Search: Search
Follow us
Announcement: 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. - (23-08-2013)

Share this page:

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

PS: Students may note that the aforesaid exclusion of methods comes into force with immediate effect.
Last updated on 26th August, 2013
    ICAI Cloud Campus
    BoS Knowledge Portal
    BoS Announcements
    At a Glance: CA Course
    Know Rules & Regulations
    Post-Qualification Courses
    Generously Contribute to CABF
    Know the CPE Hours credit status
    Become Examiner with ICAI
    Other Imp. Links
    Understand benefits that you get/Register as an employer
    Upload Jobs & Training Assignments/Review CVs/Shortlist Applications/Search for Professional Assistance
    Download Standards
    View Notifications
    Look up Guidance Notes & Interpretations
    Digital Learning Hub
    Centralized Distribution System
    Find Publications
    Free Download - Publications
    Visit the ICAI Digital Library
    Committee Pages
    Other Useful Links
    View Committee Events
    Look up CPE Events in my location
    Sign up for an Event
    Report on an Event
    Photo Gallery
    Official Directory  |  Web Mail  |  Feedback  |  Contact Us
    Best viewed on screen resolution 1024x768 pixels