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Explicit period and Perpetuity period

AFM

answered on 20-Jul-24 19:52

Let's say Dividend is expected to grow at 18% per annum for the next four years. The growth will decline linearly to 14% per annum after first four years. Thereafter, it will stabilise at 14% per annum infinitely. Growth rate for, D1to D4 = 18% D5 = 17% D6 =16% D7 = 15% D8 to D infinity = 14% 1st case: P = PV of Dividends from D1 to D8 + PV of P8 --- WHICH IS USED IN ILL 28 2nd case: P = PV of Dividends from D1 to D7 + PV of P7 --- WHICH IS USED IN ILL 39 2nd case logic is used in this Ill 46 as well. What is the logical or appropriate method? 1.

latest answer

Thanks sir, I reverse worked this Illustration and arrived same CMP given in the question.

Durai Murugan

Durai Murugan

CA Final

470

2

404

Ratio Analysis

Financial Management

answered on 20-Jul-24 16:34

In illustration 3 If we prepare for trading,p&l a/c in such a case whether taxes are to be taken as an expense or not

latest answer

yes to be taken

Gopichand Annamadasu

Gopichand Annamadasu

CA Inter

270

1

213

IND AS 38

Financial Reporting

answered on 22-Jul-24 12:22

If in the attached question software was 10 and robots were costed 4 cr then as significant amt was of software so entire 14 cr is recognised as intangible asset, it is correct sir

latest answer

Its not based on amount. Its based on nature.

R Yashwanth Kumar

R Yashwanth Kumar

CA Final

87K+

3

278

sh cap n Deb

Corporate & Other Laws

answered on 23-Jul-24 15:15

pls explain this with example only the bracket of pt 1

latest answer

I am unable to read such text in the image you attached. can You mention where it is mentioned with a clearer picture.

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

16

395

Exemption to RPT disclosure

Financial Reporting

answered on 22-Jul-24 12:33

How is it an exemtion if the entity has to anyways disclose the name and relationship and significant transactions with the government?

latest answer

Part exemption you can consider.

Dhvaritha Ravishankar

Dhvaritha Ravishankar

CA Final

7K+

1

244

Debt Equity

Corporate & Other Laws

answered on 24-Jul-24 10:44

Why CRR is not utilized first, in this question? Why free reserves was given the first priority?

latest answer

Okay thank you I got it now

Mahesh Ram

Mahesh Ram

CA Inter

0

8

337

Late fee chaarged today

Exams

answered on 20-Jul-24 09:12

sir in Icai exam annoucement it has been stated that last date for exam fee without late fee is 20th july.Now i appiled for exam sir i has been charged the late fee sir.What can I do.I also attach the Screenshot below Sir

latest answer

Okay Will do it

STEPHENRAJ MESSACH

STEPHENRAJ MESSACH

CA Inter

14K+

2

421

Entity Committed to enhance the performance

Financial Reporting

answered on 20-Jul-24 07:29

Here, whether the term committed means "Commencement of Enhancement" or "Completion of Enhancement", sir?

latest answer

Committed means the entity will do/execute. Think of it as “commitment” to a relationship.

Swathi S

Swathi S

CA Final

975

1

200

Estimation to be based on Present Condition

Financial Reporting

answered on 20-Jul-24 07:27

There is a manufacturing entity, which already has 3 divisions. Now, its going for an expansion for 3rd division. The 3rd division is not set for production, it is still in Work in process. All the 3 division is a single CGU. Whether cashflows of 3rd division would be considered or not, sir?

latest answer

If already costs are committed the considered.

Swathi S

Swathi S

CA Final

975

1

287

Regarding NPV computation

AFM

answered on 09-Apr-26 20:54

In illustration 7(a) we have computed NPV as NPV= PVCF-Issue price. But in illustration 7(b) we have computed the same NPV as, NPV=PVCF-Market price. Here the issue price is given as Rs.100. Why are we not taking issue price while computing NPV?

latest answer

Because No other data is given, you have to assume it that way only. We cannot make assumptions issue price

S Shriram

S Shriram

CA Final

0

3

287