Overhead cost

answered on 20-Jun-24 15:20

Hi sir i am having a doubt regarding overhead, please clarify the same . Is the overheads of NPR 5 crores that they mentioned in the question is ' Expense incurred by Head office in India and apportioned to Nepal project ' ?

latest answer

yes

B. Dinesh

CA Final

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328

I forgot again again case 2

answered on 21-Jun-24 13:32

It was very confusing case 2 mixed up 2 casess

latest answer

Difficult adjustments - you need to note down separately.

R G

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198

Hedge Gain/Loss - FV Category

answered on 21-Jun-24 19:25

I understand that For Hedging instrument- Gain or loss to be recog in PL EXCEPT Equity FVTOCI But For hedged Item, gain or loss will be recog. in OCI OR PL. when to chose OCI and when to choose PL for recognising gain and loss on Hedged item.

latest answer

Got it sir. Thank you

Chandan Subudhi

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407

IGNOU

answered on 20-Jun-24 11:27

What is the eligibility criteria for IGNOU university Bcom (A&F) for a articleship doing student who completed their both CA inter groups (old scheme)

latest answer

Nothing.but if u hav completed inter certain paper are exempted

SOWMYA N

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405

Cost sheet

answered on 07-Feb-25 21:24

Is set up cost is direct expense or factory OH??

latest answer

Ok 👍

SRIHARI K U [XI-D]

CA Inter

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4

350

Creation of DTA on initial recognition of GW

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

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222

Not hedging

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

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368

Interest rate

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

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386

Discounting factor

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

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319

framework

answered on 21-Jun-24 09:03

30) why answer A ? what marginal cost mean ?

latest answer

It is 100

Sushmita Chowdhury

CA Inter

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9

443