Parveen Sharma
I am writing to express my concerns regarding the consolidation approach adopted in Question No. 17 of the RTP for the May 2024 CA Intermediate Group One Advance Accountancy examination. It has come to my attention that the solution provided in the RTP inaccurately performs a full 12-month consolidation for a parent-subsidiary relationship that has only existed for nine months. This method contradicts the stipulations of Accounting Standard 21, Paragraph 22, which explicitly states that consolidation should commence from the date the parent-subsidiary relationship is established, not for the entire financial year unless that relationship existed for the full year.
This issue is not a first-time occurrence; a similar question was presented in the exams of July 2021, where the solution provided was also incorrect based on the same grounds. Despite my efforts to bring this to the attention of ICAI through multiple communications between August 2021 and January 2022, no acknowledgment or corrective action appears to have been taken.
As an educator, I have a responsibility to guide my students correctly. Consequently, I addressed this discrepancy in our classes, teaching the correct approach based on the accounting standards. It was my hope that ICAI would rectify this mistake in its future publications. However, it is disheartening to see the same erroneous solution being perpetuated in the latest RTP.
This repeated oversight not only undermines the integrity of the examination process but also confuses students who are trying to learn and apply accounting standards correctly. It is crucial for the ICAI to adhere strictly to the accounting standards to maintain the quality of the chartered accountancy qualification.
I urge ICAI to review the solutions provided in its RTPs and examination materials to ensure they are in full compliance with the relevant accounting standards. It is imperative that students are assessed fairly and accurately, based on correct interpretations of the accounting standards.
I look forward to prompt action by ICAI to address this matter. Ensuring that our future accountants are well-versed in correct accounting practices is a responsibility we share, and I am hopeful for a positive outcome.
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