CA Final
Paper 1:Financial Reporting
Other Subjects:
P2: Strategic Financial Management
P3: Advanced Auditing & Professional Ethics
P4: Corporate & Economic laws
P5: Strategic Cost Management & Performance Evaluation
P6A: Risk Management
P6B: Financial Services and Capital Markets
P6C: International Taxation
P6D: Economic Laws
P6E: Global Financial Reporting Standards
P6F: Multidisciplinary Case Studies
P7: Direct Laws and International Taxation
P8: Indirect Tax Laws






Select the best teacher
CA Parveen Sharma Website: http://surl.li/ezlkl Google Drive:Rs.19500 http://surl.li/ezlla
CA Parveen Jindal Website:http://surl.li/ezlfh Google Drive:Rs.12799 http://surl.li/ezlih
CA Aakash Kandoi Website:http://surl.li/ezlod Google Drive:Rs.7249 http://surl.li/ezlos
CA Chiranjeev Jain Website:http://surl.li/ezlrx Google Drive:Rs,7500 http://surl.li/ezlsb
CA Jai Chawla Website:http://surl.li/ezlug Google Drive:Rs.5999 http://surl.li/ezlux
CA Vinod KR Agarwal Website:http://surl.li/ezlyg Google Drive:Rs.5225 http://surl.li/ezneg
Practice before writing your exam
Mock Series-1
Mock Series-2
Revision Test Paper-1
Revision Test Paper-2
Final Question Paper -2022
Final Question Paper -2021
Accentuate your revision with youtube marathons
Test your preparation
QUESTION
ANSWER
Question 1 –
Company A has taken a long-term loan arrangement from Company B. In the month of December 20X1, there has been a breach of material provision of the arrangement. As a consequence of which the loan becomes payable on demand on March 31, 20X2. In the month of May 20X2, the Company started negotiation with the Company B for not to demand payment as a consequence of the breach. The financial statements were approved for the issue in the month of June 20X2. In the month of July 20X2, both companies agreed that the payment will not be demanded immediately as a consequence of breach of material provision.
Advise on the classification of the liability as current / non –current.
Solution –
As per para 74 of Ind AS 1 “Presentation of Financial Statements” where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.
In the given case, Company B (the lender) agreed for not to demand payment but only after the financial statements were approved for issuance. The financial statements were approved for issuance in the month of June 20X2 and both companies agreed for not to demand payment in the month of July 20X2 although negotiation started in the month of May 20×2 but could not agree before June 20X2 when financial statements were approved for issuance.
Hence, the liability should be classified as current in the financial statement for the year ended March 31, 20X2.