CFS

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

CA Inter

★ 10K+

2

186

Doubt

answered on 11-Apr-24 07:31

What is the reason behind splitting and consolidation of shares while amount is remaining the same

latest answer

Intention of the company. If the company wants wider shareholding they may go for splits. Small investors may not be able to invest in a company which has high per share value. For e.g MRF trades at Rs. 1,40,000 per share. If MRF management thinks that more retail shareholders should own the company, they may come up with split.

sitaram kollepara

CA Inter

★ 2K+

1

63

Shareholders sacrifice

answered on 11-Apr-24 07:34

What is shareholders sacrifice? They have to leave their portion of money and getting out of the company?

latest answer

They give up part of their holdings or in some cases full holdings.

sitaram kollepara

CA Inter

★ 2K+

1

50

Logic behind IRR being Interest Rate

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

CA Inter

★ 0

1

178

For year 20x2

answered on 16-Apr-24 20:31

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

CA Inter

★ 255

4

215

As 20 rights

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

CA Inter

★ 255

2

184

General doubt

answered on 11-Apr-24 07:37

In case of amalgamation in nature of purchase, purchase consideration includes compensation for share capital and reserves. In case of merger, purchase consideration includes compensation for share capital also. Am I right in this context.

latest answer

Reserves are incorporated (created) in the new company, It is not that they are transferred.

sitaram kollepara

CA Inter

★ 2K+

3

66

AS18

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

CA Inter

★ 5

3

179

IND AS-33 EPS

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

CMA Inter

★ 0

1

179

Excess amount

answered on 10-Apr-24 16:20

Excess of what we get over over what you paid in case of merger is credited to p&l know?

latest answer

General Reserves/Capital Reserves.

sitaram kollepara

CA Inter

★ 2K+

3

56