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Illustration 17 (additional illustrations)
AFM
answered on 13-Apr-25 21:52
In this question, it is same as illustration 7 which we solved the only difference i saw was of wording which was " the entity is eligible for tax credit in india" and now i solved it in regular manner however in your solution of this question you have assumed no tax credit available, but the wording clearly specifies. Now as the wording specifies, what treatment shall be done?
latest answer
Point where profits are earned first Which ever tax is deducted there that is to be paid first
Hrishikesh Pradhan
CA Final
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3
187
Principle of ability to share
AFM
answered on 13-Apr-25 20:27
In this question, i did not understood the meaning of this line (pt ii): " ...and project's share of allocated fixed cost will be US $ 3 mill pa based on principle of ability to share" So, what does this line means and why we have not considered it.
latest answer
Ability to share
Hrishikesh Pradhan
CA Final
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1
208
Discount rate
Financial Management
answered on 13-Apr-25 17:21
What if different for two projects i•e, due to geographical locations In india 9% In u.s 14a% etc.
latest answer
If u looking projects in diff geographies u will use advanced methods You will learn in final
anju B
CA Inter
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1
173
Computation on substantial modification
Financial Reporting
answered on 16-Apr-25 13:47
Sir, for the computation of substantial modification, why have we taken the value of the existing loan as it is i.e. Rs. 10 lakhs? It has been discounted and the interest for 5 years (i.e Rs. 1 lakh for 5 years) should also be discounted right to get 'Discounted cash flows remaining in original facility'
latest answer
When effective rate is equal to the interest on bond, the PV of all future interest and principal will be equal to the facevalue. Two sample duration attache3d.
pooja lakshmi
CA Final
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1
296
NPV computation
AFM
answered on 13-Apr-25 14:20
in this question, i was confused that earlier i was solving like after EBITDA, considering depreciation, i will get EBIT, then i considered interest outflow and then on that i considered tax, so it will include tax shield indirectly right? Why my logic is incorrect in this case
latest answer
Ys
Hrishikesh Pradhan
CA Final
★ 18K+
3
179
ITC on Input and Input services which are specifically used for making supplies which are taxable under RCM
Indirect Taxation
answered on 14-Apr-25 17:19
Sir, is ITC on such supplies actually blocked? If not, can it be cross-utilised against output tax under FCM? Rule 42 treats RCM supplies as exempt only for the purpose of apportioning common credit. But is there any specific provision that directly blocks ITC on inputs/input services exclusively used for making RCM supplies? Or is this an inconsistency in the Act, or am I missing a relevant provision?
latest answer
It cannot be used since supplies attracting RCM are regarded as exempt supplies for the purpose of ITC. The same is dealt in Section 17(3).
pravalika karanati
CMA Inter
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1
206
Last Illustration(Tenant)
Financial Reporting
answered on 16-Apr-25 13:56
Sir, can we say that such right of substitution only may arise at time of inception of contract,and NOT throughout lease period, hence identifiable?
latest answer
If right of substitution exists throughout the period - it is not identifiable. If it exists at specific point of time - identifiable.
SANSKRITI BADRI 2111339
CA Final
★ 4K+
1
166
Management admin
Corporate & Other Laws
answered on 20-Apr-25 20:52
1) answer will be B ? ............
latest answer
1) yes correct 2) answer is 60 days from AGM 3) yes
Sushmita Chowdhury
CA Inter
★ 2K+
4
207
Queries
AFM
answered on 13-Apr-25 14:13
I had 2 questions in this problem: 1. In earlier NPV problems we added back the Tax in computing FCFF, why here we did not added, could you explain its logic. 2. Also, how to identify in a question whether the decision is to be taken by converting into INR or Foreign currency
latest answer
In problem 1 tax paid vs tax accounted there is difference in timing. Unless mentioned in the question that the tax is paid next year in which case an adjustment has to be done, In all other problems, assume tax is accounted and paid in same year and therefore no need to add back or deduct tax in computing FCFF How to decide in which currency to see CF , depends on discount rate. In which currency is discount rate provided Also, look at last Q in this chapter, you have FC & HC approach, there also it will be very clear what you have to do
Hrishikesh Pradhan
CA Final
★ 18K+
1
259
IND AS 19
Financial Reporting
answered on 12-Apr-25 20:13
Sir if it is Actuarial loss then the entry will be OCI dr To DBO a/c Is this right
latest answer
Yes
R Yashwanth Kumar
CA Final
★ 87K+
1
180