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H model - Equity

AFM

answered on 28-Jul-24 13:39

Sir, if we solve this illustration using two stage model price is arrived at Rs. 123.86. Meanwhile using H model it is Rs. 127.88. Is it okay to solve using discount model?

latest answer

Unless they ask for H model use it stage DDM ONLY

Durai Murugan

Durai Murugan

CA Final

470

1

379

Related party transaction

Indirect Taxation

answered on 31-Jul-24 12:28

The video is not available. Can u check with the issue causing the problem.

latest answer

Video is available. Kindly let us know the issue.

Pughalya C P

Pughalya C P

CA Inter

23K+

4

212

GPF

Direct Taxation

answered on 31-Jul-24 12:34

If employee withdraw their GPF amount one year before retirement. Then their GPF amount is exempt or not for govt employees.

latest answer

Already answered in another query asked. Please check. Thank you.

Raliya Kani

Raliya Kani

CA Final

3K+

1

333

Covexity Concept

AFM

answered on 28-Jul-24 19:30

Sir why in this illustration(51) you are multiplying 1/2 or 0.5 because you said 0.5 will come for convexity and not for price change similar in in illustration 50 also we haven't multiplied 0.5

latest answer

sorry. ps chk now https://1fin.link/forum/adc65eb9311c49ca8108d474dacf2cae

Bhoomesh Velan

Bhoomesh Velan

CA Final

3K+

3

444

Equity valuation

AFM

answered on 28-Jul-24 09:09

Sir, in this question we calculated Ke with ex-dividend price. So, Intrinsic value of gordon model represents ex-dividend price i.e no right to next immediate dividend?

latest answer

Next dividend is of course part of working Pls compute on your own both ways to work PV of Next year dividend d1 plus value to infinity from d2 Also compute d1 to infinity. Answer will be same

Durai Murugan

Durai Murugan

CA Final

470

1

321

Audit opinion

Auditing

answered on 30-Jul-24 09:46

Hi maam what is meant by Pervasive on financial statements means Please explain with an example because i have confusion in this word

latest answer

A misstatement which has wide impact on over all financial statements. Or it affects one item which is very substantial part of the financial statements. Like- inappropriate accounting policy, or inventory being misstated. Please check SA 705 for more detailed understanding. This is used in the context of modified opinion .

R Yashwanth Kumar

R Yashwanth Kumar

CA Final

87K+

3

426

Selling expenses and selling cost

Financial Reporting

answered on 31-Jul-24 14:48

To determine NRV, we have to reduce the estimated selling costs. But when we are determining the cost of inventory we are not considering the selling expenses. If a question ask to find the NRV and cost of a material and selling expenses are also given for the computation, should we reduce that amount from NRV and also should ignore while computing the cost of the material? Whether the selling expense and selling cost are same?

latest answer

Ok sir understood

Abhijith K B

Abhijith K B

CA Final

5

2

278

Equity Valuation

AFM

answered on 28-Jul-24 09:14

Last part of the sum is bit confusing. Price = Actual yield / Expected yield x Paid up capital per share. Moreover, there is no info about no. of shares o/s to arrive Rs. 100 as paid up capital per share.

latest answer

It is a poorly structured question. Yes rs 100 is not given . You can assume it at 10 also. We are computing price as as function of yield the stock is giving hence the formula Such questions are not typically asked

Durai Murugan

Durai Murugan

CA Final

470

1

360

What is mean by asset cealing In Ind As-19

Financial Reporting

answered on 31-Jul-24 14:44

Sir ,please elaborate What is the asset ceiling in Ind AS-19 While reading the book I'm not able to understand, but if I want to revisit the lecture and revise I'm not able to find where it there kindly please say

latest answer

Suppose a company has an overfunded defined benefit plan with a net defined benefit asset of ₹50 lakh. However, after evaluating the economic benefits, the company determines that it can only recover ₹30 lakh through future refunds or contribution reductions. The asset ceiling is ₹30 lakh, so the company will recognize only ₹30 lakh on its balance sheet.

Surya Prakash

Surya Prakash

CA Final

19K+

2

375

Cap gain

Direct Taxation

answered on 31-Jul-24 12:35

Can anyone explain how to do this qn

latest answer

If interest on loan is availed as deduction then you cannot add it to COA else you can add it to COA

Rakesh Saraf

Rakesh Saraf

CA Final

0

1

348