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16
June 2026Q. 4A(i)5 marksSyllabus 2022
(i)What are differences between Ind AS 16 and IGAAP 10 ?
Comparison of Ind AS 16 with existing IGAAP 10
S.No
Bases of Comparison
Ind AS 16 (Property, Plant, and
IGAAP 10 (Property,
Equipment)
Plant, and Equipment)
1.
Property, Plant, and
Does not deal with the assets held
Deals with the
Equipment retired
for non-continuing activities,
accounting for items of
from active use and
because the treatment of such
fixed assets retired
held for sale
assets is covered under Ind AS 105
from active use and
“Non -current assets held for sale
held for sale.
and Discontinued o peration”.
2.
Stripping costs in the
Ind AS 16 provide guideline on
Does not contain this
production phase of
measuring the stripping cost in the
guideline.
a surface mine
production phase of a surface mine.
Source: ICSI Guideline Answers, June 2026, Q. 4A(i) (Syllabus 2022).
June 2026Q. 4A(iii)5 marksSyllabus 2022
(iii)‘‘The accounting standards seek to describe the accounting principles, valuation techniques, and the methods of applying these accounting principles in the preparation and presentation of the financial statements so that they represent a true and fair view of the financial position and financial perform ance of the enterprise.’’
Discuss the need for Accounting Standards.
Need for Accounting Standards
The ostensible purpose of the standards-setting bodies is to promote the dissemination of timely and useful financial information to the users. The need for Accounting Standards may be enumerated as under:
(i)Improvement of credibility and reliability of financial statements : The accounting standards create an environment of confidence among the users of accounting information by providing a uniform structure of guidelines, which provide credibility and reliability to the accounting information. In this way, the financial statements present a true and fair view of the financial position and financial performance of an entity.
(ii)Comparability of financial Statements made easy : The value of the accounting information is enhanced if the same can be compared in the same line of business activity. But the comparability is possible only if the same accounting standards are used in the preparation of the financial statements of the different enterprises in the same industry. It is a positive step to protect the interests of the users of the accounting information.
(iii)Benefits to the accountants and auditors : The accounting standards provide a basis for the uniform accounting principles. Due to this reason, there is a lower possibility of fraud being committed by the accountant. There is more transparency in the accounting information. Since the accounting profession follows the accounting standards without any exception, they are helpful not only to the accounting entity but also to the accountants and the auditors. Any type of misinformation can lead to strict action against the accountants and the auditors.
(iv)Additional disclosures : There are certain areas where important information is not required to be disclosed by the law. The accounting standards require the disclosure of such matters as the method of depreciation and the change in the method of depreciation, which help the users of the financial statements to make important financial decisions.
(v)Evaluation of the managerial ability : Accounting standards are useful in measuring the efficiency of the management regarding profitability, liquidity, solvency, and other general areas of progress of the enterprise. In the absence of Accounting Standards, it would be difficult to evaluate managerial efficiency because there is no basis to compare the financial statements of one enterprise with those of another. Each enterprise would evolve its own rules and standards to suit its own purpose, and users would, therefore, not be able to get a true and fair view of the functioning of the enterprise.
(vi)Helpful to the Government : The Government officials would find the financial information useful for economic planning, market analysis, and tax collection if the financial statements are based on the established accounting standards.
Source: ICSI Guideline Answers, June 2026, Q. 4A(iii) (Syllabus 2022).
December 2025Q. 4A(i)5 marksSyllabus 2022
( i )What are borrowing costs as per Accounting Standard 16 ? When would borrowing costs be capitalized ?
The objective of AS 16 is to prescribe the accounting treatment for borrowing costs.
Borrowing costs are interest and other costs incurred by an enterprise in connection with the borrowing of funds. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset should be capitalized as part of the cost of that asset. The amount of borrowing costs eligible for capitalization should be determined in accordance with this Standard. Other borrowing costs should be recognized as an expense in the period in which they are incurred.
The financial statements should disclose
a.The accounting policy adopted for borrowing costs
b.The amount of borrowing costs capitalized during the period.
Source: ICSI Guideline Answers, December 2025, Q. 4A(i) (Syllabus 2022).
June 2025Q. 4(a)5 marksSyllabus 2022
( a )A new process for development of Active Pharmaceutical ingredients (APIs) is developed by Prof. Shastri. The process is subsequently patented. The APIs are used to manufacture medicines for cure of cardiac diseases. The patent is bought by a pharmaceutical company Ratna & Co. The patent was bought for a consideration of ₹ 45,00,00,000. The deal involves payment of ₹ 15,00,00,000 to Prof. Shastri and allotment of shares of ₹ 10 each at a discount of ₹ 2 per share for balance consideration of ₹ 30,00,00,000.
Prepare necessary journal entries in the books of Ratna & Co.
In the books of Ratan & Company
Journal Entry
Entry No.
Particulars
Dr. (₹)
Cr. (₹)
1.
Patent A/c To Prof. Shastri A/c (Being patent acquired from Prof. Shastri)
Dr.
45,00,00,000
45,00,00,000
2.
Prof. Shastri A/c
Dr.
45,00,00,000
Discount on issue of shares (W.N.)
Dr.
7,50,00,000
To Bank A/c
15,00,00,000
To Share Capital A/c
37,50,00,000
(Being consideration for patent)
Working Note:
Calculation of discount on issue of shares
Total consideration
₹ 45,00,00,000/-
Direct payment
₹ 15,00,00,000/-
Shares issued
₹ 30,00,00,000/-
Face value of shares issued
₹ 37,50,00,000/-
30,00,00,000 * 10
Discount on issue of shares
₹ 7,50,00,000/-
Source: ICSI Guideline Answers, June 2025, Q. 4(a) (Syllabus 2022).
December 2024Q. 11 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
IAS-8 deals with ................................
(A)Financial Reporting in hyper inflationary Condition
(B)Impairment of Assets
(C)Accounting policies, Change in Accounting estimates and errors
(D)Events after balance sheet date
Answer: (C) Accounting policies, Change in Accounting estimates and errors
Source: ICSI Guideline Answers (answer key), December 2024, Q. 11 (Corporate and Management Accounting paper, Syllabus 2017).
December 2024Q. 20 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The mission of the IFRS foundation is to develop standards that bring .................. to financial market around the world. Their work serves the public interest by fostering trust, growth and long-term financial stability in the global economy.
(A)Transparency
(B)Accountability
(C)Efficiency
(D)All of the above
Answer: (D) All of the above
Source: ICSI Guideline Answers (answer key), December 2024, Q. 20 (Corporate and Management Accounting paper, Syllabus 2017).
December 2024Q. 24 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
As per AS10 (revised), property, plant and equipment, which of the following costs is not included in the carrying amount of an item of PPE.
(A)Costs of site preparation
(B)Costs of relocating
(C)Installation and assembly costs
(D)None of the above
Answer: (B) Costs of relocating
Source: ICSI Guideline Answers (answer key), December 2024, Q. 24 (Corporate and Management Accounting paper, Syllabus 2017).
December 2024Q. 26 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
“Existing standard AS 26 allow for only the cost model as a part of the accounting policy. Ind AS 38 permits revaluation model in addition to cost model. ’ This statement refers to which assets ?
(A)Intangible Assets
(B)Current Assets
(C)Contingent Assets
(D)Investment
Answer: (A) Intangible Assets
Source: ICSI Guideline Answers (answer key), December 2024, Q. 26 (Corporate and Management Accounting paper, Syllabus 2017).
December 2024Q. 27 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS ................ relates to adjustment of the profit and loss for the effects of undistributed profit of the associates and non-controlling interests’ while determining the net cash flows from operating activities using the indirect method.
(A)Ind AS 2
(B)Ind AS 3
(C)Ind AS 7
(D)Ind AS 1
Answer: (C) Ind AS 7
Source: ICSI Guideline Answers (answer key), December 2024, Q. 27 (Corporate and Management Accounting paper, Syllabus 2017).
December 2024Q. 36 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
On 1st April, 2022 fixed assets were purchased by company at a cost of ₹ 3,40,000 and were installed at a cost of ₹ 10,000. Some new additional assets were installed on 1st July, 2022 at a cost of ₹ 50,000. The company again installed some more assets on 1st January, 2024 at a cost of ₹ 1, 00,0 00. Th e ag ree d r ate of depreciation is 10% p.a. The company adopt diminishing balance method of depreciation.
You are required to determine the amount of depreciation as on 31st March, 2024.
(A)₹ 42,500
(B)₹ 38,625
(C)₹ 38,750
(D)₹ 42,262.50
Answer: (B) ₹ 38,625
Source: ICSI Guideline Answers (answer key), December 2024, Q. 36 (Corporate and Management Accounting paper, Syllabus 2017).
December 2024Q. 40 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
As per AS 17, reportable segments are those whose total revenue from external sales and intersegments sales is ........................
(A)10% or more of the total revenue of all segments
(B)15% or more of the total revenue of all segments
(C)20% or more of the total revenue of all segments
(D)5% or more of the total revenue of all segments
Answer: (A) 10% or more of the total revenue of all segments
Source: ICSI Guideline Answers (answer key), December 2024, Q. 40 (Corporate and Management Accounting paper, Syllabus 2017).
December 2024Q. 100 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 113 fair value measurement does not apply to the following :
(A)Share based payment transaction as per Ind AS 102
(B)Leasing transaction within as per Ind AS-47
(C)Value in use in Ind AS 36
(D)All of the above
Answer: (D) All of the above
Source: ICSI Guideline Answers (answer key), December 2024, Q. 100 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 22 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
When an entity provides goods or services to customers at a price or rate that is subject to rate regulation is known as :
(A)Regulatory Fair Value
(B)Regulatory Revenue
(C)Regulatory Deferral Accounts Balance
(D)Regulatory Revenue Expenditure
Answer: (C) Regulatory Deferral Accounts Balance
Source: ICSI Guideline Answers (answer key), June 2024, Q. 22 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 23 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
.................... provides explanation about inventories of service providers.
(A)AS 2
(B)Ind AS 2
(C)AS 9
(D)Ind AS 27
Answer: (B) Ind AS 2
Source: ICSI Guideline Answers (answer key), June 2024, Q. 23 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 33 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
To establish principles for reporting financial information, about the different types of products and services an enterprise produces and the different geographical areas in which it operates. This is the objective of :
(A)Accounting Standard–17 (Segment Reporting)
(B)Accounting Standard – 25 (Interim Financial Reporting)
(C)Accounting Standard – 27 (Financial Reporting of Interests in Joint Ventures)
(D)Accounting Standard – 29 (Provisions, Contingent Liabilities and Contingent Assets)
Source: ICSI Guideline Answers (answer key), June 2024, Q. 33 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 34 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The objective of Accounting Standard–23 (Accounting for Investments in Associates in Consolidated Financial Statements) is :
(A)to prescribe the minimum content of an interim financial report and to prescribe the principles for recognition and measurement in complete or condensed financial statements for an interim period
(B)to ensure that appropriate recognition criteria and measurement bases are applied to provisions and contingent liabilities and that sufficient information is disclosed in the notes to the financial statements to enable users to understand their nature, timing and amount
(C)to set out principles and procedures for recognizing, in the consolidated financial statements, the effects of the investments in associates on the financial position and operating results of a group
(D)Accounting for investments in the financial statements of enterprises and related disclosure requirements
Answer: (C) to set out principles and procedures for recognizing, in the consolidated financial statements, the effects of the investments in associates on the financial position and operating results of a group
Source: ICSI Guideline Answers (answer key), June 2024, Q. 34 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 35 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The focus of the IFRC Advisory Council is to provide strategic support and advice to the IFRS Foundation, and it meets in :
(A)New York at least once a year for a period of two days
(B)London at least once a year for a period of two days
(C)New York at least twice a year for a period of two days
(D)London at least twice a year for a period of two days
Answer: (D) London at least twice a year for a period of two days
Source: ICSI Guideline Answers (answer key), June 2024, Q. 35 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 36 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The total number of members normally the Australian Accounting Standards Board (AASB) has :
(A)10 members (excluding the Chair)
(B)10 members (including the Chair)
(C)12 members (excluding the Chair)
(D)12 members (including the Chair)
Answer: (D) 12 members (including the Chair)
Source: ICSI Guideline Answers (answer key), June 2024, Q. 36 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 37 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The International Public Sector Accounting Standards Board’s (IPSASB) structures and processes are facilitated by the :
(A)International Accounting Bodies
(B)International Federation of Accountants (IFAC)
(C)Financial Reporting Council (FRC)
(D)European Financial Reporting Advisory Group (EFRAG)
Answer: (B) International Federation of Accountants (IFAC)
Source: ICSI Guideline Answers (answer key), June 2024, Q. 37 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 39 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The focus of AS-20 is on denominator of the ............. calculation.
(A)Earnings Per Share
(B)Lease
(C)Market Price Per Share
(D)Taxes on Income
Answer: (A) Earnings Per Share
Source: ICSI Guideline Answers (answer key), June 2024, Q. 39 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 40 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The expected sales value of stock is ₹ 20 lakhs and a commission of 10% on sale is payable to the agent. Calculate Net Realisable Value (NRV) as per AS-2 ?
(A)₹ 12 lakhs
(B)₹ 14 lakhs
(C)₹ 16 lakhs
(D)₹ 18 lakhs
Answer: (D) ₹ 18 lakhs
Source: ICSI Guideline Answers (answer key), June 2024, Q. 40 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 60 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
This Standard deals with the preparation of financial statements on a going concern basis using the accrual basis of accounting, materiality and aggregation issues, offsetting of assets and liabilities or income and expenses, frequency of reporting, comparative information, and consistency in presentation or classification :
(A)Ind AS–1
(B)Ind AS–2
(C)Ind AS–3
(D)Ind AS–6
Answer: (A) Ind AS–1
Source: ICSI Guideline Answers (answer key), June 2024, Q. 60 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 99 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
(1) To determine Fair value.
(2)To set out a single Ind AS framework for measuring fair value.
(3)To require disclosures with respect to fair value measurements.
Above objectives are related to :
(A)Ind AS 33-Earnings per share
(B)Ind AS 32-Financial Instrument Presentation
(C)Ind AS 113-Fair Value Measurement
(D)Ind AS 102-Share-based payment transaction
Answer: (C) Ind AS 113-Fair Value Measurement
Source: ICSI Guideline Answers (answer key), June 2024, Q. 99 (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 4A(i)5 marksSyllabus 2022
( i )Define Small and Medium Companies. Describe applicability of Accounting Standards to Small and Medium Companies.
Small and Medium Companies (“SMC”) are companies that satisfy the following conditions:
–Equity and debt securities of the company are not listed or not in the process of listing on any stock exchange whether in India or outside India
–Company is not a Bank or Financial Institution or Insurance Company
–Company’s turnover (excluding other income) does not exceed ₹ 250 crore in the immediately preceding accounting year
–Company does not have borrowing (including public deposits) exceeding ₹ 50 crore at any time during immediately preceding accounting year
–Company is not a holding company or subsidiary of a non-SMC
Applicability of Accounting Standards to SMC:
Partial Exemption : Certain Relaxations are provided with respect to the following accounting standards:
l AS 17 Segment Reporting
l AS 15 Employee Benefits
l AS 19 Leases
l AS 20 Earnings Per Share
l AS 29 Provisions, Contingent Liabilities and Contingent Assets
Full exemption: AS 3- Cash Flow statements shall not be applicable to SMCs if it is a One Person Company, dormant company and Small Company.
Source: ICSI Guideline Answers, June 2024, Q. 4A(i) (Syllabus 2022).
December 2023Q. 7 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
K Ltd. signed an agreement with its labour union on 20th October, 2023 to increase wages from 1st January, 2023. In this case, the additional wages payable from 1st January to 31st March, 2023 :
(A)Should be shown by adding with wages of the accounting year 2023-24 in the Profit and Loss Account of the accounting year 2023-24.
(B)Should be shown separately in the Profit and Loss Account of the accounting year 2023-24
(C)Should be shown in the form of a Note under the Profit and Loss Account of the accounting year 2023-24
(D)Need not be shown as an item in the Profit and Loss Account and Notes
Answer: (B) Should be shown separately in the Profit and Loss Account of the accounting year 2023-24
Source: ICSI Guideline Answers (answer key), December 2023, Q. 7 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 8 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Profit on sale of investments realized by a manufacturing company is shown in the Statement of Profit and Loss under :
(A)Revenue from operations
(B)Other Income
(C)Extraordinary Items
(D)Exceptional Items
Answer: (B) Other Income
Source: ICSI Guideline Answers (answer key), December 2023, Q. 8 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 29 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Segment reporting given as per AS 17 helps the users of the financial statements to have :
(A)A better understanding about the performance of the enterprise
(B)A better assessment about the risks and returns of the enterprise
(C)A more informed judgments about the enterprise as a whole
(D)All the above
Answer: (D) All the above
Source: ICSI Guideline Answers (answer key), December 2023, Q. 29 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 46 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Exclusion of an enterprise from the applicability of Accounting Standards would be permissible if .................. of the activity of such enterprise is commercial, industrial or business in nature.
(A)No part
(B)Less than 10%
(C)Less than 50%
(D)Less than 75%
Answer: (A) No part
Source: ICSI Guideline Answers (answer key), December 2023, Q. 46 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 47 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Non-corporate entities whose equity or debt instruments are listed on any stock exchange in or outside India are classified under ............ with regard to obligatory requirements to follow accounting standards.
(A)Level I
(B)Level II
(C)Level III
(D)Level IV
Answer: (A) Level I
Source: ICSI Guideline Answers (answer key), December 2023, Q. 47 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 48 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Entities which are required to or voluntarily opt to prepare and present interim financial report should comply with :
(A)AS 12
(B)AS 17
(C)AS 25
(D)AS 28
Answer: (C) AS 25
Source: ICSI Guideline Answers (answer key), December 2023, Q. 48 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 49 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
AS 28, dealing with Impairment of Assets, should be applied in accounting for the impairment of all assets except :
(A)Inventories
(B)Financial assets
(C)Assets arising from construction contracts
(D)All the above
Answer: (D) All the above
Source: ICSI Guideline Answers (answer key), December 2023, Q. 49 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 50 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Both executive and non-executive directors are considered as Key Management Personnel (KMP) under :
(A)IFRS
(B)IGAAP
(C)IASB
(D)All the above
Answer: (A) IFRS
Source: ICSI Guideline Answers (answer key), December 2023, Q. 50 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 52 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
External Reporting Board (XRB) is functioning from :
(A)Canada
(B)Japan
(C)Australia
(D)New Zealand
Answer: (D) New Zealand
Source: ICSI Guideline Answers (answer key), December 2023, Q. 52 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 53 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Financial Accounting Standards Board (FASB) is an independent, private sector and not-for-profit organization establishes financial accounting and reporting standards for ........... in USA.
(A)Private Companies
(B)Public Companies
(C)Not-for-profit organisations
(D)All the above
Answer: (D) All the above
Source: ICSI Guideline Answers (answer key), December 2023, Q. 53 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 54 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
As a part of accounting policy for valuation of intangible assets, Ind AS 28 permits :
(A)Cost model
(B)Revaluation model
(C)Consideration model
(D)Cost or revaluation model
Answer: (D) Cost or revaluation model
Source: ICSI Guideline Answers (answer key), December 2023, Q. 54 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 56 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Listed companies having net worth of .......... were required to prepare their financial statements by adopting Indian Accounting Standards (Ind ASs) for the accounting period ending on or after 1st April, 2017.
(A)Less than ₹ 500 crores
(B)₹ 500 crores or more
(C)₹ 1000 crores or more
(D)No limit
Answer: (A) Less than ₹ 500 crores
Source: ICSI Guideline Answers (answer key), December 2023, Q. 56 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 57 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Joint arrangements coming under the scope of Ind AS 111 shall be in the form of :
(A)Joint operations
(B)Joint venture
(C)Joint operations or Joint ventures
(D)Joint operations and Joint ventures
Answer: (C) Joint operations or Joint ventures
Source: ICSI Guideline Answers (answer key), December 2023, Q. 57 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 58 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 1 allows classification of expenses based on :
(A)Nature
(B)Function
(C)Nature or Function
(D)Nature and Function
Answer: (A) Nature
Source: ICSI Guideline Answers (answer key), December 2023, Q. 58 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 60 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Preparation of consolidated financial statements is a mandatory requirement under :
(A)Ind AS 27
(B)AS 21
(C)Both Ind AS 27 and AS 21
(D)Neither Ind AS 27 nor AS 21
Answer: (A) Ind AS 27
Source: ICSI Guideline Answers (answer key), December 2023, Q. 60 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 88 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The Ind ASs are named and numbered in the same way as the corresponding :
(C)National Advisory Committee in Accounting Standards (NACAS)
(D)Accounting Standards of Accounting Standard Board (ASB)
Answer: (A) International Financial Reporting Standards (IFRS)
Source: ICSI Guideline Answers (answer key), December 2023, Q. 88 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 93 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 102 applies to :
(A)Employees share based payments
(B)Non-employees share based payments
(C)Both Employees and Non-employees share based payments
(D)Items covered by AS 10
Answer: (C) Both Employees and Non-employees share based payments
Source: ICSI Guideline Answers (answer key), December 2023, Q. 93 (Corporate and Management Accounting paper, Syllabus 2017).
December 2023Q. 4A(iii)5 marksSyllabus 2022
(iii)What is the need of convergence of Accounting Standard with IFRS in India ?
The need for convergence of Indian Accounting Standards with Global Standards cannot be undermined in the light of importance of IFRS. The following points highlight the importance of IFRS:
1.Single set of accounting standards would enable international standardization and refill assure better quality global level.
2.It would also permit international capital to flow more freely, thereby enabling companies to develop consisting global practices on accounting Problems.
3.It would be beneficial to the regulators also as the complexity associated with the need to understand various reporting regimes would be reduced.
4.For investors, it gives a better understanding of the financial statements and helps in assessing the investment opportunities in other countries also apart from their home country.
5.It will be beneficial for the accounting professionals also, as the convergence of Accounting Standard with IFRS will enhance their global reach.
The above factures highlight the need for convergence as well. Each county has its own set of rules and regulations for accounting and financial reporting Translation and re-instatement are of utmost importance in the world that is rapidly globalizing in all ways. Further, international analyst and investors would like to compare financial statements based on similar accounting standards and this has led to the growing support for internationally accepted set of accounting standards for cross border fillings. The harmonizing of financial reporting around the world would also help to raise the confidence of investors generally in the information they are using to make their decisions and assess their risks.
A strong need has been felt by legislation to bring about uniformity, rationalization, comparability transparency and adaptability in financial statement across the globe. Having a multiplicity of accounting standard around the world is against the public interest. If accounting for the same events and information produces different reported numbers depending on the system of standards that are being used, it is self-evident that accounting will be increasingly discredited in the eyes of those using the numbers. It creates confusion, encourages error and facilitates fraud and the cure for these is to have single set of global standards of the highest quality set in the interest of public.
Source: ICSI Guideline Answers, December 2023, Q. 4A(iii) (Syllabus 2022).
June 2023Q. 9 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
If expenses or income that do not arise in the ordinary course and are material, they should be stated separately in the profit and loss account under the heading:
(A)Prior Period Items
(B)Extraordinary Items
(C)Financial Expenses
(D)Operating Expenses
Answer: (B) Extraordinary Items
Source: ICSI Guideline Answers (answer key), June 2023, Q. 9 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 32 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
A .................. is a business segment or a geographical segment identified on the basis of the foregoing definitions for which segment information is required to be disclosed by this standard.
(A)Business segment
(B)Reportable segment
(C)Geographical segment
(D)Financial segment
Answer: (B) Reportable segment
Source: ICSI Guideline Answers (answer key), June 2023, Q. 32 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 36 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Which Accounting Standard was issued by ICAI on ‘consolidated financial statement’?
(A)AS-20
(B)AS-21
(C)AS-22
(D)AS-23
Answer: (B) AS-21
Source: ICSI Guideline Answers (answer key), June 2023, Q. 36 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 50 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Corporate entities are required to follow accounting standards while preparing their financial statements as per .................. of the Companies Act, 2013.
(A)Section 129
(B)Section 130
(C)Section 131
(D)Section 132
Answer: (A) Section 129
Source: ICSI Guideline Answers (answer key), June 2023, Q. 50 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 51 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
As per AS-2, Inventory should be valued at................. .
(A)Cost
(B)Net realizable value
(C)Cost or Net realizable value, whichever is lower
(D)Cost or Net realizable value, whichever is higher
Answer: (C) Cost or Net realizable value, whichever is lower
Source: ICSI Guideline Answers (answer key), June 2023, Q. 51 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 52 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Which of the following is a Level-1 enterprise?
(A)All commercial, industrial or business reporting entities having: Borrowings > 1 crore (at any time during immediately preceding accounting year), Turnover > 10 crore (during preceding accounting year)
(B)All commercial, industrial or business reporting entities having: Borrowings > 10 crore (at any time during immediately preceding accounting year), Turnover > 50 crore (during preceding accounting year)
(C)All commercial, industrial or business reporting entities having: Borrowings > 10 crore (at any time during current accounting year), Turnover > 50 crore (during preceding accounting year)
(D)All commercial, industrial or business reporting entities having: Borrowings > 1 crore (at any time during current accounting year), Turnover > 10 crore (during preceding accounting year)
ICSI did not treat any of the given options as correct.
ICSI's note: Correct option is B i.e. All commercial, industrial or business reporting entities having: Borrowings > 10 crores (at any time during immediately preceding accounting year), Turnover > 50 crores (during preceding accounting year).However, w.e.f. 1.04.2021, Level 1 entities shall be classified as All commercial, industrial or business reporting entities having: Borrowings > 50 crores (at any time during immediately preceding accounting year), Turnover > 250 crores (immediately preceding accounting year) . Therefore, none of the options are correct.
Source: ICSI Guideline Answers (answer key), June 2023, Q. 52 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 53 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Components of financial statements as per IFRS is......................
(A)Comprises of Balance Sheet, Profit and Loss A/c, Cash Flow Statement, Statement of changes in equity and accounting policy and notes to accounts
(B)Comprises of Balance Sheet, Profit and Loss A/c, Cash Flow Statement, and notes to accounts
(C)Comprises of Balance Sheet, Profit and Loss A/c, Statement of changes in equity and accounting policy and notes to accounts
(D)Comprises of Balance Sheet, Profit and Loss A/c, Cash Flow Statement, Statement of changes in equity
Answer: (A) Comprises of Balance Sheet, Profit and Loss A/c, Cash Flow Statement, Statement of changes in equity and accounting policy and notes to accounts
Source: ICSI Guideline Answers (answer key), June 2023, Q. 53 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 54 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Match List I with items in List II: List I List II
(a)IFRS 2 (i) Lease
(b)IFRS 4 (ii) Share-Based payments
(c)IFRS 8 (iii) Operating Segment
(d)IFRS 16 (iv) Insurance Contract
(a)(b) (c) (d)
(A)(i) (ii) (iii) (iv)
(B)(ii) (iv) (i) (iii)
(C)(iv) (ii) (iii) (i)
(D)(ii) (iv) (iii) (i)
Answer: (D) (ii) (iv) (iii) (i)
Source: ICSI Guideline Answers (answer key), June 2023, Q. 54 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 55 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
IFRS Advisory Council meets in London at least....................
(A)Once in a year for a period of two days
(B)Twice in a year for a period of two days
(C)Once in a year for a period of three days
(D)Twice in a year for a period of three days
Answer: (B) Twice in a year for a period of two days
Source: ICSI Guideline Answers (answer key), June 2023, Q. 55 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 56 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The structures and processes that support the operations of the international public sector accounting standards board (IPSASB) are facilitated by the...................
(A)International Accounting Standard Board (IASB)
(B)International Federation of Accountants (IFAC)
(C)Financial Reporting Council (FRC)
(D)Financial Accounting Standard Board (FASB)
Answer: (B) International Federation of Accountants (IFAC)
Source: ICSI Guideline Answers (answer key), June 2023, Q. 56 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 57 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The IFRS Foundation has a three-tier governance structure namely:
(A)IFRS Foundation Monitoring Board, IFRS Foundation Trustees and International Accounting Standard Board
(B)IFRS Foundation Monitoring Board, IFRS Foundation Employees and International Accounting Standard Board
(C)IRS Foundation member, IFRS Foundation Trustees and International Accounting Standard Board
(D)IFRS Foundation members, IFRS Foundation Trustees and International Standard Board
Answer: (A) IFRS Foundation Monitoring Board, IFRS Foundation Trustees and International Accounting Standard Board
Source: ICSI Guideline Answers (answer key), June 2023, Q. 57 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 58 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Existing AS 14 requires amortization of goodwill arising on amalgamation in the nature of the purchase. Whereas................
(A)Ind AS 103 requires goodwill to be tested impairment on a monthly basis in accordance with Ind AS 36
(B)Ind AS 103 requires goodwill to be tested impairment on a quarterly basis in accordance with Ind AS
(C)Ind AS 103 requires goodwill to be tested impairment on a half-yearly basis in accordance with Ind AS
(D)Ind AS 103 requires goodwill to be tested impairment on an annual basis in accordance with Ind AS 36
Answer: (D) Ind AS 103 requires goodwill to be tested impairment on an annual basis in accordance with Ind AS 36
Source: ICSI Guideline Answers (answer key), June 2023, Q. 58 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 59 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
“ To establish principles for the financial reporting of financial assets and financial liabilities that will present relevant and useful information to users of financial statements for their assessment of the amounts, timing and uncertainty of an entity’s future cash flows.” This is the objective of..............
(A)Ind AS 107 Financial Instruments Disclosures
(B)Ins AS 109 Financial Instruments
(C)Ind AS 110 Consolidated Financial Statements
(D)Ins AS 112 Disclosure of Interests in Other Entities
Answer: (B) Ins AS 109 Financial Instruments
Source: ICSI Guideline Answers (answer key), June 2023, Q. 59 (Corporate and Management Accounting paper, Syllabus 2017).
June 2023Q. 60 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The objectives of Ind As 103, Business Combinations are.................... .
(A)to improve the relevance, reliability and comparability of the information that a reporting entity provides in its financial statements about a business combination and its effects
(B)to specify the financial reporting by an entity when it undertakes a share-based payment transaction
(C)to specify the financial reporting for the exploration for and evaluation of mineral resources
(D)to require entities to provide disclosures in their financial statements that enable users to evaluate
Answer: (A) to improve the relevance, reliability and comparability of the information that a reporting entity provides in its financial statements about a business combination and its effects
Source: ICSI Guideline Answers (answer key), June 2023, Q. 60 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 50 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
In India, accounting standards are issued by :
(A)Institute of Chartered Accountants of India
(B)Insurance and Regulatory Development Authority of India
(C)Reserve Bank of India
(D)All of the above
ICSI accepted any of these answers: (A) Institute of Chartered Accountants of India; (B) Insurance and Regulatory Development Authority of India; (C) Reserve Bank of India; (D) All of the above
ICSI's note: In India, the expert accounting body to issue accounting standards is ICAI. Therefore, correct option is A. However, The other agencies/regulatory bodies may also prescribe the accounting standard issued by ICAI to be followed. For eg: Central Govt. prescribes accounting standards for companies under Companies Act, 2013, Similarly IRDA and RBI also prescribes accounting standard to be followed by insurance / banking companies. Accordingly, Option B / C / D may also be considered as correct. ***
Source: ICSI Guideline Answers (answer key), December 2022, Q. 50 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 51 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
When a very small proportion of the activities of an enterprise is considered to be commercial, industrial or business in nature then the Accounting Standards would apply to :
(A)All of its activities
(B)None of its activities
(C)Commercial, industrial or business activities only
(D)Non-commercial, non-industrial or nonbusiness activities only
Answer: (A) All of its activities
Source: ICSI Guideline Answers (answer key), December 2022, Q. 51 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 54 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
As per the provisions of AS 02, inventories should be valued at :
(A)The cost price
(B)The net realizable value
(C)Cost price or net realizable value whichever is less
(D)Cost price or net realizable value whichever is more
Answer: (C) Cost price or net realizable value whichever is less
Source: ICSI Guideline Answers (answer key), December 2022, Q. 54 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 56 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The strategic objective of .................... is strengthening Public Financial Management globally.
(A)International Public Sector Accounting Standards Board
(B)International Financial Reporting Standards Foundation
(C)Financial Reporting Council
(D)Financial Accounting Standards Board
Answer: (A) International Public Sector Accounting Standards Board
Source: ICSI Guideline Answers (answer key), December 2022, Q. 56 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 57 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Scheduled commercial banks excluding regional rural banks, are required to apply Indian Accounting Standards (Ind ASs) for preparing their financial statements for the period ending beginning on or after :
(A)1 April, 2016
(B)1 April, 2017
(C)1 April, 2018
(D)1 April, 2019
Answer: (C) 1 April, 2018
Source: ICSI Guideline Answers (answer key), December 2022, Q. 57 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 58 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 27 prescribes the accounting and disclosure requirements for investments in .................. when an entity prepares separate financial statements.
(A)Subsidiaries
(B)Joint Ventures
(C)Associates
(D)All of the above
Answer: (D) All of the above
Source: ICSI Guideline Answers (answer key), December 2022, Q. 58 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 59 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
..................... prohibits presentation of any item as extraordinary item in the statement of profit and loss or in the notes.
(A)AS 01
(B)Ind AS 01
(C)Ind AS 101
(D)Ind AS 41
Answer: (B) Ind AS 01
Source: ICSI Guideline Answers (answer key), December 2022, Q. 59 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 60 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 33 requires presentation of basic and diluted Earnings Per Share from :
(A)Continuing operations only
(B)Discontinued operations only
(C)Both continuing and discontinued operations
(D)Extraordinary operations
Answer: (C) Both continuing and discontinued operations
Source: ICSI Guideline Answers (answer key), December 2022, Q. 60 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 93 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The equity shares of a company are currently selling at ₹ 80 per share and the company is expected to pay a dividend of ₹ 5 per share. If the rate of return is calculated as 16%, what is the growth rate ?
(A)8.0%
(B)9.75%
(C)10.5%
(D)12.75%
Answer: (B) 9.75%
Source: ICSI Guideline Answers (answer key), December 2022, Q. 93 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 94 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
When an entity presents both, consolidated financial statements and separate financial statements as per Ind AS; the disclosures required under Ind AS 33 shall be given in :
(A)Consolidated financial statements only
(B)Separate financial statements only
(C)Both consolidated and separated financial statements
(D)Any of the above
Answer: (C) Both consolidated and separated financial statements
Source: ICSI Guideline Answers (answer key), December 2022, Q. 94 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 95 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Fair value as per Ind AS 113 is the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants on the:
(A)Balance sheet date
(B)Measurement date
(C)Dividend declared date
(D)Earliest of the above three dates
Answer: (B) Measurement date
Source: ICSI Guideline Answers (answer key), December 2022, Q. 95 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 99 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Which of the following is not a disclosure required under Ind AS 102 in share based payment arrangement ?
(A)Market share price of exercised options
(B)Valuation method used
(C)Settlement method used
(D)Average share price of exercised options
Answer: (A) Market share price of exercised options
Source: ICSI Guideline Answers (answer key), December 2022, Q. 99 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 41 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
X Ltd. purchased goods at the cost of ₹ 60 lakh in November, 2020. Till March, 2021, 75% of the stock was sold. The company wants to disclose stock at ₹ 15 lakh. The expected sale value is ₹ 16.50 lakh and a commission at 10% on sale value is payable to the agent. What is the correct closing stock to be disclosed as at 31st March, 2021 as per AS-2?
(A)₹ 15 lakh
(B)₹ 16.50 lakh
(C)₹ 14.85 lakh
(D)₹ 18.15 lakh
Answer: (C) ₹ 14.85 lakh
Source: ICSI Guideline Answers (answer key), June 2022, Q. 41 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 42 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
AS-7 issued by the ICAI deals with ................. .
(A)Government grants
(B)Construction contracts
(C)Revenue recognition
(D)Disclosure of accounting policies
Answer: (B) Construction contracts
Source: ICSI Guideline Answers (answer key), June 2022, Q. 42 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 49 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Which of the following International Accounting Standard (IAS) is related to Employee Benefits ?
(A)IAS–8
(B)IAS–12
(C)IAS–19
(D)IAS–23
Answer: (C) IAS–19
Source: ICSI Guideline Answers (answer key), June 2022, Q. 49 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 50 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The IFRS Advisory Council is the formal advisory body to the :
(A)International Accounting Standards Board
(B)Trustees of the IFRS Foundation
(C)IFRS Foundation Monitoring Board
(D)Both (A) and (B)
Answer: (D) Both (A) and (B)
Source: ICSI Guideline Answers (answer key), June 2022, Q. 50 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 51 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The Association of International Certified Professional Accountants launched in 2017, bringing together the expertise and capabilities of the ..................... .
(A)CIMA and FASB
(B)AICPA and CIMA
(C)AICPA and FASB
(D)IFRS Foundation and FASB
Answer: (B) AICPA and CIMA
Source: ICSI Guideline Answers (answer key), June 2022, Q. 51 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 52 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
External Reporting Board (XRB) belongs to :
(A)The UK
(B)The USA
(C)Australia
(D)New Zealand
Answer: (D) New Zealand
Source: ICSI Guideline Answers (answer key), June 2022, Q. 52 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 53 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Public Interest Committee (PIC) established by International Public Sector Accounting Standards Board (IPSASB) consists of individuals from the :
(A)International Monetory Fund
(B)International Organization of Supreme Audit Institutions
(C)World Bank Group
(D)All of the above
Answer: (D) All of the above
Source: ICSI Guideline Answers (answer key), June 2022, Q. 53 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 54 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Financial Reporting Council (FRC) of the UK is a/an ..................... .
(A)Unlimited company
(B)Company limited by guarantee
(C)Subsidiary company of IFRS
(D)Associate company of the Institute of Chartered Accountants of England & Wales
Answer: (B) Company limited by guarantee
Source: ICSI Guideline Answers (answer key), June 2022, Q. 54 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 55 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Who notified the adoption and applicability of Indian Accounting Standards (Ind ASs) to Indian companies ?
(A)Ministry of Finance, GOI
(B)Ministry of Commerce, GOI
(C)Ministry of Corporate Affairs, GOI
(D)Accounting Standards Board, ICAI
Answer: (C) Ministry of Corporate Affairs, GOI
Source: ICSI Guideline Answers (answer key), June 2022, Q. 55 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 56 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 110 deals with :
(A)Operating Segments
(B)Consolidated Financial Statements
(C)Fair Value Measurement
(D)Business Combinations
Answer: (B) Consolidated Financial Statements
Source: ICSI Guideline Answers (answer key), June 2022, Q. 56 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 58 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 34 requires the following in the contents of an interim financial report in addition to what was required under previous standard AS 25 :
(A)A condensed balance sheet
(B)A condensed cash flow statement
(C)A condensed statement of profit and loss
(D)A condensed statement of changes in equity
Answer: (D) A condensed statement of changes in equity
Source: ICSI Guideline Answers (answer key), June 2022, Q. 58 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 87 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 33 deals with .................. .
(A)Earnings per share
(B)Fair value measurement
(C)Value added statement
(D)Financial instrument presentation
Answer: (A) Earnings per share
Source: ICSI Guideline Answers (answer key), June 2022, Q. 87 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 16 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
A .................. is a business segment or a geographical segment identified on the basis of foregoing definitions for which segment information is required to be disclosed
(A)Business segment
(B)Geographical segment
(C)Reportable segment
(D)Area segment
Answer: (C) Reportable segment
Source: ICSI Guideline Answers (answer key), December 2021, Q. 16 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 22 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Match the List I with items in List II :
List I
List II
(a) AS 06
(i) Employee Benefits
(b) AS 09
(ii) Revenue Recognition
(c) AS 12
(iii) Depreciation Accounts
(d) AS 15
(iv) Accounting for Government Grants
(a) (b)
(c)
(d)
(A)(ii) (iv) (i) (iii)
(B)(i) (iv) (ii) (iii)
(C)(ii) (iii) (i) (iv)
(D)(iii) (ii) (iv) (i)
Answer: (D) (iii) (ii) (iv) (i)
Source: ICSI Guideline Answers (answer key), December 2021, Q. 22 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 23 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The standard-setting procedure of Accounting Standards Board cannot be outlined as :
(A)Identification of broad areas by ASB for formulation of AS
(B)Constitution of study groups by ASB to consider specific projects and to prepare prelininary drafts of the proposed Accounting Standards. The draft normally includes objective and scope of the standard, definitions of the terms used in the standard, recognition and measurement principles, wherever applicable, and presentation and disclosure requirements.
(C)Consideration of the preliminary draft prepared by the study group of ASB and revision, if any, of the draft on the basis of deliberations.
(D)Presentation of transactions and events in the financial statements in a manner that is meaningful and understandable to the reader.
Answer: (D) Presentation of transactions and events in the financial statements in a manner that is meaningful and understandable to the reader.
Source: ICSI Guideline Answers (answer key), December 2021, Q. 23 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 24 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
As per IFRS disclosure to be made in only consolidated financial of the parent company for :
(A)Intangible Assets
(B)Earnings Per Share
(C)Market Price Per Share
(D)Dividends
Answer: (B) Earnings Per Share
Source: ICSI Guideline Answers (answer key), December 2021, Q. 24 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 25 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
In case there is any conflict between provisions of any applicable Act and Accounting Standards, the _______ shall prevail.
(A)Accounting Standard
(B)Provisions of the Act
(C)Above (A) & (B), both
(D)None of the above
Answer: (B) Provisions of the Act
Source: ICSI Guideline Answers (answer key), December 2021, Q. 25 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 26 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Trustees of IFRS Foundation have been appointed for a :
(A)Renewable period of 5 years
(B)Non-renewable period of 5 years
(C)Renewable period of 3 years
(D)Non-renewable priod of 3 years
Answer: (C) Renewable period of 3 years
Source: ICSI Guideline Answers (answer key), December 2021, Q. 26 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 27 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Members of the IFRS Advisory Council are appointed by the :
(A)Board of Directors
(B)Trustees
(C)Board of Directors and Trustees jointly
(D)Chairperson of the Foundation
Answer: (B) Trustees
Source: ICSI Guideline Answers (answer key), December 2021, Q. 27 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 28 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS shall be adopted by specific classes of companies based on their :
(A)Net worth
(B)Listing Status
(C)Net worth or Listing Status
(D)Net worth and Listing Status
Answer: (D) Net worth and Listing Status
Source: ICSI Guideline Answers (answer key), December 2021, Q. 28 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 29 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
From 1st April 2019, if Net worth is more than or equal to 250 crore but less than 500 crore it becomes mandatory to apply Ind AS for ................... .
(A)NBFC
(B)All Banks
(C)Insurance Companies
(D)Listed Companies
Answer: (A) NBFC
Source: ICSI Guideline Answers (answer key), December 2021, Q. 29 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 36 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 104 on Insurance Contract will not be applicable to :
(A)Insurance Contracts
(B)Reinsurance Contracts
(C)Financial Instruments that it issues with a discretionary participation features
(D)Product warranties issued directly
Answer: (D) Product warranties issued directly
Source: ICSI Guideline Answers (answer key), December 2021, Q. 36 (Corporate and Management Accounting paper, Syllabus 2017).
December 2021Q. 90 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Following are the objectives of :
(1)To determine Fair Value.
(2)To set out a single Ind AS framework for measuring fair value.
(3)To require disclosures with respect to fair value measurements.
(A)Financial instrument presentation
(B)Market based approach
(C)Principal market measurement
(D)Fair value measurement
Answer: (D) Fair value measurement
Source: ICSI Guideline Answers (answer key), December 2021, Q. 90 (Corporate and Management Accounting paper, Syllabus 2017).
June 2021Q. 6 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
AS-11 issued by ICAI deals with ...........
(A)Accounting for Government grants
(B)Accounting for foreign exchange transaction
(C)Cash Flow Statement
(D)Fund Flow Statement
Answer: (B) Accounting for foreign exchange transaction
Source: ICSI Guideline Answers (answer key), June 2021, Q. 6 (Corporate and Management Accounting paper, Syllabus 2017).
June 2021Q. 8 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ravi Ltd. purchased goods at the cost of ₹ 40 lakh in October, 2019. Till March 2020, 75% of the stocks were sold. The Campany wants to disclose closing stock at ₹ 10 Lakh. The expected sale value is ₹ 11 Lakh and a commission at 10% on sale is payable to the agent. What is the correct closing stock to be disclosed as at 31.3.2020 as per AS-2 ?
(A)10 Lakh
(B)9.9 Lakh
(C)11 Lakh
(D)12 Lakh
Answer: (B) 9.9 Lakh
Source: ICSI Guideline Answers (answer key), June 2021, Q. 8 (Corporate and Management Accounting paper, Syllabus 2017).
June 2021Q. 9 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS-2 provides for reversal of the write-down of inventories to :
(A)Cost
(B)Replacement Cost
(C)Net realizable value
(D)Net realizable value limited to the amount of original write-down
Answer: (D) Net realizable value limited to the amount of original write-down
Source: ICSI Guideline Answers (answer key), June 2021, Q. 9 (Corporate and Management Accounting paper, Syllabus 2017).
June 2021Q. 10 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The IFRS foundation has a .................. governance structure.
(A)Three-tier
(B)Two-tier
(C)Four-tier
(D)Five-tier
Answer: (A) Three-tier
Source: ICSI Guideline Answers (answer key), June 2021, Q. 10 (Corporate and Management Accounting paper, Syllabus 2017).
June 2021Q. 11 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Financial Reporting Council (UK) is a :
(A)Company limited by guarantee
(B)Unlimited Company
(C)Subsidiary company of IFRS
(D)Associate company of the Institute of Chartered Accountants of England
Answer: (A) Company limited by guarantee
Source: ICSI Guideline Answers (answer key), June 2021, Q. 11 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 12 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Under Ind AS 1 , presentation of any items of income or expense as extraordinary item is :
(A)Separately disclosed
(B)Shown as a part of statement of profit and loss
(C)Prohibited
(D)None of the above
Answer: (C) Prohibited
Source: ICSI Guideline Answers (answer key), December 2020, Q. 12 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 21 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
AS 3 and AS 17 are not applicable in their entirety to :
(A)Level II Entities
(B)Level III Entities
(C)SMCs
(D)All of the above
Answer: (D) All of the above
Source: ICSI Guideline Answers (answer key), December 2020, Q. 21 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 22 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
IASB stands for :
(A)Indian Accounting Standard Board
(B)International Auditing Standard Board
(C)International Accounting Standard Board
(D)International Assurance Service Board
Answer: (C) International Accounting Standard Board
Source: ICSI Guideline Answers (answer key), December 2020, Q. 22 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 23 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The structure of IFRS Foundation consists of :
(A)International Accounting Standards Board (IASB), IFRS Foundation Trustees and IFRS Foundation Monitoring Board
(B)IFRS Foundation Trustees, IFRS Foundation Monitoring Board and IFRS Advisory Council
(C)IFRS Foundation Monitoring Board, IFRS Advisory Council, International Accounting Standards Board (IASB)
(D)International Accounting Standards Board (IASB), IFRS Foundation Trustees and IFRS Advisory Council
Answer: (A) International Accounting Standards Board (IASB), IFRS Foundation Trustees and IFRS Foundation Monitoring Board
Source: ICSI Guideline Answers (answer key), December 2020, Q. 23 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 24 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 20 requires government grants of the nature of promoters contribution :
(A)to be credited directly to capital reserve and treated as a part of shareholders funds
(B)to be recognized as income over the periods
(C)Not to be recognized
(D)Either (A) or (B)
Answer: (C) Not to be recognized
Source: ICSI Guideline Answers (answer key), December 2020, Q. 24 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 29 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The Chief Accountant of TT Ltd. gives the following data regarding its six segments:
₹ in crore
Particulars
M
N
O
P
Q
R
Total
Segment Assets
9
9
55
9
9
9
100
Segment Results
–19
–162
18
10
–19
10
–162
Segment Revenue
161
29
29
28
27
26
300
The Reportable Segments as per AS 17 are :
(A)M, N
(B)M, N, O
(C)M, N, O, P
(D)M, N, O, P, R
Answer: (B) M, N, O
Source: ICSI Guideline Answers (answer key), December 2020, Q. 29 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 33 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
AS 18 and AS 24 are not applicable in their entirety to :
(A)Level II Entities
(B)Level III Entities
(C)SMCs
(D)All of the above
Answer: (B) Level III Entities
Source: ICSI Guideline Answers (answer key), December 2020, Q. 33 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 34 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
AS-7 issued by ICAI deals with ...........
(A)Disclosure of accounting policies
(B)Revenue Recognition
(C)Construction contracts
(D)Government grants
Answer: (C) Construction contracts
Source: ICSI Guideline Answers (answer key), December 2020, Q. 34 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 35 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The Advisory Council is the formal advisory body to the :
(A)International Accounting Standards Board
(B)Trustees of the IFRS Foundation.
(C)IFRS Foundation Monitoring Board
(D)Both (A) and (B)
Answer: (D) Both (A) and (B)
Source: ICSI Guideline Answers (answer key), December 2020, Q. 35 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 36 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 11 requires contract revenue to be measured at.............
(A)Net realisable value
(B)Fair value of consideration received/ receivable
(C)Consideration received/receivable
(D)None of the above
Answer: (B) Fair value of consideration received/ receivable
Source: ICSI Guideline Answers (answer key), December 2020, Q. 36 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 40 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 34 requires the following in the contents of an interim financial report in addition to what was required under previous standard AS 25:
(A)A condensed balance sheet
(B)A condensed statement of profit and loss
(C)A condensed cash flow statement
(D)A condensed statement of changes in equity
Answer: (D) A condensed statement of changes in equity
Source: ICSI Guideline Answers (answer key), December 2020, Q. 40 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 43 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
GAAP stands for :
(A)Generally accepted accounting principles
(B)Generally accumulated adherence policy
(C)Generally accounting adherence policy
(D)Generally assisted accounting principles
Answer: (A) Generally accepted accounting principles
Source: ICSI Guideline Answers (answer key), December 2020, Q. 43 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 44 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
.............. are set of accounting standards notified by the Ministry of Corporate Affairs which are converged with International Financial Reporting Standards.
(A)International Accounting Standards
(B)Indian Accounting Standard
(C)Indian Auditing Standard
(D)International Auditing Standards
Answer: (B) Indian Accounting Standard
Source: ICSI Guideline Answers (answer key), December 2020, Q. 44 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 47 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
The Association of International Certified Professional Accountants launched in 2017, bringing together the expertise and capabilities of the :
(A)AICPA and CIMA
(B)AICPA and FASB
(C)IFRS Foundation and FASB
(D)CIMA and FASB
Answer: (A) AICPA and CIMA
Source: ICSI Guideline Answers (answer key), December 2020, Q. 47 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 49 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 113 deals with :
(A)Fair value measurement
(B)Joint arrangements
(C)Financial instruments
(D)Insurance contract
Answer: (A) Fair value measurement
Source: ICSI Guideline Answers (answer key), December 2020, Q. 49 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 54 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
X Ltd. has 5,000 AC in stock on 31st March, 2019. The cost of each AC amount to ₹ 10,000. There is firm commitment of sale of 1,000 AC by the company in April, 2019 @ ₹ 15,000 per AC. However, the general price of this AC at year end amounts to ? 9,500 per AC. Calculate the Value of Closing Stock as per AS-2.
(A)₹ 480 lakh
(B)₹ 475 lakh
(C)₹ 530 lakh
(D)None of the above
Answer: (A) ₹ 480 lakh
Source: ICSI Guideline Answers (answer key), December 2020, Q. 54 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 55 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
............... prescribes the basis for presentation of general purpose financial statement to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities.
(A)Ind AS 1
(B)Ind AS 2
(C)Ind AS 3
(D)Ind AS 4
Answer: (A) Ind AS 1
Source: ICSI Guideline Answers (answer key), December 2020, Q. 55 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 57 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
External Reporting Board (XRB) belongs to :
(A)New Zealand
(B)Australia
(C)USA
(D)UK
Answer: (A) New Zealand
Source: ICSI Guideline Answers (answer key), December 2020, Q. 57 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 64 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
MOON Ltd. is developing a new production process. During the financial year ended 31st March, 20l8, the total expenditure incurred on the process was ₹ 60 lakh. The production process met the criteria for recognition as an intangible asset on lst December, 2017. Expenditure incurred till this date was ₹ 32 lakh. Further expenditure incurred on the process for the financial year ending 3lst March, 2019 was ₹ 90 lakh. As on 31st March, 2019, the recoverable amount of know-how embodied in the process is estimated to be ₹ 82 lakh. This includes estimates of future cash outflows and inflows. The expenditure to be charged to Profit and Loss Account for the year ended 3lst March, 2019 is ...................... lakh. (Ignore depreciation).
(A)₹ 118
(B)₹ 82
(C)₹ 36
(D)None of the above
Answer: (C) ₹ 36
Source: ICSI Guideline Answers (answer key), December 2020, Q. 64 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 82 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Ind AS 33 deals with ............
(A)Earning per share
(B)Financial Instrument Presentation
(C)Fair Value Measurement
(D)None of the above
Answer: (A) Earning per share
Source: ICSI Guideline Answers (answer key), December 2020, Q. 82 (Corporate and Management Accounting paper, Syllabus 2017).
December 2020Q. 100 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
With reference to Ind AS 102, what does SBP stand for ?
(A)Share based payment
(B)Share based proportion
(C)Sum based payment
(D)Shareholder based pricing
Answer: (A) Share based payment
Source: ICSI Guideline Answers (answer key), December 2020, Q. 100 (Corporate and Management Accounting paper, Syllabus 2017).
December 2019Q. 3 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
As per ICAI Guidance Note, at the end of the year, balance of Share Options Outstanding Account should be shown under the :
(A)Current Liabilities
(B)Reserve and Surplus
(C)Current Assets
(D)Non-current Liabilities
Answer: (B) Reserve and Surplus
Source: ICSI Guideline Answers (answer key), December 2019, Q. 3 (Corporate and Management Accounting paper, Syllabus 2017).
December 2019Q. 23 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Which of the following is not a type of segment as per AS-17 ?
(A)Geographical segment
(B)Business segment
(C)Industrial segment
(D)Reportable segment
Answer: (C) Industrial segment
Source: ICSI Guideline Answers (answer key), December 2019, Q. 23 (Corporate and Management Accounting paper, Syllabus 2017).
December 2019Q. 49 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Which of the following is not included in the conditions satisfied by the small and medium companies (SMCS) with reference to applicability of Accounting Standards ?
(A)Company is not a holding company or subsidiary of a non-SMC.
(B)Company is not a bank or financial institution or insurance company.
(C)Company's turnover does not exceed ₹ 10 crores in the immediately preceding accounting year.
(D)Equity and debt securities of the company are not listed or are not in the process of listing in any stock exchange, whether in India or outside India.
Answer: (C) Company's turnover does not exceed ₹ 10 crores in the immediately preceding accounting year.
Source: ICSI Guideline Answers (answer key), December 2019, Q. 49 (Corporate and Management Accounting paper, Syllabus 2017).
December 2019Q. 50 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Which of the following International Accounting Standard (IAS) is related to Earning per share’ ?
(A)IAS-20
(B)IAS-24
(C)IAS-33
(D)IAS-38
Answer: (C) IAS-33
Source: ICSI Guideline Answers (answer key), December 2019, Q. 50 (Corporate and Management Accounting paper, Syllabus 2017).
December 2019Q. 54 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Mandatory applicability of Ind AS to all Banks, NBFCS (Non-Banking Finance Companies), and Insurance Companies is from :
(A)1st April, 2015
(B)1st April, 2016
(C)1st April, 2017
(D)1st April, 2018
Answer: (D) 1st April, 2018
Source: ICSI Guideline Answers (answer key), December 2019, Q. 54 (Corporate and Management Accounting paper, Syllabus 2017).
December 2019Q. 55 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Which of the following Ind AS is related to Consolidated Financial Statements ?
(A)Ind AS-108
(B)Ind AS-110
(C)Ind AS-115
(D)Ind AS-7
Answer: (B) Ind AS-110
Source: ICSI Guideline Answers (answer key), December 2019, Q. 55 (Corporate and Management Accounting paper, Syllabus 2017).
December 2019Q. 60 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Financial Reporting Council is an organisation of which country ?
(A)United States of America (USA)
(B)Canada
(C)UK
(D)Japan
Answer: (C) UK
Source: ICSI Guideline Answers (answer key), December 2019, Q. 60 (Corporate and Management Accounting paper, Syllabus 2017).
December 2019Q. 90 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
Which of the following Ind AS deals with ‘‘Financial Instruments : Presentation’’?
(A)Ind AS-32
(B)Ind AS-33
(C)Ind AS-113
(D)Ind AS-109
Answer: (A) Ind AS-32
Source: ICSI Guideline Answers (answer key), December 2019, Q. 90 (Corporate and Management Accounting paper, Syllabus 2017).
June 2019Q. 1(c) (CMA)5 marksCorporate and Management Accounting paper, Syllabus 2017
Explain the following :
(c)Features of International Financial Reporting Standards.
Features of International Financial Reporting Standards (IFRS) are:
1.Single set of Accounting Standards based on fair value that would enable internationally to standardize and assure better quality on a global screen.
2.It would also permit international capital to flow more freely, enabling companies to develop consistent global practices on accounting problems.
3.It would be beneficial to the regulators too, as the complexity associated with the understanding of various reporting regimes would be reduced.
4.For investors, it gives a better understanding to the financial statements and assess the investment opportunities available in foreign countries other than their home country.
5.It also benefits the accounting professionals in a way that they will be able to sell their services in the different parts of world.
Source: ICSI Guideline Answers, June 2019, Q. 1(c) (Corporate and Management Accounting paper, Syllabus 2017).
June 2019Q. 2(c) (CMA)3 marksCorporate and Management Accounting paper, Syllabus 2017
(c)What are the salient features of Ind AS-103 on "Business Combination" ?
The objective of Ind AS 103 on ‘Business combination’ is to improve the relevance, reliability and comparability of the information that a reporting entity provides in its financial statements about a business combination and its effects. To accomplish that, this Indian Accounting Standard establishes principles and requirements for how the acquirer:
(a)recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree;
(b)recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and
(c)determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination.
Source: ICSI Guideline Answers, June 2019, Q. 2(c) (Corporate and Management Accounting paper, Syllabus 2017).
June 2019Q. 3(c) (CMA)5 marksCorporate and Management Accounting paper, Syllabus 2017
(c)What are the responsibilities of the Trustees of the International Financial Reporting Standards (IFRS) Foundation ?
The Trustees of the International Financial Reporting Standards (IFRS) Foundation are responsible for the governance and oversight of the International Accounting Standards Board (Board).
The Trustees are not involved in any technical matters relating to IFRS Standards. This responsibility rests solely with the Board. The Trustees are accountable to the Monitoring Board, a body of publicly accountable market authorities.
Trustees are appointed for a renewable term of three years. Each Trustee is expected to have an understanding of, and be sensitive to, international issues relevant to the success of an international organization responsible for the development of high quality global accounting standards for use in the world’s capital markets and by other users.
The Trustees’ responsibilities include the following but not limited to:
•appointing members of the Board, the IFRS Interpretations Committee and the IFRS Advisory Council;
•establishing and amending the operating procedures, consultative arrangements and due process for the Board, the Interpretations Committee and the Advisory Council;
•reviewing annually the strategy of the Board and assessing its effectiveness; and
•ensuring the financing of the IFRS Foundation and annually its budget approving.
In exercising their governance responsibilities, the Trustees may reconsider or amend the Board’s due process or recommend, for example, improvements to the Board’s outreach activities. In addition, the constitution requires the Trustees to undertake a formal, public review of the structure of the IFRS Foundation, its governance arrangements and its effectiveness in fulfilling the organization’s objectives every five years.
The Trustees are accountable to a Monitoring Board of public authorities. Their reports to the Monitoring Board are available on the Trustees’ meeting pages.
Source: ICSI Guideline Answers, June 2019, Q. 3(c) (Corporate and Management Accounting paper, Syllabus 2017).
June 2019Q. 5(b) (CMA)5 marksCorporate and Management Accounting paper, Syllabus 2017
(b)What are the disclosure requirements as per Ind AS 102 ?
Ind AS 102 pertains to Accounting for share based payments and requires entities to disclose the following:
1.The type and scope of agreements existing during the reporting period.
2.Description of agreements (settlement methods, vesting conditions, etc.).
3.The number and weighted-average exercise price of share options by category (outstanding at the beginning of the reporting period and at the end of the reporting period, granted, vested, exercised and forfeited).
4.Average share price of exercised options.
5.Range of exercise prices and remaining contractual life of options outstanding at the end of the reporting period.
6.Valuation method used to estimate the fair value of the awards (model and input values, etc.).
7.The impact on the income statement (i.e., total expense) and the financial position (e.g., carrying amount of liabilities) of share-based payment awards.
Source: ICSI Guideline Answers, June 2019, Q. 5(b) (Corporate and Management Accounting paper, Syllabus 2017).
December 2018Q. 2(c) (CMA)3 marksCorporate and Management Accounting paper, Syllabus 2017
(c)Briefly describe the benefits of ‘‘Accounting Standards’’.
Accounting Standards seek to describe the accounting principles, the valuation techniques and the methods of applying the accounting principles in the preparation and presentation of financial statements so that they may give a true and fair view. By setting the Accounting Standards the accountant has following benefits:
(i)Standardization of alternative accounting treatments : Standards reduce to a reasonable extent or eliminate altogether confusing variations in the accounting treatments used to prepare financial statements.
(ii)Requirements for additional disclosures : There are certain areas where important information not statutorily required to be disclosed. Standards may call for disclosure if required by law.
(iii)Comparability of financial statements : The application of Accounting Standards would, to a limited extent, facilitate comparison of financial statements of companies situated in different parts of the world, and also of different companies situated in the same country. However, it should be noted in this respect the differences in the institutions, traditions and legal systems from one country to another that give rise to differences in Accounting Standards adopted in different countries.
(iv)Prevents Frauds and Accounting Manipulations : Accounting Standards (AS) lay down the accounting principles and methodologies that all entities must follow. One outcome of this is that the management of an entity cannot manipulate with financial data. Following these standards is not optional, it is compulsory. So these standards make it difficult for the management to misrepresent any financial information. It even makes it harder for them to commit any frauds.
(v)Assists Auditors : Now the accounting standards lay down all the accounting policies, rules, regulations etc. in a written format. These policies have to be followed. So if an auditor checks that the policies have been correctly followed he can be assured that the financial statements are true and fair.
(vi)Comparability : This is another major objective of accounting standards. Since all entities of the country follow the same set of standards their financial accounts become comparable to some extent. The users of the financial statements can analyze and compare the financial performances of various companies before taking any decisions. Also, two statements of the same company from different years can be compared. This will show the growth curve of the company to the users.
(vii)Determining Managerial Accountability : The accounting standards help measure the performance of the management of an entity. It can help in guaging the management’s ability to increase profitability, maintain the solvency of the firm, and other such important financial duties of the management.
Source: ICSI Guideline Answers, December 2018, Q. 2(c) (Corporate and Management Accounting paper, Syllabus 2017).
June 2024Q. 21 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
For the accounting period beginning on or after 1st April 2019, NBFCs will be required to follow Ind ASs if :
(A)Listed NBFCs having a net worth of ₹ 500 crore or more, for unlisted NBFCs with a net worth of ₹ 250 crore or more, and Holding, Subsidiary, joint venture and associate companies of these companies
(B)Listed NBFCs having a net worth of ₹ 500 crore or more, for unlisted NBFCs with a net worth of ₹ 200 crore or more, and Holding, Subsidiary, joint venture and associate companies of these companies
(C)Listed NBFCs having a net worth of ₹ 250 crore or more, for unlisted NBFCs with a net worth of ₹ 200 crore or more, and Holding, Subsidiary, joint venture and associate companies of these companies
(D)Listed NBFCs having a net worth of ₹ 250 crore or more, for unlisted NBFCs with a net worth of ₹ 100 crore or more, and Holding, Subsidiary, joint venture and associate companies of these companies
ICSI did not treat any of the given options as correct.
Source: ICSI Guideline Answers (answer key), June 2024, Q. 21 (Corporate and Management Accounting paper, Syllabus 2017).
December 2022Q. 21 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
According to Ind ASl, the basis for presentation of general purpose financial statements is to ensure :
(A)Comparability
(B)Consistency
(C)Accuracy
(D)All of the above
Answer: (A) Comparability
Source: ICSI Guideline Answers (answer key), December 2022, Q. 21 (Corporate and Management Accounting paper, Syllabus 2017).
June 2022Q. 57 (CMA)1 markMCQCorporate and Management Accounting paper, Syllabus 2017
For the accounting period beginning on or after 1st April, 2019, all unlisted NBFCs whose net worth is more than or equal to ................... but less than ................. shall mandatorily follow the Ind ASs.
(A)₹ 100 crore; ₹ 500 crore
(B)₹ 250 crore; ₹ 500 crore
(C)₹ 300 crore; ₹ 600 crore
(D)₹ 400 crore; ₹ 800 crore
Answer: (B) ₹ 250 crore; ₹ 500 crore
Source: ICSI Guideline Answers (answer key), June 2022, Q. 57 (Corporate and Management Accounting paper, Syllabus 2017).