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provision amount

Financial Reporting

answered on 27-Mar-26 18:36

Sir, I have one doubt in this question. At the initial stage of recognizing provision under Ind AS 37, would it be wrong if I take the provision as ₹10 lakhs instead of ₹7.5 lakhs? My understanding is that the 75% probability here indicates that payment of ₹10 lakhs is the most likely outcome, assuming there are only 2 possible outcomes: Pay ₹10 lakhs, or No payment required Please clarify whether this understanding is correct. [Video Time Stamp: 03:06]

latest answer

ICAI is not consistent in its application in such cases. In fact in the recent exams, they considered both options / assumptions in MCQ question. If its 10 lakhs and 0 - it is two outcome and can take 10 lakhs as well.

Abhinav K A

Abhinav K A

CA Final

2K+

1

25

Ind as 116 leases separation of lease and non lease components when they are interrelated

Financial Reporting

answered on 30-Mar-26 10:37

Can't we consider this lease as non separable like lease and non lease components as the equipment is not separately leased without maintenance service and hence can be highly interrelated ?

latest answer

Yes. That assumption can also be taken. However, when the question has given breakup and also stand alone price, they want students to allcoate amounts between lease and non lease components.

MANJAPARA SAI SIRISHA

MANJAPARA SAI SIRISHA

CA Final

0

1

24

Responsibility centre

Costing

answered on 10-Apr-26 15:57

Sir can you please give me more examples for standard cost centre and discretionary cost centre? It's understandable but still need more clarification please

latest answer

Thank you sir🙏

Mohamed NOOR JAMILAH

Mohamed NOOR JAMILAH

CA Inter

800

3

32

Computation of e

AFM

answered on 26-Mar-26 16:43

Good day Sir! In case they have not given the value of e in exam, can we compute that on the calci like how you have taught in one of the introductory videos and use that? or is it compulsory to use the simple interest method of computation. We can also give a note of the same computation right? [Video Time Stamp: 05:24]

latest answer

Depends on the question If they say use continuous compounding and do not provide value of e then use the calculator trick else use other methods

Varshini Rao

Varshini Rao

CA Final

35

1

21

Mcq

Accountancy

answered on 08-Apr-26 09:22

Goods distributed as free samples ₹2,000. a) Asset ↓, Capital ↓ b) Asset ↓, Expense ↑ c) Expense ↓, Asset ↑ d) No effect What should be ans for this as according to me ans should be (b) as sample goods comes under marketing expense

latest answer

The answer is option (b). While distributing as free samples it is a advertisement expense and the inventory will decrease. In option (a) the capital is reducing. The capital will reduce only when the owner withdraw goods for personal use.

Shivam Arora

Shivam Arora

CA Foundation

2K+

2

40

Spread %

AFM

answered on 26-Mar-26 13:52

Sir i have doubt regarding Spread % calculation. As per ICAI, Spread % = Bid-Ask/Bid x 100 As per Formula sheet provided Spread % = Ask-Bid/Bid x 100 Is both are same sir? [Video Time Stamp: 07:31]

latest answer

Usually ask is greater than bid That is why we have formula like that You can take numbers for as diff between bid and ask

G Chandrakanta

G Chandrakanta

CA Final

15K+

1

32

Rounding off - decimals in PVF

Financial Reporting

answered on 26-Mar-26 12:31

Hi Sir In FR. , before going to prepare an amortization table , While finding the present value , i got Rs.4,54,600 but in Institute study material(ISM) solution Rs.4,54,590 , is it okay ? In the another case I got Rs.4,91,359 in ISM Rs.4,91,346

latest answer

Thanks Sir

Prethivi Rajan

Prethivi Rajan

CA Final

9K+

2

24

Interest Component

AFM

answered on 26-Mar-26 12:32

Sir, In case of early actions, I understood the impact of interest component (that is. Planned flow of fund is only on due date, due to early action by customer, bank is in need of earlier than planned - so interest gets attracted for the unexpired period). With respect to after due date actions, however we are cancelling the contract as on due date itself, where it involves cashflow. Here, the cashflow happens on the planned date - then what is the logic behind interest component in this case, sir? [Video Time Stamp: 14:14]

latest answer

Bank is entering into a ODFC. So till that date they have to keep funds. If you ask for execution 2 days after due date then bank has to maintain funds idle for those 2 days

Swathi S

Swathi S

CA Final

975

1

16

Regulations

Auditing

answered on 05-Apr-26 14:02

Ma'am is this necessary to study all the regulations? Eg: Regulations 43, 46, 47 etc (Details of which are not given in ICAI Study material) [Video Time Stamp: 11:30]

latest answer

No , this is more comprehensive. You need not when icai material doesn’t mention it .

G Chandrakanta

G Chandrakanta

CA Final

15K+

1

19

Internal Reconstruction - Surrendered shares

Accountancy

answered on 26-Mar-26 10:54

Settlement of contingent liability during internal reconstruction by issuing shares using surrendered shares: Journal entries: 1. Shares surrendered: Equity share capital a/c dr. To Share surrender a/c 2. Settlement of Contingent Liability using surrendered shares Share surrender a/c dr. To Equity share capital a/c Doubt: Why there is no "Reconstruction a/c" is involved in this case?

latest answer

Thank You Sir

Girinath A

Girinath A

CA Inter

765

2

38