MCQ for CA Final FR - Chapter 6 Ind AS 8: ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 1 - Financial Reporting - Chapter 6: INDIAN ACCOUNTING STANDARD 8: ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS :  - For Practice relevant for May/Nov 23 Examinations

 

Q:1 ABC Ltd., has announced its interim results for Quarter 1, ending 30th June, 20X2 on 5thJuly, 20X2.However, till that time the AGM for the year 20X1-20X2 was not held. The financial statements for 20X1-20X2 were approved by the board of directors on 15thJuly, 20X2. What will be the ‘after the reporting period’ as per the definition given in Ind AS 10?

 

  1. between 1st March, 20X2 and 15thJuly, 20X2.
  2. between 31st March, 20X2 and 15thJuly, 20X2
  3. between 1st March, 20X2 and 31stJuly, 20X2
  4. between 31st March, 20X2 and 1stJuly, 20X2

Answer: 2

 

Q:2 ABC Ltd. declares the dividend on 15thJuly, 20X2 as the results of year 20X1-20X2 as well as Q1 ending 30thJune, 20X2 are better than expected. The financial statements of the company are approved on 20thJuly, 20X2 for the financial year ending 31stMarch, 20X2. Will the dividend be accounted for in the financial year 20X2-20X3 or will it be accounted for in the year 20X1-20X2?

 

  1. it will be partly accounted for in the year 20X1-20X2
  2. it will be accounted for in the year 20X1-20X2
  3. it will be accounted for in the year 20X2-20X3
  4. none of these

Answer: 3

 

Q:3 ABC Ltd. has purchased a new machinery during the year 20X1-20X2.The asset was finally installed and made ready for use on 15thMarch, 20X2.However, the company involved in installation and training, which was also the supplier, has not yet submitted the final bills for the same.

The supplier company sent the bills on 10thApril, 20X2, when the financial statements were not yet approved. Should the company adjust the amount of capitalisation in the year 20X1-20X2 or in the year 20X2-20X3?

 

  1. the cost of installation and training will be considered for capitalisation in the year 20X1-20X2
  2. the cost of installation and training will be considered for capitalisation in the year 20X2-20X3
  3. the cost of installation and training will be considered for capitalisation partly in the year 20X2-20X3
  4. none of these

Answer: 1

 

Q:4 A case is going on between ABC Ltd., and GST department on claiming some exemption for the year 20X1-20X2.The court has issued the order on 15thApril, 20X2 and rejected the claim of the company. Accordingly, the company is liable to pay the additional tax. The financial statements of the company for the year 20X1-20X2 have been approved on 15thMay, 20X2. Should the company account for such tax in the year 20X1-20X2 or should it account for the same in the year 20X2-20X3?

 

  1. partly in 20X1-20X2
  2. 20X2-20X3
  3. 20X1-20X2
  4. none of these

Answer: 3

 

Q:5 The Board of Directors of ABC Ltd. approved the financial statements for the reporting period 20X1-20X2 for issue on 15thJune, 20 X2.The management of ABC Ltd. discovered a major fraud and decided to reopen the books of account. The financial statements were subsequently approved by the Board of Directors on 30thJune, 20X2.What is the date of approval for issue as per Ind AS 10 in the given case?

 

  1. the date of approval for issue as per Ind AS 10 should be considered as 15thJune, 20X2
  2. the date of approval for issue as per Ind AS 10 should be considered as 30thJune, 20X2
  3. the date of approval for issue as per Ind AS 10 should be considered as 31stMar, 20X2
  4. none of these

Answer: 2

 

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