Illustration 3

answered on 14-Mar-25 18:29

Please provide the written answer

latest answer

Solutions have been compiled in soft copy and is available in Ind AS course - Notes. Let me know if you are not able to find it.

shilpa menon

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IND AS 23

answered on 14-Mar-25 18:23

Sir can processing charges added to cost of borrowings,

latest answer

Yes. It will be used to incrrease the effective interest rate.

R Yashwanth Kumar

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13

What about additional discount not liability create

answered on 14-Mar-25 18:22

Initially create liability for 107.14 and now discount claimed 150 in the case where 500 sale what about the additional discount of 42.84

latest answer

Considered as discount on original sale.

Ramamoorthy Fca

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IND AS 23

answered 9 hrs ago

sir how can we assume expenditure done by company B 10lakhs is done from the borrowed funds at group level, as at standalone level of company B it is mentioned from own funds, and also Parent company as no borrowings, I did not understand how it works,

latest answer

Sir my doubt is in question it is mentioned that construction company financed 10lakhs of expenditure on qualifying asset using its own cash resource, But for capitalisation we have considered at Group level,

R Yashwanth Kumar

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IND AS 23

answered 2 days ago

Borrowing cost capitalised based on expenditure incurred on qualifying asset, Expenditure include only those that have resulted in , 1 Payment of cash 2 transfer of other assets or 3 Assumption of interest bearing liability doubt 1, this conditions is for both specific borrowings and general borrowings doubt 2, Assumption of interest bearing liability means time period beyond the normal credit period, This three conditions are a little tricky part,

latest answer

Yes. Assumption of interest bearing liability basically would mean for example - say issue of debentures.

R Yashwanth Kumar

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IND AS 16 PPE

answered 2 days ago

In this question why they have capitalized the interest, since nothing is given whether it is a qualifying asset or not and even period is less than 12 months? Even if done why done for 9 months, it should be done for 8 months (from 1st may to 31st december) only as land is a not a qualifying asset.

latest answer

They have given different assumptions in the answer by way of note. in the study material question, they have assumed that land is not qualifying asset.

Harsh Mittal

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What if there is a retrospective impact of a revision in rights for preference shareholders

answered on 13-Mar-25 12:22

Dear sir, Please clarify the impact on EPS if a revision in rights for preference shareholders has a retrospective impact. Example: Initial terms- 10% Cumulative. Pref. Shares of 10 each Revised terms- 15% Cumulative. Pref. Shares of 10 each retrospectively, (OR) The company made a one-time adjustment (like a bonus payment) to compensate for past lower dividends or future loss (due to proposed lower revision), and routed it through reserves. (please consider these are exceptional cases to Section 43 and Section 55 of the Companies Act, 2013 as similar to Irredeemable pref. Shares)

latest answer

If preference shares are liability and if bonus is issued. This implies that the redemption value will be higher. You will need to account for modification as per Ind AS 109 and use EIR to account for interest expenses.

Chaitanya Sai Gupta

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Unable to download this file

answered on 13-Mar-25 13:58

Unable to open class solutions FR file.

latest answer

Pls try on laptop/computer.

sandhya chitturi

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25

year 2

answered 10 hrs ago

Sir in the year 2 in the finacnials of the holding we will consider the investment as zero only and not negative (1,50,000) right, we recgonise only to the extent of our share of interest, just that while solving we have mentioned the clsoing balance as -1,50,000 in year 2, for helping subsquent calulation purpose am i right ?

latest answer

Closing balance is Nil at end of year 2.

Hemachandra D

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IND AS 40

answered on 12-Mar-25 14:08

Sir the property taken on lease and sub leased as operating lease comes under IND AS 40, Is the orginal lease taken shd be Finance lease? if orginal lease is operating lease then we cant show it as investment property right, Kindly correct if me if i am wrong,

latest answer

With Ind AS 116, there is no distinction between operating and finance lease for a lessee. So if the lease contract allows subletting, even ROU asset (which is an operating lease for lessor) can be classified as IP

R Yashwanth Kumar

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