PDF · Test series
CA Inter Advanced Accounting Test: AS 18 Related Parties and AS 20 Earnings Per Share Solved
- Shared by
- Kavyansh
- Course
- CA Inter
- Subject
- Advanced Accounting
- Added
- 2 Nov 2026
Part of: CA InterAdv Accounting
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This is a chapter test with worked answers covering two accounting standards in the CA Inter Advanced Accounting syllabus: AS 18 Related Party Disclosures and AS 20 Earnings Per Share. The first pages show questions on whether relatives of key management personnel and business partners count as related parties at the closing date, along with a basic EPS computation using partly paid shares and a weighted average working. It suits students revising these standards for CA Inter exam practice.
What the test covers
The test has four questions. Two deal with AS 18, where the answers explain how an individual with no share ownership is treated, and how a relative of a key management personnel who left service during the year is identified for disclosure. Two deal with AS 20, where the computation treats partly paid equity shares as a fraction of a fully paid share and calculates basic EPS as net profit attributable to equity shareholders divided by weighted average shares. The question on bonus issue and rights at full market price is also set out in the paper.
How to use it for revision
Attempt the questions within the stated solving time of 40 minutes before reading the answers, since the marks are split across concepts and working. Compare your weighted average share working step by step with the table in the answer, paying attention to the time-proportion factors for each date. Note how the answer to each AS 18 question depends on the reporting period rather than only the closing date, as this is a common point in exam questions.
Who should read it
This page is useful for CA Inter students preparing for the Advanced Accounting paper who need practice on AS 18 and AS 20 problems. It is also helpful for students who want to see how partly paid shares are handled in a basic EPS calculation. The full solved answers and remaining working notes are available to open free in the Studycaller app.
Key topics in these notes
- AS 18 related party definition
- Key management personnel and relatives
- Significant influence and control
- AS 20 basic EPS computation
- Partly paid equity shares
- Weighted average number of shares
- Bonus issue and EPS adjustment
- Issue at full market price
Related notes
Frequently asked questions
Is a person with an agreement to run a company a related party under AS 18?
The answer in this test says that without share ownership or voting power, such a person would not be considered to exercise significant influence, so they are not treated as a related party in that case.
How are partly paid equity shares treated in basic EPS?
They are treated as a fraction of an equity share based on the extent to which they participate in dividends, which is the amount paid relative to a fully paid share, weighted for the period outstanding.
Does a relative who left service during the year still need to be disclosed?
The answer states that a relative of key management personnel who received remuneration during the reporting period should be identified as a related party for disclosure in the financial statements.
How is the basic EPS formula applied in this test?
Basic EPS is net profit attributable to equity shareholders, after deducting preference dividend, divided by the weighted average number of equity shares outstanding during the year.
Where can I read the full solved test?
Open it free in the Studycaller app to read the complete answers and working notes.