Opinions of the Expert Advisory Committee

What is the correct treatment of the unamortised portion of a government grant when the asset is disposed of under Ind AS 20?

• It should continue to be amortised over the original useful life

• It should be refunded to the government

• It should be recognised as income in the same period

• It should be transferred to deferred revenue

Under Ind AS 115, how should a company recognise revenue from installation and maintenance services that are distinct from the product?

• Together with the sale of productTogether with the sale of product

• Based on the percentage of completion

• As separate performance obligations over time

• Only after receiving full payment

As per Ind AS 110, when should a Sponsor Company consolidate a Section 8 Company?

• Only if both companies are profit-making

• Always consolidate regardless of control

• Only if the Section 8 Company prepares Ind AS financials

• When control exists, even if no economic benefits are derived

If a bank guarantee is encashed by a third party, how should the company account for it under Ind AS?

• As a contingent asset

• As an off-balance sheet item

• As a liability and corresponding expense

• It is not recognised in financials

How is a shareholder’s loan to a Joint Venture typically treated under Ind AS 109?

• It is shown as equity in both entities

• It is treated as a financial asset in the investor's books

• It is ignored in consolidated statements

• It is considered a contingent liability

In the context of the classification of "Provision for doubtful debts no longer required written back", what was the final opinion of the Expert Advisory Committee of ICAI regarding its presentation in the Statement of Profit and Loss?

• It should be presented under "Other Operating Revenue"

• It should be presented under "Other Income"

• It should be presented under a separate head under "Impairment Losses"

• It can be presented under either "Other Income" or "Other Operating Revenue" based on management discretion

Which of the following statements best aligns with the reasoning given by the Expert Advisory Committee regarding the treatment of accrued wages and salaries?

• Accrued wages and salaries are uncertain in timing and amount, hence should be classified as provisions.

• Accrued wages and salaries relate to goods received and invoiced, hence should be classified as trade payables.

• Accrued wages and salaries are liabilities for services already rendered and with low uncertainty, hence should be classified as accrued expenses, not provisions.

• Accrued wages and salaries are non-financial liabilities and should be excluded from current liabilities.

Which of the following is NOT a characteristic of ‘Investment Property’ under Ind AS 40?

• Property held to earn rentals

• Property held for capital appreciation

• Property intended for sale in the ordinary course of business

• Property that is vacant but intended to be leased out

Under Ind AS, what is the term used instead of "Provision for doubtful debts"?

• Deferred Revenue

• Impairment Loss

• Contingent Liability

• Trade Receivable Adjustment

Under Ind AS, how should a public SPV account for infrastructure development costs (like roads, water, and sewage) on leased industrial land intended for sale?

• Investment Property

• Property, Plant & Equipment

• Inventories

• Leasehold Assets