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Chapter 9.2 - Treasury and Cash Management

Financial Management

answered on 19-Aug-24 16:58

ICAI Mat - Illustration - 8 (pg.9.51) : In the Problem, while computing Net Cash Inflow at last, Rs.50 lakhs is deducted as mentioned "Cash required for increase in stock". Where did this amount comes from? Pls explain

latest answer

Thank you. Got it

Nikil Karol

Nikil Karol

CA Inter

115

2

251

Risk Management

AFM

answered on 17-Aug-24 12:37

Sir, Why we multiplying SD % in 2AB , as per my understanding SD1 & SD2 are cancelled by Cov1,2/SD1 , SD2 while we substitute in P formula.

latest answer

Thank you Sir

Prethivi Rajan

Prethivi Rajan

CA Final

9K+

2

253

AS 16

Accountancy

answered on 17-Aug-24 01:03

here in this question, where did 52,50,000 Rs came from?!

latest answer

We are calculating the average accumulated interest. And then reducing the specified loan part from it. That is 50 Lakhs. And on the balance part that is 2,50,000 we apply 9.6% to arrive at the interest. So the interest to be capitalized is 1. On specified loan [50,00,000 × 8%] 4,00,000 2. On general Borrowing [(52,50,000 - 50,00,000) ×9.6%] 24,000

Niveta Rajkumar

Niveta Rajkumar

CA Inter

6K+

1

358

depreciation

CFA

answered on 18-Aug-24 12:48

Around 36:30, under the double declining ( depreciation) method, shouldn't the useful life also be reduced at the end of each year while substituting the same in the formula ( 1st year 10 then 2nd year 9 years of useful life)? Why or why not ?

latest answer

Hi, I don’t see any major logical flaw in using a decreasing life each year. There are various ways of implementing accelerated depreciation, this is one of the method prescribed in CFA curriculum. Probably the reason for choosing this way could be that it spreads the depreciation more evenly vs. using a decreasing life each year (see the attachment)

Vasudha TK

Vasudha TK

CFA L1

70

1

271

capitalising vs expensing

CFA

answered on 18-Aug-24 13:00

Around 20:40, is the first metric asset turnover ratio ? If yes, then will capitalising an expense not reduce the asset turnover ratio as the value in the denominator is increased ?

latest answer

Hi, The first line talks about the impact on total assets only doesn't refer to ratio. Yes, if we talk about asset turnover ratio, capitalizing will decrease the ratio.

Vasudha TK

Vasudha TK

CFA L1

70

1

237

HUF

Direct Taxation

answered on 12-Nov-24 09:36

Where is Hindu Undivided Family Video ?

latest answer

Person includes HUF. That would be sufficient to know. Dayabhaga law and Mithakshara is given in ICAI material for knowledge.

V Ajith Kumar

V Ajith Kumar

CA Inter

1K+

3

312

Journal

Accountancy

answered on 17-Aug-24 00:43

I need Solution and explain for this sim

latest answer

You're welcome

Muthu Manickam

Muthu Manickam

CA Foundation

100

6

291

Regarding Impairment loss recognised

Financial Reporting

answered on 21-Aug-24 12:57

Sir, suppose the asset is not sold. The reversal of impairment loss is restricted to 2.5lakhs. Excess of FV less cost to sell amounts to 3.5lakhs.The carrying amount is revised to 29lakhs, and the FV less cost to sell is 30lakhs, do we need to recognise impairment loss of Rs.1lakh?

latest answer

okay

S Shriram

S Shriram

CA Final

0

5

182

Thank you for the course arrangement.

Financial Reporting

answered on 16-Aug-24 16:53

Thank you for the course arrangement. do we have any continue session on this course please.

latest answer

Student just exploring for CMA inter, will buy after 6 months

Raja Mohamed Thaalai

Raja Mohamed Thaalai

CMA Foundation

5

1

154

Long term capital gain and short term capital gain

Direct Taxation

answered on 17-Aug-24 18:02

Inthis video there given the word LTCG in short term side . whether is it crt or not I need a explaination please

latest answer

Yes. If it is held for more than specified period then it is long term.

Navya 2805

Navya 2805

CMA Inter

2K+

1

163