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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
CA Inter
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1
324
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
CA Inter
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3
344
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
CA Final
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2
383
Doubt
Accountancy
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
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1
225
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
CA Inter
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1
281
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
CA Inter
★ 0
1
401
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
CA Inter
★ 255
4
385
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
CA Inter
★ 255
2
389
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
CA Inter
★ 2K+
3
328
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
CA Inter
★ 5
3
403