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Lease Modification
Financial Reporting
answered on 22-Apr-24 12:01
Sir, in the first illustration it was explained that the deferral of lease payments cannot be considered as a lease modification since it is merely changing the timing of the lease payments and not the quantum of the rentals. However, it has been written in the ICAI Study Material (Sec. 8.4.4, Page: 6.435) that 'a change in the timing of the lease payments' is an example of lease modification. So why have we not considered the same as lease modification in this question?
latest answer
For operating leases, we recognise on a straight line basis so no impact on overall accounting.
Vignesh Panigrahi
CA Final
★ 1K+
1
289
doubt regarding assumption taken in question
Financial Management
answered on 29-Apr-24 04:21
works cost is assumed to be equal to the cost of good sold under the assumption that the opening & closing value of both wip and finished goods is not given in the question, but the value of closing stock of finished goods is given in the question, and is also computed later on by sir at 6 % of the works cost,so isn't this assumption worng?
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thank you sir
aravind lalji
CA Inter
★ 0
2
363
Payment of tax
Indirect Taxation
answered on 22-Apr-24 09:14
What's the answer for this question?
latest answer
If he pays tax under wrong GSTIN then he has to pay correctly under right GSTIN and the tax already paid under wrong GSTIN can be claimed as refund.
Lavi Lavanya
CA Inter
★ 6K+
1
460
MCQ
AFM
answered on 28-Apr-24 07:14
As told in vedio, How to access mcq separately for purchased classes, because before purchasing AFM also i was able to access afm mcq section, is there any separate mcq provided for paid version
latest answer
Ok sir
R Yashwanth Kumar
CA Final
★ 87K+
2
439
Ind AS 19 employee benefits
Financial Reporting
answered on 22-Apr-24 12:04
Video No 9 Illustration 4 An entity has 100 employees who are each entitled to ten working days of paid sick leave for each year. In the answer 180 days taken for calculation. 180 days how arrived. (On mathematical part I am not clear)
latest answer
Total employees - 100 Total leave entitlement - 200 Expected leaves which will be availed - 20 Balance - 180
swaminathan sundaram
CA Final
★ 110
1
351
Lease Modification in case of lessor
Financial Reporting
answered on 23-Apr-24 17:22
In Illustration 49, the original lease term was 8 years In June '20 the lease was modified and the lease would terminate in December '20. The modified lease term was taken as 3 years (Jan '18 - Dec '20), when considered from the inception date (Jan '18). However, in Illustration 50, the modified remaining lease term, which was 2 years, has been taken to be the modified lease term. 1. Applying the similar logic as in Illustration 49, shouldn't we take the modified lease term in Illustration 50 to be 3 years (April Y1 - March Y3) when considered from the inception date (April Y1), since the lease was modified in the beginning of Y2 (April Y2)? 2. IND AS 116 requires us to assess the lease modifications as on the inception date. The Fair Value of the Equipment in April Y1 was Rs. 12 lac. However, when testing for operating leases, we have considered the modified FV (Rs. 10 lac). Shouldn't we consider the original FV of the asset as on the inception date since we have to assess the modifications as on the lease inception? 3. Similarly, shouldn't we have considered the total economic life of the asset as 8 years as on the inception date while assessing the lease modification (1 year passed + 7 years remaining useful life)?
latest answer
If the lease modification does not create a separate lease, the accounting depends on how the lease would have been classified had the modified terms been in effect at the inception date. This means that we are considering the modified terms (new terms) as on the inception date. So the approach suggested by you is not advisable.
Vignesh Panigrahi
CA Final
★ 1K+
3
274
champerty
Corporate & Other Laws
answered on 22-Apr-24 09:16
what is litigation in the case of champerty
latest answer
an agreement in which a person with no previous interest in a lawsuit finances it with a view to sharing the disputed property if the suit succeeds. The distinguishing feature of Champerty is the support of litigation by a stranger in return for a share of the proceeds
Bharavi Kothari
CA Foundation
★ 20K+
1
225
page 175 - is answer is correct
AFM
answered on 21-Apr-24 21:30
In the Part two of the question is not multiplied by r. is it correct question 14 part ii
latest answer
solved, it was my mistake
ezy pan
CA Final
★ 130
1
328
Tcs
Direct Taxation
answered on 22-Apr-24 09:29
Kishore & Sons is a dealer of coal. Its turnover for FY 2022-23 was ₹ 12 crores. The State Government of Hyderabad granted a lease of coal mine to Kishore & Sons on 1.5.2023 and charged ₹ 11 crores for the lease. Kishore & Sons sold coal of ₹ 95 lakhs to M/s BAC Co during PY 2023-24. Turnover of M/s BAC Co during the preceding financial year, ie PY 2022-23, was ₹ 11 crores. The above amounts were credited to Kishore & Sons account in the books of M/s BAC Co on the date of sale. M/s BAC Co furnishes a declaration to Kishore & Sons that coal is to be utilised for generation of power. Details of sale to and payments from M/s BAC Co by Kishore & Sons are as follows: S.No. Date Of Sale Date Of Receipt/Payment Amount (₹) 1 29.05.2023 10.05.2023 35,00,000 2 30.06.2023 10.07.2023 25,00,000 3 25.11.2023 25.10.2023 8,00,000 4 20.01.2024 22.01.2024 15,00,000 5 01.03.2024 15.02.2024 12,00,000 M/s XYZ Ltd purchased coal of ₹ 55 lakhs from Kishore & Sons for trading purpose in July 2023. Turnover of M/s XYZ Ltd during PY 2022-23 was ₹ 12 crores. PAN is duly furnished by the buyer and seller to each other with respect to all the transactions.
latest answer
Perfect answer.
Akash Soni
CA Inter
★ 5K+
5
903
Process costing
Costing
answered on 24-Apr-24 08:52
Can anyone please prepare process account for this question? While I was trying it's not matching.
latest answer
The question is asking for conversion cost per equivalent unit. Not the final cost of production. However you have taken the cost of opening stock wip as well in your working
Sairam Reddy
CA Final
★ 10K+
4
425