CA Final FR Q MTP 2 May 2024 Castudynotes Com

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Mock Test Paper - Series II: April, 2024
Date of Paper: 1 April, 2024
Time of Paper: 2 P.M. to 5 P.M.
FINAL COURSE: GROUP – I
PAPER – 1: FINANCIAL REPORTING
Time Allowed – 3 Hours Maximum Marks – 100
1. The question paper comprises two parts, Part I and Part II.
2. Part I comprises Case Scenario based Multiple Choice Questions (MCQs)
3. Part II comprises questions which require descriptive type answers.
PART I – Case Scenario based MCQs (30 Marks)
Part I is compulsory.
Case Scenario 1
ABC Ltd. is a diversified business group operating in multiple business segments
across different parts of the world. It maintains its books of accounts and
publishes its annual financial statements under Indian Accounting Standards.
The finance team has been working on closing the books of accounts and
generating financial statements for the year ended 31 st March 20X3 and are facing
issues in the following transactions while finalization of financial statements:
(i) One of the businesses of ABC Ltd. is of manufacturing sugar and chemicals.
The Company has taken a term loan for ` 5 crores from State Bank to buy
certain plant and machinery during the year ended 31 March 20X2. The loan
is repayable over a period of 5 years. The terms and conditions of the loan
agreement requires the company to maintain a current ratio of 1.33 : 1 and
debt-equity ratio of 1 : 2. If these loan covenants fall below this level, then
the bank has a right to recall the entire loan.
The loan outstanding as on 31 March, 20X3 was ` 4.25 crores. The current
ratio of ABC Ltd. was 1 : 1 and debt equity ratio was 0.5 : 2. State Bank sent
a notice on 5 April 20X3 demanding repayment of loan, on account of breach
of terms of the loan agreement. The financials were signed on 10 May,
20X3.
On receiving the notice, the CFO of ABC Ltd. negotiated with the bank and
ensured to rectify the breach. As a result, on 25 April, 20X3, the Bank has
agreed not to recall the loan and allowed the Company to achieve the
contracted current and debt-equity ratio by 20X5.
(ii) ABC Ltd. has inventory of raw material Y of 10,000 units as at 31 March,
20X4 with a carrying amount of ` 100 each. The current market value of that
raw material is ` 95 each. ABC Ltd. will use the raw material to manufacture
a component for a customer. The conversion cost for making the finished
goods would be ` 130 each. ABC Ltd. estimates costs to completion and
sale of ` 50 each and a selling price for the component is estimated to be
` 290 each.
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(iii) ABC Ltd. sold a machinery Z for ` 900 thousand to a new customer. To get
into long term relationship with the customer, the terms of sale also include
after sales service to be provided for next three years free of cost. The
company also sells the sales service contract separately where the customer
buys it after the initial warranty period at ` 100 thousand.
Analyze the transactions mentioned above and choose the most appropriate
option in the below questions 1 to 4 in line with relevant Ind AS:
1. How the long-term loan from State Bank has to be classified in the financials
for the year ended 31 March 20X3 in case ABC Ltd. has not negotiated with
the bank for rectification of breach?
(a) Other current liabilities
(b) Current financial liability
(c) Non-current financial liability
(d) Other non-current liability
2. After negotiation with State Bank, how the long-term loan has to be classified
in the financials for the year ended 31 March 20X3?
(a) Other current liabilities
(b) Current financial liability
(c) Non-current financial liability
(d) Other non-current liability
3. At what value the raw material Y be measured in the books of ABC Ltd. as
per applicable Ind AS?
(a) ` 950 thousand.
(b) ` 1,100 thousand.
(c) ` 1,000 thousand.
(d) ` 1,600 thousand.
4. How should the revenue be recognised in the books of account for the sale
of machinery Z?
(a) ` 900 thousand is to be recognised as revenue in the year of sale.
(b) ` 900 thousand is to be recognised at the end of three years after sale.
(c) ` 900 thousand is to be recognised in the year of sale and ` 100
thousand to be spread over next three years.
(d) ` 810 thousand is to be recognised in the year of sale and ` 90
thousand to be spread over next three years.
(4 MCQs x 2 Marks = 8 Marks)
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Case Scenario 2
DEF Ltd. is a globally diversified business conglomerate with operations spanning
across various business sectors worldwide. The company adheres to Indian
Accounting Standards for maintaining its financial records and annually releases
its financial statements. As the finance team progresses towards finalizing the
financial statements for the fiscal year ending on 31 March 20X3, the team is
stuck up in the accounting of the following transactions:
(i) On 1 June 20X2, DEF Ltd. decided to dispose of the business and current
and non-current assets of one of its divisions related to specialty chemicals
business which it had acquired several years ago. This disposal does not
involve DEF Ltd. withdrawing from a particular market sector. The carrying
values on 1 June 20X2 of the assets to be disposed of were as follows:
Particulars ` in Million
Goodwill 10.0
Property, Plant and Equipment 20.0
Patents and trademarks 8.0
Inventories 15.0
Trade Receivables 10.0
None of the assets of the business had suffered impairment as at 1 June
20X2. At that date the inventories and trade receivables of the business
were already stated at no more than their recoverable amounts.
DEF Ltd. offered the business for sale at a price of ` 46.5 million, which was
considered to be reasonably achievable. DEF Ltd. estimated that the direct
costs of selling the business would be ` 5,00,000. These estimates have
not changed since 1 June 20X2 and DEF Ltd. estimates that the business
will be sold by 31 March 20X3 at the latest.
(ii) The government provided DEF Ltd. with a grant of ` 21 million to assist it in
the development of the factory.
This grant was provided in two parts:
(1) ` 6 million of the grant was a payment by the government as an
inducement to DEF Ltd. to begin developing the factory. No conditions
were attached to this part of the grant.
(2) ` 15 million of the grant related to the construction of the factory at a
cost of ` 60 million. The land was leased so the whole of the
` 60 million is depreciable over the estimated 40 year useful life of the
factory.
5. Compute the value of Specialty chemical division’s Goodwill at the date of
classification after re-measurement.
(a) ` 7.3 million
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(b) ` 10 Million
(c) ` Nil
(d) ` 8 million
6. Calculate the closing balance of Specialty chemical division’s asset –
Property, Plant and Equipment at the period end.
(a) ` 21 million
(b) ` 17.36 million
(c) ` 6 million
(d) ` 15 million
7. What would be the treatment for grant of ` 15 million related to the
construction of the factory at a cost of ` 60 million?
(a) ` 15 million grant in respect of the plant and equipment should be
recognized immediately in the income statement since the company is
certain to build the factory.
(b) Deduct the grant received from the cost of the asset and depreciate the
net carrying value over its useful economic life.
(c) Show the grant as a deferred credit and leave the initial carrying value
of the property at ` 60 million. Thereafter the deferred credit would be
released to the income statement at the end of 40th year.
(d) 0.375 million is to be credited in 20X3-20X4 in the income statement
over 40 year period as deferred grant income.
8. What would be the treatment of grant of ` 6 million received from the
government as an inducement to DEF Ltd. to begin developing the factory?
(a) Grant relating to an inducement to begin developing the factory can be
recognized immediately in the Statement of Profit or Loss.
(b) 0.15 million amount is to be credited each year in the income statement
over 40 year period.
(c) 1.2 million amount is to be credited each year in the income statement
over 40 year period.
(d) Net off the grant received against the cost of the asset and depreciate
the net figure over its useful economic life.
(4 MCQs x 2 Marks = 8 Marks)
Case Scenario 3
HIJ Ltd. is a globally diversified business conglomerate with operations spanning
multiple business segments across various regions worldwide. For maintaining
its financial records, the company follows Indian Accounting Standards. As the
finance team diligently finalizes the books of accounts and prepares the financial
statements for the financial year ending on 31 March 20X2, it requires insights
and accounting suggestions on the following transactions:
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(i) On 1 October 20X1, HIJ Ltd. subscribed for 40 million ` 1 loan notes in Z
Ltd. The loan notes were issued at 90 paise and were redeemable at ` 1.20
on 30 September 20X6. Interest is payable on 30 September in arrears at
4% of par value. This represents an effective annual rate of return for HIJ
Ltd. of 9.9%. HIJ Ltd.’s intention is to hold the loan notes until redemption.
(ii) On 1st April 20X1, HIJ Ltd. commenced joint construction of a property with
G Ltd. For this purpose, an agreement has been entered into that provides
for joint operation and ownership of the property. All the ongoing
expenditure, comprising maintenance plus borrowing costs, is to be shared
equally. The construction was completed on 30 th September 20X1 and
utilisation of the property started on 1 st January 20X2 at which time the
estimated useful life of the same was estimated to be 20 years.
Total cost of the construction of the property was ` 40 crores. Besides
internal accruals, the cost was partly funded by way of loan of ` 10 crores
taken on 1 st January 20X1. The loan carries interest at an annual rate of
10% with interest payable at the end of year on 31 st December each year.
The company has spent ` 4,00,000 on the maintenance of such property.
The company has recorded the entire amount paid as investment in Joint
Venture in the books of accounts. Suggest the suitable accounting treatment
of the above transaction as per applicable Ind AS.
9. What would be the initial measurement of financial instruments as
subscription of loan notes in Z Ltd.?
(a) ` 40 million
(b) ` 37.782 million
(c) ` 38.4 million
(d) ` 36 million
10. What would be the closing balance of financial instruments (as subscription
of loan notes in Z Ltd.) as on 31 March 20X2?
(a) ` 37.6 million
(b) ` 34.218 million
(c) ` 37.782 million
(d) ` 36.182 million
11. With respect to point (ii), what is the nature of the agreement?
(a) Agreement is in the nature of Joint venture
(b) Agreement is in the nature of Joint Operations
(c) Agreement is in the nature of Holding subsidiary relationship
(d) Agreement is in the nature of Associates
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12. What will the initial cost of PPE appearing in the books of HIJ Ltd.?
(a) ` 40,50,00,000
(b) ` 40,00,00,000
(c) ` 20,25,00,000
(d) ` 20,00,00,000
13. Calculate the depreciation charge for the year ended 31 March 20X2 to be
charged by G Ltd. in its books?
(a) ` 50,62,500
(b) ` 1,01,25,000
(c) ` 1,00,00,000
(d) ` 50,00,000 (5 MCQs x 2 Marks = 10 Marks)
14. F Ltd. is a first-time adopter of Ind AS. The date of transition is 1 st April,
20X1. On 1st April, 20X0, it obtained a 7 year US $1,00,000 loan. It has
been exercising the option provided in paras 46/46A of AS 11 and has been
amortising the exchange differences in respect of this loan over the balance
period of such loan. On the date of transition, the company intends to
continue the same accounting policy with regard to amortisation of exchange
differences.
State which of the following true with respect to the above transaction:
(a) F Ltd. can continue following the existing accounting policy of
amortising the exchange differences in respect of loan over the balance
period of such long-term liability routed through statement of profit and
loss for the period
(b) F Ltd. can continue following the existing accounting policy of
period of such long-term liability routed through OCI
(c) F Ltd. can continue following the existing accounting policy of
period of such long-term liability routed either through statement of
profit and loss or OCI as per the choice of the entity.
(d) F Ltd. cannot continue following the existing accounting policy.
(2 Marks)
15. X Ltd., a large multinational corporation, needs to prepare its financial
statements according to Ind AS. The company has a vast amount of financial
data stored in the system in various formats, including spreadsheets, PDFs,
and scanned documents. Manually extracting and analysing this data is time
consuming and error prone. By implementing AI-driven optical character
recognition (OCR) technology, the company automates the data extraction
process from diverse sources and converts it into structured formats.
Which of the following problems will not be avoided by implementing AI?
(a) Manually extraction of data will lead to delay in the process.
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(b) Analysing the data manually might be error prone
(c) Scanned documents of several years will acquire unnecessary office
space.
(d) All of the above (2 Marks)
PART – II DESCRIPTIVE QUESTIONS

Question No.1 is compulsory. Candidates are required to answer any
four questions from the remaining five questions.
Wherever necessary, suitable assumptions may be made and disclosed by
way of a note.
Working notes should form part of the answers.
Maximum Marks – 70 Marks
1. A Ltd. (Seller-lessee) sells a building to B Ltd. (Buyer-lessor) for cash of
` 60,00,000. Immediately before the transaction, the building is carried at a
cost of ` 30,00,000. At the same time, A Ltd. enters into a contract with
B Ltd. for the right to use the building for 20 years, with annual payments of
` 4,00,000 payable at the end of each year.
The terms and conditions of the transaction are such that the transfer of the
building by A Ltd. satisfies the requirements for determining when a
performance obligation is satisfied in Ind AS 115 ‘Revenue from Contracts
with Customers’.
The fair value of the building at the date of sale is ` 54,00,000. Initial direct
costs, if any, are to be ignored. The interest rate implicit in the lease is 12%
p.a., which is readily determinable by A Ltd.
B Ltd. classifies the lease of the building as an operating lease.
How should the said transaction be accounted by A Ltd. and B Ltd.?
(14 Marks)
2. (a) D Limited has a policy of providing subsidized loans to its employees
for their personal purposes. Mr. Y, an employee of the Company, took
a loan of ` 12.00 lakhs on the following terms:
• Interest rate 4% per annum
• Loan disbursement date: 1 st April, 20X1
• The principal amount of the loan shall be recovered in 4 equal
annual installments commencing from 31 st March, 20X2
• The accumulated interest computed on reducing balance at
simple interest is collected in 3 equal annual installments after
collection of the principal amount
• Mr. Y must remain in service till the principal and interest are paid
• The market rate of a comparable loan to Mr. Y is 9% per annum
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The present value of ` 1 at 9% per annum at the end of respective years
is as follows:
Year 20X2 20X3 20X4 20X5 20X6 20X7 20X8
ending
31st March
Present 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470
Value
Under the assumption that no probable future economic benefits except

the return of loan has been guaranteed by the employee, you are
required to provide the journal entries at the time of initial recognition
of loan on 1 st April, 20X1 and as at 31 st March, 20X2 (10 Marks)
(b) An entity’s accounting year ends is 31 st December, but its tax year end
is 31st March. The entity publishes an interim financial report for each
quarter of the year ended 31 st December, 20X1. The entity’s profit
before tax is steady at ` 50,000 each quarter, and the estimated
effective tax rate is 25% for the year ended 31 st March, 20X1 and 30%
for the year ended 31 st March, 20X2.
How the related tax charge would be calculated for the year 20X1 and
its quarters. (4 Marks)
3. (a) B Ltd. prepares consolidated financial statements upto 31 st March each
year. On 1 st July 20X1, B Ltd. acquired 75% of the equity shares of
K Ltd. and gained control of K Ltd. the issued shares of K Ltd. is
60,00,000 equity shares. Details of the purchase consideration are as
follows:
- On 1st July, 20X1, B Ltd. issued two shares for every three shares
acquired in K Ltd. On 1 st July, 20X1, the market value of an equity
share in B Ltd. was ` 6.50 and the market value of an equity share
in K Ltd. was ` 6.
- On 30 th June, 20X2, B Ltd. will make a cash payment of
` 35,75,000 to the former shareholders of K Ltd. who sold their
shares to B Ltd. on 1 st July, 20X1. On 1 st July, 20X1, B Ltd. would
have to pay interest at an annual rate of 10% on borrowings.
- On 30 th June, 20X3, B Ltd. may make a cash payment of
` 1,50,00,000 to the former shareholders of K Ltd. who sold their
shares to B Ltd. on 1st July, 20X1. This payment is contingent
upon the revenues of B Ltd. growing by 15% over the two-year
period from 1 st July, 20X1 to 30 th June, 20X3. On 1 st July, 20X1,
the fair value of this contingent consideration was ` 1,25,00,000.
On
31st March, 20X2, the fair value of the contingent consideration
was ` 1,10,00,000.
On 1st July, 20X1, the carrying values of the identifiable net assets of
K Ltd. in the books of that company was ` 3,00,00,000. On 1 st July,
8
20X1, the fair values of these net assets was ` 3,50,00,000. The rate
of deferred tax to apply to temporary differences is 20%.
During the nine months ended on 31 st March, 20X2, K Ltd. had a poorer
than expected operating performance. Therefore, on 31 st March, 20X2
it was necessary for B Ltd. to recognise an impairment of the goodwill
arising on acquisition of K Ltd., amounting to 10% of its total computed
value.
Compute the impairment of goodwill in the consolidated financial
statements of B Ltd. under both the methods permitted by Ind AS 103
for the initial computation of the non-controlling interest in K Ltd. at the
acquisition date. (8 Marks)
(b) An entity has a contract to purchase one million units of gas at 23p per
unit, giving a contract price of ` 2,30,000. The current market price for
a similar contract is 16p per unit, giving a price of ` 1,60,000. All of the
gas purchased by the entity is used to generate electricity using
dedicated assets.
Determine in the following situations whether the contract is onerous
and provision is to be made when:
(i) The electricity is sold at a profit. The electricity is sold to a wide
range of customers.
(ii) The electricity is sold at a loss, and the entity makes an overall
operating loss. The electricity is sold to a wide range of customers.
(iii) The entity sells the gas under contract, which it no longer needs,
to a third party for 18p per unit (5p below cost). The entity
determines that it would have to pay ` 55,000 to exit the purchase
contract. (6 Marks)
4. (a) On 1st April 20X1, Investor Ltd. acquires 35% interest in XYZ Ltd.
thereby exercising significant influence over XYZ Ltd. Investor Ltd. has
paid total consideration of ` 47,50,000 for acquisition of its interest in
XYZ Ltd. At the date of acquisition, the book value of XYZ Ltd.’s net
assets was ` 90,00,000 and their fair value was ` 1,10,00,000. Investor
Ltd. has determined that the difference of ` 20,00,000 pertains to an
item of property, plant and equipment (PPE) which has remaining
useful life of 10 years.
During the year, XYZ Ltd. made a profit of ` 9,00,000. XYZ Ltd. paid a
dividend of ` 10,00,000 on 31 st March, 20X2. XYZ Ltd. also holds a
long-term investment in equity securities. Under Ind AS, investment is
classified as at FVTOCI in accordance with Ind AS 109 and XYZ Ltd.
recognized an increase in value of investment by ` 2,00,000 in OCI
during the year. Ignore deferred tax implications, if any.
Calculate the closing balance of Investor Ltd.’s investment in XYZ Ltd.
as at 31 st March, 20X2 as per the relevant Ind AS. (5 Marks)
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(b) Following are the facts given for X Ltd.:
- Income from continuing operations: ` 90,00,000
- Loss from discontinued operations: (` 1,08,00,000)
- Net loss: (` 18,00,000)
- Weighted average Number of shares outstanding 10,00,000
- Incremental common shares outstanding
relating to stock options 2,00,000
(a) You are required to calculate the basic and diluted EPS for
Company XY from the above information.
(b) Assume, if in above case, Loss from continued operations is
` 30,00,000 and income from discontinued operations is
` 1,08,00,000 calculate the diluted EPS. (9 Marks)
5. (a) A Ltd. is a company which is in the business of manufacturing
engineering machines and providing after sales services. The
company entered into a contract with Mr. Anik to supply and install a
machine, namely 'model pi' on 1 st April 20X1 and to service this
machine on 30 th September 20X1 and 1st April 20X2. The cost of
manufacturing the machine to A Ltd. was ` 1,60,000.
It is possible for a customer to purchase both the machine 'model pi'
and the maintenance services separately. Mr. Anik is contractually
obliged to pay A Ltd ` 4,00,000 on 1 st April, 20X2.
The prevailing rate for one-year credit granted to trade customers in
the industry is 5 percent per six-month period.
As per the experience, the servicing of the machine 'model pi' sold to
Mr. Anik is expected to cost A Ltd. ` 30,000 to perform the first service
and ` 50,000 to perform the second service. Assume actual costs equal
expected costs. When A Ltd. provides machine services to customers
in a separate transaction it earns a margin of 50% on cost. On 1 st April,
20X1, the cash selling price of the machine 'model pi' sold to Mr. Anik
is ` 2,51,927.
The promised supply of machine 'model pi' and maintenance service
obligations are satisfactorily carried out in time by the company.
You are required to:
(i) Segregate the components of the transaction that A Ltd. shall
apply to the revenue recognition criteria separately as per Ind AS
115;
(ii) Calculate the amount of revenue which A Ltd. must allocate to
each component of the transaction; and
(iii) Prepare journal entries to record the information set out above in
the books of accounts of A Ltd. for the years ended
31st March·20X2 and 31st March 20X3. (9 Marks)
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(b) X Ltd. is a first-time adopter of Ind AS. The date of transition is 1st April,
20X1. It has given 300 stock options to its employees. Out of these,
100 options have vested on 30th November, 20X0 and the remaining
200 will vest on 30th November, 20X1.
What are the options available to X Ltd. at the date of transition?
(5 Marks)
6. (a) As at 31 March 20X4, M Ltd. had a plan to dispose off its 75%
subsidiary D Ltd. This plan had been approved by the board and was
reported in the media as well as to the Stock Exchange where M Ltd.
was listed. It is expected that J Ltd., the non-controlling shareholder in
Di Ltd. holding 25% stake, will acquire the 75% equity interest as well.
The sale is expected to be completed by October 20X4. D Ltd. is
expected to have substantial trading losses in the period up to the sale.
Mr. X, a chartered accountant, who is an employee in the finance
department of M Ltd., wishes to show D Ltd. as held for sale in the
financial statements and to create a restructuring provision to include
the expected costs of disposal and future trading losses. However, the
Chief Operating Officer (COO) does not wish D Ltd. to be categorized
as held for sale nor to provide for the expected losses. The COO is
concerned as to how this may affect the sales and would surely result
in bonus targets not being met. He has argued that as the
management, it is his duty to secure a high sales price to maximize the
return for shareholders of M Ltd. He has also hinted that Mr. X’s job
could be at stake if such a provision were to be made in the financial
statements. The expected costs from the sale are as follows:
Future Trading Losses: ₹ 50 crores
Various legal costs of sale ₹ 3.75 crores
Redundancy costs for D Ltd.’s employees ₹ 10 crores
Impairment losses on Property, Plant and Equipment ₹ 17.50 crores
Required:
(i) Discuss the accounting treatment which M Ltd. should adopt to
address the issue above for the financial statements.
(ii) Discuss the ethical issues which may arise in the above scenario,
including any actions which M Ltd. and Mr. X should take.
(5 Marks)
(b) P Ltd., a manufacturing company, prepares consolidated financial
statements to 31 st March each year. During the year ended 31 st March,
20X2, the following events affected the tax position of the group:
• Q Ltd., a wholly owned subsidiary of P Ltd., incurred a loss
adjusted for tax purposes of ` 10,00,000. Q Ltd. is unable to utilise
this loss against previous tax liabilities. Income-tax Act does not
allow Q Ltd. to transfer the tax loss to other group companies.
However, it allows Q Ltd. to carry the loss forward and utilise it
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against company’s future taxable profits. The directors of P Ltd.
do not consider that Q Ltd. will make taxable profits in the
foreseeable future.
• During the year ended 31 st March, 20X2, P Ltd. capitalised
development costs which satisfied the criteria as per Ind AS 38
‘Intangible Assets’. The total amount capitalised was ` 20,00,000.
The development project began to generate economic benefits for
P Ltd. from 1 st January, 20X2. The directors of P Ltd. estimated
that the project would generate economic benefits for five years
from that date. The development expenditure was fully deductible
against taxable profits for the year ended 31 st March, 20X2.
• On 1st April, 20X1, P Ltd. borrowed ` 1,00,00,000. The cost to
P Ltd. of arranging the borrowing was ` 2,00,000 and this cost
qualified for a tax deduction on 1 st April 20X1. The loan was for a
three-year period. No interest was payable on the loan but the
amount repayable on 31 st March 20X4 will be ` 1,30,43,800. This
equates to an effective annual interest rate of 10%. As per the
Income-tax Act, a further tax deduction of ` 30,43,800 will be
claimable when the loan is repaid on 31 st March, 20X4.
Explain and show how each of these events would affect the deferred
tax assets / liabilities in the consolidated balance sheet of P Ltd. group
at 31st March, 20X2 as per Ind AS. The rate of corporate income tax is
30%. (5 Marks)
(c) Either
Entity ABC acquired a building for its administrative purposes and
presented the same as property, plant and equipment (PPE) in the
financial year 20X1-20X2. During the financial year 20X2-20X3, it
relocated the office to a new building and leased the said building to a
third party. Following the change in the usage of the building, Entity
ABC reclassified it from PPE to investment property in the financial year
20X2-20X3. Should Entity ABC account for the change as a change in
accounting policy? (4 Marks)
Or
The AGM of ABC Ltd for the year ended 31 st March, 20X2 was held on
10th July, 20X2 and Board Meeting has been conducted on 15 th May,
20X2. Meanwhile, the company had to disclose certain financial
information pertaining to the year ended 31 st March, 20X2 to SEBI as
per SEBI regulations on 20 th April, 20X2. Since, certain financial
information pertaining to the year ended 31 st March, 20X2 is submitted
to SEBI before approval of financial statements by the Board, the
management is suggesting that 20 th April 20X2 shall be considered as
‘after the reporting period’. Whether the management view is correct
in accordance with the guidance given in Ind AS 10? (4 Marks)
12

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PART – II DESCRIPTIVE QUESTIONS

Under the assumption that no probable future economic benefits except

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