Accounting for Exchange Differences and Scheme Expenses in Mutual Funds

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How are operating lease rentals recognized in the Statement of Profit and Loss?

On a straight-line basis over the initial lease term

What criteria need to be met for a provision to be recognized?

Present obligation as a result of past events, likelihood of outflow of resources, and reasonable estimation of the amount

How is basic earnings per share calculated?

By dividing the net profit after tax by the weighted average number of equity shares outstanding during the year

What is the difference between basic and diluted earnings per share?

Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the period/year Signup and view all the answers

When are provisions reviewed and adjusted?

At each Balance Sheet date Signup and view all the answers

Under what circumstances would a provision be reversed?

If it is no longer probable that the outflow of resources would be required to settle the obligation Signup and view all the answers

What type of expenses related to an existing fixed asset are added to its book value?

Subsequent expenditure that increases future benefits beyond the previously assessed standard of performance Signup and view all the answers

How are gains or losses from the disposal of fixed assets measured?

As the difference between net disposal proceeds and carrying amount of the asset Signup and view all the answers

How are intangible assets recognized?

At cost less accumulated amortization and impairment losses Signup and view all the answers

What is included in the capital work in progress?

Cost of fixed assets that are not ready for their intended use Signup and view all the answers

How are day-to-day repair and maintenance expenses on existing fixed assets treated?

Charged to the Statement of Profit and Loss when incurred Signup and view all the answers

What method is used for computing depreciation on tangible assets?

Straight line method based on the estimated useful life stipulated by Schedule II to the Companies Act, 2013 Signup and view all the answers

How are recurring expenses of schemes of SBI Mutual Fund treated in the financial statements?

Recurring expenses are required to be borne by the Company and charged to the Statement of Profit and Loss. Signup and view all the answers

When are expenses relating to new fund offers of SBI Mutual Fund recognized in the financial statements?

Expenses relating to new fund offers are charged to the Statement of Profit and Loss in the year in which they are incurred. Signup and view all the answers

How are brokerage and/or incentives paid on investments in open-ended Equity Linked Tax Saving Schemes and SIPs treated?

Brokerage and/or incentives paid on these investments are amortized over a period of 36 months. Signup and view all the answers

What is the composition of Tax expenses as per the text?

Tax expenses comprise of current tax and deferred tax. Signup and view all the answers

How is current tax determined according to the Income Tax Act, 1961?

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Signup and view all the answers

On what basis is deferred tax recognized in the financial statements?

Deferred tax is recognized on timing differences, with consideration of prudence for deferred tax assets. Signup and view all the answers