Financial Reporting - May 2024

FA Ltd. is a company which manufactures aircraft parts and engines and sells them to large multinational companies like Boeing and Airbus Industries. Following are the details of some of the transactions entered into by the company: i. On 1* April 20X2, the company began the construction of a new production line in its aircraft parts manufacturing shed. Costs relating to the production line are as follows: Details Amount Zin lakhs Costs of the basic materials (list price ₹ 12.5…

HS Limited (HSL) is a car manufacturing company. During the year, HSL has entered into many transactions, details of which are given below. i. With the intention to expand, HSL has entered into a Share Purchase Agreement ("SPA") with the shareholders of FM Limited to purchase 30% stake in FM Limited as at 1° June 20X2 at a price of & 30 per share. As per the terms of SPA, HSL has an option to purchase an additional 25% stake…

Ms. Suparna Dasgupta, a chartered accountant, has recently joined Astra Ltd. as the Head of the Finance Department. The Chief Operating Officer (also the executive director) of Astra Ltd. is Ms. Padmaja Srinivasan, a mechanical engineer with an MBA from Harvard University, who rose through the ranks through her excellent skills in project management, marketing, and customer management. Her remuneration includes a bonus computed as a percentage of turnover achieved during the year, and an additional incentive for achieving an…

REVISION TEST PAPER USSU AAAS FINANCIAL REPORTING Deferred Tax Liability (From 20X3-20X4) 22,162 Current Liabilities Trade Payables 7,64,000 Health Care Benefits for Employees 70,000 Current Tax Liability 80,400 TOTAL EQUITY & LIABILITIES 30,18,000 Notes: (a) Depreciation expense for the year 20X4-20X5 allowable in accordance with tax laws is = 2,06,000. Accounting depreciation included in operating costs is % 1,70,000. Cost of PPE is % 16,00,000 and Joy Ltd has deducted expenses of % 4,16,000 in its tax returns prior to…

16. B Limited has valued its Stock held for distribution as free items on claim by customers (on offers) at zero. Customers have a right to claim the free item within 14 days from date of invoice. If the time limit of 14-day exceeds, the claim is foregone by the customer. The majority of the free items require online registration by the buyers for participation in the contest conducted by the respective brand which needs to be done by the…