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As 13

Accountancy

answered on 24-Apr-24 14:32

I purchased current investment on 1 /10/23.(F.y23-24) For 50lakh As on 31/3/24.fair value is 40 lakh. Since it is current investment, I carry this investment @ 40 lakh as on 31/3/24. 10 lakh is debited to p&l F.Y24-25 On 1/5 /24 , i decided to convert short term into long term investment. Fair value on 1/5/24 is 20 lak Now conversation should happen at lower of cost or fair value on date of conversation Cost =50 lakh( historic cost) Fairvalue = 20 lakh Hence conversion should happen at 20lakh Now my doubt is how much shld be charged to p&l in F.Y24-25 My anwer is 20 lakh charge to p&l. (difference between carrying value(40lakh) and 20lakh( conversion value) Is my understanding correct??

latest answer

Thank you sir

Krishnan K

Krishnan K

CA Inter

5K+

2

285

Vedios

Financial Reporting

answered on 24-Apr-24 14:18

After 15 th vedio in Ind AS 16 17th is coming. 16th and 18th vedio missing sir

latest answer

Welcome.

HEMAVATHYSUBRAMANI SUBRAMANI

HEMAVATHYSUBRAMANI SUBRAMANI

CA Final

3K+

3

436

Doubt on Illustration 13

Financial Reporting

answered on 24-Apr-24 14:21

While doing first time revaluation ,carrying amount and fair value will be taken to calculate revaluation gain or loss. After revaluation, respective fair value will be shown in balance sheet as carrying amount. During Subsequent revaluation , carrying amount (that is, earlier fair value ) and current fair value will be taken to calculate revaluation gain or loss , Am I right, sir? If so, in case 1 why have we taken difference between 90000 and 100000 for year 2 , instead of taking 120000 and 100000?

latest answer

Carrying amount in case of revalued assets = Revalued amount - depreciation - impairment. So after revaluation, there would be depreciation.

Swathi S

Swathi S

CA Final

975

1

147

Doubt Regarding wacc calculation

Financial Management

answered on 29-Apr-24 04:22

Sir, in illustration no.21, in the first part of the question wacc was found out to be 11.375%,in the second part of the question the price of the equity share drops to 16, and so the wacc was revised.While in the first part of the question the WACC found out can directly be applied to the total capital employed to get the cost the firm would have to pay , this cannot be done using the revised wacc that has been calculated. This is due to the fact that the revision was done using book value as weights.......SO, shouldnt we use market value weights to get an accurate result?

latest answer

thank you sir :)

aravind lalji

aravind lalji

CA Inter

0

4

408

Working capital management

Financial Management

answered on 24-Apr-24 19:47

Will anyone pls guide me how can i done that calculation

latest answer

Please follow the solution provided in the video

G Creddy

G Creddy

CA Inter

945

1

284

FTP amendments

Indirect Taxation

answered on 26-Apr-24 16:29

Where can we get the amendments of FTP chapter. Some of which i was aware of are: 1. Rodtep 2. New frp from 1.4.23 etc

latest answer

New FTP is similar to old FTP. All the schemes are same. RODTEP is replacement for MEIS.

Pavan B R

Pavan B R

CA Final

4K+

1

301

IND AS 40 - Property given as Finance lease

Financial Reporting

answered on 24-Apr-24 14:22

Dear Sir, In earlier examples - it was explained that the properties given on finance lease will be considered under IND AS 16 and only the properties given on Operating leases will be considered under IND AS 40. However, it was mentioned that the properties given on Finance lease or considered under IND AS 40 - Kindly clarify the same,

latest answer

Properties which can be given on Lease will be investment property. Once they are given on lease, it would be covered under INd AS 116.

Chaitanya Sai Gupta

Chaitanya Sai Gupta

CA Final

4K+

1

165

LLP,2008

Corporate & Other Laws

answered on 24-Apr-24 10:37

5 th question.Im not getting the conclusion.

latest answer

ection 15 of LLP Act, 2008 provides no LLP shall be registered by a name which, in the opinion of the Central Government is - (a) undesirable; or (b) identical or too nearly resembles to that of any other 'LLP or a company or a registered trade mark of any other person under the Trade Marks Act, 1999'

Ujwal Reddy

Ujwal Reddy

CA Inter

7K+

1

328

Forex

AFM

answered on 24-Apr-24 10:45

Hello Sir In this question if we consider the net cash settlement in Selling put option strategy- we will have a loss of 145.2-144.9 which is 0.3 Yen/USD which will total to 0.3 million Yen. Premium receipt of 2.53 million. Now when we buy 1 million USD @ ask rate 145.05. So total payment is 145.05-2.53+0.3= 142.82. But institute has considered taking delivery. How should we decide whether to take delivery or settle in cash?

latest answer

Good point - if options are OTC, only then delivery is possible. If options are exchange traded, then only Net cash settlement. In exam suggest you take both scenarios and explain the same and give solutions as per both options with assumptions clearly stated

Suresh Avinash

Suresh Avinash

CA Final

3K+

1

310

As 16

Accountancy

answered on 23-Apr-24 16:40

Is my understanding correct? Maximum amount that can be capitalised to cost of asset is to the extent of NRV Hence only5k is capitalised

latest answer

Yes

Krishnan K

Krishnan K

CA Inter

5K+

1

361