IND AS 110 (CFS)

Q1.  Ind As-110 provides for_______ exemption in case of A Ltd Non-Investment Company acquiring majority voting rights in B Ltd (an Investment Company providing service to A Ltd).

• Voluntary

• Mandatory

• No Exemption

• None of the above

Q2. No Substantive Rights are considered while assessing whether  an investor has power over Investee

• True

• False

• Not Sure

Q3.   Power = Existing rights + Variable returns + ability to direct relevant activity.

• True

• False

Q4. XYZ Ltd hold 30 percent Shares in ABC Ltd.  It Enters into a forward contract to sell the shares Which will get mature in 10 days. The AGM is scheduled to happen in 45 days in which major decisions regarding the Relevant Activities will be taken. XYZ has_________ to direct relevant activities.

• Current ability

• No-Current ability

Q5.  Following is an example of Variable return.

•   Dividend

• Changes In Fair Value

•   Interest on Debenture Issued by Investor

•   All of the Above

Q6. Holding company’s share in revenue profits of subsidiary company is adjusted in:

• Cost of control

• Shown on assets side of balance sheet

• Profit and loss account of holding company

• Capital profits of holding company

Q7. On a consolidated balance sheet, if the shares of a company have been bought for more than the balance sheet value then the difference would appear as:

• Profit on purchase

• Goodwill

• Capital reserve

• Loss on purchase

Q8 X Ltd. Acquires 80% of Y Ltd. By paying cash consideration of 400 lakh. The fair value of non- controlling interest on the date of acquisition is 100 lakh.The value of subsidiary’s identifiable net assets as per Ind AS 103 is `520 lakh. Determine the value of gain on bargain purchase using Fair value method.

•   (10)

•   (20)

•   (50)

•   (5)

Q9. When NCI is calculated using Proportionate Net Assets method, The resulting Goodwill is?

•   Full Goodwill

•       Partial Goodwill

•      Purchased Goodwill

•      

  None Of The Above

Q10. Dividend Paid after acquisition Date but before consolidation Date is adjusted in:

• Post Reserves

•    Pre Reserves

• None

• Consolidated Reserves