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Point 4- SD classified as current
Financial Reporting
answered on 27-Jan-25 19:35
Hi Sir, It's been specified that if the contract is cancelled before the completion, then it becomes payable immediately, however company does not expect the cancellation of contract, nowhere it is mentioned that who is eligible for contract cancellation & even the company does not expect to cancel the contract, then why it is classified as current. pls clarify
latest answer
Security deposits are given by other parties. This acts as a protection for the company. The question is not clear about who can cancel hence we can assume either party can cancel
priyadharshini priya
CA Final
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261
put period is 5 years
AFM
answered on 27-Jan-25 15:46
Sir Airbus can sell the business within next 5 years, so value of option should be based on t = 5 or becasue cashflows given for 30 years so using t = 30
latest answer
5 years - option can be exercised in 5 years
Hemachandra D
CA Final
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289
16.7 PV or NPV and what does answer 4.6192 means
AFM
answered on 27-Jan-25 15:22
Sir whether the given 16.7 million is PV of Cash Inflows or is that the NPV if thats PV of Cash flows 16.7, then NPV is 4.2 (16.7-12.5 ), we calulated value of option as 4.6192 So how does this Normal way NPV 4.2 vs compared with 4.6192 value of option the value of option we got greator is it because we have option to excercies any time in 15 years ?
latest answer
16.7 is PV Your understanding is right. Value of option at 4.6 is > NPV which is 4.2 imagine You have a buy call at 60 as strike and CMP is 57, value of option is intrinsic value + time value. Option value will not be just 3 It may 4 or 5 to account for time value Same logic apples here
Hemachandra D
CA Final
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270
Type of Option ?
AFM
answered on 27-Jan-25 15:13
Sir is this American Call Option kind ? as it can be excericesed anytime within 15 years
latest answer
Yes, but is not possible to value an AMerican call using BSM An American call is atleast most valuable than European. So at minimum value of european will be value of an american call
Hemachandra D
CA Final
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1
285
Trade receivable and Trade Payable Adjustments
Financial Reporting
answered on 27-Jan-25 19:37
Sir, In Trade receivables and Trade Payables 1200 to be adjusted or 1000? In solution you have considered 1000. Please clarify the correct treatment.
latest answer
In adjustment 6 - it is given as 1000. means 200 is settled. .
Gunda Sharan
CA Final
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1
256
Auditor's report
Auditing
answered on 27-Jan-25 17:29
Lets say , reporting year is from Apr - Mar. I understand that if he resigns after 45 days of the quarter he has to issue the report for such quarter as well as next quarter. If report is issues for all 3 quarter, he has to issue for full year And Auditor has resigned on 12th of feb. Does he have to issue report for full year if he has issued previous 3 quarter report even though he is resigning within 45 days of last quarter?
latest answer
Can you tell me where this discussion has been done? I am not able to relate to the question
Jaya
CA Final
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1
275
Present value factor consideration
Financial Reporting
answered on 27-Jan-25 19:38
In Time Stamp 6:54, I am getting frequently confused while considering beginning of year 1 or end of Year 1 and the relevant PVF in calculation. Is there a possibility to differentiate this while reading question sir??
latest answer
the question mentions that payment due on 1/1/x2 - means beginning of year.
Serena Charles
CA Final
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320
Cash payment up to rs 10000
Direct Taxation
answered on 14-Feb-25 21:38
Loan given and repaid rs200000 can be cash payment ? Interest paid in a/c payee Cheque
latest answer
Perfect.
Sushmita Chowdhury
CA Inter
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12
575
Illustration 6
Financial Reporting
answered on 27-Jan-25 19:58
Sir in this illustration it was provided goodwill of 65 lacs recognised on its initial acquisition. Now it is not clearly stated whether the goodwill determined using fair value of NCI's share or proportionate share of net asset basis. On this basis, can we presume and include the statement as in considering goodwill calculated using share of net asset basis. NCI has 20% share only on carrrying value of asset excluding goodwill and account for change in proportion sir.
latest answer
Currently 100% of subsidiary is owned by Parent. Now we have trf 20% of this. So out of total net assets of 300 lakhs, we are trf 20%.
kavitha selvam
CA Final
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1
276
SA 299
Auditing
answered on 27-Jan-25 17:33
CAN THE ENGAGEMENT LETTER CAN DEFINE THE SCOPE OF EACH JOINT AUDITO
latest answer
Yes. Engagement letter can define the scope of each joint auditor
LAKSHMI NARAYANA perakam
CA Final
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1
346