AS-13 disposal of investment

answered on 17-Feb-24 15:28

Here it is given that we need to follow average cost basis so does it mean we can't use fifo method as per AS-13 for valuing carrying amount?

latest answer

Trading in securities as business.

Atharv Sankliya

CA Final

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319

As-2

answered on 09-Feb-24 22:31

For determining cost of inventory in As-2, direct cost increases with increase in production and variable overheads also increases with increase in production. How can we differentiate direct cost and variable overheads

latest answer

Direct cost is variable cost. It refers to Direct Material and Direct Labour which you can trace to final product. For e.g tyres for a car is direct material. Overhead is something which you cannot trace to final product. E.g Electricity ⚡️. You will learn more of this in costing.

sitaram kollepara

CA Inter

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77

Esop-J.E

answered on 23-Feb-24 09:34

Why charging diff value of mkt price & face value as sec.prem in Esop rather we take employee ex.price compare with face value?

latest answer

We are allowing employees to buy shares at a lower price. If the company would have issued the shares to outsiders, they would have received fair value. Say FV 20 Exercise price is 15. Employee is getting a benefit of 5 and company is sacrificing that benefit.

Kamal Kumar

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169

As 18

answered on 09-Feb-24 19:06

What is difference between substantial interest and significant influence if one has 20% or more voting power , then it is called substantial interest or significant influence

latest answer

They have substantial interest with which they exercise substantial influence.

Krishnan K

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207

AS 7, Recognition of Expenses (MCQ)

answered on 09-Feb-24 11:29

Total expenses to be recognised in year 1 is 30 lakh right? But the answer is 36 lakhs, Can you please explain XY Ltd has Billed GH Ltd for 42 lakhs means cost plus contract??

latest answer

Okay sir👍🏻 Thank you

Shruthika Bala

CA Inter

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1K+

Financial statements of company ch-11

answered on 08-Feb-24 16:10

If a company made an investment in fixed deposit of 3 yr in 1/4/20 and disclose the same as non current investment so my question is whether in year 2022 does the company need to disclose the fd as current investment or not? Since it is maturing within 12 months

latest answer

It would be shown under Current Assets in the balance sheet.

Atharv Sankliya

CA Final

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181

AS-13

answered on 17-Feb-24 15:52

Does we have to convert a current investment into non current investment if the current investment is not sold within 12 month?

latest answer

Where investments are reclassified from current to long-term, transfers are made at the lower of cost and fair value at the date of transfer.

Atharv Sankliya

CA Final

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207

Financial statements of company

answered on 07-Feb-24 16:29

As we disclose current maturity of long term borrowing in short term liability so does we also have use the same treatment in case of Assets also ? Like if a company have prepaid expense of validity of 3 yr

latest answer

You split between current and non current

Anjali S

CA Inter

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155

As15

answered on 07-Feb-24 11:36

1) If plan asset value is more than DBO, why it said the refund is in future ? Contribution is done next year ..hence Reduction in contribution or refund it’s supposed to be in the next year 2) Contribution each year is fixed ? Or it can changed each year based on actuarial estimate ?

latest answer

https://youtu.be/cMHP3h8CjAc?si=aeJ07ZWeigyqcCqV You can watch the full standard here.

Sushmita Chowdhury

CA Inter

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245

AS 7 Construction Contract

answered on 07-Feb-24 10:31

How is it 20% instead of 25%? Will it affect the further doing of the problem as shown?

latest answer

OK sir thank you

Sujitha M

CA Inter

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