Volume 03 - 2016
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/12171
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Item Classification of Non-Current Asset as Held for Sale(Department of Accountancy, University of Kelaniya, 2016) Perera, E.A.S.M.; Rathnairi, U.A.H.A.XYZ (Pvt) Ltd is a subsidiary of ABC (Pvt) Ltd which is the main agent of A&B PLC. The company has been acted as an agent for selling Easy Cash, Reloads and Dongles of A&B PLC. The head office is located in Colombo 03 and there are 44 outlets in Sri Lanka. The company has a building which was occupied as the main outlet and store which is located in Colombo 04. Later it was unoccupied and management has decided to sell that unoccupied land and building. But the company has recognized in the statement of financial position as a Non- Current Asset. The asset had been depreciated and depreciation has been charged to Income Statement as well.Item Measurement and Recognition of Government Loans at a Below Market Rate of Interest(Department of Accountancy, University of Kelaniya, 2016) Nawarathna, H.A.V.S.K.; Rathnasiri, U.A.H.A.Public and private hospitals are funded from a range of different sources, reflecting the types of patients they treat and the services they provide. ABC is a Private hospital has been established itself as the one of the best hospitals in Sri Lanka with a mission to provide wide-range of healthcare facilities to all sections of the society in Sri Lanka.Item Recognition of Non-Current Assets(Department of Accountancy, University of Kelaniya, 2016) Nawaneliya, M.M.A.E.; Wijesinghe, K.D.G.N.ABC (Pvt) Ltd. is a member of PQR Group which can be categorized under Service industry. ABC (Pvt) Ltd. offers civil construction, mechanical engineering, electrical engineering and other specialized engineering services. Company has a separate section which is called as CNC Mold section. It has a large CNC Mold Machine with the special Steel floor and high power supply Transformer. The company considered steel floor and transformer are components of the CNC machine and the company Statement of Financial Position has shown the cost of machine with the cost of steel floor and high power supply Transformer.Item Related Party Recognition(Department of Accountancy, University of Kelaniya, 2016) Herath, H.W.M.A.; Thilakarathna, C.R.ABC Limited is a limited liability Company incorporated in Sri Lanka under the companies Act No 17 of 1982 and also ABC Limited is licensed by the Monetary Board of the Central Bank of Sri Lanka under the Finance companies Act No 78 of 1988 and re-registered under the Companies Act No. 07 of 2007. The company provides vast range of financial service which includes accepting deposits, leasing, gold loans, hire purchase, pawn brokering and other financial services. The company has accepted deposits from director’s relatives, and they have not recognized those transaction as related party transaction according to central bank direction as well LKAS 24.Item Recognition of Deferred Tax. Case Studies in Accounting “Bridging the Gap"(Department of Accountancy, University of Kelaniya, 2016) Ifthikar, S.M.; Thilakarathne, C.R.PQR (Lanka) Limited is a company whose preliminary engagement is to manufacture and sell Paints. It leverages its worldwide experience to deliver products of International quality & assortment to the consumers with complete range of decorative, wood finishes and industrial coatings. When considering about the supply chain of the company, distributors play a vital role which ultimately decide the reachability of products all around the country without any exertion. The rapid change of customer behaviors and innovative technologies led the company to think differently and be wise in the situation where opportunities can explore and execute. Therefore with considering those facts company has been decided to go one step ahead from the manufacturing process on conventional paints. So they introduced “Luxury Paints” as a new product range for the company. Hence dealers need to be attracted to sell new product. Company introduces “Gold Coin Awards” for distributors who achieved more sales on “luxury paints” as a “promotional campaign”. This will be conducted in subsequent financial year based on the performance of current financial year for selected distributors. Since “this is a present obligation and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation”, company has been provided a monthly provision for this gold coin awards.Item Interest from Inter-Company Loans(Department of Accountancy, University of Kelaniya, 2016) Gomas, P.H.; Abewardane, D.K.Y.“B” a recognized conglomerate in Sri Lanka is composed of companies successfully operating in several industry sectors managing businesses in varied markets. Expanding overseas into the international market, B has spread its products and services globally. The group continues to grow through innovative technology, introducing new products that successfully carve themselves a place in the world of consumer demand. B Company spread their business under several sector. Such as manufacturing, healthcare, Leisure and transportation. Their main target is to provide superior most innovative products to their local as well as foreign customers. Subsidiaries are those enterprises controlled by the Company. Control exists when the Company has the power, directly or indirectly to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities.Item Quarry is an Inventory or PPE?(Department of Accountancy, University of Kelaniya, 2016) Chanaka, H.A.D.; Thilakarathne, P.M.C.PQR Construction (Private) Limited (“Company”) is a limited liability company incorporated and domiciled in Sri Lanka. During the year, the principal activities of the Company were undertaking construction contracts. Mainly they construct the roads & water projects. Year ended 31/03/2015 PQR LTD purchased a land which includes Quarry and that Quarry has been recognized as an inventory in their accounts. But according to the LKAS 16 (Property, Plant & Equipment) it should be recognized as a Property, Plant & Equipment.Item Can We Place Entire Web site Development Cost in One Bucket?(Department of Accountancy, University of Kelaniya, 2016) Dayananda, K.H.N.K.; Thilakrathne, P.M.C.NK Logistics (Pvt) Ltd is a limited liability company incorporated in and domiciled in Sri Lanka. The company has invested in a fully owned subsidiary called “TT Destinations (Pvt) Ltd” in the audited financial year, i.e.; 2014/2015. Its’ principal business activity is to provide transportation service. Normally company organizes tourist trips for both local & foreign tourists. In addition they provide vehicle hiring service, air ticket booking and hotel accommodation service. Usually businesses tend to charges all the expenses with regards to web development, especially relatively small businesses like “TT Destinations (Pvt) Ltd”. They always feel that it is justifiable & easy to charge them to P/L. However firms should consider nature of those expenses before record as an expense.Item Revenue Recognition of Construction of Houses(Department of Accountancy, University of Kelaniya, 2016) Perera, G.M.H.K.; Jayamaha, A.XYZ (Private) Limited is a medium scale construction entity, which construct houses for low income earning community. The shares of the entity are held by Mr. A and Mr. B who are also members of the board not-for -Profit entity of AB Sri Lanka. The entity does not deploy and execute construction contracts by itself; rather constructions are fully subcontracted for material and labor. Accounting policies and presentation of financial statements of the entity comply and adhere with Sri Lanka Accounting Standards (LKASs and SLFRSs).Item Can it classify as Inventory or PPE?(Department of Accountancy, University of Kelaniya, 2016) Vimukthirathne, T.H.N.; Aruppala, W.D.N.ABC shipping (private) Limited is a limited liability company incorporated in Sri Lankan and registered under the companies Act no 7 of 2007.It is a transportation Company. Company owns a ship which is called as “Meritine”. The principle activity of this Company is transporting gas & fuel by using this ship. Generally there are two cylinders in every ship in order to balance the ship. Most of the ships have filled these cylinders by using oil but here, this ship has used gas to fill these cylinders. Normally this ship is repaired once per every four years. When repairing ship, the gas filled in the cylinders will release to the air which would be a lost to the company.