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Additional portfolio

AFM

answered on 13-Nov-25 10:21

Sir, for the amount of portfolio to be brought/given to make beta 0.8 in this question, we can use the same method as done in Illustration 32 (ii) and (iii) right? [Video Time Stamp: 06:37]

latest answer

Yes. Either way answer will be the same

Shreyas Nayak

Shreyas Nayak

CA Final

0

1

118

Dependent Variable

AFM

answered on 13-Nov-25 08:32

Sir here Market returns should be considered as (x) independent variable and Company returns should be considered as (y) dependent variable right? Is market always considered dependent variable? [Video Time Stamp: 11:00]

latest answer

Thank you sir

Shreyas Nayak

Shreyas Nayak

CA Final

0

2

115

How con impairment exenses be added back? In this question

Financial Reporting

answered on 14-Nov-25 16:42

Sir, In this question, they have not given any expenditure more than 540lacs(other expenses) in that case it is assumed in the solution that the amount is already deducted while arriving at the profit and it is being added back. I dont get it. Because it will not be part of COGS. Please explain the logic behind adding back impairment of goodwill and intangibles. [Video Time Stamp: 13:35]

latest answer

Impairment expense is a non-cash expense like depreciation. hence it is added back. We would have shown impairment expenses in P&L under other expenses.

Venkatesh Rathinam

Venkatesh Rathinam

CA Final

15K+

1

120

Revenue vs capital expenditure

Accountancy

answered on 14-Nov-25 16:45

The horn served us for 2 years. Now if we replace it, if its serves us for 2-3 years, then would that not be a capital expenditure? If not, why would you consider it as a revenue expenditure instead?

latest answer

The question is does the replacement of horn increase the performance of bike? If it does not we cannot capitalise since no new benefits are being obtained.

Devika Venu

Devika Venu

CA Foundation

5

1

167

Business Valuation

AFM

answered on 12-Nov-25 20:03

Sir in this question, they have just mentioned revenue without telling before tax Or after tax. We have assumed it as NOPAT. But in earlier questions (ill 34) we have assumed it as PAT when both of the questions contains debt. I just wanted to know, we have assumed as NOPAT here because tax rate was not given in this particular question, If they would've given tax rate, we should assume it as PAT only right.

latest answer

Cleared sir, Thank you

Pradeepa Narayanan

Pradeepa Narayanan

CA Final

5K+

4

127

Expected rate of Return

AFM

answered on 12-Nov-25 19:13

Sir you have calculated in value basis and I have calculated in per share basis. I am getting a different answer than that mentioned in the book. Could you please tell me where I am deviating from your answer?

latest answer

Ok sir thank you.

Shreyas Nayak

Shreyas Nayak

CA Final

0

2

143

General query

Auditing

answered on 12-Nov-25 19:36

In our lecture module, we can see lectures named as company audit (i.e for dividend , accounts , LLP), could you pls guide in which chapter of icai it is, as i was going through module i could find them

latest answer

Audit of LLP wil come as a part of special audits. Rest is not the part of new syllabus. That is not removed from content here because it would be helpful

Hrishikesh Pradhan

Hrishikesh Pradhan

CA Final

18K+

1

137

RTI certified copy

Exams

answered on 12-Nov-25 17:07

I made payment to RTI for certified answer copies of Sep 2025 exam and the transaction got successful. However, the registration number/application number or any kind of acknowledgement is not received and the request is not yet registered. Can someone pls guide me on this

latest answer

You can check status on RTI website.

Shankari C

Shankari C

CA Inter

3K+

1

129

Computation of Beta of Mutual Funds

AFM

answered on 13-Nov-25 00:00

Sir, in Illustration 66 [regarding D Mutual Fund & K Mutual Fund] (@ 2 hours 35mins), the Beta value that we get from the Treynor Ratio equation is actually the Portfolio Beta [={Weight*Beta(Equity)} + {Weight*Beta(Cash)}]. However, when finding out the value of Equity due to market changes we are directly using the Portfolio Beta. Shouldn't we actually use the Equity Beta for this? For instance, Beta (D Mutual Fund) = 1.50 => 0.99*Beta (Equity) + 0.01*Beta (Cash) = 1.50 => 0.99*Beta (Equity) = 1.50, since Beta (Cash) is nil => Beta (Equity) = 1.515 Original Equity Value = 70.71 * 0.99 = 70.0029 & Original Cash Value = 0.7071 Revised Equity Value = [{1 - (1.515*0.05)} * 70.0029] = 64.700 Revised Portfolio Value = Equity (64.700) + Cash (0.7071) - Expenses (3/12 = 0.25) = 65.1571 [Video Time Stamp: 02:35:18]

latest answer

Ok Sir.

Vignesh Panigrahi

Vignesh Panigrahi

CA Final

1K+

2

136

Capital Advance: Long Term in nature?

Auditing

answered on 17-Nov-25 10:25

Mam, you said capital advance is something like a loans & Advance given to a party for their capital investment, is likely in nature of long term. BUT What if the amount so paid is recoverable within 12 months as per the agreement? will it still be treated as long term in nature? [Video Time Stamp: 03:18]

latest answer

Yes this format is expected and its rather a correct flow of thoughts ! We first understand question , relate to provision and then conclude. That’s the idea

Vinod Kumar

Vinod Kumar

CA Inter

11K+

10

200