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Benefit of Factoring - Opportunity Benefit of Receivables Not Considered?
Financial Management
answered on 24-Apr-24 19:54
Hi sir, hope you're well For credit period and discount policy, we see the opportunity benefit of the debtors being realized quicker, as a benefit. Why don't we take this benefit into account for factoring? Since a substantial part of debtors are essentially being realized at once, which is basically a lowering of 'credit period'. Thanks
latest answer
Both benefit and cost are considered for factoring. They are not at all ignored. Please watch the video where the concept of factoring has been explained while solving the problem.
Devaprasad Jothimani
CA Inter
★ 0
1
318
Ind AS 37 Contingent Liability
Financial Reporting
answered on 15-Apr-24 19:28
Page 9. 100 module 3 old syllabus book financial reporting Ind AS 37 Illustration 4 X Ltd has entered into an agreement with its selling agent Y, in accordance with which X Ltd has to pay a base percentage of commission on export sales and additional commission is to be paid if the export incentives are received. Here for the routine commission instead of passing provision entry can I create a liability account as routine commission is paid after understanding the quantity of sales. Data is known here. My understanding is provision is different and liability is different. That is the reason I am asking this
latest answer
Provision is anyways a liability. We use provisions as there could be returns etc.
swaminathan sundaram
CA Final
★ 110
1
264
Why ST loan 300 not taken into account for WC computation
AFM
answered on 14-Apr-24 20:55
WC=CA-CL, here short term loan not taken into account please clarify sir
latest answer
ST Loans + Prov is arrived at as 540 as Sales to ( ST Loans + payables + Prov ) ratio is given as 4:3 for yr 2 If we consider ST loans as part of WC and arrive at NWC for Yr 1 and use the ratio of NWC to sales of yr. 1 to arrive at NWC of year 2, we are getting ( ST Loans + payables + Prov ) as 360 [( 50% of 720= 360), 720 = 600 * (1+20%) and 360 = 300 * (1.2) or 720 * 50% , 50% = 300 NWC / Sales 600)] this is contradicting with first working of 540. However once we remove ST loans as % part of WC and compute the ratios, all numbers are fitting well with 540. This is a very poorly drafted question by ICAI with multiple issues. These kind of questions may not appear in exams. But if they do appear, please choose numbers & ratios that have overall sync and flow logically
kabilan sam
CA Inter
★ 3K+
1
312
Missing of some content of the lectures
AFM
answered on 15-Apr-24 10:43
Hello Sir, In this lecture i noticed that some part of the lecture is missing, the calculation of SD @ 90% of data was not shown and directly appeared in the video @3:56 mins. Also we have not taught to read the Z table used this lecture.
latest answer
sure . no worries
Sejal Gupta
CA Final
★ 0
3
234
Public limited company
Corporate & Other Laws
answered on 14-Apr-24 19:43
Can public limited company issues its share other than through stock market????
latest answer
yes. Issue through Private Placement & Preferential Allotment is possible for public company Public company may be listed or unlisted. If unlisted, then shares are not available to trade on stock market
nisam M
CA Final
★ 23K+
1
324
As19
Accountancy
answered on 15-Apr-24 19:26
Pv in amount for gross lease rental coming around1441140
latest answer
Can you elaborate your doubt?
nive krish
CA Inter
★ 255
1
493
Intermediate exams
Exams
answered on 15-Apr-24 13:19
For january 2025 intermediate exams when I have to register under ca portal?
latest answer
You need to register before 9 months
Saniya Balekai
CA Inter
★ 285
1
345
Excel Sheet of explanation of Normal Distribution
AFM
answered on 15-Apr-24 09:45
Dear Sir, As you mentioned in a video that the excel sheet will be provided to us, please let me know from where can i get the same.
latest answer
Its Okay sir, I wanted to see certain formulas in the sheet, but i have figured it out now.
Sejal Gupta
CA Final
★ 0
4
238
tax liability
Direct Taxation
answered on 15-Apr-24 14:43
Sir for salary person we should deduct standand deduction Rs.50000 ,why we not deducted in illustration 2
latest answer
It is already computed.
Alocius Rebiks
CA Inter
★ 350
2
335
Standard Costing
Costing
answered on 14-Apr-24 09:28
Here why did we use the usage variance formula Icai book Tyk 4
latest answer
Request you to please stick to the approach we follow in lectures. Similar question is solved in the videos.
Uppula Varshith
CA Final
★ 2K+
1
387