Forums
Eps
Financial Reporting
answered on 19-Jun-25 09:59
In case of compulsorily convertible preference shares, should eps be computed under basic or diluted. I believe that since it is compulsory convertible, it can be treated as ordinary share and included under Basic. Also please explain date of contract in para 23 of Ind AS 33.
latest answer
It is included in basic from the date of contract. Date of contract is the date on which the investor and company have entered into a contract which is basically the issue date. If CCPS are issued on 1st April 20X1 and are compulsorily convertible into equity shares on 1st April 20X4, then: Those shares are included in Basic EPS from 1st April 20X1 (date of contract). They are not separately adjusted in diluted EPS, as the impact is already reflected in basic EPS. If it is optionally converted, then it will be considered in dilutive.
Azmi RZmi
CA Final
★ 10K+
1
215
Mistake of Indian Law
Corporate & Other Laws
answered on 19-Jun-25 10:02
Contract is not void in Indian Law If mistake is caused through inducement of another, contract may be avoided Here another represents what a person, contract or anything else
latest answer
It means person.
Gurukanta Singh
CA Foundation
★ 19K+
1
176
s.112 amendment
Direct Taxation
answered on 09-Jul-25 16:53
sir is there any change in the rates for listed securities and zero coupon bonds u/s 112 after amendment or is it the same 20% with indexation or 10% without indexation? [Video Time Stamp: 09:31]
latest answer
thank you sir
Poojasree Shakthiraam
CA Inter
★ 25
5
205
CPE requirement
Others
answered on 18-Jun-25 18:34
Hi sir, I became a member in August 2024. Am i required to comply with CPE hours for 2024 calendar year? As per FAQ, it is mentioned as exempt for the first calendar year in which member gets his membership. But i am getting reminder emails from icai. Can you kindly confirm? Thanks
latest answer
Thank you sir
Suresh Avinash
CA Final
★ 3K+
2
189
Depart from IND AS
Financial Reporting
answered on 18-Jun-25 12:04
If the regulatory framework prohibits departure, then entity should comply with Ind AS, right? [Video Time Stamp: 07:58]
latest answer
Clarified! Got confused due to mistake in 1st flowchart. Thank you
Manasa Kondepu
CA Final
★ 3K+
1
165
Change in Book Value
AFM
answered on 18-Jun-25 10:34
I just want to know if the book value changes which leads the Net Cash outflow to change as per below or not *Scenario 1: Book Value = ₹10,000 (→ Capital Gain situation) Capital Gain = ₹50,000 − ₹10,000 = ₹40,000 Capital Gain Tax = ₹40,000 × 40% = ₹16,000 After-tax Scrap Value = ₹50,000 − ₹16,000 = ₹34,000 Net Cash Outflow = ₹20,50,000 − ₹34,000 = ₹20,16,000 * Scenario 2: Book Value = ₹60,000 (→ Capital Loss situation) Capital Loss = ₹50,000 − ₹60,000 = ₹(10,000) Capital Loss results in tax saving = ₹10,000 × 40% = ₹4,000 After-tax Scrap Value = ₹50,000 + ₹4,000 = ₹54,000 Net Cash Outflow = ₹20,50,000 − ₹54,000 = ₹19,96,000
latest answer
Yes the principle and working is correct
Shinisha Rose R
CA Final
★ 5K+
1
196
Return computation method
AFM
answered on 18-Jun-25 07:28
Sir, why are we using simple interest method only?? Is it solely for the purpose of simplifying calculation??
latest answer
In mutual funds chapter unless they specifically use word IRR, you will compute simple returns and annualised by multiplying or dividing by 12 as the case may be Even if they use word yield as far as this chapter is concerned in all ICAI problems they have used simple returns and not compounded returns
Jaswanth P
CA Final
★ 0
1
225
Measurement techniques
Financial Reporting
answered on 18-Jun-25 16:55
Why there is a need for measurement techniques, normally inventory valued at the end of financial year,at that time actual costs are available
latest answer
Thanks sir
Santoshkumar Kalisetti
CA Final
★ 2K+
2
159
Aribitrage
AFM
answered on 18-Jun-25 12:15
Since the theoretical futures price is usually higher than the spot price due to cost of carry and other factors, does that mean the probability of success in arbitrage—by shorting futures and buying in the cash market—is 100%, regardless of market movement in REAL WORLD as i aware the fact that there will be brokerage and other costs [Video Time Stamp: 12:39]
latest answer
There is no free lunch in the world. Arbitrage opportunities are either too small or vanish quickly unless one has inside information If brokerage and other costs are causing -ve drag in cash market, you will have basis risk, taxes and brokerage issues in futures also.
Manikyam
CA Final
★ 0
7
244
Abatement of duty
Indirect Taxation
answered on 20-Jun-25 14:15
Sir is abatement available only on pilfered goods or also loss/destroyed goods?
latest answer
Abatement of duty concept is only for damaged goods which are partly damaged and not fully.
P AKSHAYA
CA Final
★ 260
1
196