Final PN-18 Corporate Financial Reporting Quiz 2

1. On 1 January 2023 A Ltd. acquires 80 per cent of the equity interests of B Ltd in exchange of cash of Rs.600 lakhs. The identifiable assets are measured at Rs. 925 lakh and the liabilities assumed are measured at Rs.150 lakh. The fair value of the 20 per cent non-controlling interest in P is Rs.90 lakhs. The gain on bargain purchase will be -

2. A Ltd. acquires 80% of B Ltd. for Rs.10,00,000 paid by equity at par. F

3. A Ltd. acquires 80% of B Ltd. for Rs. 12,80,000 paid by equity at par.

4. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an

5. An                              is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

6. Ind As 109 deals with             

7. Ind AS 109: Financial Instruments classifies the financial assets and financial liabilities into the following categories for recognition and measurement          

8. Financial assets are

9. The Indian Accounting Standards relevant for recognition, measurement and disclosure of financial instruments are

10. X Ltd. granted a loan to Y Ltd. amounting to                       Rs.40

lakhs repayable in 2 years at Rs.46 lakhs. However, due to economic recession after 1 year the repayable amount has been revised at Rs.44 lakhs. Effective annual interest rate for such a loan is determined at 6% p.a. The loan processing cost was Rs.2 lakhs. X Ltd’s accountant suggested to compute the amount to be charged as processing cost to the first year in the Profit and Loss A/c. Compute.

11. The major bases of asset valuation for a going concern

12. Super Profit = Average Future Maintainable Profit –

13. From the following particulars you are required to determine value of goodwill of ABX Ltd.

Super Profit (Computed) : Rs. 4,50,000

Normal rate of return : 12%

Present value of annuity of Rs.1 for 4 years @ 12% : 3.0374

14. All NBFCs-ND which have an asset size of Rs.500 crore and above and all NBFCs-D shall maintain minimum Tier 1 Capital of    .

15. IND AS is applicable to NBFCs on and from

16. All of these

17. Non-Performing Asset (NPA) in case of Lease Rental and Hire- Purchase Assets if

18. Ind As 109 deals with

19. An      is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities

20. The Indian Accounting Standards relevant for recognition, measurement and disclosure of financial instruments are

21. A firm values goodwill under 'Capitalisation of Profits' method Average profit of the firm for past 4 years has been determined at Rs.1,00,000 (before tax). Capital employed in the business is Rs.4,80,000 and its normal rate of return is 12%. Tax rate is 28% on average. Value of Goodwill based on capitalisation of average profit will be:

22. Capital Employed is Rs.255 Lakhs; Annual average profits are Rs.57 Lakhs; Normal rate of return is 12%. The value of goodwill on the basis of Capitalization of super profits will be

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

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

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