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business combination

Financial Reporting

answered on 17-Feb-24 15:04

In this question, the contingent consideration is not probable. but that amount taken for purchase consideration calculation. why ? it not probable any requirement for pc calculation?

latest answer

We determine what is the FV of such contingent consideration. The logic is that even though it is not probable, we are taking some risk by assuming that contingent liability. So we value that part and recognise it as a liability.

For Class

For Class

CA Final

720

2

294

Construction contract

Accountancy

answered on 17-Feb-24 15:04

I can't understand scenario 2 plz any one can explain me it will be helpful

latest answer

Its incorrect.

Mile s

Mile s

CA Final

250

2

296

Financial ratios

Financial Management

answered on 17-Feb-24 13:05

What is the correct way to compute return on capital employed..??? Is it on basis of pretax and post tax .. Or Ebit(1-tax)/capital employed...

latest answer

1. Usually Return refers to Post tax Net Return for the owners of the company i.e., PAT. So ROCE = PAT/CE 2. But from examination pov, it is advisable to mention a note that alternatively pretax return (considering the return of the debt providers also) may also be computed using EBIT. So Pre tax ROCE = EBIT/CE 3. Institute in some instances added one more alternative method for post tax as you said i.e., EBIT(1-T)/CE . But do not worry, the first two would be sufficient

Harish Kumar

Harish Kumar

CA Inter

180

1

325

Cost

Costing

answered on 19-Feb-24 12:15

Why abnormal loss scrap is not reduced from total cost?? Only normal loss scrap of 40000 is reduced

latest answer

All items of abnormal nature is debited to costing p and l. Any recoveries from abnormal scrap sale will be adjusted against abnormal loss and net amount will go to costing p and l

jasmin ameena

jasmin ameena

CMA Inter

5K+

1

158

Dominance of related parties

Auditing

answered on 22-Feb-24 20:53

Mam can you please explain the "dominance of related parties" with an example with names and nature of relationship like in a practical scenario how this dominance will be in existence. Was not able to understand it in a practical scenario

latest answer

Holding - subsidiary relationship.

Arjun Reghunath

Arjun Reghunath

CA Final

0

1

196

setoff and carryforward

Direct Taxation

answered on 17-Feb-24 12:15

can Life insurance premium paid is set off in any head off income ?

latest answer

Its under deduction 80C

Vijay Ajith

Vijay Ajith

CA Inter

4K+

1

341

Ind AS 115

Financial Reporting

answered on 17-Feb-24 15:04

How to revenue from price protection at initial recognition? Gross basis or net basis?

latest answer

We need to make estimate of such amount that would be reimbursed.

Chandu vadla

Chandu vadla

CA Final

11K+

3

316

Lease

Accountancy

answered on 17-Feb-24 12:00

Asset given on lease = WDV 470000, MV 500000 Profit 30000, is unrealised then why recorded in pl ? Neither it’s accrued cause the asset is not given sold it’s just given on lease

latest answer

For finance lease its as good as sold

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

2

318

LLP

Corporate & Other Laws

answered on 22-Feb-24 21:35

Maam, you haven't explained section 60 and 61!!!

latest answer

Added

07- Issac Jolly-XII C

07- Issac Jolly-XII C

CA Inter

16K+

5

174

About which group to attempt

Others

answered on 17-Feb-24 14:01

In ca final may24, whether attempting group 2 without completion of coaching of group 1 is a better or wise option or completing grp1 coaching first and attempting grp1 , which is better?

latest answer

Yes. We did a detailed session on thay

VENKAT PRASHANTH

VENKAT PRASHANTH

CA Final

5

3

311