St. Joseph’s College of Commerce M.Com. 2011 IV Sem International Accounting Question Paper PDF Download


St. Joseph’s College of Commerce (Autonomous)



International Accounting

Time: 3 hours                                                                                          Max Marks: 100



  1. Answer ALL the following questions.     (2X10=20)


  1. Define international accounting.
  2. What do you mean by environmental reporting?
  3. Give the meaning of comparable uncontrolled price method of transfer pricing.
  4. Highlight on the role of financial reporting council.
  5. What do you mean by code-law and common-law countries?
  6. Give the meaning of Reportable Segment.
  7. Differentiate between Transaction, Translation and Economic Exposure.
  8. Give the meaning of foreign currency exposure.
  9. 9. Elucidate on the three approaches to currency translation.
  10. Explain resale price method of transfer pricing.




  1. Answer any FOUR of the following questions:      (4X5=20)


  1. Highlight on the importance of international accounting.
  2. Write a note on the functioning of the IASC.
  3. Highlight on the Non-traditional methods of transfer pricing.
  4. Elucidate on IFRS-8-Operating Segment.
  5. Write a note on the management on foreign exchange risk.
  6. Goodwill arising on the acquisition of a foreign operation and fair value adjustments are treated as assets / liabilities of the foreign operation and are expressed in the functional currency of the foreign operation-Discuss.



III. Answer any THREE of the following questions:                           (3X15=45)


  1. Briefly explain the ten environmental factors affecting the international accounting.


  1. What do you mean by harmonisaton? How can harmonisaton be measured? And also explain the pressure from different parties to incorporate harmonisaton in financial reporting.








  1. Briefly explain the Financial Reporting in any of the following two countries (Each carrying 7.5 Marks)
  2. a) US
  3. b) Germany
  4. c) France
  5. d) Australia


  1. All entities that have a different functional currency from the group presentation currency must translate their financial information into the group presentation currency-discuss from inflationary and hyperinflationary economy angle.


  1. Differentiate between:
    1. segment assets and segment liabilities
    2. segment revenue and segment expenses
    3. Business segment and geographical segment.




  1. Answer the following question: (1X15=15)


  1. Aaron Duley, the CEO of Nickel Corporation, was discussing with his CFO, Michael Cucciare, whether the company should adopt international accounting standards for financial reporting purposes. Nickel Corporation is based in a country that permits the use of either international accounting standards or domestic GAAP.

“Michael, reporting under our domestic GAAP is much more costly to the company than reporting under International accounting standards. I understand that fewer disclosures are required under international accounting standards. Moreover, international accounting standards provide more choices when it comes to applying accounting methods to our financial statements to produce the most favorable results. And, to be honest with you, the company is going to have to report under our current domestic GAAP. I certainly don’t want that to happen while I’m CEO.”

“I hear you, Aaron, but converting to international accounting standards might look bad to investors. What if the public finds out that we were trying to hide the operating loss or switched to international accounting standards to manipulate the Bottom line? That could prove even more costly in the long run, while saving the company pennies now.”







  1. Referring to the conversation above, should Nickel Corporation prepare this year’s financial statements in accordance with its domestic GAAP, or use international accounting standards? Justify your recommendations and address any concerns.


  1. Assume you are the CFO of Nickel Corporation. How would you reply to the CEO’s suggestion? Summarize your response including why you opted for or against the adoption of international accounting standards.



  1. In your opinion, is there anything ethically wrong with the CEO’s rationale fro the adoption if international accounting standards? Explain.


  1. As Nickel Corporation’s auditor, would you agree to the switch to international accounting standards?





St. Joseph’s College of Commerce M.I.B. 2013 IV Sem International Accounting Question Paper PDF Download



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


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


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


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


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


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


  1. 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




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


  1. 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


  1. Match the following:


Sl.No. Column – A Column – B




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.



  1. Explain Concept of Capital and Capital Maintenance.


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



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



  1. Explain the objectives of financial statements.


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



  1. 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


Operating Cost


Operating Profit


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
e. Standards Interpretation Committee Accounting Ends




St. Joseph’s College of Commerce 2014 III Sem International Accounting Question Paper PDF Download


SUPPLEMENTARY Examinations – APRIL 2014

M.Com – IV Semester


 Duration: 3 Hrs                                                                                                   Max. Marks: 100 

Section – A

  1. Answer SEVEN questions out of Ten.                                (7 x5 = 35)


  1. Explain the three rules used to determine the method of translation to be used at the time of foreign currency translation.
  2. Write a note on Advanced pricing agreement in Transfer pricing.
  3. Write a note on objectives of IAS 27.
  4. Explain the rationale behind harmonisation.
  5. Explain the treatment of intra-group monetary items in foreign currency translation.
  6. Write a note on need for segmental reporting.
  7. Explain the arguments against segmental reporting.
  8. Explain the quantitative threshold relating to identification of segment.
  9. Write a note on Cost-plus method of Transfer pricing.
  10. Define International Accounting.


Section – B

  1. Answer THREE question  out of Five.                                             (3 x 15 = 45)


  1. Give the meaning of foreign currency exposure, and the three approaches to currency



  1. Briefly explain the ten environmental factors likely to shape accounting development in a country.


  1. Elucidate on the consolidation procedure and disclosure in respect of CONSOLIDATION ACCOUNTING


  1. Explain the Concept of foreign exchange risk management and the various exposures related to the same. Also explain the ways to manage foreign exchange risk.


  1. Briefly explain the accounting in USA (Highlight on taxation and accounting of important transactions only)







Section – C

  1. ONE Compulsory Case study (No choice)                                      (1 x 20 = 20)


Bruce-Carlson, having recently obtained his MBA, has been hired by a large investment banking firm. As part of his responsibilities, he is required to make recommendations on investing in securities of foreign companies.

During lunch hour, Bruce runs into a colleague and complains about the difficulties he encountered with the lack of comparability in the financial statements of the firm form different countries. He is puzzled by the inability of National Accounting Standard-Setting Bodies to agree on a uniform accounting regime globally since, in his view, this would represent a win-win situation for all the concerned.

  1. Pretend you are the individual that Bruce is talking to. Explain why only one uniform accounting and reporting standard may not necessarily represent a win-win situation for all the concerned
  2. discuss the advantages and disadvantages of having diverse accounting standards that are the product of each country’s national environment
  3. in your opinion, should Harmonization be pursued.