as 10

answered on 21-Jan-25 08:43

sir what if we didnt dispose it or we didnt retire it and holding it for disposal rather the asset still have the capacity to work but since the asset is completely depreciated we have to remove it from accounts point of view but in reality we still use it so i heard that company would denote 1rs as the value of asset to just to make the asset on the accounts but what is the real treatment sir or the said way is correct

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👍

N.V Karthikeyan

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as 10

answered on 28-Jan-25 00:03

but sir old method made sense but ok since new method came i update myself but sir how can i know such repairs can be a capital exp rather an revenue exp iam asking this because previously i easily can recognize that if the repair help me to push the assets original capacity then it is capital exp if it is maintaining or less than original capacity then i can say it is revenue exp but now on what basis i identify it in exam sir like if the repair enhanced the asset capacity of 6hr (original capacity was 10hr) to say 7hrs will that be capital and if it maintains the 6hrs then will that be revenue exp

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ok sir thanks doubt is clarified

N.V Karthikeyan

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as 10

answered on 28-Jan-25 00:04

sir in immediate previous class u said first fv of outgoing asset second fv of incoming asset if both fv is not there then book value or carry amount of outgoing asset should be considered but here in this video u choose fv of incoming asset when we have both old and new assets fv please clear this doubt and thanks in advance for clearing the doubt sir.

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ok sir thanks i got it the doubt is clarified

N.V Karthikeyan

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58

commercial substance of the asset being acquired should be distinct and enterprise specific value

answered on 21-Jan-25 11:46

sir can u verify whether my understanding with this topic is correct Commercial substance = Meaningful economic impact + Alignment with the exchange's purpose here Alignment with the exchange's purpose = enterprise specific value like if entity purchases an asset with compensation of old asset and such new asset have the potential economic benefit relating to the intend of such exchange means we can call it as a valid exchange or it will be treated as just swap. eg A textile company exchanges an old weaving machine for a new weaving machine in intend to produce more The old machine could produce 500 meters of fabric/day. The new machine can produce 1,000 meters/day, significantly increasing production capacity and revenues. since it has a significant economic benefit and the intend of exchange is satisfies this will be treated as if we sold our old machine and purchased new one and if there is gain or loss after doing the calculation ( fv of new - book value of old machine = gain or loss) then such items would be recorded but if the commercial substance is not there then we would treat it as a swap like we would treat it as sales of old machine is in book value and in place of that we show the new machine as purchase. so am i getting this topic sir and thanks in advance for the doubt clarification sir.

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ok sir thanks for adhering my understanding

N.V Karthikeyan

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As 3

answered on 22-Jan-25 12:34

Illustration 5 on indirect method interest paid under finance cost is financial activity right...then y don't u exclude it from calculating cash flow under operating activity

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S sir I watched thank you

dhivya annam

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58

cashflow

answered on 27-Jan-25 23:37

sir in video 22 of cashflow statement u named loss in sale of fixed asset as add financial activity in operating part but even though it is financial activity item its also non cash right sir so we are not going to anything with that even in financial activity part of calculation so wouldnt that be better if we mention it as a non cash item and add the loss back. so can i do that. thanks for clearing my doubt in advance sir

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thanks sir

N.V Karthikeyan

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56

cash flow statement

answered on 28-Jan-25 17:21

sir in class 11 of cash flow i have a doubt. sir simply put i couldnt accept the solution of using opening - closing balance in case of debit items and vise versa in case of credit items so i thought we have shown 1000rs as sales which impacts the net profit but out of which we only received 925 so the difference of 75 is deducted from net profit and also both opening and closing stocks nill cashflow so to nullify the impact on net profit we added 50 on net profit and we got 225 net profit but the cashflow is 175 we have yet to take care of one item which is creditor here we paid 750 but we shouldve paid 900 and the same is impacted on net profit but we should alter 900 impact to 750 on net profit so i thought we paid 750 but we should only need to pay 700 so the difference is 50 so if i deduct that we would get the 175 net profit. sir if u see my attachment i guess u can understand my approach and clear my view i just think it as a sum to make net profit as cash only net profit rather making net profit equal to net cashflow. thanks for helping me with this in advance sir

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ok sir thanks

N.V Karthikeyan

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102

Foundation examination jan -2025

answered on 17-Jan-25 10:27

sir please do the videos of BRS , depriciation and other chapters question That ask in exam i dont see such type of question in the class of each chapters

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Depreciation - Similar to Question No 8. BRS is also covered Also partnership and Company share issue. ICAI will not give the same exact question everytime.

Rehanabin

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82

Quoting wrong AS

answered on 12-Jan-25 12:54

What if you have wrote correct answer but mentioned wrong AS. Do they deduct few marks or the whole answer will be waste?

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Few marks

Daredevil Sid

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93

Cashflow Statement

answered on 12-Jan-25 12:28

In calculating interest on debentures Opening Balance should be considered or Closing Balance. For example: 31/3/20 31/3/21 9% Debentures- 4 L 2 L

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Ok sir. Thank you

Lathika

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