Announcement
dated 23.08.2013
Exclusion
of Hire Purchase Trading Account (Debtors) Method and Stock and Debtors Method
from Chapter 11 of Intermediate (IPC) Course Paper 1: Accounting Study
Material.
It
has been observed that Hire Purchase Trading Account (Debtors) method and Stock
and Debtors method of ascertaining profit or loss on sale of goods of small
value under hire purchase system based on the simplified approach followed in
the Study Material are not fully compliant with AS 19 “Leases” since loading
amount contains both profit as well as interest element.
However,
students may note that both these methods would be fully compliant with AS 19,
provided the usage of interest rate, IRR, etc. are followed to bifurcate the
element of interest and profit. Such an approach to apply both these methods
involves more complication and hence may not be relevant in practice for
Intermediate (IPC) Students. Therefore, Board of Studies has decided to exclude
the Hire Purchase Trading Account (Debtors) Method and Stock and Debtors Method
in the Paper 1: Accounting Study Material at Intermediate (IPC) level.
Accordingly,
students of Intermediate (IPC) Course Paper 1: Accounting are advised not to read the said methods given in Chapter 11
of the Study Material. The details of the relevant page nos. and questions in
the Study Material and Practice Manual of July, 2013(Revised edition)
respectively, are given hereunder:
Volume I
|
Study Material
|
Para
9 to 13 and Illustrations 13 to 19
in
Page nos. 11.32 to 11.50
|
Volume II
|
Practice Manual
|
Questions
1, 2, 4, 5, 6, 7, 8 and 10
in
Page nos. 11.1 to 11.20
|
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