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Why donwe create a provision in the sum instead of a liability

Financial Reporting

answered on 10-Dec-25 16:18

In the question discussed at the end of the video, why are we creating a provision when we are already obligated to pay and it is payable also we know that we have to pay 3000000, shouldn’t we create a liablity? [Video Time Stamp: 07:55]

latest answer

Generally in case of claims, the final amount may be different. Hence provision is used. If the amount is finalised, we can create a liability.

Venkatesh Rathinam

Venkatesh Rathinam

CA Final

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Video no 8 CFS Illustration 3 last part

Financial Reporting

answered on 10-Dec-25 17:54

Siw while preparing CFS we take subsidiary book value + fair value adj Instead of that if we take fair value for subsidiary minus dep is it correct For example Non current assets 6500+3300-15

latest answer

OK sir thank you

Miradevi S

Miradevi S

CA Final

16K+

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114

SA 570

Auditing

answered on 12-Dec-25 23:19

Ma'am, is it 12 months from the date of signing the financials or from 31st March of relevant F.Y.? [Video Time Stamp: 02:57]

latest answer

From 31st march

Mala Ca

Mala Ca

CA Final

23K+

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Types of Mergers

AFM

answered on 09-Dec-25 11:45

Sir, how is a congeneric Merger different from a Horizontal Merger?

latest answer

Assume Hero motors or TVS motors do not have an EV product Horizontal Merger, Hero Motors Acquiring TVS Motors Vertical Merger - Hero Motors Acquiring Ceat Tyres Congeneric Merger - Hero Motors acquiring an EV Battery company in India

Murali Thripuraboina

Murali Thripuraboina

CA Final

3K+

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135

Supply in case of Import of Services

Indirect Taxation

answered on 19-Dec-25 19:35

Sir in the lecture [Question 1(d)], it was explained that since the brother is a well-known lawyer, he cannot be considered as a related person. However, there is a similar question in the INDIGOLEARN IDT QUICK REFERENCER available in the Free Resources section, that is Question 11(d), wherein it has been regarded as supply since it is from related person. There the brother who is a well-known lawyer settled in London has been regarded as related person. Request you to please clear the confusion regarding this difference in answers. [Video Time Stamp: 06:11]

latest answer

Done.

Vignesh Panigrahi

Vignesh Panigrahi

CA Final

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145

Change in % of NPV

AFM

answered on 09-Dec-25 09:35

Sir, for change in Sensitivity of NPV for a 10% reduction in Sales Volume, while calculating % change in NPV it was taken as (Old NPV - New NPV)/Old NPV which came to positive 86.29%, but actually it is reduction of NPV from 11,28,120 to 1,54,721. I think it should be (New NPV - Old NPV)/Old NPV. Am i right sir? [Video Time Stamp: 16:08]

latest answer

Reduction

Murali Thripuraboina

Murali Thripuraboina

CA Final

3K+

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124

accrual concept doubt

Accountancy

answered on 09-Dec-25 15:02

When the income earned is Rs 50000 by selling goods, but cash received is only Rs 30000, so I will record that I have sold goods worth 50000, but at the end, how will I know that the person still should pay the remaining 20k

latest answer

Thank you sir

charan r

charan r

CA Foundation

0

2

178

Exemption

Indirect Taxation

answered on 13-Dec-25 11:03

Please check whether my following example is right or wrong A government body charges a business entity a ₹4,500 fee for a trade license. The service value is ₹4,500, which is less than the ₹5,000 threshold. The transaction is exempt from GST, and the business entity pays only ₹4,500. If the fee was ₹6,000, it is taxable [Video Time Stamp: 01:10]

latest answer

yes right.

Parthi ban.B

Parthi ban.B

CMA Final

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130

Calculator

AFM

answered on 08-Dec-25 19:07

I have this calculator, is the same allowed in the examinations?

latest answer

Oh okay sir, Thank you so much!

G Mohammed Mushtaq

G Mohammed Mushtaq

CA Final

15K+

2

121

Borrowing Cost

Financial Reporting

answered on 09-Dec-25 13:14

Hello sir, in the above problem you have considered INR 150,000 to be from specific borrowings. Can we assume that the entire expediture is made out of general borrowings? Would this assumption in the exam be valid? [Video Time Stamp: 08:44]

latest answer

Ok sir thank you.

Shreyas Nayak

Shreyas Nayak

CA Final

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146