AGENCY PROBLEM & AGENCY COST

answered on 10-Jul-25 10:06

am i right in understanding that the agency cost is the monetary values and the perqs given to the BOD being an agent of Owner (Principal), so that it can motivate them to work for wealth maximisation of the company instead of fulfiling their personal goals? [Video Time Stamp: 11:54]

latest answer

Broadly right It includes bod and management Agency costs also include expenses incurred to keep bod and management in line Eg auditors, compliances, independent directors compensation etc

Vinod Kumar

CA Inter

★ 1K+

1

19

Demo videos

answered on 10-Jul-25 10:13

There used to be demo lectures for a short duration for every subjects in this app. Is it still available?

latest answer

Thank you

Sahana I

CA Inter

★ 3K+

3

38

Reclassification of Financial Assets - FVTPL to ACM/FVTOCI

answered 2 days ago

ILL 38 and 39(Institute Material) Under FVTPL, FA is already carried at Fair Value. Isn't the entry should be, Bonds at FVTOCI/ACM 90000 To Bonds at FVTPL 90000

latest answer

Thank you

Durai Murugan

CA Final

★ 470

4

30

Change in life of asset

answered on 11-Jul-25 09:27

Sir as we have seen when the revised life of asset came down from 7 to 5 then we divided the amount by 5 But if the revised life of the asset went from 7 to 8 then we should divide it by 8 [video Time Stamp: 05:55]

latest answer

Yes.

Gurukanta Singh

CA Foundation

★ 10K+

3

30

IND AS 24

answered 2 hrs ago

Sir is this correct. Related party disclosure

latest answer

INtra group balances are eliminated.

R Yashwanth Kumar

CA Final

★ 86K+

1

18

Derivative asset or Liability ?

answered on 09-Jul-25 15:52

• Agreed to buy machinery on 31 Dec for USD 10,00,000 • Agreed to pay at a forward rate of ₹67.8 • But on 31 Dec, the spot rate is only ₹67.0 • Company A is paying ₹0.8 more per dollar than the market rate. Company A is paying ₹6,78,00,000 (₹67.8 × $1 million) It could have bought dollars from market at ₹67.0, which would be only ₹6,70,00,000 So Company A is losing ₹8,00,000 due to forward contract. But in video it is explained as Derivative asset ? Kindly clarify my doubt sir.

latest answer

In case of embedded derivative, here we see it as two transactions (notionally) 1 - Machine transaction 2- Forex derivative transaction In case of forex derivative transasction - A will deliver $ to B. Which is like A is selling $ to B. A sold $ forward at 67.8. On expiry the $ is 67. So on the derivative tranasction they company gained Hence its a derivative asset.

Sai Yashwanth

CA Final

★ 3K+

1

20

Under Profit and wealth maximisation : CHARACTERISTICS OF SOURCES OF FUND

answered on 11-Jul-25 09:36

Under this lecture, sir said that as if there is an increase in the number of equity shareholders, the control gets diluted. My query is, how it can be stated as high control then if the control gets diluted, the controling power reduces hence, there will be LOW control under Equity based fund. and under Loan( Debt) based fund, there is no chance of dilution in control, then how could be the control over this type of funds are LOW?. if the decision making power isnt diluted under this type of fund, then the management of the company will have HIGH controlling power. please clarify with this context. thank you [Video Time Stamp: 04:18]

latest answer

thank you sir for your confirmation.

Vinod Kumar

CA Inter

★ 1K+

8

35

Explanation to the definition of Financial Management : from INTRODUCTION CHAPTER

answered on 09-Jul-25 10:37

Dear sir, i have a very specific doubt with the defination. out of all the terms provided in the dfination : - PLANNING , ACQUIRING, BROADCASTING, CONTROLLING, COORDINATING, DIRECTING, EFFICIENTLY UTILISING, MONITORING, FORECASTING, NEGOTIATING AND ORGANISING... the term BROADCASTING needs a small explanation with the given context. thank you.

latest answer

Broadcasting refers to informing all necessary stake holders about of financial information

Vinod Kumar

CA Inter

★ 1K+

1

20

INVESTMENT DATE

answered on 09-Jul-25 08:32

Is this is correct, If formulae is for Investment date = Return (%) for MF X / Annualised Effective Yield (%) on MF X * 365 days?

latest answer

Yes

Nitheesh Kumar

CA Final

★ 570

1

17

GAP Up/Down

answered on 09-Jul-25 08:33

If the closing price of a stock on Day 0 is ₹100, and it opens at ₹120 on Day 1, is ₹120 considered the official opening price, or does the price still start from ₹100? [Video Time Stamp: 01:06]

latest answer

120

Murali Thripuraboina

CA Final

★ 3K+

1

21