Forums
Creation of DTA on initial recognition of GW
Financial Reporting
answered on 20-Jun-24 08:59
What cases would result in tax base of GW being more than carrying amount? since GW is not even considered as an asset for tax purposes
latest answer
After recent amendments, goodwill is no longer depreciable as per the income tax act. But that does not mean that goodwill will not be recognised as an asset in the balance sheet for tax purposes. Also there could be jurisdictions (say a foreign subsidiary) which allow amortisation of goodwill for income tax purposes. So while applying Ind As principles, differences would arise.
Dhvaritha Ravishankar
CA Final
★ 7K+
1
179
Not hedging
AFM
answered on 19-Jun-24 19:53
Hi sir, Because we did not hedge in part 3 and INR appreciates and depreciates. the final loan repayment will change so we considered that for loss computation. And every year we will pay interest also, so bcz of currency rates change our interest also changes . So we should consider interest change effect also for computing loss right sir ?
latest answer
They specifically send the exchange rate is changing only at period end. Not during the loan tenure. Int is paid during loan tenure - except for last int payment - you can consider it only for last int payment - But here the intent of the question does not appear to be that
B. Dinesh
CA Final
★ 3K+
1
268
Interest rate
AFM
answered on 20-Jun-24 11:09
Hi sir, instead of discounting with the post tax interest rate(6.2 %*0.70) as shown in the end. can we simply assume the interest rate of 6.2 % as post tax interest rate ? If we assume so, do any of the workings in the part 1 or part 2 will change ?
latest answer
Yes. Usually post tax rates have to be used. The rates quoted in market are pre tax. you have to necessarily reduce tax from market quoted rates. You cannot assumed market rates as post tax
B. Dinesh
CA Final
★ 3K+
3
262
Discounting factor
AFM
answered on 19-Jun-24 19:50
Hi sir, for the last 2.5 years interest rate is 6.5( 5.75+75bps) and our cost due to of swap is (5.75+45bps)is 6.2. Here interest rate is different and our cost is different. Bcz 6.5 is prevailing interest rate that we pay to bank, can we consider this rate for discounting cashflows ?
latest answer
Good point. I I am evaluating savings from a loan I would rather use the loan rate than any other rate. My cost of funds is 6.2 and not 6.5 so i woudl use 6.2 only
B. Dinesh
CA Final
★ 3K+
1
254
framework
Accountancy
answered on 21-Jun-24 09:03
30) why answer A ? what marginal cost mean ?
latest answer
It is 100
Sushmita Chowdhury
CA Inter
★ 2K+
9
373
Regarding Illustrations Problems
Indirect Taxation
answered on 19-Jun-24 19:19
Sir in the material given could not able to find the questions fully , some are missing in the material. CA FINAL IDT -- Customs and FTP Pg. no- 69 Illustration No. 16
latest answer
In case of any doubt in any question, kindly get back to us by posting the query in the forums.
G Ven
CA Foundation
★ 263K+
3
186
CA Foundation MCQs
Others
answered on 19-Jun-24 06:09
Are the CA Foundation MCQs based on new syllabus?
latest answer
Okay sir thanks 🙏
Srivathsan Arunachalam
CA Inter
★ 9K+
2
287
Schweser notes(FSA) pg.no 39 (module quiz 3rd qus)
CFA
answered on 18-Jun-24 12:44
The requirement is to find Diluted Eps why didn't they included net income(1.25L) in numerator and 1L sh(common sh O/s) in denominator
latest answer
If you add Net Income & O/s shares and compute the eps, it would be higher than the basic eps. Hence anti dilutive. You can calculate the effect of potential shares as dilutive or not by dividing incremental earnings with incremental shares. If this is greater than basic eps, its anti dilutive and you are not required to calculate diluted eps.
Dhakshana Dhakshana
CFA L2
★ 18K+
2
372
Final attempt if I take so many leaves.
Exams
answered on 18-Jun-24 10:56
Sir I registered my articleship 2022 may. I did only 10 months articleship and till today I'm in leave.under direct entry. After September attempt I will resume my articleship in other city(termination with old one). When will be my final attempt if I pass in September 2024.
latest answer
Thank you sir 🙏
Madhu Reddy
CA Inter
★ 4K+
7
378
cash book
Accountancy
answered on 18-Jun-24 10:21
If the received cheque is endorsed to the other part on the same day then what will be the journal entry
latest answer
Let's assume that Company A receives a cheque of ₹10,000 from Customer X and endorses this cheque to Supplier Y on the same day to settle a debt. Journal Entries: When the cheque is received from Customer X: Bank Account Dr. ₹10,000 To Customer X Account ₹10,000 (Being cheque received from Customer X) When the cheque is endorsed to Supplier Y: Supplier Y Account Dr. ₹10,000 To Bank Account ₹10,000 (Being cheque endorsed to Supplier Y) Or a combined entry Supplier Account Dr To customer Account.
Bharavi Kothari
CA Foundation
★ 20K+
1
421