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Friday, 5 October 2018

MCQ-F101-1 - Answer Key

MCQ - F101-1 - Answer Key

Co. A meets the criteria as specified under Rule 4(2) of the companies (Indian Accounting Standards) Rules, 2015 as on 31st March 2014
Such rules will become applicable on mandatory basis from accounting periods commencing 1st April 2016
Co. A has net worth of more than 500 crore as on 31st March 2014
Therefore, ordinarily Co. A along with its subsidiaries will have to apply IndAS for preparing financial statements for the accounting periods commencing 1st April 2016

But, Co. A has sold off its entire investment in co. X on 31-12-2014
Co. X is no longer a subsidiary of Co. A as at the begin of 1st April 2016

Therefore, in this case, Co. X would continue to prepare financial statements for accounting periods commencing 1st April 2016, as per the Companies (Accounting Standards) Rules, 2006