International Accounting Practices — Winter 2022

Explain the scope of International accounting.

Explain the concept of XBRL reporting for global financial reporting.

Explain the role of FASB ( Financial Accounting Standard Board)

Explain in detail the International tax planning.

In respect of a factory the following figures have been obtained for the year 2016 Cost of materials Rs 600,000 Factory overheads Rs 300,000 Administrative overheads Rs 336,000 Selling overheads Rs 224,000 Distribution overheads Rs 140,000 and profit Rs 420,000 Awork order has been executed in 2017 and the following expenses have been incurred: Materials Rs 8,000 and wages Rs 5,000 Assuming that in 2017 the rate of factory overheads has increased by 20 %, distribution overheads have gone down by 10 % and the selling and administration overheads have gone up by 12.5 %, at what price should the product be sold so as to earn the same rate of profit on the selling price as in 2016. Factory over head is based on direct wages while all other overheads are based on factory cost.

Define International Financial Management and explain the functions of International Financial management. Page 1 of

Neo Pharma processes a product through three distinct stages of one process being passed on to the next process and so on to the finished product intact. Details of the cost incurred in each process are given below. Particulars Process A (Rs) Process B ( Rs) Process C ( Rs) Raw materials 1,150 1,050 700 Direct wages 500 600 700 The overhead expenses for the period amounted to Rs 3,600 and is to be distributed to the processes on the basis of direct wages. There were no stocks in any of the processes either at the beginning or at the close of the period. Assuming the output was 1,000 kilos show the process cost of A,Band C indicating also the cost per kilo of each element of cost and the output in each process.

Differentiate between cash and flexible budget.

The expenses budgeted for production of 10,000 units in a factory are furnished below. Particulars Per unit ( Rs.) Materials 70 Labour 25 Variable factory overheads Fixed factory over heads( Rs. 100,000) Variable expenses ( Direct) Selling Expenses ( 10 % Fixed) 13 Distribution Expenses (20 % fixed) Administrative Expenses ( Fixed -Rs 50,000) Total cost of sales per unit 155 You are required to prepare a budget for the production of 6000 units and 8000 units.

Short note on CVP Analysis

From the following particulars calculate i) Contribution. ii) P/V Ratio (iii) Break even Point in units and Rupees (iv) what will be the selling price per unit if the break even point is brought down to 25,000 units. Particulars Rs. Fixed expenses 150,000 Variable cost per unit Selling price per unit

Sherry engineering ltd have authorized share capital of Rs 50 Lakh divided into 500,000 equity shares of Rs 10 each. Their books show the following balances as on 31-12-2017 Particulars Amount Particulars Amount Stock 1012017 6,65,000 Equity share capital 20,00,000 (2,00,000 shares of Rs each) Discount and rebates 30,000 4 % Debentures payable 5,00,000 after 10 years Carriage inwards 57,500 Bank overdraft 7,57,000 Patterns 3,75,000 Sundry creditors ( goods) 2,40,500 Page 2 of Rates, rent and taxes 55,000 Sales 36,17,000 Furniture and Fixture 1,50,000 Rent ( Credit) 30,000 Materials purchased 12,32,500 Transfer fees 6,500 Wages 13,05,000 Profit and loss a/c ( 67,000 credit) Coal and coke 63,000 Freehold land 12,50,000 Plant and Machinery 7,50,000 Engineering tools 1,50,000 Goodwill 3,75,000 Sundry debtors 2,66,000 Bills receivables 1,34,500 Advertisements 15,000 Commission & 67,500 Brokerage Business expense 56,000 Bank current a/c 20,000 Cash in hand 8,000 Debenture Interest (for 10,000 half year 31.6.2017) Interest paid ( Bank) 91,000 Preliminary expenses 10,000 Calls in arrears 10,000 Bad debts 25,500 Repairs 46,500 The stock ( valued at cost or market value whichever is lower) as on 31-12-2017 was Rs 7,08,000. Outstanding liabilities for wages Rs 25,000 and business expenses Rs 25,000. Dividend declared @ 10 % on paid up capital. Charge depreciation: Plant and Machinery @ 5 %, Engineering tools @ 20 %, Patterns @ 10% and furniture and fixtures @ 10 %. Provide 2 % on debtors as doubtful debts after writing off Rs 21,500 as bad debts. Write off preliminary expenses Rs 5,000 and create debenture redemption reserve Rs 50,000. Provide 2,40,000 for income tax. You are required to prepare: Profit and loss statement for the year ending 31.12.2017 and Balance Sheet as on that date in vertical format.

From the following information, interpret the results of operations of manufacturing concern using trend ratios: (amount in ‘000 Rupees) For the year ended 31st March Particulars 2006 2005 2004 2003 Sales( NET) 13,000 12,000 9,500 10,000 Less COGS 7,280 6,960 5,890 6,000 Gross Profit 5,720 5,040 3,610 4,000 Selling 1,200 1,100 970 1,000 expenses Net operating 4,520 3,940 2,640 1,000 profit

Explain in detail the different types of costs. Page 3 of