Illustration 5 - query

answered 2 days ago

sir in this sum the difference between Fair value of Liability and Equity is equity .i understood that is 40,000. it shall be expensed over the vesting period(restriction period ) of Equity shares know ( 3 years Given in question ) . why the equity portion 40,000 Rs spread over only 2 years of Cash equivalent Liability period ? why we should not consider for a period of 3 years ?

latest answer

Service requirement is 2 years. The 3 years is the period for which employees cannot sell shares.

M V Naresh

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Vedios

answered on 24-Apr-24 14:18

After 15 th vedio in Ind AS 16 17th is coming. 16th and 18th vedio missing sir

latest answer

Welcome.

HEMAVATHYSUBRAMANI SUBRAMANI

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Ind AS 19 employee benefits

answered on 22-Apr-24 12:04

Video No 9 Illustration 4 An entity has 100 employees who are each entitled to ten working days of paid sick leave for each year. In the answer 180 days taken for calculation. 180 days how arrived. (On mathematical part I am not clear)

latest answer

Total employees - 100 Total leave entitlement - 200 Expected leaves which will be availed - 20 Balance - 180

swaminathan sundaram

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43

Reclassification of financial instruments

answered on 21-Apr-24 19:14

Sir Reclassification from FVTOCI to Amortization cost method, we will adjust the cumulative OCI balance to Fair value on the date of reclassification and From there onwards Amortisation schedule will be prepared from new Effective interest rate or will we use the old amortisation schedule ?

latest answer

For reclassifications from FVTOCI to amortised cost, the financial asset is transferred at fair value, but amounts accumulated in other comprehensive income are derecognised with an offsetting entry to the financial asset’s new carrying amount (i.e., the new carrying amount is treated as though it had always been classified at amortised cost). So existing rate.

M V Naresh

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IND AS116

answered on 21-Apr-24 19:14

Sir in leases if question did not tell about payment date like beginning or end what we generally take

latest answer

End.

Ravi Teja

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Illustration 13- IND AS 21

answered on 21-Apr-24 19:16

In this question it is mentioned that cumulative exchange difference attributed to NCI in FCTR = 20. So shouldn't NCI balance of date of derecognition be - 100 + 20=120 and 120 should be derecognized as NCI ?

latest answer

Net Assets already represent that indirectly. YOu will understand after you complete consolidation.

Bhoomi Makhecha

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Ind AS 37 disclosure requirement

answered on 21-Apr-24 19:17

In extremely rare cases, disclosure of some of the information required can be expected to prejudice seriously the position of the entity in a dispute with other parties on the subject matter of the provision. In such a case an entity need not disclose the information. Any example available for this scenario

latest answer

Say a company has made a provision for court case. Which means, they are likely to lose the case. If you give more details, the other party may take advantage.

swaminathan sundaram

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Ind AS 37

answered on 21-Apr-24 19:21

A constructive obligation to restructure arises only when an entity has a detailed formal plan for the restructuring identifying atleast the business or part thereof concerned, the principal locations affected, number of employees who will be affected. Assuming that these conditions are fulfilled before reporting date but the entity has not identified a purchaser to sell its operation then no constructive obligation exists so no provision is required. Am I correct

latest answer

identification of buyer is not mandatory. In some cases of restructuring, there could be a simple shut down as well.

swaminathan sundaram

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38

Ind AS 37

answered on 23-Apr-24 17:23

Video No 11 Illustration 15 X Beauty solutions is selling cosmetics product under its brand name B. In this problem I am passing the below mentioned journal entries. Reimbursement Receivable from Y 900000 To Other Income 900000 Expense (claim on damages) 3000000 To Provision for claim on damages 3000000 Kindly let me know above entries are correct

latest answer

yes

swaminathan sundaram

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35

Ind AS 37 Provision

answered on 24-Apr-24 14:22

Vide No 8 Illustration 14 Restoration cost is debited and Provision for restoration is credited. Assuming that capital asset is purchased and there is a future liability this restoration, then restoration should be debited to the asset (not to be taken to P & L) and provision should be credited. Am I correct.

latest answer

Yes

swaminathan sundaram

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