1. JOSEPH’S COLLEGE OF COMMERCE (Autonomous)

M’COM IV SEMISTER

End Semister Examinations April  2013

Subject: International Accounting

Duration:       3  hours                                                                               Total Marks:     100

Section – A

1. Answer any 7 out of 10 of the following questions. Each question carries 5 marks.

 

1. Match the following:

Sl.No.	Column – A	Column – B
a.	AS -19	Revenue Recognition
b.	AS -11	Earnings Per Share
c.	AS -09	Leases
d.	AS -20	Cash Flow Statements
e.	AS -03	The Effect of Changes in Foreign Exchange Rates

 

2. Provide the Scope of Framework for Preparation and Presentation of Financial Statements?

 

3. What are the principal objectives of IFRS Foundation and the IASB?

 

4. Write five important developments which emphasis on International Accounting?

 

5. In not more than 5 sentences explain the need for Foreign Currency Translation in the books of account.

 

6. Name any five countries which have already implemented IFRS.

 

7. Match the following:

Sl.No.	Column – A	Column – B
a.	AS -02	Accounting for Investments
b.	AS -15	Accounting for Fixed Assets
c.	AS -06	Employee Benefits
d.	AS -10	Inventory Valuation
e.	AS -13	Depreciation Accounting

 

 

  

8. Name five Transfer Pricing Methods which are applied in arriving at Arm’s Length Price and explain them in not more than 5 sentences.

 

9. Software Export Pvt., Ltd., a company in India are exporters of software development services and during the financial year has invoiced the following amounts in various currencies. Arrive at the Net Foreign Exchange Gain/Loss from the details provided below and also specify the following :

 

• where will the company reflect the exchange gain or loss in the financial statements.
• Specify what will be the impact on Networth on account of exchange gain or loss.
• Name the accounting standard which you are applying in arriving at the exchange gain or loss.

 

Sl.No.	Invoice No.	Date of Invoice	Amount	Exchange rate on the date of Invoice	Exchange rate on the date of realisation
1.	1000	12/04/2011	USD 15,000	44.50	44.25
2.	1010	16/06/2011	GBP 25,000	72.50	73.00
3.	1030	10/02/2012	EURO 10,000	65.80	63.00

 

10. Match the following:

 

Sl.No.	Column – A	Column – B
a.	IASB	INDIA
b.	COMPANY ACCOUNTING STANDARD RULES, 2006	USA
c.	FASB	IFRS
d.	TRANSFER PRICING	ACCOUNTING STANDARDS BOARD
e.	ICAI	TNMM

 

Section – B

 

1. Answer any 3 out of 5 of the following questions. Each question carries 15 marks.

 

 

1. List ten differences between Indian GAAP, US GAAP and IFRS.

 

 

2. Explain Concept of Capital and Capital Maintenance.

 

1. What are the benefits from Harmonisation of Accounting Standards?

 

 

3. Explain any 7 accounting standards in not more than 5 sentences each.

 

 

4. Explain the objectives of financial statements.

 

1. Name the branches of accounting and explain the same in not more than 5 sentences each.

 

 

5. Explain briefly the necessity of reflecting Significant Accounting Policies in the financial statements of a Company. Name atleast 7 accounting policies that you know which are reflected in a company’s audited financial statements and provide the contents of those in atleast 2 sentences.

 

Section – C

 

• Compulsory Question: (10 + 5 + 5 Marks)

 

1. Who are the users of financial statements and briefly explain their information needs?

 

1. From the following particulars provided below, arrive at the operating margin of XYZ Pvt.,  Ltd., which is a wholly owned subsidiary of ABC INC., USA (both the entities are associate entities for the purpose of Transfer Pricing and XYZ is providing its services only to ABC INC.,). Also arrive at the weighted average operating margin of comparable companies from the details provided below:

 

               Particulars of XYZ Private Limited

1.	Turnover	Rs.1,50,00,000
2.	Operating Profit	Rs.37,50,000

 

              Details of Comparable Companies:

Sl.No.	Name of the Company	Sales Turnover Rs.	Operating Cost Rs.	Operating Profit Rs.	Operating Margin
1.	A Ltd	3,50,00,000	1,05,00,000
2.	B Ltd	2,50,00,000		50,00,000
3.	C Ltd		2,00,00,000		27.50%

 

1. Match the following:

 

Sl.No.	Column – A	Column – B
a.	Audit Starts when	Accounting
b.	Language of Commerce	Auditor
c.	Watch Dog but not a blood hound	Stock Exchange
d.	NASDAQ	IFRS
e.	Standards Interpretation Committee	Accounting Ends

 

 

 

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