Final PN-18 Corporate Financial Reporting Quiz 1

1.                              are money held and assets and liabilities to be received or paid in fixed or determinable amounts of money.

2. Hari Ltd has purchased a Ship during the year on deferred payments basis, payable over next 10 years. This ship is -

3. Borrowing Costs directly attributable to           of a Qualifying asset should be capitalized as part of the cost of that Asset.

4. An Entity recognize a Liability of Rs.100 for Gratuity and Leave Encashment Expenses by creating a Provision. For Tax purposes, such amount will not be deductible until the Entity pays the same. Tax Rate is 25%. The Entity should -

5. Tax Depreciation is accelerated, i.e. Tax Depreciation is higher than Accounting Depreciation. The entity should recognize –

6. An Opening Segment is a component of an Entity that engage in business activities from which it –

7. An Operating Segment is a component of an Entity that engages in business activities from which it –

8. The term “Chief Operating Decision-Maker” (CODM) identifies a –

9. If total external Revenue reported by Operating Segments constitutes                 of the Entity’s Revenue, additional Operating Segments should be identified as Reportable Segments.

10. Mohini Ltd has 3 Segments namely X, Y, Z. The Total assets of the Company are Rs. 10,00 Crores. Segment X has Rs. 2 crores, Segment Y has Rs. 3 Crores and Segment Z has Rs. 5 crores. The Accountant contends that all the three Segments are Reportable Segments. In this case –

11. Changes in Accounting Estimates result from--

12. Which of the following is/are objective/s of Ind AS 113?

13. As per Ind AS 113 three widely used valuation techniques are                .

14. Ind AS 113 establishes a fair value hierarchy that categorises into three levels of the inputs to valuation techniques for measuring fair value. The hierarchies are .

15. Property Plant and Equipment (PPE) are initially recognized at                 .

16. The of an item of property, plant and equipment shall be recognised as an asset if, and only if: (i) it is probable that associated with the item will flow to the entity; and (ii) the of the item can be measured reliably.

17. The ways of determining the value of goodwill using the capitalisation approach

18. Some of the methods of Goodwill Valuation are      

19. The Income approach for Valuation of Shares includes the models/Techniques:

20. The major bases of asset valuation for a going concern:

21. The major three approaches to valuation of shares are:

22. A Ltd. Has a machine whose original cost was Rs.45,000. The accumulated depreciation on the machine is Rs.15,000. Similar machine has recently been sold in the same locality at Rs. 25,000 with selling expenses Rs.2,000. Management determined the entity specific present value of future cash flows of the machine as Rs. 28,000. Find Recoverable amount.

23. Ind AS                 shall be applied in:

selecting and applying accounting policies, and

• accounting for changes in accounting policies,
• changes in accounting estimates and
• corrections of prior period errors.

24. Share-based Payment is delt with by        .

25. Ind AS 113 stands for             .