AS 16 Borrowing cost

answered on 16-Aug-24 15:55

In the calculation of average accumulated expense, why is the expense for august 2023 ₹10,00,000 valued for 10 months instead of 6? (1st august 2023 to 31st January 2024)

latest answer

specific borrowing is taken for full period. Any income from such borrowing (when they are invested ) are deducted.

Sujitha M

CA Inter

★ 1K+

1

121

AS 16 Borrowing Cost

answered on 16-Aug-24 19:00

Can anyone please explain the computation part? J have arrived at the average interest rate at 11.9% but why can't I apply the same to funds incurred?

latest answer

OK sir got it

Sujitha M

CA Inter

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2

136

AS 16

answered on 16-Aug-24 15:58

In this question why are we taking 221 lakhs and apportioning for borrowing costs instead of taking 200 lakhs of loan amount and apportioning to find borrowing costs?

latest answer

It like for a total expense of 221, we borrowed 200. So we are splitting interest incurred on200 in the ratio of cost incurred.

Niveta Rajkumar

CA Inter

★ 6K+

2

176

AS 3

answered on 14-Aug-24 22:28

Practical Question 13. Pg no. 11.122 How is trade receivable 30,60,000 computed here? What's the logic behind here.

latest answer

Thank you…got it

Soon to be CA

CA Inter

★ 4K+

3

116

AS 16

answered on 15-Aug-24 08:00

In case of a single asset of 2 blocks, 1 block is under reconstruction and other block is not fully operational, what would be the treatments in AS 16 ? Would AS 16 Apply to the reconstruction of Qualifying asset ?

latest answer

Thank you 😊

Iswath Fazil

CA Inter

★ 0

3

111

Doubt in NPSR

answered on 12-Aug-24 09:22

The case states that C's share increased by 3/10th by acquiring from B. I don't understand why Sir has removed only 1/10th from B's Share and added 1/10th to C. The new PSR should have been 5:0:5 and not 5:2:3 as C has acquired 3/10th from B and not 1/10th of the share.

latest answer

It is increased to 3/10th , by and to this two words you need to see carefully

Ajay Matta

CA Foundation

★ 485

1

109

AS 22

answered on 11-Aug-24 17:17

Can someone explain why is option (d) the answer? (Question 2)

latest answer

Incorrect.

Sagar Kathuria

CA Inter

★ 3K+

1

100

Amalgamation

answered on 11-Aug-24 17:19

Why have we taken Cash at bank while calculating purchase consideration ?

latest answer

For calculating net assets, we take cash.

Sagar Kathuria

CA Inter

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1

137

As19

answered on 11-Aug-24 17:20

How it will be treated under as 19

latest answer

Which question? What is the doubt?

Sagala Dakshayani

CA Inter

★ 2K+

1

111

Amalgamation, Journal entries in books of purchasing company

answered on 19-Aug-24 15:21

in this lecture, while passing journal entry in the books of purchasing company, for the expense of liquidation etc (legal charges etc for liquidation) is debited by the name GOODWLL, for the reason that purchase consideration paid is more than the net assets that purchasing company got from selling company. that extra amount paid as liquidation or legal charges should be shown as an expense in the books of purchasing company, why it is shown as a goodwill (asset)?

latest answer

If purchasing company pays on behalf of selling company than in selling company books, Dr Realisation Cr. Purchasing company.

Garima Bhargava

CA Inter

★ 185

7

1K+