Forums
Paid leave liability
Financial Reporting
answered on 17-Jan-25 09:32
Timestamp 22:20 Sir, why do we need to estimate, since all rational employees will avail/encash their paid leaves in future period(s)? Therefore, why shouldn't we recognize for entire unpaid leaves due (i.e., 3 days) in the current year itself?
latest answer
No worries.
Denz Philip
CA Final
★ 10K+
9
224
Doubt
CFA
answered on 17-Jan-25 11:42
In the first question solved in this lecture, why didn't we take the impact of provision for taxes? It is a non-cash item and it has a bearing on net income. Instead, we adjusted the deferred tax liability. Could you explain why?
latest answer
The provision for taxation typically comprises two components: current tax (the cash tax payable in that year) and deferred tax (the non-cash component of taxes). When making adjustments in the cash flow statement, only the non-cash component—deferred tax—is considered. Hence, the change in deferred tax liability has been included as an adjustment in the cash flow statement.
Aayushi Bawa
CFA L1
★ 0
1
204
What happens if the auditor himself does not get to know this material fact?
Auditing
answered on 15-Jan-25 17:21
What happens if the auditor himself does not get to know this material fact? Will it still be deemed to be professional misconduct.
latest answer
There is always a detection risk based on the procedures selected and applied by the auditor. So If he has done the audit based on SAs, then he will not be guilty
Manu Jacob
CA Final
★ 6K+
1
203
Mutual fund - Bonus units
AFM
answered on 15-Jan-25 12:56
In ICAI material, for Illustration 14 - Sun Moon Mutual fund, STCG tax on account of bonus units is calculated on the difference between (NAV on date of sales - STT) and NAV on date of bonus issue. Unlike STT, they didn't give any note for Cost of acquisition as it should be 0. In the answer, Is it enough giving proper notes saying STT is not allowed for deduction and COA on bonus issue = 0?
latest answer
yes
Durai Murugan
CA Final
★ 470
1
234
Cant we consider trading in derivatives as an personal investment activity?
Auditing
answered on 15-Jan-25 17:24
Cant we consider trading in derivatives as an personal investment activity? So can trading in stocks and investing in mutual funds can also be done only on informing the council? Please explain
latest answer
This is for clients , not for personal investment activities. Trading in derivatives is more of speculation and can impact the professionalism of a ca. so it’s not allowed to do it for ur clients.
Manu Jacob
CA Final
★ 6K+
1
203
Can the deposit be considered as minimum fee?
Auditing
answered on 15-Jan-25 17:26
Can the deposit be considered as minimum fee? Or are both the details separate and different.
latest answer
No. They are considered as separate arrangements. Can be adjusted against future invoices or refunded if required
Manu Jacob
CA Final
★ 6K+
1
215
Process costing
Costing
answered on 20-Jan-25 15:50
Explain how 4 has arrived on this answer We have to find normal loss % of Y
latest answer
Thank you for sharing it presentably
Anitha V K
CA Inter
★ 4K+
3
267
Capital gain
Direct Taxation
answered on 15-Jan-25 11:42
If we sell the residential house within 2 yrs which is exempted under sec 54F ..do we still get indexation benefit
latest answer
If we sell after 2 years then we can claim indexation benefits
SREELEKSHMI SANTHOSH
CA Inter
★ 620
1
246
Is reliance allowed to pay referral fee to the employee for referring the lawyer?
Auditing
answered on 15-Jan-25 17:29
Is reliance allowed to pay referral fee to the employee for referring the lawyer?
latest answer
It purely depends on company’s policies. This is not sharing of lawyers fees, if it’s paid independent from the own funds, they can .
Manu Jacob
CA Final
★ 6K+
1
167
Area of the Left or Right
AFM
answered on 15-Jan-25 12:50
Sir, It means Left from the end of the tail till SD and Right of SD till the end of the curve?
latest answer
Yes
Mohanbabu N
CA Final
★ 3K+
1
196