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CA Inter AS 27 Financial Reporting of Interests in Joint Ventures — practice questions — page 2

Explore 49 free AS 27 Financial Reporting of Interests in Joint Ventures questions in CA Inter Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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AS 27 Financial Reporting of Interests in Joint Ventures questions and exercises with answers

Showing questions 31–49 of 49.

A venturer owns 25% of a jointly controlled entity with revenue Rs 8 crore and expenses Rs 6 crore. Its share of profit is?Read the answer and worked solution →Proportionate consolidation uses which statements of the entity?Read the answer and worked solution →If reporting dates differ, the maximum gap allowed between entity and venturer statements is what?Read the answer and worked solution →If the entity uses different accounting policies from the group, what is done?Read the answer and worked solution →When may assets be set off against liabilities?Read the answer and worked solution →Excess of a venturer's cost of interest over its share of net assets at acquisition is treated as what?Read the answer and worked solution →A venturer pays Rs 30 lakh for 40% of an entity with net assets Rs 60 lakh. Goodwill arising is?Read the answer and worked solution →On losing joint control, proportionate consolidation stops when?Read the answer and worked solution →After discontinuing the method, a venturer that gains unilateral control accounts under which standard?Read the answer and worked solution →Can a venturer book its share of profit on stock bought from its venture, before resale?Read the answer and worked solution →A 40% venturer buys stock on which its venture made Rs 50,000 profit. Unsold. Profit share withheld?Read the answer and worked solution →A loss on purchase from a venture is booked at once when it shows what?Read the answer and worked solution →Which standard is used to test impairment in venturer and venture transactions?Read the answer and worked solution →Fees earned by an operator of a joint venture are accounted for under which standard?Read the answer and worked solution →How does the joint venture itself account for the operator's management fee?Read the answer and worked solution →For which statements is AS 27 mandatory in respect of an enterprise?Read the answer and worked solution →AS 27 disclosure of contingent liabilities is not needed when the probability of loss is what?Read the answer and worked solution →How are joint venture capital commitments disclosed?Read the answer and worked solution →For jointly controlled entities, a venturer must disclose which item?Read the answer and worked solution →

Worked practice questions

A venturer owns 25% of a jointly controlled entity with revenue Rs 8 crore and expenses Rs 6 crore. Its share of profit is?

  1. Rs 2.0 crore
  2. Rs 1.5 crore
  3. Rs 0.5 crore
  4. Rs 0.25 crore
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Correct answer: C. Rs 0.5 crore

Net profit of the entity is Rs 2 crore and 25% of that is Rs 0.5 crore, being revenue share Rs 2 crore less expense share Rs 1.5 crore.

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Proportionate consolidation uses which statements of the entity?

  1. Its income tax returns
  2. Its draft trial balance
  3. Its bank statements
  4. Its consolidated statements
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Correct answer: D. Its consolidated statements

Where the jointly controlled entity has subsidiaries, the venturer applies the method on that entity's consolidated statements.

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If reporting dates differ, the maximum gap allowed between entity and venturer statements is what?

  1. Three months
  2. Nine months
  3. Twelve months
  4. Six months
Show answer and solution

Correct answer: D. Six months

When same-date statements are impracticable, different dates may be used if they differ by not more than six months, with adjustments for significant events.

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More Accounting topics

AS 3 Cash Flow StatementSchedule III Division I Financial StatementsAS 19 LeasesValuation of Inventories (AS 2)AS 22 Taxes on IncomeAS 28 Impairment of AssetsProperty, Plant and EquipmentAS 17 Segment Reporting