Financial Reporting - November 2019 MTP

You are a Chartered Accountant (CA) employed as a financial accountant with XYZ Ltd. (XYZ), an Indian listed company that manufactures and distributes electronic components for the telecommunications sector. XYZ Ltd is exploring possibilities of listing its securities at an overseas stock exchange, therefore, prepares consolidated financial statements up to 31st March each year under IFRS. Utkarsh hands you a folder (Appendix 1) containing the first draft of the consolidated financial statements for the yea r ended 31st March 20X6.…

Kapsch Telecom Inc. is an American corporation that outsources some of its product engineering work to SasTech Ltd. in India. Both the parties have a long-term business relationship with each other – probably since more than 15 years. In those 15 years, there have been multiple changes in management of both the parties. Kapsch has undergone many changes in the ownership and leadership in the last decade or so. In the outsourcing industry, it’s a customary practice to request the…

Caterers Pvt. Ltd., is a Panvel based company in the business of corporate catering since 2005. The Directors of the company are thinking about setting up a Dairy Unit to fulfil the company’s need for fresh milk in its daily service to the clients. They thought Karjat, a place between Mumbai and Pune, is the best place for the project site since it has ample of water resources and green feed around. For its 100+ corporate clients, the company estimates…

Engineering Pvt. Ltd. is a company engaged in the business of making kitchen equipment that are either customized according to customer needs or standardised based on minimum requirement of customers in general. Right from customization of gas stoves to large utensils there is a range of products manufactured and supplied. Since many institutional buyers do not know what will be the best arrangement for them, the company also does consultancy in this regard and visiting the facility of the buyer…

You are a qualified Chartered Accountant at XYZ Ltd, an Indian listed company which is exploring possibilities of listing its securities at an overseas stock exchange. The financial reporting requirements related to such listing include submission of financial statements as per IFRS. Therefore, XYZ Ltd prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) upto 31 March each year. You report to Anuj, the Financial Controller of XYZ Ltd. Anuj called you to enquire about the consolidated…