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as 10
Accountancy
answered on 28-Jan-25 00:03
but sir old method made sense but ok since new method came i update myself but sir how can i know such repairs can be a capital exp rather an revenue exp iam asking this because previously i easily can recognize that if the repair help me to push the assets original capacity then it is capital exp if it is maintaining or less than original capacity then i can say it is revenue exp but now on what basis i identify it in exam sir like if the repair enhanced the asset capacity of 6hr (original capacity was 10hr) to say 7hrs will that be capital and if it maintains the 6hrs then will that be revenue exp
latest answer
ok sir thanks doubt is clarified
N.V Karthikeyan
CA Inter
★ 1K+
6
200
as 10
Accountancy
answered on 28-Jan-25 00:04
sir in immediate previous class u said first fv of outgoing asset second fv of incoming asset if both fv is not there then book value or carry amount of outgoing asset should be considered but here in this video u choose fv of incoming asset when we have both old and new assets fv please clear this doubt and thanks in advance for clearing the doubt sir.
latest answer
ok sir thanks i got it the doubt is clarified
N.V Karthikeyan
CA Inter
★ 1K+
6
210
Paragraph numbers with respect to exam
Financial Reporting
answered on 21-Jan-25 09:48
is it necessary to write para numbers in exam, will we get full marks even if you dont mention "Para Numbers" of IND AS while answering
latest answer
Paragraph numbers are not required.
Hemachandra D
CA Final
★ 9K+
1
186
difference in indigo material and class
Financial Reporting
answered on 21-Jan-25 09:36
Sir in case of Intra - group borrowings, in class you have mentioned Should capitalise borrwoings cost in both standalone and group Financials But in materil page 6.7 in case of intra-group borrowings it is mentioned but "Not" at group level so what to be considered
latest answer
In the class the example is Parent borrowing and lending to subsidiary. In the material - It is when the parent company is lending out of its own reserves. [Will add a note in the material for further clarification]
Hemachandra D
CA Final
★ 9K+
2
193
Working capital
Financial Management
answered on 20-Jan-25 10:26
Why raw material expenses are not included while computing creditors for expenses??
latest answer
Because they are included in creditors for supply of materials
Harish Kumar
CA Inter
★ 180
1
206
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
163
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
200
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
497
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
238