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Ind AS 12 Deferred Tax

Financial Reporting

answered on 01-Apr-24 05:10

Page 10.18 old study material example 21 An entity acquires on the first day of reporting period. In this example I can understand calculation of depreciation for 6 years on SLM basis. But I am not able to understand depreciation calculation for tax purpose. Tax rate is given as 30% in the solution depreciation it taken as Rs (90), (10), (7) (5) etc How this calculation is done I am not clear

latest answer

Just an assumption. No rates. IN exam you will get rates.

swaminathan sundaram

swaminathan sundaram

CA Final

110

1

48

Illustration 1 on Netravati Ltd.

Financial Reporting

answered on 05-Apr-24 17:42

Sir, you have not discussed the second part of this question in this video; i.e., whether the answer will change if the office space was purchased with the intention of using it as an administrative centre of the Company. In this case won't the property be treated as Plant, Property & Equipment under Ind AS 16 instead of as an Investment Property under Ind as 40?

latest answer

Classification will change. Final answer on expense will not.

Antara MuraliKrishnan

Antara MuraliKrishnan

CA Final

3K+

4

61

Share Appreciations Right

Financial Reporting

answered on 01-Apr-24 05:12

What is exactly Share appreciation rights? I thought Share appreciation right means the holders will get payment on appreciated Rate eg: ie on grant date FV of share 120 within 2 years if they make possible to cross share price 150 then they will get money on appreciated value ,within 2 years share FV became 160 so SAR is 40 (160-120) is it correct?

latest answer

Share Appreciation Rights (SARs) are a form of employee compensation that gives employees the right to receive cash or stock based on the increase in the value of a company's shares over a specified period. Unlike stock options, SARs do not require the employee to purchase shares but instead provide them with the monetary equivalent of the appreciation in the company's stock price. Let's say an employee is granted 1,000 SARs as part of their compensation package. The current market price of the company's shares is Rs. 100 per share. The SARs have a vesting period of three years. After three years, the market price of the company's shares has increased to Rs. 150 per share. The SARs entitle the employee to receive the appreciation in the value of the shares, which is Rs. 50 per share (Rs. 150 - Rs. 100). So, the total payout to the employee would be: Total SARs payout = Number of SARs * Appreciation per SAR = 1,000 SARs * Rs. 50 = Rs. 50,000

Surya Prakash

Surya Prakash

CA Final

14K+

2

51

FINANCIAL INSTRUMENTS

Financial Reporting

answered on 01-Apr-24 05:19

Sir, in this question shouldn't we recalculate the EIR on the date of prepayment ?

latest answer

There is no modification in the contract. So what we instead do is calculate the value of liability considering revised cashflows using the original EIR

Swathi Krishna

Swathi Krishna

CA Final

8K+

3

57

loss in control of subsidiary

Financial Reporting

answered on 15-Apr-24 19:28

in the entry of cfs, will we recognise remaining stake as investment in subsidiary in the books of cfs? So the entry would be Cash acDr 67,50,000 Investment ac Dr 45,00,000 To Net asset 80,00,000 To Goodwill 10,00,000 To p and l 22,50,000

latest answer

Yes.

binu mathew

binu mathew

CA Final

0

1

46

IND AS 109

Financial Reporting

answered on 28-Mar-24 14:06

Sir, in illustration 31 of the study material the IRR rate which i found was 11.38 using rates 10 % and 12 %, however the rate shown in the study mat is 11.42 using rates 10% and 13% is there a problem because of the difference in the decimals? will mark be deducted completely as the entire amortization depends on this rate right?

latest answer

10 & 12 is a better rate to consider. Marks will not be deducted.

Swathi Krishna

Swathi Krishna

CA Final

8K+

1

40

consolidated financial statement

Financial Reporting

answered on 10-Apr-24 16:48

With reference to illustration 14 in lecture 24 ,why dont we recognise investment in subsidiary at fair value in the books of holding company? fair value of 60 percent is at 6750000 but the investment balance in the books of holding company is still at 50,00,000 for 100 percent stake prior to selling of 60 percent stake i.e. no changes in fair value was made after its acquisition. doesnt that make to be not in agreement with indas 109???

latest answer

Could be case of investment entity.

binu mathew

binu mathew

CA Final

0

3

55

Ind AS 21 accounting for foreign exchange transaction

Financial Reporting

answered on 28-Mar-24 13:04

Page 10.102 Question 3 Infotech Global Ltd has functional currency (Old Study material) financial reporting Ind AS 21 Closing rate is taken to convert PPE to L$. Question 5 On 1st January 2018, P ltd purchased a machine opening rate take for conversion. I am not able to understand the difference between the two problems

latest answer

Foreign Currency Translation: Foreign currency translation involves converting the financial statements of a foreign subsidiary from its local currency to the reporting currency of the parent company (in this case, INR). This process is necessary when the parent company presents consolidated financial statements that include its foreign subsidiaries. Suppose XYZ Pvt. Ltd. has a subsidiary in the US, and the subsidiary's financial statements are denominated in USD. At the end of the reporting period, the subsidiary's balance sheet shows assets worth $100,000 and liabilities worth $50,000. If the exchange rate at the end of the reporting period is 1 USD = 80 INR, then: Assets: 8,000,000 INR (100,000 USD * 80 INR/USD) Liabilities: 4,000,000 INR (50,000 USD * 80 INR/USD)

swaminathan sundaram

swaminathan sundaram

CA Final

110

3

57

Multiple sale transactions & Illustration 15

Financial Reporting

answered on 28-Mar-24 15:08

Sir in this question, while derecognizing NCI = we directly took its balance as a % share of Net assets. We did not add 10% of given adjustments to find out the balance of NCI. Why did we not add 10% of adjustments balance to find the amount of NCI to be derecognized ?

latest answer

Net Assets attributable to NCI is 10% i.e. 6 crores. This will be shown on the equity and liabilities side which we are derecognising. 100% of assets & liabilities that are included will be recognised on disposal. Amount under equity will be retained as it is or reclassified as applicable.

Bhoomi Makhecha

Bhoomi Makhecha

CA Final

35

1

44

change in proportion of NCI

Financial Reporting

answered on 28-Mar-24 15:27

Sir all questions relate to purchase of NCI stake. what if there is a sale in stake to NCI . By what amount are we supposed to credit NCI in such cases . because here we cannot take the proportion of existing NCI recorded in books.Entry will be Cash Amt paid OE Loss To NCI xx NCI should be credited by what amount?

latest answer

If stake is reduced Dr. Cash (amount received) Cr. NCI (incremental balance as on the date of transaction).

Bhoomi Makhecha

Bhoomi Makhecha

CA Final

35

1

48

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