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Purchasing using LC
AFM
answered on 06-Jun-24 21:13
Hi sir, In option II 1st step is to purchase equipment using LC and 2nd step is to borrow using LC. As we already purchase equipment in step 1 itself, why do we need to borrow money again in step 2 ?
latest answer
LC / letter of credit is a document where one bank promises to another that the customer is good and the import payment will be paid on time. For this commission is paid by LC opening customer to LC issuing bank. These LCs are for specific time period - usually for credit period offered by the supplier. In the current case, the supplier is not offering any credit. But a foreign bank is offering the credit if there is an LC So what is happening here is as follows: Sun is importing from Japan from a supplier say X X needs to be paid LC is opened by sun in favor of X Sun limited pays LC charges to Indian bank for opening the LC There is something called supplier financing against LC being offered by Japanese bank Sun limit gets the borrowing from Japanese bank X limited gets paid on day 1 But LC is Open and money on LC is due on day 180 Sun pays LC dues on day 180 to Japanese bank On day 180 LC is closed
B. Dinesh
CA Final
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Can I also start CA After completing Mcom.
Others
answered on 08-Jun-24 15:55
Hello guys! Recently I completing my Mcom. and Now I want to become a CA. Could you please guide me the process after completion masters. Thanks
latest answer
Thanks for the suggestion!
Mia smith
CA Final
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5
911
Capital employed ratio abbreviation.
Financial Management
answered on 06-Jun-24 21:17
In the video capital employed means debt+equity but in the book capital employed means net assets.could you clarify this as both are same or not?
latest answer
All of them mean the samething - pls draw a t form of balance sheet Assets side has FA & CA = TA Liabilities side has D + E + CL= TL CE = FA + CA - CL = FA = NWC = TA - CL = D +E = NA =
DINESH VENKATA SIVA KUMAR BOMMIDI
CA Inter
★ 7K+
2
512
Amount spent on employees - Definition part
Financial Reporting
answered on 06-Jun-24 14:59
What does Specific Management mean in the definition portion?
latest answer
He joined Housing Development Finance Corporation in 1978 and continued till retirement. We cannot call him an INtangible Asset.
Swathi S
CA Final
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199
Amount spent on improving the skill set of the employees
Financial Reporting
answered on 06-Jun-24 15:03
Can you explain the cases, where the amount spent on improving the skill set of the employees be treated as Intangible assets under INDAS 38 ? (as there is an unless part in definition)
latest answer
These are very rare cases where an entity has legal right to control the employment of its employees. Say if an employee does not have right to leave the company for two years (again impracticable due to contract act) and the company spends some amount on trainings, they may consider these amounts spent as intangible assets. However, practically its difficult to execute.
Swathi S
CA Final
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296
Goodwill
Financial Reporting
answered on 06-Jun-24 15:04
Whether Indas 38 covers Goodwill ?
latest answer
No. Goodwill is not separable from business. Goodwill arising from business combination is covered under Ind AS 103.
Swathi S
CA Final
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214
Netflix example
Financial Reporting
answered on 06-Jun-24 15:05
If Netflix can able to sell the web series independently, such web series can be treated as Intangible assets. If Netflix cannot sell the web series independently, instead only entire business/brand only can be sold, in such case, web series will not be treated as Intangible assets. Am I right, sir?
latest answer
Yes.
Swathi S
CA Final
★ 975
1
241
Specific borrowing
Financial Reporting
answered on 15-Mar-25 06:59
Sir, Why the borrowing cost related to construction of asset on 1st Oct has to be capitalised for one full year?
latest answer
Yes. Because we deduct interest on temporary investments when funds are not used.
DIVYA S
CA Final
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216
SPOM MCQ
Costing
answered on 05-Jun-24 21:55
Can anyone pls confirm the answer for the attached mcq? Ans given is B
latest answer
Refer attached.
Priyanka Udeshi
CFA L1
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489
Consolidation
Financial Reporting
answered on 07-Jun-24 11:21
Dividend adjustment cannot understand properly
latest answer
Where is the question?
Rakesh Saraf
CA Final
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2
298