SMC FR Internals 2 (2022-09 Sep)

A Ltd acquired a property out of its surplus funds for a cost of Rs.125 Lakhs on 1st April 2021. The property is primarily used for rental purpose. During December 2021, it used the 10% of the property to operate its office for 15 days. What should be the depreciation policy? (Ind AS 40)

• No Depreciation to be Charged on Investment Property.

• Depreciation to be Charged on the Full Value of Property.

• Depreciation only to the extent of use for "Own Use".

• The Company may chose any option, at its discretion.

IAS 41 on Agriculture is "NOT" applicable to which of the following - (A) Bearer Plants; (B) Biological Assets other than Bearer Plants; (C) Land Related to Agricultural Activities; (D) Patent Relating to Agricultural Technologies

• A, B & D

• A, C & D

• B, C & D

• A, B & D

Under Ind AS 38 / IAS 38 on Intangible Assets, which of the following items of Expenses should be expensed off - (A) Research Phase Expenses; (B) Development Phase Expenses Not Meeting Recognition Criteria; (C) Development Expenses Subject to Conditions; (D) Expenditure which cannot be categorized into Research or Development

• A, B & C

• B, C & D

• C, D & A

• D, A & B

How would you classify an Immovable Property used for administrative purposes which is available for immediate sale in present condition and sale of which is highly probable?

• Non Current Assets Held for Sale

• Property, Plant & Equipment

• Inventory

• Intangible Asset

A Ltd acquired an asset for Rs.100L on 1st July 2017, with an estimated useful life of 10 Years and Salvage Value of Rs.20 Lakhs. On 1st April 2020, A Ltd classified the Asset as "Held for Sale" with an intention to dispose, when the FV Minus Cost to Sell was Rs.72 Lakhs. On 1st Oct 2021, A Ltd decided to reverse the decision to sell and start using the asset completely, when the recoverable amount was Rs.70 Lakhhs. What should be the revised carrying amount on 1st Oct 2021 after decision to reverse?

• Rs.70 Lakhs

• Rs.72 Lakhs

• Rs.66 Lakhs

• Rs.68 Lakhs

A Ltd acquired five Concrete Mixing Machines on 1st October 2021, each costing Rs.50 Lakhs. The machines come with a Warranty of 5 Years or 5000 Hours. A Ltd plans to use all the five assets at around 20 hours a day for over the next 300 days, at the end of which it intends to scrap the machines. A Ltd should account for the Machines as -

• Property, Plant & Equipment (IAS 16)

• Inventories (IAS 2)

• Intangible Assets (IAS 38)

• NCA Held for Sale (IFRS 5)

A Ltd is in the process of constructing a factory, and during the course of construction, a film maker wants to use the site for shooting a movie. The Company charges a rent of Rs.25 Lakhs for letting the under construction site for being used for movie production. How should the sum of Rs.25L be accounted by A Ltd?

• Income - Credited to P&L A/c

• Income - Credited to Other Equity

• Reduction in Cost - Credited to Cost of Factory

• At the option of the company, either as Income or Reduction in Cost.

A Ltd carries an Asset which was acquired on 1st April 2015 for Rs.50 Lakhs, with an useful life of 15 Years, and Salvage Value of Rs.5 Lakhs. On 31st March 2021, there was an indication of impairment, and the Company determined the Asset's FV Minus CTS as Rs.30 Lakhs, and Value in use as Rs.29 Lakhs. Determine Impairment Loss.

• Rs.NIL

• Rs.2 Lakhs

• Rs.3 Lakhs

• Rs.5 Lakhs

What do you call the Exit Value of an Asset or a Liability, which can be evidenced by any of the following - (a) Binding Sale Agreement; (b) Current Bid Price in an Active Market; (c) Price of Most Recent Transaction

(a)  

Cash Generating Unit is -

• Any Asset

• Any Group of Assets

• Asset or Group of Assets that generate cash flows totally independent of other Assets or Group of Assets

• None of the Above