthcoming examination

[Most Amended] This book is updated till 30-10-2021

[Follows Six-Sigma Approach] to achieve the Benchmark of Zero-Error

[Student-Oriented Book] The author has developed this book, keeping in mind the following factors: n

Interaction of the authors with their students, with specific emphasis on difficulties faced by students in the examinations

Shaped by the authors’ experience of teaching the subject matter at different levels

Reaction and responses of students have also been incorporated at different places in the book

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