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Decrease in Liability > Carrying of decommssion cost part in PPE

Financial Reporting

answered on 09-Jan-25 10:00

As end of 10 Years, the carrying amount of decommission liability which intial Recognised as Rs 10000 will be 7500 (10000-2500) (Rs 2500 being the depreciation for 10 years for Rs 10000, so the carrying amount of the decommissioning liability cost in PPE is Rs 7500 and now we are reduced Rs 8000 from the PPE, which means no Decommissing cost included in PPE also we have reduced the carrying amount of PPE by Rs 500 (8000-7500), but it is inclued in Provision for decommissionig liability a/c But the words "if Decrease in Liability > Carrying Amount, excess is recognised as Income" is to be checked for the total Carrying Amount and not the just the decommission cost part present in PPE, Right ?

latest answer

We check for total cost of PPE and not only the decommissioning portion.

Hemachandra D

Hemachandra D

CA Final

9K+

3

257

Appendix A Events

Financial Reporting

answered on 09-Jan-25 10:00

Sir what it means, c) An increase that reflects the passae of time (Unwinding of the discount)

latest answer

Increase that has happened due to adding interest (time value of money)

Hemachandra D

Hemachandra D

CA Final

9K+

1

371

Excel sheet in Chapter -2 - Risk Management

AFM

answered on 09-Jan-25 09:35

The excel sheet provided in second chapter (Risk management) is protected. Kindly provide the password for the same.

latest answer

All our spreadsheets are password protected as these are our IP Regret cannot share passwords

Priyanka K

Priyanka K

CA Final

36K+

1

227

Intangible assets

Accountancy

answered on 09-Jan-25 08:49

Ans is b ...how ? Method? As - 26

latest answer

It should be amortised using a systematic basis reflecting pattern of consumption of economic benefits. So 35% * 5,00,000 = 1,75,000

Lucky Ten

Lucky Ten

CA Inter

0

2

273

Repayment of government grants

Financial Reporting

answered on 07-Mar-25 14:59

In the first illustration, the grant is related to income. But in the slide you mention it as the grant related to assets and their respective treatment.

latest answer

The video is updated.Please check it.

Pavithra S J

Pavithra S J

CA Final

9K+

2

245

Tax rates

Direct Taxation

answered on 09-Jan-25 10:38

sir in the example you said tax rates for default tax regime upto 3L -nil 3L-7L -5% 7L-10L@10% but in the ICAI study material the tax rate is upto 3L - nil 3L to 6L- 5% is given ?? 6L to 9L@10% which tax tax should taken and applied sir??

latest answer

Thank you sir.

bharathipriya

bharathipriya

CA Inter

3K+

5

375

Option - American & European

AFM

answered on 08-Jan-25 17:48

If not mentioned in 2 period binomial questions, should we assume it to be European?

latest answer

Yes

Durai Murugan

Durai Murugan

CA Final

470

1

236

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

267

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

278

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

299