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PURCHASING PRICE PARITY THEORY (PPPT)

Financial Management

answered on 25-Feb-25 04:30

"PPP predicts that high inflation leads to a weaker currency. While this relationship often holds true in the long run, PPP has limitations as a short-term predictor because it ignores factors like capital flows, non-traded goods, and government intervention." This basically means that, PPP fails to determine the short term factors responsible for inflation relative to the long term? If so, shouldn't it ignore the long term factors as well? It is only considering the long term only because of one factor (maybe longevity?) Thank you!

latest answer

First para right second para wrong Things always don’t happen instantaneously in short term they take time to play out - this idd acc true across financial markets In short term demand supply determine but these things change in response to inflation slowly Hence ppp plays out in long term

Nabeela Faisal

Nabeela Faisal

ACCA Skill

0

1

231

how to find nth term

Maths & Stats

answered on 25-Feb-25 10:55

from where did that formula came 2n-1

latest answer

If you are referring to time stamp 8.35 tn = a + (n-1)d a = 1 and d = 2 then tn = 1 + (n-1) x 2 tn = 1 + 2n-2 tn = 2n-1

Rudransh Aheer

Rudransh Aheer

CA Foundation

3K+

1

218

Compatation of WANES

Financial Reporting

answered on 25-Feb-25 10:56

Here, Whether WANES = 15,76,388.89 will be applied in calculation of Current year and Previous year - in the Financial Statement of Current year , sir?

latest answer

Current year. Previous year calculation will be done separately. Even for previous year, we would give Bonus issue impact.

Swathi S

Swathi S

CA Final

975

1

205

Relevant Date for WANES

Financial Reporting

answered on 25-Feb-25 10:58

Shares that are issued after fixed period of time - Why don't treat it as Mandatory conversion, sir?

latest answer

Conversion from?

Swathi S

Swathi S

CA Final

975

1

166

TRADING IN CURRENCIES

Financial Management

answered on 24-Feb-25 21:04

I did get what was explained but want to confirm if i can remember it like this : Bank will BUY @ LOW ; when you want to SELL. Bank will SELL @ HIGH ; when you want o BUY. This is also correct right? Thank you!

latest answer

Absolutely right

Nabeela Faisal

Nabeela Faisal

ACCA Skill

0

1

197

Allocation of Goodwill and corporate assets to CGU @02.05[ Time]

Financial Reporting

answered on 25-Feb-25 11:58

Sir, As you mentioned, allocating corporate assets to CGU on a reasonable basis. Can you say what are the reasonable basis in a practical way. And also the same with allocation Goodwill to CGU..!

latest answer

Okay sir. Thank you

K Vamshi

K Vamshi

CA Final

14K+

2

213

GSTR -3B

Indirect Taxation

answered on 25-Feb-25 12:18

Does a transaction made through bill of entry reflects in GSTR 3B(like turnover details)

latest answer

Welcome.

Ramya Telikicherla

Ramya Telikicherla

CA Final

6K+

3

219

When asset is acquired before 1/4/2001

Direct Taxation

answered on 25-Feb-25 12:32

Hello sir , Sir does this special point " cost of improvement incurred before 1/4/2001 - should be ignored" is applicable to LTCG (or) for all CG ?

latest answer

Thank you so much sir🙏🏻

Nagachaitanya Nomula

Nagachaitanya Nomula

CA Final

8K+

7

312

inclusions- Value of supply

Indirect Taxation

answered on 25-Feb-25 12:17

In the example given for section15(2)(b), Testing agency is also required to pay GST for such 1lakh rupees for the services provided by him, so doesn't leads to double taxation of rupees 1 lakh

latest answer

Good that it is clear !!

Nisha M

Nisha M

CA Final

2K+

3

217

Absolute ratio

Financial Management

answered on 24-Feb-25 14:12

How are marketable securities an absolute asset? Please explain

latest answer

Absolute assets are those which are equivalent to cash or can be readily be converted to cash refer page 3.7 of icai material - link below and also attached screenshot https://resource.cdn.icai.org/81825bos65985-cp3.pdf

Labdhi Jain

Labdhi Jain

CA Inter

180

1

201