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Calculation doubt
Financial Reporting
answered on 03-Mar-24 21:02
When I was solving , I thought about the amount to be transferred to current liab as on 31 March of year 1 shall be 24000 ( 30000*50000/62500) I divided 25000 in the ratio of number of months. As training period is 18 months which means in 12 months of first year and 6 month of next. Hence I divided the training cost as 50 k for year 1 and 12500 for year 2 and accordingly solved. What logic went wrong?
latest answer
Okk! Noted !! Thank You
Hrishikesh Pradhan
Qualified CA
★ 18K+
7
367
IFM
AFM
answered on 03-Mar-24 18:29
Hello Sir, In the complier illustration-10, in calculating MIRR I think instead of Cashflows PV of cashflows are multiplied with the FVF. Also, in illustration excel file few solutions are missing (3, 4, 7, 14 and 15).
latest answer
Thanks for highlighting the error. have fixed it . will upload the correct computation in the new e notes / pdf. Also excel is correct . error is in the printed notes
Suresh Avinash
CA Final
★ 3K+
4
415
P590 - poertfolio management - 70th Illustration
AFM
answered on 03-Mar-24 16:19
(iii) Whether the new Equity Beta (β_E) justifies increase in the value of equity on account of leverage? For this sub question, actually after leveraging the value of equity got reduced right? Can you explain me this part solution
latest answer
Yes equity value has gone down. but beta has increased, When broader market moves up, this equity value will also increase at a much higher rate as t it has high beta
Dhanushree Shanmugam
CA Final
★ 3K+
1
384
Audit evidence
Auditing
answered on 03-Mar-24 18:18
if the materiality level is high, then should the items for sampling be high or low?
latest answer
Depends upon the assessment of ROMM. the final understanding is Audit risk should be low. If ROMM is high. the detection risk should be low. So more samples to be selected. Materiality lower. If ROMM is low, the detection risk will be high. So less samples can be selected. Materiality high
Roobashree Rajagopal
CA Final
★ 1K+
2
408
Consideration payable to the customer
Financial Reporting
answered on 03-Mar-24 18:55
The recognition of consideration payable to the customer is later of revenue recognized or amount payable to the customer. Whether this is the type of variable consideration? If so, then it should be accounted at earlier of the revenue recognized or amount payable because variable consideration should be accounted only if revenue reverse will not occur subsequently. Kindly explain on the above part whether consideration payable to the customer is a variable consideration or not?
latest answer
Variable consideration is received from customer. Variable consideration is different from consideration payable to customer.
Nivethithaa S
CA Final
★ 2K+
1
343
Test Series
Exams
answered on 03-Mar-24 16:58
Can anyone suggest where I can get a test series for cheap. I don't want them checked just want the test papers chapter wise.
latest answer
Okay thanks
Pallavi Shinde
CA Final
★ 2K+
3
447
Difference btw closing stock and closing inventory
Accountancy
answered on 31-Mar-24 11:20
Sir what is the difference btw closing stock and closing inventory . give some examples.
latest answer
They can be used in each other's place
Ajaykumar Parit
CA Inter
★ 815
2
423
IND AS Withdrawal
Financial Reporting
answered on 02-Mar-24 22:12
Can a company withdraw from the IND AS and prepare financials as per AS in any year after adopting IND AS voluntarily. You have given a statement in the material that the IND AS is applicable for all the subsequent years from the adoption. Kindly clarify the IND AS withdrawal possibilities for the voluntary and non-voluntary adoption.
latest answer
Once adopted (even if voluntarily), it cannot be reversed.
Chaitanya Sai Gupta
CA Final
★ 4K+
1
269
Considertaion of E(x) in Treynor ratio
AFM
answered on 02-Mar-24 19:49
In last ques we considered Expected return as Ri as it was given in ques and there was no way of finding Actual Return. But why we consider Expected return here? We were using AR as Ri in all cases as it is a portfolio evaluation method and portfolio is evaulated based on actuals.
latest answer
IN optimal portfolio questions if ER is given instead of AR we use it. In this question too they gave only one return number for each stock we considered that for treynor ratio computation
Mehnas Ali
CA Final
★ 0
1
288
SA 705
Auditing
answered on 16-Apr-24 11:55
While solving the questions of SA 705 I can't able to write which opinion to give , becoz as at ca final level question doesn't specify whether mistatemement is persvasive or not , so how should I deal with it
latest answer
U have to analyse the question and look at the misstatement arising . With the question, u wil be able to understand if misstatement could have material impact or not. Be inter or final, misstatement is pervasive or not , we have to determine. When it’s substantially impacting many assertions , or overall financial; it’s pervasive ,otherwise not. U can also forward to question, where I can help you interpret the same .
Vamsi krishna
CA Final
★ 180
2
445