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PE funds

CFA

answered on 11-Oct-25 21:20

Sir Please explain committed capital means [Video Time Stamp: 10:04]

latest answer

Ok sir

Surya Praveen

Surya Praveen

CA Inter

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2

173

AI

CFA

answered on 11-Oct-25 20:30

I didn't understand side letter sir, can u explain once again [Video Time Stamp: 05:35]

latest answer

Side letter agreement A PE fund has common investment agreement with all LP investors If a big investor comes first and invests in PE fund because of which other investors come and invest With such a big investor the PE fund will ill have a side letter which has different terms than main agreement It will have preferential terms for the big investor

Surya Praveen

Surya Praveen

CA Inter

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1

160

Real assets

CFA

answered on 11-Oct-25 21:53

Sir explain what is meaning of store value [Video Time Stamp: 12:28]

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Thank you sir

Surya Praveen

Surya Praveen

CA Inter

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2

161

Alternative investment

CFA

answered on 11-Oct-25 19:51

Sir explain what is fund of funds means [Video Time Stamp: 16:19]

latest answer

FOF

Surya Praveen

Surya Praveen

CA Inter

0

1

153

CFS FE gain

Financial Reporting

answered on 21-Oct-25 17:12

Sir, in this question the transaction is happened in subsidiary functional currency,, is that is the reason why Foreign exchange G/L got elimated in CFS.(because subsidiary translation happens in cl. rate and re measurement in parent books happens at cl rate ) Suppose if the transaction is denominated in parent functional currency(re measurement wouldn't have happened) i.e INR parent would have recorded debtor as 996 lakhs and subsidiary would have recorded creditor as 12 Euro and at year end subsidiary would have restated the creditor to Euro 11.72 INR and booked 0.28 Forex gain in subsidiary and while consolidating 11.72*85 translation 996 would have eliminated both trade payable and trade receivable in CFS and Fe gain in subsidiary would have captured in CFS. Please clarify. [Video Time Stamp: 12:45]

latest answer

Parent sells to subsidiary for 1000 INR. Exchange rate on transaction - 80 Subsidiary records payable at USD 12.5. Year end rate 85. So subsidiary would show payable at 11.76 and gain of 0.74 On retranslation again the payable would be 1,000 which gets offset agains holding company and the gain is captured in financial statement.

Akhil Reddy

Akhil Reddy

CA Final

6K+

1

187

FE translation

Financial Reporting

answered on 17-Oct-25 17:00

Sir, If Foreign operation Functional currency (Say INR) and parent presentational currency(Say INR) is same but parent parent functional currency is different(say USD) . Should the FO Financial statements needs to translated to parent functional currency ? [Video Time Stamp: 04:20]

latest answer

First you would translate to functional currency of parent i.e. USD. And then for reporting purpose we will translate it to INR.

Akhil Reddy

Akhil Reddy

CA Final

6K+

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164

May 2025-advanced capital budgeting

AFM

answered on 15-Oct-25 11:49

Sir, in this question what is ready and understood was everything shall be calculated in real terms but in suggested solution they have calculated in nominal terms. What shall we do in such exam in exam hall.

latest answer

Obviously we can’t predict the suggested answer It was a bad question to be asked in exam Even when i solved it immediately after exam I too was unsure of what the answer could be as there are way too many assumptions My answer was wrt to context that If we get a question like this how you should answer because we have seen how ICAI is thinking abt this kind of questions

Hrishikesh Pradhan

Hrishikesh Pradhan

Qualified CA

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227

Should depreciation always be debited to p& l a/c

Accountancy

answered on 11-Oct-25 20:06

If an asset is used to get inventory ready,depreciation to the extent can be added to cost of inventory...Sir can u explain this point with suitable example [Video Time Stamp: 11:59]

latest answer

Say there is a manufacturing plant which produces mobile phones. The depreciation on manufacturing plant is an overhead incurred to produce mobile phonnes and it will be added to cost of mobile phones.

Leela Sowmya

Leela Sowmya

CA Inter

0

1

199

Non monetary Foreign exchange gain.

Financial Reporting

answered on 17-Oct-25 16:59

Sir, in this question why we consider total 57,500 as revaluation -OCI and added to asset ? there is a appreciation of dollar so isn't it there would be FE gain also inherently ? 5000*(65-60) = 25,000 Foreign exchange gain 500*65 = 32,500 Revaluation (shouldn't we add only this to asset value) [Video Time Stamp: 09:24]

latest answer

We do not restate non-monetary items like we do for monetary items. So in this case there is no direct foreign currency gain in PPE.

Akhil Reddy

Akhil Reddy

CA Final

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218

Disclosure

Accountancy

answered on 25-May-26 16:55

in the answers for the illustrations given, certain answers say disclosure in notes to financial statements, some say board report or director's report. a little clarity on when to disclose where, please [Video Time Stamp: 03:18]

latest answer

As per AS 4, the events disclosed in the Board's Report (Report of the Approving Authority) are material Non-Adjusting Events.

Ritu Kotian

Ritu Kotian

CA Inter

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212