Forums
Bonus issue
Financial Reporting
answered on 02-Apr-26 09:37
Bonus issue after year end but before approval of FS- is it an adjusting event or non adjusting event??? From perspective of 1. EPS caln 2. FS adjustment
latest answer
A bonus issue after year-end but before approval of financial statements is treated as a non-adjusting event under Ind AS 10 because it does not relate to conditions existing at the reporting date. So, no changes are made in the financial statements, only disclosure is given. However, for EPS calculation under Ind AS 33, a bonus issue is treated as if it existed from the beginning. This is because it only increases the number of shares without changing total profits. Therefore, EPS is adjusted retrospectively (both current and previous periods).
Noor Singla
CA Final
★ 690
1
153
Remittance to Perfect Inc
AFM
answered on 01-Apr-26 06:57
Sir, Why have we remitted the free cash flows instead profits? [Video Time Stamp: 41:20]
latest answer
Because in a cash flow based valuation we discount free cash flows. Profits are not discounted. If we use profits as a benchmark for valuation then a pe multiple based valuation is the preferred method
Swathi S
CA Final
★ 975
1
140
Swap
AFM
answered on 31-Mar-26 09:42
Sir, As Zaki wants floating rate loan, he is offered with BPLR+2.5% whereas IB offered with floating rate of BPLR + 0.50%. In this case, Zaki would get benefit out of Swap. Now when it comes to IB, it wants fixed rate loan - it was offered with 2% which is cheaper than what offered to Zaki (i.e. 2.25%) , in this case, there is no benefit for IB to enter into a Swap. Won't the benefit seen individually, sir? [Video Time Stamp: 11:38]
latest answer
ok
Swathi S
CA Final
★ 975
2
169
Example
AFM
answered on 31-Mar-26 07:27
Please provide us one numerical practice example related to this. (if possible) [Video Time Stamp: 00:06]
latest answer
Pricing is just like a bond. You determine a yield and the price the security From borrower perspective if int rate of alternative borrowing 5% he would want a similar rate here . He may sacrifice some yield if quality of assets is high and risk of default is low. If rating is poor the he may want a higher yield
Vinod Kumawat
CA Final
★ 2K+
1
196
illustration 2
AFM
answered on 30-Mar-26 15:19
sir is it year 0 and year 1 with respect to construction period, why we take ticket price 220 in year 0.actually period of operations starts from year 2 onwards. [Video Time Stamp: 18:56]
latest answer
It is a slightly weird assumption that Ticket price off 220 that is given in the question is for Year zero when no specific mention abt the same has been made in the question. This is how ICAI has solved it - while we can use our judgement and correct it. I am embarrassed to say that ICAI will not award marks for a logical approach by student when they have followed an illogical approach in their Study material 😔
saipriya v
CA Final
★ 510
1
182
INDEX FOR IBS
Financial Reporting
asked on 30-Mar-26 14:04
Can I expect any index for FR ? I have old material which I bought for May 25 but that book is applicable for May 24
latest answer
No answers yet!!
Painedi Adharsh
Qualified CA
★ 23K+
0
119
Cross Rates - Illustration 9
AFM
answered on 30-Mar-26 18:59
Why are we considering Ask rate for GBP SGD as the base currency for that transaction will be pound. [Video Time Stamp: 40:19]
latest answer
Ok. No worries. happy to help
Vidyashree Anand
CA Final
★ 0
3
119
Short cut step for exam - use during reading of question
AFM
answered on 30-Mar-26 08:13
1.Change = old - new / old , compare with % of CM policy 2. if less then igone ,otherwise allocate in cm ratio .. 3 Nos = Allocated Amount / New Price Imp. Note before rebalancing debts will same, and after balancing Port. value will same. [Video Time Stamp: 40:24]
latest answer
Yes
Vinod Kumawat
CA Final
★ 2K+
1
116
Ratios of shares to be exchanged
AFM
answered on 30-Mar-26 07:35
In question they have given " a share for share exchange" i.e 1lakh of shares of C ltd to be exchangd with 1 lakh shares of B ltd is what I assumed. WHy are we taking MP as ratio base. Kindly explain. [Video Time Stamp: 13:14]
latest answer
Share to share
Kiruthika Senthilkumar
CA Final
★ 3K+
1
189
illustarion no 1 international financial management
AFM
answered on 30-Mar-26 07:28
sir why we take working capital adjustment amount as 70/- in year 5 [Video Time Stamp: 40:54]
latest answer
Wc
saipriya v
CA Final
★ 510
1
102