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AS 22

Accountancy

answered on 13-Aug-24 11:46

How to solve 7 th question. Method?

latest answer

https://youtu.be/WMJWDyKp3X0?si=6a4M0eQGxOsmMU_e

Lucky Ten

Lucky Ten

CA Inter

0

1

365

PGBP ILLUSTRATION # 09

Direct Taxation

answered on 14-Aug-24 18:09

Sir how can we consider capital expenditure incurred on building incurred prior to PY ON warehousing of edible oil rupees 500000 and warehousing of pulses rupees 200000

latest answer

Thank you Siddesh. Answer for your query is "expenditure incurred prior to commencement can be considered if it is capitalised on the dated of commencement"

siddesh N

siddesh N

CA Inter

4K+

3

224

Amount of Costs to Sell

Financial Reporting

answered on 13-Aug-24 12:09

Sir, in the question, the 'costs to sell' on 31st March, X2 is given as 1,100. But the problem has been solved using 1000.

latest answer

Will correct it.

Antara MuraliKrishnan

Antara MuraliKrishnan

CA Final

20K+

2

265

income from salaries

Direct Taxation

answered on 09-Aug-24 11:51

ICAI material Illustration 25 is it important?

latest answer

You can practice once.

Monika T

Monika T

CA Final

7K+

1

318

SA-315

Auditing

answered on 08-Aug-24 19:55

Risk assessment procedure and risk assessment process are same?

latest answer

Yes. Procedure are the part of process

Vijay Ajith

Vijay Ajith

CA Inter

4K+

1

248

Dividend Decision

Financial Management

answered on 10-Aug-24 18:51

ICAI book practical problems no 5, Dividend discount model sum is not covered in the lectures sir Can any one explain it

latest answer

Thank you sir🙏

Praveen Raj

Praveen Raj

CA Final

0

5

354

inflation

Financial Management

answered on 12-Aug-24 11:31

sir, can you breifly explain about how to identify the question is real rate or in nominal rate

latest answer

Please post questions or doubts or videos related to either ICAI institute or Indigo Learn. Others can not be answered

Yash Laddha

Yash Laddha

ACCA Skill

0

1

177

Why depreciation constant Impact is not considered for the cashflows in illustration 1, chapter advanced capital budgeting decisions

AFM

answered on 08-Aug-24 12:32

In the Illustration 1, for year 0 cash flow is Rs 15000, for year 1 nominal cash flow is considered Rs 16,500(15000*1.10), Isn't the concept of constant depreciation is vioalted by doing so, i.e in the 1st year considering the inflation a) Revenue Rs 33,000, b) Cost Rs 11,000 c) depreciation Rs 10,000, d) EBIT Rs 12,000, e) 50% Tax Rs 6,000 f) PAT = Rs 6,000. hence CFAT = PAT + Depreciation = Rs 6,000 + Rs 10,000 = Rs 16,000 and not Rs 16,500.......... Same way with the subsequent years

latest answer

It is a bad question by ICAI actually and you are right - if we use historical cost convention to value assets then dep is also based on historical cost - we should not inflate CFAT with nominal rate but all P&L items with nominal rates - better way to solve this is using real cash flows and real rates In real life you have both capex and dep happening every year; also repairs and maintenance happens every year where amount incurred is in nominal terms, so expenses get adjusted automatically as cost of assets or r&m expense also keeps going up.

Hemachandra D

Hemachandra D

CA Final

9K+

1

271

Transactions and Events

Accountancy

answered on 12-Aug-24 10:19

Since transactions are all the activities of the business and events are the positions, can we say that transactions are all those which are found in P/L and that events are all that is reflected in the B/S?

latest answer

Event is nothing but the final outcome of business activity, which affects the account balances of a company Transaction involves exchange of goods/services for value between more than one party, firm or accounts

Devika Venu

Devika Venu

CA Foundation

5

2

351

Buy Back

Accountancy

answered on 07-Aug-24 23:32

Why did we create Capital Redemption Reserve 300000 and not 500000? (4th Journal Entry)

latest answer

Got it ... Thanks

Sagar Kathuria

Sagar Kathuria

CA Final

3K+

2

285