Suggested Answers

SUGGESTED ANSWERS TO QUESTIONS SET AT THE

FINAL EXAMINATION – GROUP I

NOVEMBER, 2011

BOARD OF STUDIES

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

(Set up by an Act of Parliament)

The Suggested Answers published in this volume do not constitute the basis for evaluation of the students’ answers in the examination. The answers are prepared by the Faculty of the Board of Studies with a view to assist the students in their education. While due care is taken in preparation of the answers, if any errors or omissions are noticed, the same may be brought to the attention of the Director of Studies. The Council of the Institute is not in anyway responsible for the correctness or otherwise of the answers published herein.

©THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior permission, in writing, from the publisher. Website Department/Committee : E-mail ISBN No. Price Published by : : : : The Publication Department on behalf of The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi- 110 002, India Typeset and designed at Board of Studies. Printed by : Sahitya Bhawan Publications, Hospital Road, Agra 282 003 February/2012/14,000Copies : www.icai.org Board of Studies bosnoida@icai.org 978-81-8441-

Contents

Page Nos. Paper 1. Paper 2. Paper 3. Paper 4. Financial Reporting................................................................................................1 – 29 Strategic Financial Management..................................................................30 – 52 Advanced Auditing & Professional Ethics ............................................................53 – 71 Corporate and Allied Laws ..........................................................................72 – 86...