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IFM - Illustration 2
AFM
answered on 19-Jan-25 21:18
Are the overheads of Rs. 5 crores not considered because the cash flows are not repatriated to India?
latest answer
Understood sir
Durai Murugan
CA Final
★ 470
2
162
IFM - Discount rate
AFM
answered on 19-Jan-25 21:19
When information like Cost of GDR, WACC is given in the question, 1. Cost of GDR is used to discount foreign currency cash flows 2. How to determine whether WACC is used to discount home currency or foreign currency cash flows? Is it solely based on location of debt funding or do we need to check out any other factors? For example, Illustration 2: Information available: 1.Debt funds are secured in Nepal (Foreign country) 2. No info about equity funding WACC is used to discount Nepal CF (Foreign country) Illustration 18: Information available: 1. Debt funds are secured in Mauritius (Home country) 2. Remaining funds are arranged by Vishwas (Citizen in Mauritius) and his friends (Resident in India based on the question ) WACC is used to discount Mauritius CF (Home country)
latest answer
Thankyou sir
Durai Murugan
CA Final
★ 470
3
197
commercial substance of the asset being acquired should be distinct and enterprise specific value
Accountancy
answered on 21-Jan-25 11:46
sir can u verify whether my understanding with this topic is correct Commercial substance = Meaningful economic impact + Alignment with the exchange's purpose here Alignment with the exchange's purpose = enterprise specific value like if entity purchases an asset with compensation of old asset and such new asset have the potential economic benefit relating to the intend of such exchange means we can call it as a valid exchange or it will be treated as just swap. eg A textile company exchanges an old weaving machine for a new weaving machine in intend to produce more The old machine could produce 500 meters of fabric/day. The new machine can produce 1,000 meters/day, significantly increasing production capacity and revenues. since it has a significant economic benefit and the intend of exchange is satisfies this will be treated as if we sold our old machine and purchased new one and if there is gain or loss after doing the calculation ( fv of new - book value of old machine = gain or loss) then such items would be recorded but if the commercial substance is not there then we would treat it as a swap like we would treat it as sales of old machine is in book value and in place of that we show the new machine as purchase. so am i getting this topic sir and thanks in advance for the doubt clarification sir.
latest answer
ok sir thanks for adhering my understanding
N.V Karthikeyan
CA Inter
★ 1K+
2
495
As 3
Accountancy
answered on 22-Jan-25 12:34
Illustration 5 on indirect method interest paid under finance cost is financial activity right...then y don't u exclude it from calculating cash flow under operating activity
latest answer
S sir I watched thank you
dhivya annam
CA Inter
★ 1K+
2
219
Allocation of Impairment loss to asset with in CGU
Financial Reporting
answered on 21-Jan-25 09:59
Sir, Here carrying amount after allocating impairment loss is reduced below recoverable amount na? Like for B, CV is 700 but recoverable amount is 900 Please clarify
latest answer
The recoverable amount of B is after considering allocation of amount of corporate asset X.
Gunda Sharan
CA Final
★ 150
1
237
Difference on ceiling
Financial Reporting
answered on 21-Jan-25 10:01
Timestamp: 11:32 Sir, in the books, how can we treat the difference ₹ 4,150 (i.e., ₹20,000 - ₹ 15,850)?
latest answer
It will reduce the carrying amount of asset and booked as a loss.
Denz Philip
CA Final
★ 10K+
1
162
IRRM - Illustration 12
AFM
answered on 22-Jan-25 21:50
Sir, in this question initial LIBOR rate is not given and payment on 1st interest reset date (31/12/2013) should be based on the rate on 1/07/2013 but rate on 31/12/2013 is taken for interest computation. In my understanding, the rate for the next payment is fixed now & interest along with the payoff from cap, if any will be paid after 180 days (unlike FRA, where it's discounted and paid at beginning). In the previous illustration 11 also (where the last LIBOR of 1.75% is ignored as it is not relevant), the same view is taken but this illustration contradicts the logic. Kindly clarify sir.
latest answer
Ok sir
Vigneshwar M
CA Final
★ 2K+
4
181
Lecture 35 - Illustration 23 - Revised PAT Computation
AFM
answered on 18-Jan-25 22:04
Sir, in this question, the shares are being bought back at a premium of 10% to the market price. Shouldn't the premium on buy-back also be deducted to compute the Revised PAT for the purpose of computing the revised EPS?
latest answer
Premium
Vignesh Panigrahi
CA Final
★ 1K+
1
156
cashflow
Accountancy
answered on 27-Jan-25 23:37
sir in video 22 of cashflow statement u named loss in sale of fixed asset as add financial activity in operating part but even though it is financial activity item its also non cash right sir so we are not going to anything with that even in financial activity part of calculation so wouldnt that be better if we mention it as a non cash item and add the loss back. so can i do that. thanks for clearing my doubt in advance sir
latest answer
thanks sir
N.V Karthikeyan
CA Inter
★ 1K+
6
208
Book order
Others
answered on 18-Jan-25 15:05
Shall I Order only group 1 book through cds portal using coupon and second group book while appearing for group 2 exam? Whether the coupon will valid after a year?
latest answer
Ok thank you sir
Abi KVA
CA Final
★ 2K+
2
221