Accounting Standards 1-29 - Seth & Associates

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The appendix is illustrative only and does not form part of the accounting standard. The purpose of this appendix is to illustrate the application of the accounting standard. 1. The example shows only current period amounts. 2. Information from the statement of profit and loss and balance sheet is provided to show how the statements of cash flows under the direct method and the indirect method have been derived. Neither the statement of profit and loss nor the balance sheet is presented in conformity with the disclosure and presentation requirements of applicable laws and accounting standards. The working notes given towards the end of this appendix are intended to assist in understanding the manner in which the various figures appearing in the cash flow statement have been derived. These working notes do not form part of the cash flow statement and, accordingly, need not be published. 3. The following additional information is also relevant for the preparation of the statement of cash flows (figures are in Rs.'000). (a) An amount of 250 was raised from the issue of share capital and a further 250 was raised from long term borrowings. (b) Interest expense was 400 of which 170 was paid during the period. 100 relating to interest expense of the prior period was also paid during the period. (c) Dividends paid were 1,200. (d) Tax deducted at source on dividends received (included in the tax expense of 300 for the year) amounted to 40. (e) During the period, the enterprise acquired fixed assets for 350. The payment was made in cash. (f) Plant with original cost of 80 and accumulated depreciation of 60 was sold for 20. (g) Foreign exchange loss of 40 represents the reduction in the carrying amount of a short-term investment in foreign-currency designated bonds arising out of a change in exchange rate between the date of acquisition of the investment and the balance sheet date. (h) Sundry debtors and sundry creditors include amounts relating to credit sales and credit purchases only. Balance Sheet as at 31.12.1996 Assets (Rs. '000) 1996 1995 Cash on hand and balances 200 25
with banks Short-term investments 670 135 Sundry debtors 1,700 1,200 Interest receivable 100 - Inventories 900 1,950 Long-term investments 2,500 2,500 Fixed assets at cost 2,180 1,910 Accumulated depreciation (1,450) (1,060) Fixed assets (net) 730 850 Total assets 6,800 6,660 Liabilities Sundry creditors 150 1,890 Interest payable 230 100 Income taxes payable 400 1,000 Long-term debt 1,110 1,040 Total liabilities 1,890 4,030 Shareholders' Funds Share capital 1,500 1,250 Reserves 3,410 1,380 Total shareholders' funds 4,910 2,630 Total liabilities and shareholders' funds 6,800 6,660 Statement of Profit and Loss for the period ended 31.12.1996 (Rs. '000) Sales 30,650 Cost of sales (26,000) Gross profit 4,650 Depreciation (450) Administrative and selling expenses (910)
Page 2 and 3: TABLE OF CONTENTS DISCLOSURE OF ACC
Page 4 and 5: Explanation Fundamental Accounting
Page 6 and 7: 21. Examples of matters in respect
Page 8 and 9: Definitions 3. The following terms
Page 10 and 11: (b) storage costs, unless those cos
Page 12 and 13: 27. Information about the carrying
Page 14 and 15: performance by different enterprise
Page 16 and 17: 15. The separate disclosure of cash
Page 18 and 19: 22. Cash flows arising from the fol
Page 20 and 21: 34. Cash flows arising from taxes o
Page 24 and 25: Interest expense (400) Interest inc
Page 26 and 27: Interest expense 400 Operating prof
Page 28 and 29: 31,850 Less : Sundry debtors at the
Page 30 and 31: Short-term funds (650) Deposits hel
Page 32 and 33: not contingencies as defined in par
Page 34 and 35: 8.6 Events occurring after the bala
Page 36 and 37: Accounting Standard (AS) 5 Net Prof
Page 38 and 39: financial statements in understandi
Page 40 and 41: gratuity scheme by an employer in p
Page 42 and 43: (ii) expected useful life of the de
Page 44 and 45: 19. A change in the method of depre
Page 46 and 47: Accounting Standard 7 (REVISED) Con
Page 48 and 49: 8. A group of contracts, whether wi
Page 50 and 51: a. costs that relate directly to th
Page 52 and 53: estimated reliably when all the fol
Page 54 and 55: of which recovery is probable; and
Page 56 and 57: defects have been rectified. Progre
Page 58 and 59: incurred for work performed upto th
Page 60 and 61: calculated as follows: (amount in R
Page 62 and 63: 4.3 Proportionate completion method
Page 64 and 65: the time of raising of any claim it
Page 66 and 67: should be based on the sales value
Page 68 and 69: Accounting Standard (AS) 10 Account
Page 70 and 71: 9.3 Administration and other genera
Page 72 and 73:
14.4 On disposal of a previously re
Page 74 and 75:
either to the asset given up or to
Page 76 and 77:
Accounting Standard (AS) 11 (Revise
Page 78 and 79:
Reporting currency is the currency
Page 80 and 81:
Classification of Foreign Operation
Page 82 and 83:
. income and expense items of the n
Page 84 and 85:
historical cost for those items in
Page 86 and 87:
Appendix Note: This Appendix is not
Page 88 and 89:
Accounting Treatment of Government
Page 90 and 91:
8.1 Grants related to specific fixe
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(The Accounting Standard comprises
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Accounting Standard (AS) 13 Account
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fair value provides a prudent metho
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31. Investments classified as curre
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(v) No adjustment is intended to be
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Treatment of Reserves on Amalgamati
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(a) consideration for the amalgamat
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41. Where the scheme of amalgamatio
Page 158 and 159:
Accounting Standard (AS) 16 Borrowi
Page 160 and 161:
orrowings made specifically for the
Page 162 and 163:
Accounting Standard (AS) 17 Segment
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statement of profit and loss. Segme
Page 166 and 167:
segments for internal financial rep
Page 168 and 169:
24. Business and geographical segme
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calculation done in applying a part
Page 172 and 173:
Secondary Segment Information 47. P
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segment, both primary and secondary
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REVENUE External sales Intersegment
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101 90 Assets and additions to tang
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and intangible fixed assets by loca
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4. In the context of this Statement
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(c) the director is nominated by th
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(iii) a description of the nature o
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1. upon the occurrence of some remo
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5. The classification of leases ado
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Rs.2,27,805. As this amount is lowe
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f. a general description of the les
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commencement of the lease term is t
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48. If a sale and leaseback transac
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AS 20 Earnings Per Share (In this A
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c. options including employee stock
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merger is the aggregate of the weig
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29. For the purpose of calculating
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41. Potential equity shares are ant
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Note: These appendices are illustra
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EPS for the year 20X0 as originally
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Convertible Preference Shares Incre
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(a) the ownership, directly or indi
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the consolidated financial statemen
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subsidiary and does not become an a
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Accounting Standard (AS) 22 ACCOUNT
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accounting purposes, straight line
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(a) has a legally enforceable right
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6. If for any reason the recognitio
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Deferred tax A/c Dr. 20,000 To Prof
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Accounting Standard (AS) 23 Account
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(b) the associate operates under se
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Disclosure 22. In addition to the d
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. that represents a separate major
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infrequently. All infrequently occu
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g. the amount of pre-tax profit or
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35. Appendix 2 illustrates applicat
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The following is Note 5 to Delta Co
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III. Financial Statements for 20X3
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2 A separate Accounting Standard on
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6. A complete set of financial stat
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g. segment revenue, segment capital
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29. To illustrate: a. the principle
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Accounting Standard to assist in cl
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1. Basic Earnings Per Share 2.Dilut
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provisions for employees (b) Other
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(condensed or complete) for the fol
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1st Quarter 2nd Quarter 3rd Quarter
Page 268 and 269:
Accounting for the Effects of Chang
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a. intangible assets that are cover
Page 272 and 273:
ecoverable amount.4 Carrying amount
Page 274 and 275:
supportable assumptions that repres
Page 276 and 277:
Therefore, in addition to complying
Page 278 and 279:
titles, customer lists and items si
Page 280 and 281:
Past Expenses not to be Recognised
Page 282 and 283:
The enterprise amortises the right
Page 284 and 285:
assets, how it determines the recov
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e. copyrights, and patents and othe
Page 288 and 289:
Appendix A This Appendix, which is
Page 290 and 291:
aforesaid and expensed in an earlie
Page 292 and 293:
without physical substance held for
Page 294 and 295:
Application and Infrastructure Deve
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On 1-4-2003, the remaining period o
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Accounting Standard 27 Financial Re
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The arrangement identifies those de
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the assets; c. its share of any lia
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separately as part of the inventory
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44 In case of transactions between
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Accounting Standard (AS) 28 Impairm
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4. The following terms are used in
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e. evidence is available of obsoles
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15. It is not always necessary to d
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ate can be justified. This growth r
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38. A restructuring is a programme
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. the enterprise’s incremental bo
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generate cash inflows from continui
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determined excluding cash flows tha
Page 326 and 327:
esult from synergy between the iden
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88. In allocating an impairment los
Page 330 and 331:
paragraphs 106 to 107 and for goodw
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102. Any increase in the carrying a
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a. if the enterprise sells the disc
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ased on the enterprise’s primary
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EXAMPLE 3- EXAMPLE 4- EXAMPLE 5- EX
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determining value in use of both X
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Total 10,000 7,000 3,000 A24. T use
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of the asset for tax purposes is Rs
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Gross carrying amount 1,000 2,000 3
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in forecasting cash flows. This res
Page 350 and 351:
Schedule 1. Calculation of the plan
Page 352 and 353:
Schedule 5. Summary of the carrying
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End of 20X4 A B C Goodwill Z Carryi
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in Rs. lakhs) Year Future cash flow
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Accounting Standard (AS) 29 Provisi
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The objective of this Statement is
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settle the obligation; or ii. a rel
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17. Financial statements deal with
Page 366 and 367:
may result in the recognition of in
Page 368 and 369:
warranties). The other party may ei
Page 370 and 371:
expenditures are recognised on the
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It does not form part of the Accoun
Page 374 and 375:
paragraphs 14 and 21). Example 3: O
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2005, the enterprise's lawyers advi
Page 378:
an onerous contract as a contract i
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Accounting Standards 1-29 - Seth & Associates

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