CA Inter Advanced Accounting cheat sheet
CA Inter Advanced Accounting · Keep the key ideas within reach.
Advanced Accounting - Core Standards, Consolidation and Reporting
AS 7 (revised) construction contracts: when outcome can be estimated reliably, recognise revenue and costs by reference to stage of completion; expected loss on the whole contract is recognised immediately as an expense, not deferred.
Ind AS 115 five-step model: identify contract, identify performance obligations, determine transaction price, allocate price to obligations, recognise revenue on satisfaction; variable consideration is constrained to the amount for which a significant reversal is not highly probable.
Consolidation (Ind AS 110): control requires power over relevant activities, exposure to variable returns, and ability to use power to affect returns; potential voting rights are considered only if currently exercisable.
Goodwill on consolidation = consideration transferred + non-controlling interest + fair value of previously held interest − net fair value of identifiable assets acquired and liabilities assumed; bargain purchase gain goes to P&L after reassessment.
Intra-group adjustments: eliminate investment against equity, unrealised profit on downstream sales is adjusted against parent's retained earnings, upstream profit is shared between parent and NCI in proportion to ownership.
Ind AS 21: monetary items are retranslated at closing rate with exchange differences to profit or loss; non-monetary items at historical cost use the transaction-date rate; a foreign operation's exchange differences are recycled to P&L on disposal.
Ind AS 36 impairment: recoverable amount is higher of fair value less costs of disposal and value in use; test goodwill annually; reversal of impairment is allowed for assets other than goodwill.
Ind AS 116 lessee accounting: recognise right-of-use asset and lease liability at present value of lease payments; depreciation on the asset and interest on the liability are presented separately in P&L.
Ind AS 12 deferred tax: use the balance-sheet approach on temporary differences; deferred tax asset is recognised only to the extent taxable profit will be available, and is reviewed at each reporting date.