Thursday, December 26, 2013
Monday, December 23, 2013
AS 26: Intangible Assets
This AS applies in respect of expenditure on intangible items during accounting period commencing from 1st April, 2003 and it is mandatory for enterprises whose equity or debt are listed on recognized stock exchange in India or are in the process of listing.
For all other enterprises, it is mandatory from 1st April 2004. It is not applicable to intangible assets covered by other accounting standards.
An intangible asset is an identifiable non-monetary asset without physical substance held for use in production, sales and administration.
An intangible asset should be recognized if, and only if, it is probable that the assets can be measured reliably.
Internally generated goodwill, brand, title and similar items of assets should not be recognized.
Depreciable amount of an intangible asset should be amortize on a systematic basis over the economic life of the asset not exceeding 10 years.
Amortization should commence when the asset is available for use.
AS 13: Accounting for Investment
This AS deals with classification, determination of cost, disposal and valuation of investment in financial statements.
It refers to the assets held for earning income by way of dividend, interest and rentals, for capital appreciation, or for other benefits.
It does not apply to operating and financing lease, investment under retirement benefit plans, investment in mutual fund and banks and investment held as stock.
Investment is classified as current investment (intended for resale within one year) and long term investment (not intended for resale within one year).
Cost of investment includes purchase price, brokerage, and fee.
Current investment should be valued at lower of cost or fair value and long term as cost.
The disposal of investment difference (profit or loss) is transferred to profit and loss account.
There should be disclosure of the accounting policy for valuation, disposal and reclassification.
Thursday, December 19, 2013
AS 10: Accounting for Fixed Assets
AS 10 does not apply to forest, plantation, wasting assets, expenses on real estate development, livestock, intangible assets, government grants or subsidies on assets, assets acquired under amalgamation.
Cost of fixed assets includes purchase price, delivery and handling, installation charges, and interest before commissioning.
Trial run expenses, excise duty and sales tax are also included in cost.
Assets acquired under barter should be recorded at fair market value of assets acquired or net book value of the assets given up.
Repair expenses on purchase of an old asset should be capitalized but in the case of an existing asset it should be charged to P & L Account unless it enhances performance.
Losses and gains on disposal are transferred to P & L Account.
In the case of assets acquired under higher purchase, although legal ownership is not available, it is capitalized at cash price.
When there are several assets at consolidated price, consideration is apportioned to various assets on a fair basis as determined by valuer.
In the case of revaluation, an entire class of assets should be revalued, rather than only a particular asset.
Revaluation should not result in net book value of the class being greater than the recoverable amount.
Accumulated depreciation existing on the date of revaluation should not be credited to P & L Account.
Revaluation profit is transferred to Revaluation Reserve, which cannot be used for dividend.
Decrease in net book value on revaluation should be charged to P & L Account. However, it may also be adjusted with earlier revaluation reserve.
The disclosure pertains to gross and net value of assets at the beginning and at the end, expenses incurred on acquisition, and revalued amount.
Monday, December 16, 2013
AS 9 - Revenue Recognition
Revenue recognition deals with timing and amount of revenue to be recognized in the Profit and Loss Account.
This AS is not applicable to Construction Contracts.
It recognizes the flow of revenue from:
Sale of goods
Rendering of services; and
Use of resources by others [interest, dividend and royalty]
If consideration is not measurable, postpone the recognition of revenue.
If there is uncertainty in collection, postpone to the extent of uncertainty.
If uncertainty arise after recognition, then recognize the revenue, but make a provision.
In case of sale of goods, revenue is recognized if the seller has transferred to the buyer the property in goods for a consideration, or significant risk and rewards of ownership has been transferred to the buyer and no uncertainty exists regarding collectability of consideration.
For rendering of services, this AS suggests two methods:
Complete service method (when the final act is done); and
Proportionate service method
The disclosure requirement is that the amount of turnover less excise duty is disclosed on the face of Profit and Loss account.
Saturday, December 7, 2013
AS 6: Depreciation Accounting
Depreciation does not apply to forest products, wasting assets, livestock, goodwill, land (except for short purpose and leasehold)
Amount of depreciation to be charged every year is based on historical cost, expected useful economic life and estimated residual value (scrap)
Methods of depreciation used is SLM, WDV, full depreciation in same year for small value item, or any other method carefully selected.
A method of depreciation in use can be changed if required by law or AS or it will result in better presentation of financial statements.
When a method is changed, it must be applied retrospectively and deficiency or surplus due to change must be adjusted in the P & L Account in the year of change. Impact of change should be disclosed.
In respect of assets purchased on credit involving foreign currency loans, any increase or decrease in liability due to change in exchange rates should be adjusted in historical cost of assets.
In respect of revalued assets, depreciation should be calculated on revalued amount.
Useful life should be constantly reviewed and un-amortized amount should be charged over the remaining life.
Assets purchased on hire purchase basis should be depreciated with respect to its cash price.
Disclosure should be based regarding historical cost, depreciation method, rate, useful life, addition deletion, depreciation for the year, and accumulated depreciation.
Accounting for Managers 2810001 Quetion Bank
Dear Students...!!!
Finally, classroom days of Semester I over and now its time to prove your understanding in the examination room. The subjects you have studied throughout the semester, will be examined in three hours. So it is very challenging for you, to cover all the areas of various subjects to get the good score.
Well, herewith find the attached file of having important theory questions of one of the very important subject of Semester I - Accounting for Managers [2810009]. The questions given in the attached file are the questions already asked in previous GTU exams. So reading and analysis of the same will enable you to understand the pattern, weighted and importance of each topic.
Remember, there is no shortcut of SUCCESS...!!!
BEST OF LUCK...!!!
Regards
Thursday, December 5, 2013
AS 2: Valuation of Inventories (Stock)
The main objective of this AS is to deal with determination of value of inventory to be shown in the financial statements, ascertainment of cost and circumstances where inventory value can be shown at Net Realizable Value (NRV).
NRV refers to estimated selling price in the ordinary course of business, less the estimated cost necessary to make the sale. At each balance sheet date, a review of NRV is to be made.
This AS is not applicable to shares, debentures, and other instruments held as stock, livestock, agricultural and forest products, mineral oils, gases, ores work in progress of construction contracts, spare parts which are used irregularly in specific fixed assets, etc.
Inventories are to be valued at lower of cost and net realizable value (market value)
Cost includes cost of purchase, less: trade discount/rebate/duty draw back, freight inward, taxes and duties, direct labour, production overhead, other costs incurred in bringing the inventories to their present location and condition, etc. However, it excludes abnormal wastage of material, labour and other cost, storage cost selling and distribution cost.
Cost formula prescribes one specific identification method, FIFO and weighted average method.
Wednesday, December 4, 2013
AS 1: Disclosure of Accounting Policies
The main objective of this AS is to ensure the disclosure of significant accounting principles and policies and changes at the time of preparation of financial statements for worth use.
Accounting policies means specific accounting principles and methods adopted by an enterprise in applying these principles in preparation and presentation of financial statements.
Whereas policies normally differ in valuation of fixed assets, inventory, investment, revenue recognitions, depreciation etc.
Unless any contrary position is disclosed, financial statements are governed by fundamental accounting assumptions of going concern, consistency and accrual. Any deviation must be disclosed.
An organization is guided by the following considerations in selecting accounting policies:
# Prudence: Don't recognize anticipated profits but provide for all anticipated losses.
# Substance over form: Economic reality and financial consideration get preference over legal form in reporting.
# Materiality: Financial statement should disclose all material items.
An enterprise is free to change its existing policies unless it violates any statutory provisions or AS. Changes having material effect must be fully disclosed along with financial implications.
Monday, October 21, 2013
Saturday, October 19, 2013
Thursday, October 17, 2013
Thursday, September 19, 2013
Monday, September 16, 2013
Thursday, August 29, 2013
Wednesday, August 21, 2013
Tuesday, August 13, 2013
Wednesday, May 29, 2013
Thursday, May 9, 2013
Friday, May 3, 2013
Friday, April 19, 2013
How to get maximum score in Cost & Management Accounting...?
Dear Students,
Exams are about to come and all are busy in final revision and preparation. As per experience of the first semester results, some students are worrying about no addition in backlogs ;-) whereas remaining are about to secure the maximum score in each subject.
As you aware that Cost and Management Accounting is one of the scoring subject in second semester. So here are the some tips that will be useful to all those who want to clear this subject with maximum marks.
How to prepare the subject before exam...???
1. First get all the old GTU Question Papers. [Click here to download], observe all carefully and assign the importance of each chapter for practical question and numerical questions.
2. Solve all the papers in proper way.
3. Revise all the solved questions and unsolved questions of Text Book I as per GTU i.e. Management Accounting by Paresh Shah - Oxford Uni Press.
4. After completion of Text Book I, also revise the all solved questions of Text Book II, i.e. Cost & Management Accounting by Ravi Kishore - Taxmann Publication.
Precautions during the exam...
1. Have a look of full paper and select the questions that you want to attempt.
2. Always try to maintain the sequence of questions at the time of writing answers.
3. Before you start particular question, again read it properly and find out what exactly is asked in the question.
4. Always attempt the full paper and allocate the appropriate time to each question.
5. Good handwriting and Presentation - these are the very important aspects to secure the maximum score. So always remember, handwriting should be readable enough through out the paper, with appropriate presentation in the form of tables, accounts, formats, formulas etc. Avoid overwriting.
6. You can also use the colored pens [as per instruction] to make your presentation more attractive.
7. Be relax at the time of using the calculator, if time permits, check again the totals/figures in the answer.
8. Have a final look of your answer sheet before you submit it to the examiner.
Above tips will be useful to you for final preparation of the subject. You can also follow the same for other subjects.
Remember, there is no shortcut of success... be relax, positive and stress free before - during and - after the exam.
So BEST OF LUCK to you all for final exam and always remember the following formula of success:
Efforts + Prayer = Success
Tuesday, April 9, 2013
Sunday, March 31, 2013
Saturday, March 30, 2013
Thursday, March 28, 2013
Tuesday, March 19, 2013
Thursday, March 14, 2013
Now Smoking is also injurious for CAREER...!!!
Now Smoking is also injurious for CAREER...!!!
Yeah, its not good news for smokers....!!! If you are looking for a bright career in MNCs or top organizations around the world, you may have forgo your smoking habit. Nowadays, giant recruiters including WHO and UNO have accepted this policy under which they are not recruiting the people who are smokers. Recent recruitment advertisement of WHO also includes this type of sentence 'WE DOES NOT RECRUIT SMOKERS' so it clearly shows their strict policy towards the smokers. The possible reason is that the companies want the healthy employees, and as per the research reports, the employees who are smokers, having more absenteeism due to health reason with compare to those who were not. So if you are looking for a good job, stop smoking and live healthy...!!!
Sunday, March 10, 2013
Cost & Management Accounting Chapter 17: Decisions Involving Alternative Choices
Cost & Management Accounting Chapter 17: Decisions Involving Alternative Choices
Tuesday, February 26, 2013
Friday, February 8, 2013
Monday, February 4, 2013
Six Indian Research Institutions among Global Top 150
Six Indian Research Institutions among Global Top 150
Six Indian research institutions have figured among the top
150 global think-tanks in the annual list released by the University of
Pennsylvania for the year 2012. Though none of the Indian institutions figured
in the top 50, Centre for Civil Society (CCS) has been ranked 51st in the list.
Other five Indian think-tanks featured in the list are:
Institute for Defence Studies and Analysis (IDSA) (105), Indian Council for
Research on International Economic Relations (ICRIER) (109), The Energy and
Resources Institute (TERI) (110), Observer Research Foundation (ORF) (115) and
Development Alternatives (141).
Brookings Institution (United States) has topped the list followed
by Chatham House (United Kingdom) and Carnegie Endowment for International
Peace (United States).
Ashoka Trust for Research in Ecology (ATREE) and Center for
Science and Environment (CSE) are among the top 20 environment think-tanks,
reported ND TV.
6,603 think tanks from 182 countries were invited by University
of Pennsylvania to participate in the processes which were ranked in 38
categories. More than 1,100 individuals from 120 countries participated in the
nominations and rankings process. Think tanks were nominated.
Source: indiaeducationreview.com
Friday, February 1, 2013
Thursday, January 31, 2013
Questions from Text Book II - Cost & Management Accounting by Ravi M. Kishore
Questions from Text Book II - Cost & Management Accounting by Ravi M. Kishore
Monday, January 28, 2013
Friday, January 25, 2013
Wednesday, January 23, 2013
Tuesday, January 22, 2013
Friday, January 18, 2013
Cost & Management Accounting Chapter 1 Overview of Management Accounting ppts
Cost & Management Accounting Chapter 1 Overview of Management Accounting ppts
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