Bissoy.com
Doctors Medicines MCQs Q&A

With respect to accounting for foreign branches, which of the following statements is correct?

With respect to accounting for foreign branches, which of the following statements is correct? Correct Answer For the purpose of accounting, AS 11 (revised 2003) classifies the foreign branches into two types: (a) Integral Foreign Operation, (b) Non-Integral Foreign Operation.

Key Points

AS 11 The Effects of Changes in Foreign Exchange Rates

  • Businesses might be involved in foreign exchange-related transactions in a couple of ways. To include foreign operations and foreign currency transactions in their financial statements, the transactions should be expressed and reported in financial statements in the reporting currency of the enterprise.
  • AS 11 The Effects of Changes in Foreign Exchange Rates deals with the reporting of foreign exchange transactions in the financial statements.
  • For the purpose of accounting, AS 11 (revised 2003) classifies the foreign branches into two types:
    • (a) Integral Foreign Operation,
    • (b) Non-Integral Foreign Operation.

Additional Information

  1. Accounting Standard 12 deals with the accounting for government grants. Such grants are offered by the government, government agencies, and similar bodies including local, national or international.
     These government grants are sometimes referred to as subsidies, cash incentives, duty drawbacks, etc.
  2. Accounting Standard 16 prescribes the accounting treatment for borrowing costs. This accounting standard must be applied in accounting for the borrowing cost.
  3. AS 13 deals with accounting for investments made by an enterprise in another enterprise and the disclosure of such investments in the financial statements.

Related Questions

Which of the following statements are true/ false?
1. Every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 9.33% of the salary or wages earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year.
2. Bonus will be paid in cash to the employees.
3. If the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer is bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wages earned by the employee during the accounting year subject to a maximum of 10% of such salary or wage.
4. Bonus needs to be paid within a period of eight months from the close of the accounting year.
Statements : All branches are flowers. All flowers are leaves.

Conclusions :
I. All branches are leaves.
II. All leaves are branches.
III. All flowers are branches.
IV. Some leaves are branches.
The following are the conditions for selecting list of a suitable candidates to be called for interview after the written test for the recruitment is conducted/organized for management - level persons for a multi - national company. For providing accounting services and sales the candidate must (a) be holding a graduation in basic science with 65% or above or B.E. degree with 55% and above marks (b) have passed the written test with 70% or above marks (c) the age must be in the group 25 to 30 years as on 1/4/18 (d) have experience in an accounting firms for three years and diploma in accounting with 60% or above marks (e)  be presently drawing CTC of 6 Lakhs per annum and above In case the applicant who satisfies all other terms above except 1) at (a) above, then be referred as Junior Accountant 2) at (d) & (e) above then be referred as Trainee - Accountant Satisfying all the above with experience of 5 years then the referred as senior-Accountant Satisfying all the above criteria (a - e) with CA/ICWA/MBA (Finance) then be referred as manager (Accounts) Read all the above information and answer the following question Praveen has done his Masters in physics. He has no experience in accounting neither diploma. He is ready to be on training for accounting after joining. For which position he may be referred
The following are the conditions for selecting a list of suitable candidates to be called for interview after the written test for the recruitment is conducted/ organized for management-level persons for a multi-national company. For providing accounting services and sales the candidate must (a) beholding graduation in basic science with 65% or above or B.E. degree with 55% and above marks (b) have passed the written test with 70% or above marks (c) the age must be in the group 25 to 30 years as on 1/4/18 (d) have experience in an accounting firm for three years and a diploma in accounting with 60% or above marks e) be presently drawing CTC 6 lakhs per annum and above In case the applicant who satisfies all other terms above except 1) at (a) above, then be referred to as Junior Accountant 2) at (d) & (e) above then be referred to as Trainee-Accountant Satisfying all the above with experience of 5 years then be referred to as senior-Accountant Satisfying all the above criteria (a-e) with CA/ICWA/MBA (Finance) then be referred to as manager (Accounts) Read all the above information and answer the following question   Praveen has done his Masters in physics. He has no experience in accounting neither diploma. He is ready to be on training for accounting after joining. For which position he may be referred.
The following are the conditions for selecting list of a suitable candidates to be called for interview after the written test for the recruitment is conducted/ organized for management-level persons of a multi-national company. For providing accounting services and sales the candidates must (a) be holding a graduation in basic science with 65% or above or B. E degree with 55% and above marks (b) have passed the written test with 70% or above marks (c) the age must be in the group 25 to 30 years as on 1/4/18 (d) have experience in an accounting firms for three years and diploma in accounting with 60% or above marks (e) be presently drawing CTC of 6 Lakhs per annum and above In case the applicant who satisfies all other terms above except 1) at (a) above, then be referred as Junior Accountant 2) at (d) & (e) above then be referred as Trainee-Accountant Satisfying all the above with experience of 5 years then be referred as senior-Accountant Satisfying all the above criteria (a-e) with CA/ ICWA / MBA (Finance) then be refereed as manager (Accounts) Read all the above information and answer the following question Shravani has passed H. SC with 72% of marks. She has done diploma in accountancy with 62% of marks. She was working with an organization in the field of accounting in the field of accounting from 4 years and was drawing CTC of 6.5 Lakhs presently. She is 28yrs as on July 2018. She may referred for the position of:
The following are the conditions for selecting list of a suitable candidates to be called for interview after the written test for the recruitment is conducted/ organized for management-level persons of a multi-national company. For providing accounting services and sales the candidate must (a) be holding a graduation in basic science with 65% or above or B.E degree with 55% and above marks (b) have passed the written test with 70% or above marks (c) the age must be in the group 25 to 30 yrs as on 1/4/18 (d) have experience in an accounting firms for three yrs and diploma in accounting with 60% or above marks (e) be presently drawing CTC of 6 Lakhs per annum and above In case the applicant who satisfies all other terms above except 1) at (a) above, then be referred as Junior Accountant 2) at (d) & (e) above then be referred as Trainee-Accountant Satisfying all the above with experience of 5 yrs then be referred as senior-Accountant Satisfying all the above criteria (a-e) with CA/ ICWA/ MBA (Finance) then be refereed as manager (Accounts) Read all the above information and answer the following question: Radha Mohan has done her graduation in physics with 58% of marks. She has passed the written examination with 76% of marks. She is 27 yrs as on June 2018. She has the experience in the accounting company for four years with salary of 7 Lakhs per annum. She also has passed diploma in accounting with 61% of marks. She may be referred for the position of:
Read the given statements and conclusions carefully. Assuming that the information given in the statements is true, even if it appears to be at variance with commonly known facts, decide which of the given conclusions logically follow(s) from the statements. Statements: Some pots are lamps. All lamps are trees. No tree is branches. Conclusions: I. Some pots are branches. II. Some trees are lamps. III. Some branches are lamps.
Two statements are given, followed by two conclusions numbered I and II. Assuming that the information given in the statements is true, even if it appears to be different than commonly known facts, decide which of the conclusions logically follow(s) from the statements. Statements: 1. Some trees are branches. 2. All woods are branches. Conclusions: I. All trees are woods. II. All branches are woods.
The following sentences have been given in a jumbled manner. Un-jumble the sentences and answer the option which describes the order of sentences in a correct manner.  A. India's government is in talks with foreign lenders to provide as much as $14.5 billion in credit to millions of its small firms, two officials said, in a sign, the country's banking system may not be robust enough to do the job on its own B. India's micro, small and medium enterprise(MSME) ministry is discussing the proposal to pull in foreign banks with the country's ministry of finance, which will make a final call. C. The push for foreign loans comes on the heels of the Indian government's announcement earlier this month that it plans to borrow about 700 billion rupees by issuing overseas sovereign bonds. D. The government is in discussions with multiple foreign lenders, including Germany's state-owned development bank KfW Group, the World Bank and some Canadian institutions to extend lines of credit to small enterprises E. One official said that the government plans to source up to 1 trillion Indian rupees of loans from foreign institutions because Indian banks were not in a position to provide enough capital for the small business sector, which is seen as critical to job creation.
Consider the following statements in respect of slow sand filter and rapid sand filter: 1. The two filters differ in respect of the standards regarding the non-uniformity of the sand used in their filtering media. 2. The two filters do not differ in respect of the effective size of the sand used in them. 3. The two filters differ in respect of their respective under-drainage system. 4. The two filters differ in respect of their respective rate of filtration. Which of the above statements are correct?