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Recognition of Estimated Construction Contract Losses Immediately

Accountancy

answered on 12-Apr-24 17:01

Hi sir, hope you're well Since we recognize estimated losses immediately, and we recognize the costs and revenues of subsequent periods also, won't we be doing double-counting? Since the loss is being recognized effectively in two periods. Thanks

latest answer

Expenses are recognised on a cumulative basis. Cumulative expenses incurred - Cumulative expenses recognised

Devaprasad Jothimani

Devaprasad Jothimani

CA Inter

0

1

28

Conditions for Contract's Outcome being Reliably Estimatable

Accountancy

answered on 15-Apr-24 18:58

Hi sir, hope you're well Why are the conditions for a contract's outcome being reliably estimatable, different for fixed price and cost plus contracts?

latest answer

Revenue would vary for cost plus contract.

Devaprasad Jothimani

Devaprasad Jothimani

CA Inter

0

1

33

Initial Recognition of Finance Lease by Lessor

Accountancy

answered on 15-Apr-24 19:15

Hi sir, hope you're well In lessee's POV, we capitalize asset at lower of FV and PV of MLP. Why do we straight away take net investment as capitalized value here for lessor? Thanks

latest answer

For the lessor the net investment in lease captures all the present values of future benefits.

Devaprasad Jothimani

Devaprasad Jothimani

CA Inter

0

1

27

AS 12

Accountancy

answered on 15-Apr-24 19:14

Illustration 4, b) how come the salary expense account got credited...

latest answer

In real life expense account can have a credit balance.

Vijay K

Vijay K

CA Inter

9K+

3

47

CFS

Accountancy

answered on 11-Apr-24 11:10

In MTP the answer is different and in book the answer is different what is the correct method sir

latest answer

Okay

shanthini hariharan

shanthini hariharan

CA Inter

5K+

2

40

Logic behind IRR being Interest Rate

Accountancy

answered on 11-Apr-24 07:36

Hi sir, hope you're well Why do we take IRR as the discount rate? Since the lessor is essentially the financer here, wouldn't they prefer to generally keep a higher interest rate? Why do we deem IRR as the lessor's interest rate? Thanks

latest answer

When you borrow money from bank, the bank earns interest by charging a specific interest rate say 10%. That 10% becomes the cost for the borrower and borrower accounts for 10% as interest expense. In leases which are in the nature of financing, the finance cost to lessee is nothing but what is earned by the lessor. If the lessee knows that rate, it will be considered for accounting. But in many cases, it might be difficult for lessee to determine this and hence incremental borrowing rate is considered.

Devaprasad Jothimani

Devaprasad Jothimani

CA Inter

0

1

38

For year 20x2

Accountancy

answered 2 days ago

Sm sum I have tried sir I attached my workings and study material Rights issue last date is 1/3 so i considered it as 1month but in study material 600000 & 10 months they have taken I have doubt in tat portion sir Kindly resolve tis doubt sir

latest answer

Thank you sir

nive krish

nive krish

CA Inter

255

4

62

As 20 rights

Accountancy

answered on 10-Apr-24 18:01

Sir if I use tis three step adjustment for studymaterial sum I'll 4 I am unable to get theoretical ex rights fair value but I tried indigo learn sums in tat I am arriving easily According to my computation I am getting 0.875 but in study material sum it's coming 20 I also attached both my workings and studymaterial solution part I can't able to find my mistake Kindly help me out sir please

latest answer

Thanking you sir

nive krish

nive krish

CA Inter

255

2

48

AS18

Accountancy

answered on 09-Apr-24 17:34

First thing, 60% on 30% = 18% indirect control Second thing, 22% direct control 18+22 = 40% but not more than 50%(more than half voting power) I know that I'm wrong, but tell me why am i wrong. Treat me as a layman.

latest answer

For calculation under AS 21 we take effective %.

Sai Akash rockster

Sai Akash rockster

CA Inter

5

3

50

IND AS-33 EPS

Accountancy

answered on 09-Apr-24 15:51

If date is not specified then it is appropriate to assume as right issue made in the beginning of the year??

latest answer

They have missed the date in the quesiton. It will be give in the examination.

Devisree

Devisree

CMA Inter

0

1

35

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