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Option -Risk neutral probabilities

AFM

answered on 08-Jan-25 16:17

How many decimal points are advisable when using P = (e^rt-d)/u-d ? If no need to present u and d separately, can we solve directly by Su(P)+So(1-P)=Current spot*e^rt?

latest answer

Decimal points - pls consider 4 Yes you can solve using formula you mentioned

Durai Murugan

Durai Murugan

CA Final

470

1

214

Question 12

Financial Reporting

answered on 08-Jan-25 17:38

Sir, Why transactions on Acquistion date to be recorded in foreign currency? as Global Ltd functional currency is Rupees only.

latest answer

We converted to INR Calculation is basis Euro.

Gunda Sharan

Gunda Sharan

CA Final

150

1

197

Do we have to compulsorily use continuous compounding method or can we use simple interest method as well?

AFM

answered on 08-Jan-25 13:28

Do we have to compulsorily use continuous compounding method or can we use simple interest method as well?

latest answer

If value of e is provided u have to use continuous compounding In real life that is what is used

Manu Jacob

Manu Jacob

CA Final

6K+

1

252

Classification on modification - Illustration 50

Financial Reporting

answered on 15-Jan-25 15:17

Sir, till [timestamp 14:53], I understood well. But afterwards it slightly confuses. 1. Aren't we supposed to check the classification that would have been made at inception, had the modified T&C already been in place? Then why did we check it as on date of modification (i.e., beginning of Y2)?

latest answer

Okay, sir. Got it. Many thanks.

Denz Philip

Denz Philip

CA Final

10K+

4

197

Amendments for may-25

Direct Taxation

answered on 08-Jan-25 12:08

Sir make amendment videos for may-25 exams for taxation exam( CA inter)

latest answer

Check it https://youtu.be/H8SAgROSKsM

Ajaykumar Parit

Ajaykumar Parit

CA Inter

815

1

280

Exemption

Exams

answered on 09-Jan-25 19:53

For getting exemption should i have to appear for all the papers and then get exemption or appear only for the paper i wish to get exemption ? From Jan 2025 is the exemption permanent ?

latest answer

Of a group

Harish Chandar T

Harish Chandar T

CA Inter

5

4

288

Fsa

CFA

answered on 08-Jan-25 13:18

If there is dividend payable account and dividend declared in given, you calculate the dividend paid from the dividend payable account, you have to put dividend paid under Financing activities, do you need to put dividend declared under non cash and non operating activities under operating activities. And what is the difference between dividend declared and proposed dividend

latest answer

No need to put dividend declared in non cash and non operating item in CFFO as it is not deducted while arriving at net income. It is deducted from equity. Proposed dividend is the dividend proposed by board of directors. It becomes declared once approved by shareholders.

Kaarthick Abishek

CFA L1

0

1

252

Residual Value

Financial Reporting

answered on 08-Jan-25 07:23

Residual value is an Current Estimate which can be recovered, Doubt is cost incurred to sell such asset should it be reduced from such estimates to cosndier the Residual value, say Commission cost will be incurred to sell such asset, should the commission charges to be reduced to arrive at residual value

latest answer

Yes. Net residual value.

Hemachandra D

Hemachandra D

CA Final

9K+

1

211

Revalutaion Accounting

Financial Reporting

answered on 08-Jan-25 17:34

Sir, out of 2 methods to do Revalution Accounting, can we follow any method or second method to be followed ?

latest answer

Any one

Hemachandra D

Hemachandra D

CA Final

9K+

1

200

SPOM Applicability

Others

answered on 08-Jan-25 07:53

Sir I have completed my Ca inter in Nov 2023 but still continuing articles. Shall I have to write set C and D sir?

latest answer

Okay sir thank you

Likhitha Sivani

Likhitha Sivani

CA Final

14K+

2

233