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NTINUING OPERATIONS AS 24
PRESENTED BY-
ASHOK KUMAR GUPTA
MBA 1ST SEM
FMS (BHU) 1
• OBJECTIVE-The objective of this statement is to
present financial statements of a parent and its
subsidiary as a single economic entity.
2
ormat of consolidated Financial statements
hese are presented in the same format as as that foll
parent for preparation of its separate financial statem
x expenses(GC-18/2002)
------------------
NDA parents share in Induga ltd
2,400,000
-----------------
Proceeds from disposal of subsidiary
3,100,000
Less: Parents share in the net asset of the
subsidiary (75% of Rs. 3,200,000)
2,400,000 7
ACCOUNTING FOR TAXES ON INCOME
(AS 22)
1-Timing difference
2-Permanent difference
TRANSITIONAL PROVISION
When this accounting standard of taxes on income is
time
applied ,the amount of differed tax asset/liability sho
be
created in the same way Had this accounting standa
been 9
LESOUR
10
PROBLEM
From the following details of X ltd. for the year ended 31-
03-2007,calculate the differed
Tax asset/liability as per AS-22
Solution
Tax per accounting profit
5,00,000*30%=1,50,000
Tax as per income tax ,profit
50,000*30% =15000
Tax as per MAT
4,50,000*7.5%=33,750
Tax expanse =current tax +differed tax
11
1,50,000 = 15,000 + differed tax
Amount of tax to be debited in profit and loss acco
for
the year31-03-2007
12
ACCOUNTING FOR INVESTMENTS IN ASSOCIATES
IN CONSOLIDATED FINANCIAL STATEMENTS (AS-23)
OBJECTIVE-
The accounting was formulated with the objective
to set out the Principle and procedures for recognizing
the investment in associates In the consolidated financial
statements on the financial position of the group
Is indicated.
APPLICABILITY-
This accounting standered is applicable for investment in
associates when the investor prepares consolidated
financial statement ,the accounting slandered has
no applicability .
13
WHAT IS AN ASSOCIATE—
An associate is an enterprise in which the investor
has significant Influence and which is neither a
subsidiary nor a joint venture of the Investor.(AS-18)
15
PROBLEM—
Brainsoft ltd.acquire 40% of AD Softex Ltd.’s shares on
April 2,2001 The price paid was Rs. 140,000.ADSofte
ltd.shareholders equity Shares are as follows
16
SOLUTION—
OBJECTIVE-
This standard covers “discounting operations” rather than
“discontinued operations” .The focus of the disclosure of the
information is about the operations which the enterprise
planes to discontinue rather than disclosing about the
operation which are already discontinued. However ,the
disclosure about discontinued operation Is also covered by
this standard.
Some example—
Gradual phasing out of product line or class of service
Shifting of some production or marketing activities for
particular line of business from one location to an other.
19
PRESENTATION & DISCLOSURE
Net selling prices from the sale of those net assets for
which the enterprise has entered into binding sale agreements
and the expected Timing there of and carrying amount
of those assets.
MANNER OF DISCLOSURE-
The disclosure of amount of pre tax profit or loss and tax
expanse and amount of gain /loss recognized on the
disposal of assets and settlement of liabilities should be
disclosed in the notes to account.
21
INTERIM FINANCIAL REPORTS
22
23