SlideShare uma empresa Scribd logo
1 de 1
Baixar para ler offline
CASE STUDY 1

Rama Ltd purchased a plant for a gross price Rs.200
million. It was given a rebate of 0.5% rebate. The
gross price includes excise duty Rs.20 million for
which the buyer entity will get tax refund and non-
refundable VAT of Rs.10 million. It has also incurred
Rs.15 million for transportation costs, handling
charges and insurance, Rs.5 million for installation
and Rs.3 million for testing and professional fees.

It has earned Rs.0.2 million from selling goods
produced out of testing. Rama Ltd has borrowed
Rs.100 million for financing the new purchase @
10%. The entire process of purchase to make the
operational took nearly 15 months. Finance was
outstanding during this period.

Rama Ltd also earned Rs.0.1 million from short-term
parking of the money borrowed pending payment to
supplier and meeting all costs. What should be the
initial cost of the plant ?

Mais conteúdo relacionado

Destaque

Case study on recognition of assets and liabilities 1
Case study on recognition of assets and liabilities 1Case study on recognition of assets and liabilities 1
Case study on recognition of assets and liabilities 1
Hyderabad Chapter of ICWAI
 

Destaque (20)

Case study on step acquisition 4
Case study on step acquisition 4Case study on step acquisition 4
Case study on step acquisition 4
 
Ias 16 case study 4
Ias 16 case study 4Ias 16 case study 4
Ias 16 case study 4
 
Solution to discussion case study
Solution to discussion case studySolution to discussion case study
Solution to discussion case study
 
Discussion on case study
Discussion on case studyDiscussion on case study
Discussion on case study
 
Case study 2 threshold
Case study 2 thresholdCase study 2 threshold
Case study 2 threshold
 
Consolidation excerpts
Consolidation excerptsConsolidation excerpts
Consolidation excerpts
 
Statement of cashflows ias 7
Statement of cashflows ias 7Statement of cashflows ias 7
Statement of cashflows ias 7
 
Minimum line items
Minimum line itemsMinimum line items
Minimum line items
 
Decommissioning changes accounting
Decommissioning  changes accountingDecommissioning  changes accounting
Decommissioning changes accounting
 
Business combinations
Business combinationsBusiness combinations
Business combinations
 
Case studies questions ias 1 7 n0s
Case studies questions ias 1 7 n0sCase studies questions ias 1 7 n0s
Case studies questions ias 1 7 n0s
 
Case study 1
Case study 1Case study 1
Case study 1
 
Conclusion
ConclusionConclusion
Conclusion
 
Definitions[1]
Definitions[1]Definitions[1]
Definitions[1]
 
Case study on recognition of assets and liabilities 1
Case study on recognition of assets and liabilities 1Case study on recognition of assets and liabilities 1
Case study on recognition of assets and liabilities 1
 
Solution to discussion case study
Solution to discussion case studySolution to discussion case study
Solution to discussion case study
 
Case study on contingent consideration 3
Case study on contingent consideration 3Case study on contingent consideration 3
Case study on contingent consideration 3
 
Case studies questions ias 1
Case studies questions ias 1Case studies questions ias 1
Case studies questions ias 1
 
Ias 38 case studies 3 nos
Ias 38 case studies 3 nosIas 38 case studies 3 nos
Ias 38 case studies 3 nos
 
Investments in associates examples
Investments in associates examplesInvestments in associates examples
Investments in associates examples
 

Semelhante a Ias 16 case study 1

Bbc case study working capital
Bbc case study working capitalBbc case study working capital
Bbc case study working capital
Avnika Jain
 
Payment of Tax
Payment of TaxPayment of Tax
Payment of Tax
Dayanand Huded
 
Cost records and audit rules 2014
Cost records and audit rules 2014Cost records and audit rules 2014
Cost records and audit rules 2014
Kameswara Rao
 

Semelhante a Ias 16 case study 1 (20)

Jk tyres
Jk tyresJk tyres
Jk tyres
 
Capital Revenue
Capital RevenueCapital Revenue
Capital Revenue
 
Finance management
Finance managementFinance management
Finance management
 
Factoring and Forfating.pdf
Factoring and Forfating.pdfFactoring and Forfating.pdf
Factoring and Forfating.pdf
 
Industrial loan, MSME LOAN , SME TERM LOAN
Industrial loan, MSME LOAN , SME TERM LOANIndustrial loan, MSME LOAN , SME TERM LOAN
Industrial loan, MSME LOAN , SME TERM LOAN
 
File1
File1File1
File1
 
Financial management 1
Financial management 1Financial management 1
Financial management 1
 
Lecture 9 (2).pptx
Lecture 9 (2).pptxLecture 9 (2).pptx
Lecture 9 (2).pptx
 
Some relevant #Credit Schemes for #MSMEs
Some relevant #Credit Schemes for #MSMEsSome relevant #Credit Schemes for #MSMEs
Some relevant #Credit Schemes for #MSMEs
 
SBI SME Loan Scheme
SBI SME Loan SchemeSBI SME Loan Scheme
SBI SME Loan Scheme
 
Bbc case study working capital
Bbc case study working capitalBbc case study working capital
Bbc case study working capital
 
PPE.ppt
PPE.pptPPE.ppt
PPE.ppt
 
RTP account merged.pdf
RTP account merged.pdfRTP account merged.pdf
RTP account merged.pdf
 
Payment of Tax
Payment of TaxPayment of Tax
Payment of Tax
 
Profit and loss account ppt
Profit and loss account ppt Profit and loss account ppt
Profit and loss account ppt
 
Recent judicial precedents in transfer pricing
Recent judicial precedents in transfer pricingRecent judicial precedents in transfer pricing
Recent judicial precedents in transfer pricing
 
Bajaj motors financial analysis
Bajaj motors financial analysisBajaj motors financial analysis
Bajaj motors financial analysis
 
Cost records and audit rules 2014
Cost records and audit rules 2014Cost records and audit rules 2014
Cost records and audit rules 2014
 
Cost records and audit rules 2014
Cost records and audit rules 2014Cost records and audit rules 2014
Cost records and audit rules 2014
 
8542 financial accounting_reporting_nov_dec_18
8542 financial accounting_reporting_nov_dec_188542 financial accounting_reporting_nov_dec_18
8542 financial accounting_reporting_nov_dec_18
 

Mais de Hyderabad Chapter of ICWAI (14)

Ias 28 investments in associates
Ias 28 investments in associatesIas 28 investments in associates
Ias 28 investments in associates
 
Contingencies and provisioning[1]
Contingencies and provisioning[1]Contingencies and provisioning[1]
Contingencies and provisioning[1]
 
Case studies ias 37
Case studies ias 37Case studies ias 37
Case studies ias 37
 
Case study on bargain purchase with answer 2
Case study on bargain purchase with answer 2Case study on bargain purchase with answer 2
Case study on bargain purchase with answer 2
 
Case study measurement period 5
Case study measurement period 5Case study measurement period 5
Case study measurement period 5
 
As 14 vs ed as 14 (revised)
As 14 vs ed as 14 (revised)As 14 vs ed as 14 (revised)
As 14 vs ed as 14 (revised)
 
Related party disclosures ias 24
Related party disclosures ias 24Related party disclosures ias 24
Related party disclosures ias 24
 
Property plant and equipment ias 16
Property plant and equipment ias 16Property plant and equipment ias 16
Property plant and equipment ias 16
 
Decison tree
Decison treeDecison tree
Decison tree
 
Operating segments final
Operating segments finalOperating segments final
Operating segments final
 
Ias 17 vs ifrs 8
Ias 17 vs ifrs 8Ias 17 vs ifrs 8
Ias 17 vs ifrs 8
 
Definitions ifrs 5
Definitions ifrs 5Definitions ifrs 5
Definitions ifrs 5
 
Case studies on ifrs 5
Case studies on ifrs 5Case studies on ifrs 5
Case studies on ifrs 5
 
As 24 and ind as 24
As 24 and ind as 24As 24 and ind as 24
As 24 and ind as 24
 

Último

Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usageInsurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usage
Matteo Carbone
 
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
dlhescort
 
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
amitlee9823
 
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
lizamodels9
 
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
Abortion pills in Kuwait Cytotec pills in Kuwait
 
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service NoidaCall Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
dlhescort
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
daisycvs
 

Último (20)

Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usageInsurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usage
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptx
 
Falcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investorsFalcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investors
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 May
 
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
 
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
 
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
 
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
 
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperity
 
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
 
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort ServiceEluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
 
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service NoidaCall Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
 
Falcon Invoice Discounting platform in india
Falcon Invoice Discounting platform in indiaFalcon Invoice Discounting platform in india
Falcon Invoice Discounting platform in india
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptx
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentation
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
 

Ias 16 case study 1

  • 1. CASE STUDY 1 Rama Ltd purchased a plant for a gross price Rs.200 million. It was given a rebate of 0.5% rebate. The gross price includes excise duty Rs.20 million for which the buyer entity will get tax refund and non- refundable VAT of Rs.10 million. It has also incurred Rs.15 million for transportation costs, handling charges and insurance, Rs.5 million for installation and Rs.3 million for testing and professional fees. It has earned Rs.0.2 million from selling goods produced out of testing. Rama Ltd has borrowed Rs.100 million for financing the new purchase @ 10%. The entire process of purchase to make the operational took nearly 15 months. Finance was outstanding during this period. Rama Ltd also earned Rs.0.1 million from short-term parking of the money borrowed pending payment to supplier and meeting all costs. What should be the initial cost of the plant ?