ADVANCED ACCOUNTING REVISION | PART 2 | ACCOUNTS MARATHON | CA INTER | MAY 2024 EXAMS

Introduction

This tutorial provides a comprehensive overview of advanced accounting concepts as discussed in the YouTube video by CA Ram Harsha. It targets CA Inter students preparing for the May 2024 exams. Each section covers key accounting standards (AS) and relevant topics to enhance your understanding and assist in revision.

Step 1: Understanding AS 24

• Overview of AS 24: Focus on disclosures regarding interests in joint ventures.
• Key Points:
  • Joint ventures are categorized as either jointly controlled operations or jointly controlled entities.
  • Essential disclosures include the nature of the venture, the proportional share of assets, liabilities, income, and expenses.

Step 2: Mastering AS 9

• Overview of AS 9: This standard deals with revenue recognition.
• Key Points:
  • Revenue should be recognized when it is realized or realizable and earned.
  • Key criteria include:
    • The risks and rewards of ownership have been transferred.
    • The amount of revenue can be measured reliably.

Step 3: Clarification on AS 10

• Overview of AS 10: Focuses on accounting for fixed assets.
• Clarification Points:
  • Fixed assets should be recorded at cost.
  • Subsequent costs should be added if they improve the asset's value.
  • Regular reviews for impairment are necessary.

Step 4: Exploring AS 7

• Overview of AS 7: Covers accounting for construction contracts.
• Key Points:
  • Revenue and costs are recognized based on the stage of completion.
  • Use the percentage of completion method for long-term contracts.
  • Ensure proper documentation of project progress.

Step 5: Diving into AS 13

• Overview of AS 13: Pertains to accounting for investments.
• Key Points:
  • Investments should be classified as long-term or current.
  • Use cost or fair value for measurement, depending on the classification.
  • Regular assessment for impairment is crucial.

Step 6: Understanding AS 29

• Overview of AS 29: Discusses provisions, contingent liabilities, and contingent assets.
• Key Points:
  • A provision should be recognized when there is a present obligation and it is probable that an outflow of resources will occur.
  • Contingent liabilities should be disclosed unless the possibility of outflow is remote.

Step 7: Learning about AS 20

• Overview of AS 20: Focuses on earnings per share (EPS).
• Key Points:
  • Basic and diluted EPS must be calculated and disclosed.
  • Basic EPS is calculated as net profit attributable to equity shareholders divided by the weighted average number of shares.

Step 8: Branch Accounts

• Overview: Understanding the accounting treatment for branch operations.
• Key Points:
  • Maintain separate accounts for each branch.
  • Use a consistent method for transferring goods and recording expenses.

Step 9: Insights on AS 17

• Overview of AS 17: Deals with segment reporting.
• Key Points:
  • Identify operating segments based on internal reports.
  • Disclose segment revenue, results, and assets.

Step 10: Reviewing AS 18

• Overview of AS 18: Focuses on related party disclosures.
• Key Points:
  • Identify relationships and transactions with related parties.
  • Disclosures should include the nature of the relationship and transaction amounts.

Step 11: Understanding AS 3

• Overview of AS 3: Pertains to cash flow statements.
• Key Points:
  • Classify cash flows into operating, investing, and financing activities.
  • Ensure accurate representation of cash inflows and outflows.

Step 12: Revising AS 1 and AS 5

• Overview: AS 1 deals with disclosure of accounting policies, while AS 5 addresses the net profit or loss for the period.
• Key Points:
  • Ensure consistency in accounting policies and disclose any changes.
  • AS 5 requires disclosure of extraordinary items.

Step 13: Grasping AS 11

• Overview: Focuses on the effects of changes in foreign exchange rates.
• Key Points:
  • All foreign currency transactions must be recorded at the exchange rate prevailing on the transaction date.
  • Exchange differences should be recognized in profit or loss.

Step 14: Exploring Amalgamation of Companies

• Overview: Understanding the accounting treatment for business combinations.
• Key Points:
  • Amalgamation can be accounted for using the pooling of interests or purchase method.
  • Ensure compliance with relevant regulations and proper valuation of assets and liabilities.

Conclusion

This tutorial summarizes advanced accounting standards crucial for CA Inter students preparing for exams. Focus on understanding each standard's key principles and applications. For further learning, consider reviewing related materials and practicing with past exam papers to reinforce your knowledge. Good luck with your studies!