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CMA Intermediate · Corporate Accounting and Auditing · Presentation of Financial Statements (Ind AS 1)

Meera Industries Ltd had opening equity of ₹50,00,000. During the year it earned profit of ₹8,00,000, had other comprehensive income of ₹1,00,000, issued shares for ₹6,00,000 (including no issue costs), paid dividends of ₹3,00,000 and bought back its own shares for ₹2,00,000. What is the closing total equity, and what part of the change represents income and expense generated by activities, per Ind AS 1?

Closing equity is ₹60,00,000 and the income and expense element is ₹9,00,000. Total comprehensive income of ₹9,00,000 plus net owner transactions of ₹1,00,000 (issue 6 less dividend 3 less buy-back 2 lakh) is added to ₹50,00,000, as paragraph 109 explains.

  1. AClosing equity ₹60,00,000; income and expense part ₹9,00,000Correct
  2. BClosing equity ₹60,00,000; income and expense part ₹8,00,000
  3. CClosing equity ₹69,00,000; income and expense part ₹9,00,000
  4. DClosing equity ₹58,00,000; income and expense part ₹7,00,000

Explanation

Total comprehensive income = 8,00,000 + 1,00,000 = 9,00,000. Owner transactions = +6,00,000 − 3,00,000 − 2,00,000 = +1,00,000. Closing = 50,00,000 + 9,00,000 + 1,00,000 = 60,00,000. Paragraph 109 says changes other than owner transactions represent total income and expense, so ₹9,00,000. The ₹8,00,000 option omits OCI.

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