Independent MCQ 3
A Chartered Accountant accepts an appointment as statutory auditor of a company without verifying whether the provisions relating to appointment of auditors under the Companies Act, 2013 have been complied with. Subsequently, it is found that the company had not complied with the relevant provisions. Which of the following is the most appropriate conclusion?
A. The member is not guilty, since the company is responsible for complying with the Companies Act, 2013.
B. The member is guilty of professional misconduct under Clause 9 of Part I of the First Schedule to the Chartered Accountants Act, 1949.
C. The member is guilty only if the company had deliberately concealed the non-compliance.
D. The member is not guilty provided the appointment was subsequently approved by the shareholders.
A Chartered Accountant accepts an appointment as statutory auditor of a company without verifying whether the provisions relating to appointment of auditors under the Companies Act, 2013 have been complied with. Subsequently, it is found that the company had not complied with the relevant provisions. Which of the following is the most appropriate conclusion?
A. The member is not guilty, since the company is responsible for complying with the Companies Act, 2013.
B. The member is guilty of professional misconduct under Clause 9 of Part I of the First Schedule to the Chartered Accountants Act, 1949.
C. The member is guilty only if the company had deliberately concealed the non-compliance.
D. The member is not guilty provided the appointment was subsequently approved by the shareholders.
Independent MCQ 4
An NBFC-MFI has deployed 61% of its total assets, after netting intangible assets, towards microfinance loans for three consecutive quarters. In the fourth quarter, the proportion falls to 59%. Which of the following is the most appropriate?
A. It continues to qualify as an NBFC-MFI because the 60% requirement is tested based on the average of four consecutive quarters.
B. It continues to qualify as an NBFC-MFI because the requirement is required to be maintained on an ongoing basis, but a single quarter below 60% does not automatically change its classification.
C. It ceases to qualify as an NBFC-MFI immediately because the proportion has fallen below 60% in the fourth quarter.
D. It ceases to qualify as an NBFC-MFI only when the proportion remains below 60% for four consecutive quarters.
An NBFC-MFI has deployed 61% of its total assets, after netting intangible assets, towards microfinance loans for three consecutive quarters. In the fourth quarter, the proportion falls to 59%. Which of the following is the most appropriate?
A. It continues to qualify as an NBFC-MFI because the 60% requirement is tested based on the average of four consecutive quarters.
B. It continues to qualify as an NBFC-MFI because the requirement is required to be maintained on an ongoing basis, but a single quarter below 60% does not automatically change its classification.
C. It ceases to qualify as an NBFC-MFI immediately because the proportion has fallen below 60% in the fourth quarter.
D. It ceases to qualify as an NBFC-MFI only when the proportion remains below 60% for four consecutive quarters.
FR MCQ 1
An entity has applied the Pillar Two exception under Ind AS 12. Which statement regarding current tax is correct?
A. The entity is not required to disclose current tax expense related to Pillar Two because the deferred tax exception also applies to current tax.
B. The entity shall disclose separately its current tax expense (income) related to Pillar Two income taxes.
C. The entity shall disclose current tax related to Pillar Two only if the Pillar Two legislation is already effective.
D. The entity shall disclose only the deferred tax impact of Pillar Two income taxes separately.
An entity has applied the Pillar Two exception under Ind AS 12. Which statement regarding current tax is correct?
A. The entity is not required to disclose current tax expense related to Pillar Two because the deferred tax exception also applies to current tax.
B. The entity shall disclose separately its current tax expense (income) related to Pillar Two income taxes.
C. The entity shall disclose current tax related to Pillar Two only if the Pillar Two legislation is already effective.
D. The entity shall disclose only the deferred tax impact of Pillar Two income taxes separately.
FR MCQ 2
For the disclosure of an entity's exposure to Pillar Two income taxes (Ind AS 12), which statement is most appropriate?
A. The entity must always disclose the exact amount of Pillar Two income taxes expected to be payable.
B. The entity shall disclose qualitative information only where quantitative information cannot be determined with certainty.
C. The entity shall disclose qualitative and quantitative information about its exposure to Pillar Two income taxes at the end of the reporting period.
D. The entity shall disclose quantitative information only after Pillar Two legislation becomes effective.
For the disclosure of an entity's exposure to Pillar Two income taxes (Ind AS 12), which statement is most appropriate?
A. The entity must always disclose the exact amount of Pillar Two income taxes expected to be payable.
B. The entity shall disclose qualitative information only where quantitative information cannot be determined with certainty.
C. The entity shall disclose qualitative and quantitative information about its exposure to Pillar Two income taxes at the end of the reporting period.
D. The entity shall disclose quantitative information only after Pillar Two legislation becomes effective.
FR MCQ 3
When a currency is not exchangeable into another currency at the measurement date, which statement as per Ind AS 21 correctly describes the requirement for estimating the spot exchange rate?
A. The entity shall use the first observable exchange rate available after exchangeability is restored, without considering any other factors.
B. The entity shall use the most favourable observable exchange rate available at the measurement date.
C. The entity shall estimate a spot exchange rate that reflects the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions.
D. The entity shall use the official exchange rate notified by the relevant monetary authority, unless that rate is unavailable.
When a currency is not exchangeable into another currency at the measurement date, which statement as per Ind AS 21 correctly describes the requirement for estimating the spot exchange rate?
A. The entity shall use the first observable exchange rate available after exchangeability is restored, without considering any other factors.
B. The entity shall use the most favourable observable exchange rate available at the measurement date.
C. The entity shall estimate a spot exchange rate that reflects the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions.
D. The entity shall use the official exchange rate notified by the relevant monetary authority, unless that rate is unavailable.
For CA FINAL, with 30 marks of MCQs in each of the 6 subjects, nailing this section is your smartest way to clearing exams effortlessly.
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FR MCQ 4
ABC Ltd. has Indian Rupee (₹) as its functional currency. At the reporting date, ₹ cannot be exchanged directly into US Dollars (USD). However, ABC Ltd. can exchange ₹ into Euros (EUR) and then exchange EUR into USD through an exchange mechanism that creates enforceable rights and obligations.
Which of the following is correct as per IND AS 21?
A. ₹ is not exchangeable into USD because there is no direct exchange between ₹ and USD.
B. ₹ is exchangeable into USD because USD can be obtained indirectly through EUR.
C. ₹ is not exchangeable into USD because two separate exchange transactions are involved.
D. ₹ is exchangeable into USD only if ABC Ltd. intends to obtain USD through the indirect route.
ABC Ltd. has Indian Rupee (₹) as its functional currency. At the reporting date, ₹ cannot be exchanged directly into US Dollars (USD). However, ABC Ltd. can exchange ₹ into Euros (EUR) and then exchange EUR into USD through an exchange mechanism that creates enforceable rights and obligations.
Which of the following is correct as per IND AS 21?
A. ₹ is not exchangeable into USD because there is no direct exchange between ₹ and USD.
B. ₹ is exchangeable into USD because USD can be obtained indirectly through EUR.
C. ₹ is not exchangeable into USD because two separate exchange transactions are involved.
D. ₹ is exchangeable into USD only if ABC Ltd. intends to obtain USD through the indirect route.