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Ind AS Norms are Converged with the International Financial Reporting

University:  NMIMS

NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Financial Accounting & Analysis

Internal Assignment Applicable for April 2020 Examination

 

1. Ind AS norms are converged with the International Financial Reporting Standards, but these are not equivalent to IFRS. Further, there are key differences between the requirements of INDIAN GAAP, IFRS and Ind AS. Discuss five key differences among these reporting standards. (10 Marks)

2. Mehra & Sons purchased a second hand light motor Vehicle at a cost of Rs 2 lacs. Additionally, various accessories costing Rs50000 were also purchased along with the Vehicles which are required to be replaced on a yearly basis. Mr. Mehra wants to write off the overall outflow in Income statement Discuss, whether he is correct or not? Discuss the need to differentiate between the capital and revenue items? How these items are to be treated in the financials of the company? Give reasons supporting the same (10 Marks)

3. a. All India Insurance Company received an insurance premium of Rs 50 lacs on an insurance policy whose coverage extends till the mid of the next accounting year. (5 Marks)

3. b. Additionally, the company has a monthly salary expense of Rs 25 lacs. For the accounting year ended on March 31, 2019 the company paid 275 lacs on account of salary. The salary for the month end is paid in the first week of April 2019. Discuss the treatment of both of these payments in the books and disclosures in the financial statements, as on 31st March 2020 ( 5 Marks)

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Subject: 
Financial Accounting & Analysis