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ISQ Examination (Summer-2012)
Accounting for Financial Services – Stage-II
Q. A) What is the purpose of revaluation of fixed assets?
Q. B) State any THREE conditions which must be met, if development expenditure is to be recognized as an intangible asset.
Q. On December 31, 2011 before adjustments, the allowance for doubtful accounts had a credit balance of Rs.2,000/-.
Required: Make the bad debts adjustments necessary under each of the following independent assumptions.
A) The company estimates that 2.5% of its 2011 sales of
Rs.3,500,000/- will not be collectible.
B) Aging of all receivables reveals that Rs.8,000/- would probably not be collected.
Q. The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Framework for the Presentation of Financial Statement is issued by the International Accounting Standards Board.
A) Does the company published financial statements, prepared in accordance with International Accounting Standards, achieve the objective stated above? Give your opinion.
B) In the grid below, identify any four potential users of financial statements and their information needs.
Q. Draw a brief comparison between held-for-trading and held-tomaturity securities, identifying accounting treatment for each.
Q. Describe any FIVE principles covered under the generally accepted accounting principles.
Q. There are three classifications of marketable securities. Describe each one, state its type and describe their disclosure on the balance sheet.
Q. Following is the information regarding ABC Bank:
(Rs in millions)
Profit after tax 52
Total mark- up earned 2,023
Total Assets 58,982
Equity 3,808
Mark up and interest earned 2,684
Mark up and interest expensed 1,312
Earning Assets 57,987
Interest bearing Liabilities 53,433
Calculate ROE and
Accounting for Financial Services – Stage-II
Q. A) What is the purpose of revaluation of fixed assets?
Q. B) State any THREE conditions which must be met, if development expenditure is to be recognized as an intangible asset.
Q. On December 31, 2011 before adjustments, the allowance for doubtful accounts had a credit balance of Rs.2,000/-.
Required: Make the bad debts adjustments necessary under each of the following independent assumptions.
A) The company estimates that 2.5% of its 2011 sales of
Rs.3,500,000/- will not be collectible.
B) Aging of all receivables reveals that Rs.8,000/- would probably not be collected.
Q. The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Framework for the Presentation of Financial Statement is issued by the International Accounting Standards Board.
A) Does the company published financial statements, prepared in accordance with International Accounting Standards, achieve the objective stated above? Give your opinion.
B) In the grid below, identify any four potential users of financial statements and their information needs.
Q. Draw a brief comparison between held-for-trading and held-tomaturity securities, identifying accounting treatment for each.
Q. Describe any FIVE principles covered under the generally accepted accounting principles.
Q. There are three classifications of marketable securities. Describe each one, state its type and describe their disclosure on the balance sheet.
Q. Following is the information regarding ABC Bank:
(Rs in millions)
Profit after tax 52
Total mark- up earned 2,023
Total Assets 58,982
Equity 3,808
Mark up and interest earned 2,684
Mark up and interest expensed 1,312
Earning Assets 57,987
Interest bearing Liabilities 53,433
Calculate ROE and