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Recognition of Goodwill and its Allocation amongst the Parent Company's Assets
Financial Reporting
answered on 27-Jan-24 21:32
Sir, in the lecture it was explained that goodwill acquired in a business combination is allocated amongst the CGUs of the parent company (and those of the newly acquired entity, if applicable) in the ratio of their carrying amounts. However, when a company acquires a subsidiary, the goodwill amount is shown in the Consolidated Balance Sheet. In such a case, how can the parent company allocate the goodwill amongst its CGUs/Assets if the goodwill is not appearing in the Stand-alone Financial Statements of the parent company?
latest answer
If its a business combination (amalgamation), then the assets and liabilities will be incorporated in the books of parent company and goodwill will also be recognised by parent company.
Vignesh Panigrahi
CA Final
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Capital budgeting
AFM
answered on 28-Jan-24 07:51
Question number 22 of the ICAI Material. What is the logic of them Adding 10000 outflow at the pvf of Rs.0.870? Also what exactly do we mean by eac?
latest answer
the 10000 is a expense so it is considered as outflow since it is happening in year 1 son pvf is .87
Vindhya Y.V
CA Final
★ 17K+
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418
Dividend calculation
AFM
answered on 28-Jan-24 12:11
Practical problem 19 Mutual Funds chapter In second part Rs 0.8 p.u dividend , so divided. Shall be 50000 units × 0.8 = Rs 40000/- In module they have considered Rs 400000/- Didn't understood why ?
latest answer
Ok ! I assumed something very different ! Thank You
Hrishikesh Pradhan
CA Final
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384
I'll 4
AFM
answered on 19-Nov-24 09:44
Sir , that 2cr and 1cr portfolio we found know that is market value of that portfolio? Because in bank we have 7lac which will be invested in shares .
latest answer
Yes
HEMAVATHYSUBRAMANI SUBRAMANI
CA Final
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3
393
wc required
Financial Management
answered on 30-Jan-24 16:03
why is it that only for new businesses,raw materials consumed includes production and WIP,and the same for wages,payable,etc?
latest answer
For an existing company the cycle is ready where as for new company the cycle begins and hence the change in format
SANSKRITI BADRI 2111339
CA Final
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332
Seems to be error in PV of Cash Inflows in (e) Project Lifetime Method 1
AFM
answered on 28-Jan-24 10:07
After taking 2.7 years the PV of Cash Inflows is 10,80,362 and with initial outlay being 10,00,000, the changed NPV = 80,362 Original NPV = 310,260. Hence Reduction in NPV = 229898 For 10% change in Project Lifetime change in NPV is 74.09% (229898/310260) Thanks Sir
latest answer
Yes, Sir. Now I can understand. Thanks Sir.
Dheebhan Mahalingam T
CA Final
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204
Articleship leave calculation
Others
answered on 27-Jan-24 15:03
I heard Exam days and intervening leaves between excluded from leave calculation, what if I appeared only for gp2 exams and whta about gp 1 exam days,is that includes in leave calculation
latest answer
Group 1 will be considered as leave
Ashmil Z
CA Inter
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1
437
Investment decision
Financial Management
answered on 29-Jan-24 16:39
City clap is in the business. There is proposal before the company to purchase a mechanized cleaning system for a sum of rs. 40 lakhs . The present System using manual labour for cleaning Proposed mechanised system: Cost of machine - 40 lakhs Life of machine -7 yrs Depreciation -15percent Operating cost -20 lakhs p. A Manual : Manual labour - 350 person Cost of manual labour - 15000 per person pa Tax rate - 50 percentage Solu: Cost of manual system (15000 *350. =5250000 Less: cost of mechanical system= Operating cost. 2000000 Dep. 600000 260000 Saving per annum 2650000 My doubt is .............> How is cost of manual system less cost of mechanised system gives me tax saving
latest answer
Can you please post the question’s picture and re ask what exactly is your doubt
Bommie R
CA Inter
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470
Capital budgeting
AFM
answered on 27-Jan-24 14:01
Alternative way of solving. Can this particular question be solved in the way that I have solved?
latest answer
Pls share final conclusion you wish to write- everything will depend on that
Vindhya Y.V
CA Final
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1
388
sum 19 ( no. of shares) CAPITAL STRUCTURE
Financial Management
answered on 27-Jan-24 15:04
IN COMPUTING THE NO. OF SHARES FOR PLANT 3 , IT IS CALCULATED AS 100000. Y NOT THE ISSUE OF PREFERENCE SHARES ISSUE TAKEN INTO ACCOUNT ( 2500 SHARES) AND COMPUTED AS 102500 SHARES
latest answer
Here, computation of no. of shares refers to number of Equity shares which is required to compute EAESH/No. Eq. Shares (the last step) to arrive at EPS. Hence only in the case of plan 1 as it is issue of equity shares. To the original 1,00,000 shares those 25,000 equity shares are added. Where as, in case of Plan 2 and Plan 3 they are based on raising only debt and only preference shares. Therefore there will not be any addition to the existing 1,00,000 number of Eq. Shares in case of both the plans
Srinidhi Prabhu
CA Inter
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326