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Half year profit Vs Full year FC

Costing

answered on 10-Jan-26 18:30

Sir, in the video, you have taken Fixed cost for the whole year (4,50,000) and profit for the half year (3,00,000), in order to arrive at a contribution of Rs. 7,50,000 - (denoting which period?) [Video Time Stamp: 04:42]

latest answer

BEP contribution helps us recover us fixed cost MOS is beyond BEP point sales and entire contribution becomes the profit. Thats how total profit is computed.

Vinod Kumar

Vinod Kumar

CA Inter

11K+

1

114

Paper 6 - IBS

Exams

answered on 02-Jan-26 11:28

How do we prepare for the IBS paper? Can we practice the case studies in the 2 days before exam?

latest answer

U can see videos on youtube for case studies and how to solve the paper. Seeing videos on yt will save our time rather than solving case studies on our own... ALL THE BEST FOR EXAMS

Irfanah Ilias

Irfanah Ilias

CA Final

48K+

1

116

Return on Equity Vs. Opportunity cost of capital

AFM

answered on 02-Jan-26 15:00

With respect to computation of growth rate, we have considered the "Return on equity" (i.e. 15%), whereas while applying the Gordon's dividend model formula, we have discounted the dividend using Opportunity cost of capital (i.e. 18%). Could you please explain the reason behind the same, sir? Further, Ke is denotes "cost of capital or return on equity"? [Video Time Stamp: 13:18]

latest answer

ROE is accounting ratio - PAT / NW Ke - Cost of capital it is opportunity cost of capital Both are not same SGR or g = b x r here r is ROE both ROE and Ke are used in same DDM formula D1 / (Ke-g) where g is b x r In some questions ICAI has by mistake used phrase" expected Return on equity investment" in order to indicate Ke or cost of capital there you should understand the intent of the paper setter use that number as Ke and not ROE ICAI has not repeated this mistake in last few exams - however you are advised to be careful and understand the paper setter's intent before making assumptions

Swathi S

Swathi S

CA Final

975

1

107

Example 2

Financial Reporting

answered on 08-Jan-26 13:32

Sir ,in the 2nd example where A has 2 associates, u mentioned that the associate is related to all members of the group, and vice versa.If A lTd has another associate,u said that the associates will not be related to each other.However, arent both the associates, associate to a common 3rd party, ie, A ltd, and hence related to each other? [Video Time Stamp: 07:54]

latest answer

A ltd has joint control over B & C. i.e B & C are JVs of A : B and C are related A ltd has JV B and Associate C : B and C are related A ltd has assciates B & C : B and C are not related. Since there is no control angle in either B or C

SANSKRITI BADRI 2111339

SANSKRITI BADRI 2111339

CA Final

4K+

1

78

Query - Financial Instruments

Financial Reporting

answered on 08-Jan-26 13:37

Sir, in the question what if they have given that let's say on on 31/03/23, if some amount is recoverable (50,000) from mohan limited. Will there be a change in amortization schedule and what will be the journal entry.?? [Video Time Stamp: 12:26]

latest answer

Expected loss amount will change. So the loss will be only 50,000. rest all will remain same

K Vamshi

K Vamshi

CA Final

14K+

1

77

Difference in the returns yielded by the securities

AFM

answered on 02-Jan-26 05:13

Sir, what if the returns generated by the securities aren't the same i.e. 8% but the S.D are different for both the securities. If the return generated by Security X is less than Security Y but has a lower standard deviation, how can we decide which security should be preferred for investment? [Video Time Stamp: 02:30]

latest answer

Then we use coefficient of variation

Gokul

Gokul

CA Final

2K+

1

94

External auditor vs internal auditor

Auditing

answered on 12-Jan-26 19:19

Ma'am, external auditor - mr y Internal auditor -CA X Is this statement correct ma'am? If yes, then the question has to be... can mr y rely on such reports? Need some clarification on this ma'am [Video Time Stamp: 01:37]

latest answer

Yes .you are right. My Y us external auditor and X is internal . So can Y rely on x

Mutchukota Akhila

Mutchukota Akhila

CA Inter

4K+

1

103

Dividend

Financial Management

answered on 01-Jan-26 14:43

Can I compute ke using PE ratio . ? But the ans is different when I compute using pE ratio

latest answer

For Q3 ke should be computed using GGM only

kowselyaa G

kowselyaa G

CA Final

2K+

1

104

Tax rate for catering services

Indirect Taxation

answered on 31-Dec-25 13:53

As per the question catering services are charged at 5% GST, but in the sum the calculation is done at 18%. Could you please clarify if there is any specific reason or condition for applying 18% in this case? [Video Time Stamp: 14:45]

latest answer

Whatever is the rate in the question the same needs to be applied.

Parthi ban.B

Parthi ban.B

CMA Final

2K+

1

100

the 3rd Bit (unavoidable Fixed cost)

Costing

answered on 10-Jan-26 18:38

Sir, I tried solving this bit even before watching the video, and ended up with a right figure as answer. But with a totally different perspective. In this lecture sir solves with a perspective of recovering the avoidable cost .. i.e. 80,000 - 25,000 = 55,000. But I approached with a perspective that, anyway the unavoidable fixed cost has to be covered by operation (sales), then lets also recover the desired profit along with this unavoidable fixed cost. i.e. 25,000 + 30,000 = 55,000, and arrived at sales using PV ratio as Rs. 1,37,500. Is this approach acceptable?. Because in the first glance of the question, this is what I understood to compute. Please guide in this matter. [Video Time Stamp: 11:43]

latest answer

Yes. Its acceptable. FInally costing is all about logics.

Vinod Kumar

Vinod Kumar

CA Inter

11K+

1

108