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Internal reconstruction
Accountancy
answered on 24-Apr-24 23:17
Please tell me, meaning and correct treatment of of point 11 ? I have little bit confusion 😔
latest answer
Reconstruction a/c Dr. 12,500 To Bank a/c 12,500
Nakul Dixit
CA Final
★ 4K+
1
278
Cash alternative where entity has a choice
Financial Reporting
answered on 02-May-24 09:47
Sir, Doubt 1 ) if cash option is cheaper at balance sheet date and entity provided for equity option. Do we need to provide the loss at every balance sheet date or we should only at settlement date. Doubt 2 ) in 16:29, You have accounted as SPB reserve A/c Dr 1350 , Bank 1350 for settling in cash where initially we accounted as equity. why we did not assume it as buy back and account it like . Share Based Payment reserve dr 1450 ( fair value on settlement ) to Bank cr 1350 ( cash we paid , i.e fair value of option ) to p and l cr 100 ( diff between cash and equity ) If we initially record at equity and later we change our mind by issuing cash settlement we need to assume it as Buyback and account accordingly.
latest answer
1)Management has to review each year end. 2) You do not recognise profit on buyback in P&L When I debit share based payment reserve by 1350, there is a balance of 100 which remains in other equity. So indirectly gain is accounted.
M Naresh
CA Final
★ 3K+
1
296
change in method
Accountancy
answered on 03-May-24 11:13
while changing to different method y we divide by useful year and not multiply by rate of depreciation
latest answer
You can calculate revised rate of depreciation.
Bharavi Kothari
CA Foundation
★ 20K+
2
196
Illustration 5 - query
Financial Reporting
answered on 29-Apr-24 19:35
sir in this sum the difference between Fair value of Liability and Equity is equity .i understood that is 40,000. it shall be expensed over the vesting period(restriction period ) of Equity shares know ( 3 years Given in question ) . why the equity portion 40,000 Rs spread over only 2 years of Cash equivalent Liability period ? why we should not consider for a period of 3 years ?
latest answer
Service requirement is 2 years. The 3 years is the period for which employees cannot sell shares.
M Naresh
CA Final
★ 3K+
1
285
When agreed value of consideration is intrinsic value (₹30 in this example) of Y ltd. But it shows it at Face value (₹10)
Accountancy
answered on 24-Apr-24 22:04
In this example, when Yltd. Decides to show the purchase consideration at par value i.e. ₹10 per share, so in books we mentioned purchase consideration as 50,00,000 shares x ₹10 per share, but what about the rest portion of purchase consideration that Yltd.paid to X ltd but doesn't show in books that is rest ₹20 per share (₹30-₹10, agreed value -fave value)?
latest answer
Liquidators A/c Dr 8000000 To psc A/c 3000000 To Esc A/c 5000000 If premium is allowed then Liquidator a/c Dr. 18000000 To psc 3000000 To Esc 5000000 To securities premium 10000000
Garima Bhargava
CA Inter
★ 185
4
350
Final exam
Exams
answered on 25-Apr-24 10:50
Sir, If I pass ca inter both groups in sep 2024 exam, when will be my first ca final attempt?
latest answer
Ok sir
Abhirami Mohan K
CA Inter
★ 0
4
373
Insolvency
Electives - Final
answered on 26-Apr-24 16:04
When an individual or firm became insolvent before they conclude as bankruptcy what are the revival steps taken by authority ?
latest answer
If an individual or firm becomes insolvent but has not yet filed for bankruptcy, a few steps which can be taken for revival could be financial restructuring, sale of assets, debt restructuring, seeking professional advice.
Pavann Reddy
CA Final
★ 31K+
1
257
Mutual Funds
AFM
answered on 24-Apr-24 20:51
Sir, In Illu:14 FV of Rs.10 for opening value of Investment is not found in the question. whether we have taken it as assumption. Kindly clarify it sir.
latest answer
Ok sir Thank you
Guru aravindh s
CA Final
★ 6K+
2
322
Amalgamation of companies
Accountancy
answered on 30-Apr-24 17:18
In this question 7, (A) 4th point at a discount of 5% after takeover means?? Here they taken the full value of debenture for Net assets calculations of K Ltd
latest answer
issue price is 5% less.
Ramya Sundar
CA Final
★ 5K+
1
283
Value weighted selection and stratified sampling
Auditing
answered on 24-Apr-24 18:41
How can we differentiate stratified sampling and value weighted selection? In material it is given that stratified sampling can be done on the basis of monetary value similar as value weighted
latest answer
Value weighted , the population need not be heterogeneous. Even for similar population, we can use value weighted. Focusing on heigh value items more as we look for material misstatement: Stratification usually is for heterogenous population. Basically , the approach differs .
Visruth Vichu
CA Inter
★ 890
1
418