KPMG Global Services Associate Consultant Interview Questions, Process, and Tips

Q1. Transition from ASC 840 to ASC 842
Ans. 
Transition from ASC 840 to ASC 842 involves changes in lease accounting standards.
• ASC 840 is the old lease accounting standard, while ASC 842 is the new standard introduced by FASB.

• ASC 842 requires lessees to recognize most leases on their balance sheets as assets and liabilities.

• The transition involves reassessment of lease terms, discount rates, and classification of leases.

• Companies need to disclose more information...read more
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Q2. Difference between lessee and lessor accounting under US GAAP
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Lessee and lessor accounting under US GAAP differ in treatment of lease assets and liabilities.
• Lessee records lease as right-of-use asset and lease liability on balance sheet

• Lessor records lease as finance lease or operating lease based on criteria

• Lessee recognizes interest expense and amortization of right-of-use asset

• Lessor recognizes interest income and depreciation of leased asset

• Lessee discloses additional lease i
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Q1. Detailed accounting of ASC 842
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ASC 842 is a standard for lease accounting that requires lessees to recognize assets and liabilities for most leases.
• ASC 842 was issued by the Financial Accounting Standards Board (FASB) in 2016.

• It requires lessees to recognize lease assets and liabilities on the balance sheet.

• The standard classifies leases as either finance leases or operating leases.

• Finance leases are similar to capital leases under the previous stan...read more
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Listening, Speaking test , aptitude test , reasoning

Q1. Related to my resume
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Q2. Mostly about financial statements
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Q1. Situational based questions
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Q2. Techinal knowledge from my subject
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Q1. About my resume
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Q2. About Job role and all
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Q1. Introduce yourself?
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Q2. Which benchmarking process's have you done?
Ans. 
I have conducted benchmarking processes in the areas of sales performance, customer satisfaction, and operational efficiency.
• Benchmarked sales performance against industry competitors to identify areas for improvement

• Analyzed customer satisfaction metrics to compare against industry standards

• Evaluated operational efficiency by benchmarking processes against best practices

• Implemented recommendations from benchmarking st
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Q1. Introduce yourself?
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Q2. Tell me about your past experience related to benchmarking?
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I have experience in benchmarking market trends and competitor performance to identify areas for improvement.
• Conducted market research to analyze competitor pricing strategies

• Utilized industry benchmarks to evaluate company performance

• Identified key performance indicators to measure success

• Implemented changes based on benchmarking data to improve business outcomes
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Q1. Enterprise value to equity value
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Enterprise value is the total value of a company, including debt and equity, while equity value is the value attributable to shareholders.
• Enterprise value includes debt, equity, and cash, while equity value only includes the value attributable to shareholders.

• Enterprise value is used to determine the total value of a company, while equity value is used to determine the value available to shareholders.

• Enterprise value i...read more
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Q2. Linking of BS, PL and CFS
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The balance sheet (BS), income statement (PL), and cash flow statement (CFS) are interconnected financial statements that provide a comprehensive view of a company's financial health.
• The balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

• The income statement shows a company's revenues, expenses, and net income over a period of time.

• The cash flow statement shows the inflows and o...read more
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Q3. Impact on Financial statements if raised 10 million additionally
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Raising 10 million will increase assets and equity on the balance sheet, but also increase liabilities if borrowed.
• Assets will increase by 10 million, reflecting the additional cash or investments received.

• Equity will increase by 10 million if the funds are raised through equity financing.

• Liabilities will increase by 10 million if the funds are raised through debt financing.

• Income statement will not be directly impacte...read more
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Q4. Financial ratios
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Preparing a financial model