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Calculation

Financial Reporting

answered on 28-Mar-24 16:04

Sir, I have 2 questions 1. Here why did we calculated interest only for 5th and 6th year why not for 1st to 4th too. As the rate is annual. 2. So , Total Financial Liability is 13 L ( 1254400+ 45600) right ?

latest answer

interest upto four years is paid. What is left is interest for Year 5 & Year 6 which is to be paid. So we compute the liability considering balance interest payment and bullet repayment.

Hrishikesh Pradhan

Hrishikesh Pradhan

CA Final

2K+

1

46

IND AS 109- Modification accounting

Financial Reporting

answered on 25-Mar-24 16:20

Any guidelines as to when entity should apply Method 1 / Method 2 . or is it at the decision of the entity applying it. Also which method to follow in exam?

latest answer

It is at the entity's descrition. They can choose which method to apply. In case question is silent, do both.

Bhoomi Makhecha

Bhoomi Makhecha

CA Final

35

1

61

Ind AS 21 Accounting for foreign currency transaction

Financial Reporting

answered on 28-Mar-24 17:04

Video No 14 I llustration 9 Property Plant equipment is measured at closing rate. It is non monetary item so it needs to be measured at historical cost. Am I correct

latest answer

Infotech global will not restate PPE in its books.

swaminathan sundaram

swaminathan sundaram

CA Final

110

5

60

Ind AS 21 Foreign currency transaction

Financial Reporting

answered on 24-Mar-24 18:51

Page 10.95 Illustration 7 The functional currency and presentation currency of parent P is USD. In this question I assume that invoice is prepared in USD. If invoice is prepared in Euro then parent P should take the conversion rate of Euro on year end date and account for the exchange difference. Am I correct?

latest answer

For sales, conversion rate on date of transaction should be considered.

swaminathan sundaram

swaminathan sundaram

CA Final

110

1

42

Inventory

Financial Reporting

answered on 25-Mar-24 16:24

why depreciation costs involved in the production of inventory are added to the cost of inventory as well as provided as depreciation in profit and loss? Isn't double accounting apart from the matching principle concept?

latest answer

Its not accounted twice. first entry Depreciation Dr. To Accumulated Dep. Second entry Dr. Inventory Cr. Depreciation. net depreciation is charged to PL

Aishwarya Ganesh

Aishwarya Ganesh

CA Final

550

2

51

Ind AS 115

Financial Reporting

answered on 25-Mar-24 16:33

Sir, can you explain this para.

latest answer

Say you purchase FR and Mock Test papers. FR is 10,000 and Mock Test is 500. Total discount offered is Rs. 1000. So final price is 9,500. However if you purchase FR independently, you will get at 9000. That is to say no discount on mocks. So we will attribute 9000 towards FR and 500 for Mock test papers. Discount is not allocated to Mocks.

Suresh Avinash

Suresh Avinash

CA Final

3K+

1

43

Diluted eps

Financial Reporting

answered on 23-Mar-24 18:38

Sir why did we add back mtm loss while calculating diluted eps, is it that we won’t have that loss if the debentures are converted to shares?

latest answer

If you convert the debentures to shares, the MTM losses will not be realised.

Lalit Sanpal

Lalit Sanpal

CA Final

6K+

4

45

Cash flow statement

Financial Reporting

answered on 23-Mar-24 18:40

Sir this is a question in cash flow statement in icai book... I dont understand the treatment of reducing share of profits of associate from operating activities? Also why dividend paid by associate is not reduced?

latest answer

Share of profit is not cash inflow. Hence reduced.

Aishwarya Ganesh

Aishwarya Ganesh

CA Final

550

1

61

Business Combination

Financial Reporting

answered on 23-Mar-24 19:24

Sir, in the Q 20, the amount recognized as customer relationship is 3500 lakhs but it is seen in the material as 350 lakhs(3.5 Crore)

latest answer

Thanks for highlighting the issue. Will get it corrected.

Venky Balamurali

Venky Balamurali

CA Final

0

1

53

IND AS 33

Financial Reporting

answered on 22-Mar-24 17:57

In this illustration - For the PY - will the restated weighted average equity shares of PY be 13,33,333 shares? (10,00,000 *12/12 * 4/3) assuming no changes in capital structure made in PY ?

latest answer

Yes. So generally how it works is we use the bonus factor directly to restate the eps. So you will have a reported EPS and restated EPS.

Bhoomi Makhecha

Bhoomi Makhecha

CA Final

35

1

55

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