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Shareholders sacrifice

Accountancy

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

sitaram kollepara

CA Inter

2K+

1

163

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

253

For year 20x2

Accountancy

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

nive krish

CA Inter

255

4

284

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

262

General doubt

Accountancy

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

sitaram kollepara

CA Inter

2K+

3

148

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

251

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 Final

0

1

244

Excess amount

Accountancy

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

sitaram kollepara

CA Inter

2K+

3

149

P&l a/c

Accountancy

answered on 10-Apr-24 16:28

The profit and loss a/c is showing ₹825 but in lecture sir said that p&l a/c balance is ₹775

latest answer

Consider 775.

sitaram kollepara

sitaram kollepara

CA Inter

2K+

1

129

Illustration 10 from investment

Accountancy

answered on 09-Apr-24 17:20

Illustration 10 1. In the investment account the dividend column is necessary to draw out what? 2 . If the bonus is declared on 2/9/20X1 then the bonus dividend is adjusted in P & L or not? 3 . Last topic of illustration is not understood

latest answer

1. You can add dividend amount column. 2. Normally dividends are declared based on record date. In this illustration it is assumed that dividend is not received on bonus shares. 3. Which last topic?

Shivashankar Jawai

Shivashankar Jawai

CA Inter

2K+

3

242