Beruflich Dokumente
Kultur Dokumente
(Department of Commerce)
CHECKLIST
1. Textbook (one)
2. Assignment No. 1, 2
3. Assignment Forms ( 2 sets )
In this packet, if you find anything missing out of the above mentioned material,
please contact at the address given below:
WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.
ASSIGNMENT No. 1
Course: Financial Reporting-I (8567) Semester: Autumn, 2018
Level: M. Com Total Marks: 100
Pass Marks: 50
Q. 1 (a) Describe the recognition criteria of the elements of financial statements. (10)
(b) Enlist the complete set of financial statements and describe the objectives of
them. Also explain the general features which must be possessed by financial
statements. (10)
Q. 3 (a) What do you know about IAS 8? Explain. Also differentiate between
accounting estimates and accounting policies. (5)
(b) During 2018, Soban Co. discovered that some products that had been sold
during 2017 were incorrectly included in inventory at 31 st December, 2017 at
Rs. 6,500. (10)
Soban Co’s accounting records for 2018 show sales of Rs. 104,000, cost of goods
sold of Rs. 86,500 (including Rs. 6,500) for the error in opening inventory), and
income taxes of Rs. 5,250.
In 2017, Soban Co’s reported:
Sales Rs. 73,500
Cost of Goods Sold (53,500)
Profit before income tax 20,000
Income taxes (6,000)
Profit 14,000
In 2017 Opening retained earnings was Rs. 20,000 and closing retained earning
was Rs. 34,000.
Soban Co’s income tax rate was 30 percent for 2018 and 2017. It had no other
income or expenses.
Soban Co’s had Rs. 50,000 of share capital throughout and no other components of
equity except for retained earnings.
You are required to show the effects of above conditions on statement of
comprehensive income, statement of changes in equity and extracts from the
notes.
Q. 4 (a) Explain the Adjusted and Non-Adjusted events with reference to IAS 10,
with suitable examples. (8)
(b) Define the following key terms with reference to IAS 16: (8)
i. Property, Plant and Equipment
ii. Cost
iii. Fair Value
iv. Carrying Amount
v. Depreciation
vi. Impairment Loss
vii. Recoverable Amount
viii. Systematic Allocation
(c) Explain the disclosure requirements of IAS 16 (4)
The initial operating loss was incurred as a result of having to dump unsold ‘special
bread’ at sea since the advertising had not yet created sufficient demand.
The company is registered as a ‘VAT vendor’.
You are required to calculate the cost to be capitalized to the plant account.
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Q. 6 From the following information extracted from the books of Qaiser Brothers, you
are required to prepare statement of cash flows using direct and indirect method.
STATEMENT OF FINANCIAL POSITION
As on 31 March 2017
Capital & liabilities Rs. Assets Rs.
Share capital 65,000 Non-current assets
Bank loan 30,000 Building 40,000
Current liabilities Furniture 10,000
Creditors for goods 10,000 Van 15,000
Current Assets
Stock in trade 15,000
Debtors 20,000
Cash & banks 5,000
105,000 105,000
Creditors represent on month’s purchases and debtors represent one and a half months’
sales for the year ended 31st March, 2018. (20)
1. Purchases will increase by 20% in volume.
2. Prices of purchases will increase by 9%
3. Expenses will total Rs. 36,000 for 2017 – 2018 including depreciation
o 5% on building
o 10% furniture
o 20% on van
4. The van will be sold in March 2018 for Rs. 20,000 and replaced by a new one
costing Rs. 25,000
5. Dividend paid Rs. 18,000.
6. The mark up rate was 33.33 in 2017
7. There will be no change in the rate of mark-up (based on cost).
8. The bank loan is repayable in three installments.
9. Stock in trade is equal to one and half month of purchase.
To answer a question effectively, address the question directly, bring important related
issues into the discussion, refer to sources, and indicate how principles from the course
materials apply. The student must also be able to identify important problems and
implications arising from the answer.
ASSIGNMENT No. 2
Total Marks: 100 Pass Marks: 50
WORKSHOPS
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The workshop presentations provide students opportunity to express their communication
skills, knowledge & understanding of concepts learned during practical study assigned in
assignment # 2.
You should use transparencies and any other material for effective presentation. The
transparencies are not the presentation, but only a tool; the presentation is the
combination of the transparencies and your speech. Workshop presentation transparencies
should only be in typed format.
The transparencies should follow the following format:
1) Title page
2) An abstract (one-page summary of the paper)
3) Introduction to the issue (brief history & significance of topic assigned)
4) Practical study of the organization (with respect to the issue)
5) Data collection methods
6) Conclusion (one-page brief covering important aspects of your report)
7) Recommendations (specific recommendations relevant to topic assigned)
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5.6 Interpretation of statement of cash flows
5.7 Disclosures requirements