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Why is it Performance Obligation over a period of time?

Financial Reporting

answered on 27-Nov-24 15:00

Here in the example, airtel has transferred 200 minutes worth of talk time. Whether the customer utilizes or not, it does not matter to airtel. Airtel is not providing continuous improvement or servicing to the service also to the particular customer. So can you please explain it to me why it is over a period of time and not at a single point.

latest answer

Service has not been performed yet. Service is completed only when the customer uses it.

Manu Jacob

Manu Jacob

CA Final

6K+

1

188

Doubt

Financial Reporting

answered on 27-Nov-24 15:07

In this problem, why can't we reverse entire additional discount of Rs. 90 instead of 80.36?

latest answer

We have booked the value of voucher as 107.14. So its reversed proportionately.

Manu Jacob

Manu Jacob

CA Final

6K+

1

219

Non-adjusting events

Financial Reporting

answered on 27-Nov-24 15:10

An entity acquires a subsidiary (Business combination - IndAS 103) after the Reporting period. The share Purchase agreement is being entered into after the date of approval of Financial Statements. But the entity is aware of the plan of acquisition before the approval date. In this case, whether the same to be disclosed in the Reporting period or not, sir?

latest answer

IT depends on what level is the discussion and negotiation. If deal has been finalised, but agreement is done later, it would be disclosed. If it is at initial stage, the company should consider materiality. Also note that in case of listed entities, any such negotiations/deals should be disclosed to exchanges immediately.

Swathi S

Swathi S

CA Final

975

1

206

Consolidation

Accountancy

answered on 27-Nov-24 15:12

Trade payables of holding company include ₹35,000 due to subsidy company for good supplied since the acquisition of shares these goods are charged at 10% above cost Accounting treatment ?

latest answer

1. Eliminate Inter-company Balances: The trade payables of ₹35,000 in the holding company and the corresponding trade receivables in the subsidiary's books will be eliminated in consolidation. 2. Adjust for Unrealized Profit: The goods are sold at 10% above cost, meaning the unrealized profit is embedded in the inventory still held by the holding company. Unrealized profit needs to be eliminated from both the inventory and consolidated profit. Calculation of Unrealized Profit: Profit margin = 10% of cost Cost = Selling price / (1 + Profit Percentage) = ₹35,000 / 1.10 = ₹31,818.18 Unrealized Profit = Selling price - Cost = ₹35,000 - ₹31,818.18 = ₹3,181.82

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

2

712

SA 220 QUALITY CONTROL ON AUDIT OF FINANACIAL STATEMENTS

Auditing

answered on 28-Nov-24 23:33

IN CASE OF LISTED COMPANIES IS IT PERMITTED THAT QUALITY CONTROL REVIEWER AND ENGAGEMENT AUDIT FIRM CAN BE DIFFERENT.

latest answer

Yes they belong to same firm . It’s at firm level

LAKSHMI NARAYANA perakam

LAKSHMI NARAYANA perakam

CA Final

0

2

660

amt

Direct Taxation

answered on 28-Nov-24 11:25

FROM THESE 5 DEDECTIONS IF ANY ONE IS ALSO GIVE THEN ALSO HAVE TO CALCULATE AMT OR ALL DEDUCTIONS ARE NEEDED?

latest answer

If any of them is given then AMT would apply.

Saniya Balekai

Saniya Balekai

CA Inter

285

1

575

company audit

Auditing

answered on 29-Nov-24 06:58

is this part of our syllabus or for our understanding mam..?

latest answer

Ok sir..thank you sir

shanthini hariharan

shanthini hariharan

CA Inter

10K+

7

608

audit report - 143

Auditing

answered on 29-Nov-24 06:58

mam, may i kindly know under which chapter this comes mam...is this a part of our new syllabus mam

latest answer

Ok sir..

shanthini hariharan

shanthini hariharan

CA Inter

10K+

4

565

Financial statements of company

Accountancy

answered on 27-Nov-24 15:14

Is Accounting treatment for Interest Accrued but not due and Outstanding interest for the year Is same? Does both has to be charged under Finance cost ?

latest answer

The accounting treatment for Interest Accrued but Not Due and Outstanding Interest for the year are generally classified under Finance Costs in the statement of profit and loss.

Ankitha Rao

Ankitha Rao

CA Final

4K+

2

594

Doubt regarding why value of R not taken in sub question 3.

AFM

answered on 27-Nov-24 08:26

Sir , why the value of r not taken into consideration ? Since it included in the formula

latest answer

Thank you Sir 🙌

Prethivi Rajan

Prethivi Rajan

CA Final

9K+

2

567