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BALANCING ALLOWANCE & BALANCING CHARGE
Financial Management
answered on 04-Mar-25 08:47
Balancing Allowance (Extra Deduction): Sometimes, the total tax-allowable depreciation you've claimed over the years might be less than the actual fall in the asset's value. In this case, you get a "balancing allowance" – an extra deduction in the year you sell the asset to make up the difference. Balancing Charge (Extra Tax): On the other hand, if you've claimed more depreciation than the actual fall in value, you'll have a "balancing charge." This means you'll have to pay extra tax on the excess amount you claimed in the year you sell the asset. I think i did not get this concept clearly so getting confused about what is less and more. Can you please clear this? Thank You!
latest answer
Yes
Nabeela Faisal
ACCA Skill
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2
571
At Expiration LIBOR 1.25%
AFM
answered on 04-Mar-25 07:31
Sir in the question At Expiration LIBOR 1.25%, expiration means on the 90th day or 180th day ?
latest answer
In context of an FRA , expiration means the date when the agreement expires, i.e the date on which the borrowing is supposed to happen i.e day 90. day 180 is when loan tenure ends So L + 125 is on day 90
Hemachandra D
CA Final
★ 9K+
1
214
Capitalization rate
AFM
answered on 04-Mar-25 07:33
Capitalization rate will be used to determine market value of company.But here why it is used to determine eps?What is the relationship between market cap rate and eps?
latest answer
EPS / Cap rate = MPS => MPS x cap = EPS
Bhoomesh Velan
CA Final
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1
246
In the NCI closing balance why are we subtracting dividend paid of Rs. 22464?
Financial Reporting
answered on 04-Mar-25 09:39
In the NCI closing balance why are we subtracting dividend paid of Rs. 22464? Please explain.
latest answer
NCI balance represents amount payable to NCI. if we have paid dividends, that amount is reduced. Since the share of profit is lower now. Or think of it this way, if dividends are paid, profits will be lesser, and NCI share will be accordingly less.
Manu Jacob
CA Final
★ 6K+
1
275
Cross rate
AFM
answered on 04-Mar-25 07:47
Sir, I tried to do one by myself, but I think something is getting wrong as my answer does not matches with website , site variance, however I tried to solve logically, if I have done anything wrong, kindly tell what got wrong
latest answer
Your method is correct - no mistake. What happens in Oanda or any other site is when you are taking data, from the time you move from one screen to another for diff currency rates, the market quotes change look at all quotes at same time on a single screen and it will be proper with possible variation in 4th decimal. check screenshot and working below
Hrishikesh Pradhan
CA Final
★ 18K+
1
178
Exemption
Costing
answered on 06-Mar-25 03:47
I successfully cleared my CA Intermediate Group 1 in the December 2021 attempt but had to discontinue my studies due to personal reasons. Now, I plan to resume my course and appear for the Group 2 exam in 2025. Since I have already passed Paper 4 in Group 1, do I need to retake it in Group 2?
latest answer
Fill unit 2d form
Mrudula Kizhakekattuvelikakath Sasidharan
CA Inter
★ 0
5
222
Existing shareholder's wealth in case of rights issue
AFM
answered on 03-Mar-25 20:13
Sir, why did you add 150 crs of subs amt to the shareholder's wealth when the company will get the amount of subs only post issue of rights??
latest answer
1 Shareholder wealth = market cap / share count When share count is added (i.e denominator) the money received from those shareholders is also invested in a project and the project has a PV that PV is added to numerator
Pradeepa Narayanan
CA Final
★ 5K+
1
182
Need clarification of illustration 2 of RPT AS 2
Accountancy
answered on 03-Mar-25 20:12
Sir, Please explain the illustration 2 of RPT AS 2, Which i can't understand clearly.
latest answer
You can watch revisions of AS 2
kravel
CA Inter
★ 2K+
2
290
Part (a) of Illustration 14
Financial Reporting
answered on 07-Mar-25 14:46
What is the relevance of the last two sentences (not taxable unless sold & no intention of selling in the foreseeable future) in determining the deferred tax?
latest answer
Not taxable unless sold means - though you may recognise loss or gains for accounting purpose, the tax base will not change. So there may be a gain in financial statements but the same will not be reflected in taxation. Regarding intention, you will have a depth understanding in financial instruments.
Ruthvik Reddy Adala
CA Final
★ 5K+
1
206
DEPRECIATION
Direct Taxation
answered on 05-Mar-25 09:13
SIR, Should we study depreciation rates by heart
latest answer
Solve all RTPS and MTPs
Sandeep
CA Inter
★ 50
6
333