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Downstream and Upstream transaction
Financial Reporting
answered on 07-Aug-24 10:02
Please explain how the treatment differs from Ind As 110 to Associates. And also please correct me if I am wrong: If this qn is a case of consolidation as per Ind AS 110 (M holds 60% in N), Adjustments for upstream transaction (i.e. purchase from N Ltd) 1. Unrealized profit of Rs. 40,000 will be adjusted in post acquisition earnings of N ltd. As a result, both Consolidated P&L and NCI will be impacted by Rs. 24,000 and Rs. 16,000 respectively. 2. Inventory will be reduced by Rs. 40,000 Adjustments for downstream transaction (i.e. sale to N Ltd) 1. Entire Unrealized profit of Rs. 40,000 (not only M's share) will be adjusted in Consolidated P&L. 2. Inventory will be reduced by Rs. 40,000 Confused with M's share in downstream i.e. sold to itself.
latest answer
Under Equity method, 1. Ivestment in N ltd will be reduced to Rs. 16,000 (40,000*40%) 2. Sales and COGS corresponding to Rs. 16,000 will be reversed. This is correct understanding. In case of associate, it will always be what is parent's share.
Durai Murugan
CA Final
★ 470
4
696
Foreign Exchangee Management Act
Corporate & Other Laws
answered on 12-Aug-24 17:53
Bank cannot issue gurantee for ECB borrowing. This given in file 01 attached here. In File 02 in the context of security for raising ECS it given that bank can given guarantee. I am not able to understand this
latest answer
The second situation is about security for raising ECB and the issuance of guarantee here is not similar to the first image attached it is not talking about bank guarantees in the given context.
swaminathan sundaram
CA Final
★ 110
3
273
Direct stake and Indirect stake
Financial Reporting
answered on 14-Oct-25 10:00
In first example, Z ltd has 70%, 40% and 25% stake in S ltd (Subsidiary), J ltd (JV) and A ltd (Associate) respectively. Further S and J has stake of 10% each in A ltd. As explained Z cannot have any indirect stake over A through J as it does not control JV. However, including Z's indirect stake through S, how is it 35% for purpose of CFS? Wouldn't it be 25% + (70% * 10%) = 32%? Slightly confused. Kindly help me with this part.
latest answer
What would happen is for the 10% stake held through subsidiary, we will allocate NCI share of 30% for profits. Pls note ICAI has not been testing such complex holding structure for numerical in exams.
Durai Murugan
CA Final
★ 470
5
271
AS13
Accountancy
answered on 05-Aug-24 12:13
Why is exchange loss transferred to foreign exchange difference account and not P&L?
latest answer
The exchange difference are not recognized in P&L a/c because the change in exchange rates have little or no direct effect on present & future cash flows from operations
Sagar Kathuria
CA Final
★ 3K+
1
256
Wrong video under wrong heading
Strategic Management
answered on 06-Aug-24 10:10
Wrong video under wrong heading
latest answer
The video is correct only. Explaining each of the advantages and disadvantages with examples.
07- Issac Jolly-XII C
CA Inter
★ 16K+
2
269
SA - 210 - Agreeing to the terms of Audit Engagement
Auditing
answered on 05-Aug-24 13:38
Part 10 from this particular topic we have discussed a RTP November 2020 attempt Question in the Class. In that particular question the Audit Engagement letter was prepared by the Management. (Which is actually wrong as Audit Engagement letter should be Prepared by the Auditor, this we discussed in the lecture.) So, while dictating the answer you also didn't mention about this ma'am. My doubt is that what Management done is not acceptable and it should be prepared by the Auditor. What Shall I do now ma'am?
latest answer
Okay ma'am. Thank you
Kalaiarasi Sowtharman
CA Inter
★ 470
2
424
audit risk meaning
Auditing
answered on 04-Aug-24 21:40
Audit risk means something is wrong in the opinion given by the auditor then who wil review the work and assess that there is an audit risk.
latest answer
Audit risk will always be there. Auditor tried to reduce to audit risk by performance audit process needed in the given circumstances.
Satya Reddy
CMA Final
★ 1K+
1
194
SPOM Applicability
Exams
answered on 19-Aug-24 17:11
I had attempted May 24 (under the new scheme) CA Final attempt. So should I clear SET A and SET B before writing the Nov 24 exam or can I do it after I clear the exams (but before applying for membership)
latest answer
After writing exams.
Jowel Jacob Jestin
CA Final
★ 3K+
4
379
Old syllabus
Strategic Management
answered on 06-Aug-24 16:39
Is the non profit organisation part removed from syllabus
latest answer
Thanks for highlighting this. Will get it added by tomorrow.
mcmuhammadthaha mcthaha
CA Final
★ 0
5
166
Old classes
Strategic Management
answered on 04-Aug-24 10:17
The classes are not structured,I can see the old topic in the classes and some of the topics are missing
latest answer
Values
mcmuhammadthaha mcthaha
CA Final
★ 0
2
183