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Why is interim dividend not added

Financial Reporting

answered on 23-Nov-24 12:12

Why is interim dividend not deducted from net profit while computing cashflow from operating activities. It is related to financing activity. Hence should it not added back and later reduced in financing activity?

latest answer

We start from Net profit before taxes or after taxes. The dividend is not yet adjusted. So no need to add back. Dividend is appropriation of profit which is deducted after net profit after tax.

Manu Jacob

Manu Jacob

CA Final

6K+

1

796

Fair Value of Assets

Financial Reporting

answered on 23-Nov-24 11:24

Why wont we add increase in fair value of assets in the profits as we do in Consolidated FS

latest answer

Increase in Fv on date of acquisition is part of pre acquisition profits and is considered in Goodwill calculation.

Hrishikesh Pradhan

Hrishikesh Pradhan

CA Final

18K+

1

548

Remeasurement

Financial Reporting

answered on 23-Nov-24 11:21

Sir, In exercise period also we need to remeasure the liability ?

latest answer

If cash settled

Gunda Sharan

Gunda Sharan

CA Final

150

1

174

Question 18

Financial Reporting

answered on 25-Nov-24 20:32

Sir, Can Parent company pass single entry at the end of year 2?

latest answer

It will distort presentation in Year 1

Gunda Sharan

Gunda Sharan

CA Final

150

1

172

MBA or Bcom

Others

answered on 24-Nov-24 18:01

Hi sir, while doing articleship if we do Bcom or MBA from online/distance, is it mandatory to inform ICAI and take permission

latest answer

OK sir, thank you!

R Yashwanth Kumar

R Yashwanth Kumar

CA Final

87K+

5

514

Cash settled

Financial Reporting

answered on 23-Nov-24 09:01

Sir, Didn't get the logic on why, when Amazon India has an obligation to get shares and pass on to employee is treated as cash settled. why can't be treat it as equity settled because still Amazon India has no obligation to settle shares as it just passing to employees

latest answer

In equity settled it has to be own equity.

Gunda Sharan

Gunda Sharan

CA Final

150

1

183

Section 23 and 24 of CGST Act

Indirect Taxation

answered on 28-Nov-24 11:45

If a person meets one of the cases in which registration is compulsory, but also meets another case where registration is exempt, how do we proceed? Does the exemption prevail?

latest answer

Ok sir, thank you

Vishnu Muraleedharan

Vishnu Muraleedharan

CA Final

32K+

3

641

Conversion old course to new course

Exams

answered on 22-Nov-24 20:52

Does June 2023 students need to convert from old course to new course

latest answer

Yes. I guess 500

Kusuma

Kusuma

CA Foundation

0

3

640

Is it financing or investing activity?

Financial Reporting

answered on 24-Nov-24 16:49

When a patent is obtained, is it a financing or a investing activity? If using similar logic in the case as intangible assets, should it not be investing activity and royalty derived from investing activity should be investing activity as well. Please explain

latest answer

By that logic, any income derived by operating tangible fixed assets should also be investing. The income earned by an entity by day to day operation is considered to be a part of operating activity.

Manu Jacob

Manu Jacob

CA Final

6K+

2

694

SAR

Financial Reporting

answered on 22-Nov-24 17:02

Sir, In the question it is not clear as cash settled or equity settled How it is treated as cash settled

latest answer

SAR are cash settled.

Gunda Sharan

Gunda Sharan

CA Final

150

1

188