Forums
Swap Transaction??
AFM
answered on 16-Jul-24 19:41
My doubt is from above example if one company take loan at 3% fixed interest and another company take loan at Libor + 50bsps and both the companies enter into swap transaction how would the interest portion will be treated in accounts Sorry to ask here it may be related to FR but the concept is detailly explain here so I asked here Doubts: 1) if company one take loan at 3% fix and it done swap with another company at libor + 50bsps how would be the accounting treatment will be done? Simply on which interest they will claim deduction in income tax ... Will the company which took loan from Bank at 3% fixed interest will claim that only as deduction in income tax or it will take interest paid under floating as deduction in income tax
latest answer
On what is paid net IT deduction will be taken Eg: You convert floating to fixed, they you receive floating amt (A) from swap counterparty, pay fixed amt B to swap counterparty and Pay floating C to your lender then in books you will account the net amount expense of B+C-A ; since C = A you will account for B as interest expense. Same can be claimed as int expense under IT act
Surya Prakash
CA Final
★ 19K+
1
272
AS 16
Accountancy
answered on 17-Jul-24 13:41
Why is the phase 3 & 4 not capitalised - work is not yet completed right?
latest answer
Construction*
Soon to be CA
CA Inter
★ 4K+
5
338
Doubt
Costing
answered on 17-Jul-24 12:55
Will the costing class of one fin help me to pass(CA Inter)?
latest answer
Please post any subject queries that you have here, and faculty / team shall resolve them
07- Issac Jolly-XII C
CA Inter
★ 16K+
3
286
Revision
Strategic Management
answered on 19-Jul-24 10:49
SM revision part 2 and 3 are same as part 1, please clarify
latest answer
Done.
Ebin Joseph
CA Inter
★ 28K+
4
296
Regarding illustrations
Accountancy
answered on 18-Jul-24 20:59
why some of the questions explained in AS- 15 chapter aren't there in indigolearn material ?
latest answer
thank you sir
rushmitha ev
CA Inter
★ 1K+
2
196
Free cash flow to Firm Model(FCFF)- Through Cash FLow method
AFM
answered on 16-Jul-24 20:08
The FCFF found via Cash flow method comprises of the following format in ICAI institute material. FCFF= Cash flow From operations + Interest (1-Tax) -/+ Capital Expenditure. But in our class we use Interest*Tax rate? Can you clarify sir?
latest answer
Excellent question Per IND AS Int expense is financing activity so when we compute CFO we add back full interest - refer page 265 of my ex employer coromandel AR 23 https://www.coromandel.biz/wp-content/uploads/2023/07/Integrated-Annual-Report-FY-2022-23.pdf Also refer pg 704 & 705 pt 18 & 20 of IND AS 7 from link below https://www.mca.gov.in/Ministry/pdf/INDAS7.pdf Per USGAAP Int expense is operating activity Refer attached screenshot of FASB . You can visit FASB and look for standard on presentation of cashflows, para ref available in screenshot. Also giving below links of US GAPP vs IFRS diff https://rsmus.com/pdf/us_gaap_ifrs_cash_flows.pdf https://kpmg.com/us/en/articles/2022/ifrs-accounting-standards-us-gaap.html#:~:text=Under%20US%20GAAP%2C%20while%20restricted,the%20statement%20of%20cash%20flows. US GAAP - When Int is part of operating activities, it is not added back to Net Income in US GAAP when we compute CFO. So when we have to adjust for Int to arrive at FCFF, we directly add back Int x ( 1-t) IND AS - when int has already been fully added back to NI when computing CFO, we have to only deduct to the extent of tax from CFO in order to arrive at FCFF - so we multiply int expense with tax ICAI material - they have copied stuff directly from international material without applying their mind Abt diff between US gaap and INDAS . Sharing copy of CFA material which shows how to compute FCFF under US GAAP ( also refer links below) https://www.cfainstitute.org/en/membership/professional-development/refresher-readings/free-cash-flow-valuation#:~:text=FCFF%20and%20FCFE%20are%20related,%E2%80%93%20Tax%20rate)%20%E2%80%93%20FCInv. https://www.investopedia.com/terms/f/freecashflowfirm.asp Conclusion - i am right ICAI material is wrong
S Shriram
CA Final
★ 0
1
402
Preparation of Financial Statement
Accountancy
answered on 16-Jul-24 12:48
why aren't we transferring profit on sale of machinery to capital reserve but showing it in other income in this question?
latest answer
Gain on sale of fixed assets is recognised in P&L
Niveta Rajkumar
CA Inter
★ 6K+
1
353
Additional condition
Direct Taxation
answered on 26-Jul-24 13:35
Whether to satisfy first Additional condition ie 2 out 10 preceeding py. Whether in Y1- 190 Y2- 200 Satisfy first add condition?
latest answer
OK thanks sir
SURYA NARAYANAN v
CA Inter
★ 6K+
4
192
Cost of debt, preference,jan 21 exam Q
Financial Management
answered on 16-Jul-24 15:55
In this solution ICAI has used face value as issue price to calculate Kp,Kd.Instead of face value shouldn't we be taking market price as issue price when we are not given issue price specifically.
latest answer
Thank you Sir.
Joel Maleppillil
CA Inter
★ 0
4
334
Title of Video
Financial Reporting
asked on 16-Jul-24 07:10
Sir, Actually this video discusses questions that are not in the text. But it is titled as Illustrations 15 - 18.
latest answer
No answers yet!!
Antara MuraliKrishnan
CA Final
★ 20K+
0
239