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1. A joint arrangement where parties have joint control of the arrangement and have rights to the net assets of the arrangement is called:

Joint operation Partnership Joint venture None of the above

2.4P Bottom Line Reporting concept requires an organization to report on:

Social, Environmental, Sustainability and Spiritual dimension Social, Environmental, Economic and Political dimension Social, Environmental, Economic and Spiritual dimension None of the above

3. In India, Government Accounting Standards are issued by:

Government Accounting Standards Advisory Board Government Accounting Standards Applicability Board Government Auditing Standards Advisory Board Government Accounting for States Advisory Board

4. When the objective of holding financial assets does not include collection of cash flows by selling financial assets, such financial assets are measured at:

Fair value through other comprehensive income (OCI) Amortized cost Fair value through profit and loss (P&L) None of the above

5. Market value added (MVA) is:

The difference between the current book value of a company and capital contributed by investors (both the shareholders and debt holders). The difference between the current total market value of a company and capital contributed by investors (both the shareholders and debt holders). The difference between the current total market value of a company and capital contributed by investors (i.e., the shareholders). None of the above

6. PEARL Ltd. changes its method of valuation of inventories from weighted-average method to first-in, first-out (FIFO) method. The Accountant opines that Ind AS 8 is applicable. PEARL Ltd. should account for this change as:

A change in estimate and account for it prospectively. A change in accounting policy and account for it prospectively. A change in accounting policy and account for it retrospectively. Account for it as a correction of an error and account for it retrospectively.

7. CORE Ltd. has a plant with a carrying amount of ₹ 1,20,000 as on April 1, 2022. Useful life is 10 years of which 4 years remain on the date. The company decides to revalue the plant to ₹ 2,00,000 on April 1, 2022 and recognize revaluation reserve of ₹ 80,000. Calculate depreciation to be accounted for in the Statement of Profit or Loss in 2022-23.

₹ 30,000 ₹ 50,000 ₹ 12,000 ₹ 10,000

8. GALAXY Ltd. is developing a new production process. During the financial year ended 31st March, 2022, the total expenditure incurred was ₹ 50 lakhs. This process met the criteria for recognition as an intangible asset on 1st December, 2021. Expenditure incurred till this date was ₹ 22 lakhs. Further expenditure incurred on the process for the financial year ending 31st March, 2023 was ₹ 80 lakhs. As at 31st March, 2023, the recoverable amount of knowhow embodied in the process is estimated to be ₹ 72 lakhs. This includes estimates of future cash outflows as well as inflows. The amount of impairment loss for the year ended 31st March, 2023 is:

₹ 80 lakhs ₹ 36 lakhs ₹ 28 lakhs ₹ 72 lakhs

9. ORBIT Ltd. provides you with the following data regarding defined benefit pension plan for the year ended 31.03.2023:

Benefits paid: ₹ 2,00,000,

Employer contribution: ₹ 2,80,000, Fair market value of plan assets on 31.03.23: ₹ 11,40,000,

Fair market value of plan assets as on 31.03.22: ₹ 8,00,000.

The amount of actual return of plan assets is:

₹ 2,80,000 ₹ 2,60,000 ₹ 2,00,000 ₹ 4,60,000

10. Normal dividend expected on equity shares of A Ltd. is 8%. The profit available to equity shareholders is ₹ 3,83,125 and the value of net asset for equity shareholders is ₹ 40,82,000. Calculate the value of each equity share under fair value method if the number of outstanding equity shares is 1,00,000 and face value is ₹ 10.

₹ 4436 ₹ 46.26 ₹ 47.89 None of the above

11. On 01.04.2022, AURA Ltd. granted 100 share options to each of its 200 employees. The options will vest on 31.03.2025 subject to the condition that they remain as employees for the three years ending 31.03.2025. On 01.04.2022, the fair value of one share option was ₹ 200 and this had increased to ₹ 240 by 31.03.2023. On 01.04.2022, the directors estimated that 180 employees would qualify for these options. At 31.03.2023, this estimate was 190 employees. Calculate the amount to be recognized as expense for the year ended 2022-23.

₹ 13,33,330 ₹ 12,66,667 ₹ 15,20,000 None of the above

12. On April 1, 2022, GANGA Ltd. purchased a 30% interest in SAGAR Ltd. for ₹ 2,50,000. On that date SAGAR’s shareholders’ equity was ₹ 5,00,000. The carrying value of SAGAR’s identifiable net assets was equal to book value. GANGA correctly reports this significant influence investment using the equity method. For the year ended 31.03.2023, SAGAR Ltd. reported net income of ₹ 1,50,000 and paid total dividends of ₹ 40,000. Calculate the amount that GANGA Ltd. would report as its investment in SAGAR Ltd. on March 31, 2023.

₹ 3,60,000 ₹ 2,95,000 ₹ 2,83,000 ₹ 2,50,000

13. X has acquired 100% of the equity of Y on March 31, 2023. The purchase consideration comprises of an immediate payment of ₹ 100 lakhs and three further payments of ₹ 5.0 lakhs if the Return on Equity exceeds 20% in each of the subsequent three financial years. A risk-adjusted discount rate of 20% is used. The value of total consideration at the acquisition date is:

₹ 100 lakhs ₹ 110.532 lakhs ₹ 110 lakhs ₹ 115 lakhs

14. Q Ltd. acquired a 60% interest in R Ltd. on January 1, 2022. Q Ltd. paid ₹ 1,800 Lakhs in cash for their interest in R Ltd. The fair value of R Ltd.’s assets is ₹ 4,000 Lakhs, and the fair value of its liabilities is ₹ 2,000 Lakhs. If NCI is valued at fair value, goodwill amounts to:

₹ 600 lakhs ₹ 500 lakhs ₹ 1000 lakhs ₹ 700 lakhs

15. ALAKANANDA Ltd. is engaged in manufacturing and selling designer furniture. It sells goods on extended credit. ALAKANANDA Ltd. sold furniture for ₹ 80,00,000 to a customer on 01.04.2023, the payment against which was receivable after 12 months with interest at the rate of 3% per annum. The market interest rate on the date of the transaction was 8% per annum. Calculate the amount of revenues to be recognized for the above transaction in the 2023-24 financial year.

Revenue from sale ₹ 80,00,000 and Interest income ₹ 2,40,000 Revenue from sale ₹ 80,00,000 and Interest income ₹ 6,40,000 Revenue from sale ₹ 76,29,630 and Interest income ₹ 6,10,370 None of the above

Dec 23 CFR Paper