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Security Valuations
AFM
answered on 12-Feb-24 14:09
Sir, in dividend discount growth rate model , why is the growth rate reduce from the required rate of return in the denominator ?
latest answer
Formula itself is the logic
Swathi Krishna
CA Final
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3
379
Levels in corporate
Strategic Management
answered on 13-Feb-24 16:03
How functional managers translate?
latest answer
Corporate strategy is for whole organisation, particular business managers translate it to specific business,/division
Kamal Kumar
CA Inter
★ 7K+
1
465
Discount factor
Financial Reporting
answered on 13-Feb-24 12:28
If payment made on 30th Dec is discounted to 1st April, then we should discount using PVAF at 2% for 3 quarters. But we have used PVAF for 2 quarters to discount it why?
latest answer
Looks like an error in a flow. It has to be 3 quarters. Alos note that Covid related part is no longer tested for exams.
Dhvaritha Ravishankar
CA Final
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1
241
Change in Decommisioning Liability- Cost model
Financial Reporting
answered on 13-Feb-24 12:39
While there is a change DL(reduction) we adjust the amount by reducing it from remaining value of asset and remaining change in liability. Its okay it is reduced from value of liability but when it is reduced from value from asset unwinding not happening in case of asset.. For eg: if initially we recorded value of asset. We recognise at 5000+800(pv of dl)=5800 Useful life =10 yrs Rate= 10% At the end of 5th yr 1.PV of DL-1288.40[800×(1.05)⁵] 2.Dep=( 5800÷10×5)=580 3.Asset after dep is=5800-2900 =2900 Now DL is reduced to 800. So we reduce 488.40 from both asset and liability Liability becomes 800 & Asset value is reduced to 2411.6(2900-488.40) But we intially recognise only 800 in asset.. Proportionate dep charged to DL (800÷10×5)= 400 Remaing DL as a part of asset is 400 So now when we reduce value of DL by 488.40...then there is no DL in asset.... Logically we should add 400 to the asset to make DL to 800. What is the logic behind reduction of DL from assets?
latest answer
Firstly PV of DL is an estimate. So when the estimate changes, we need to adjust the estimate to the asset accordingly. We cannot compare values at Year 0 and Year 5. Any change in decommissioning liability is something related to the PPE. Hence added or reduced from asset accordingly.
binu mathew
CA Final
★ 0
1
355
Disc factor
Financial Reporting
answered on 13-Feb-24 13:08
Why have we not considered revised discount factor for computing reduction in term. In Ill 35, we have considered new disc factor of 5% for calculating reduction in scope? Please clarify when to take new disc factor and why?
latest answer
There are two parts in this question. One increase in ROU. Another reduction in term. The revised lease rental of 1,50,000 is not only for the existing property but also for additional ROU. So we cannot discount 150000 using 7% and adjust it fully against the existing liability. hence first we recomputed liability using 6% for existing payment. then we recomputed liability using 7% and adjusted that to ROU asset.
Dhvaritha Ravishankar
CA Final
★ 7K+
1
239
Exchange of Assets
Financial Reporting
answered on 12-Feb-24 19:34
Sir, In exchange of assets, if both fair of the asset given up and fair value of the asset acquired can be measured. And both are clearly evident. Then what should be considered first for recognition? In ICAI Material it is FV of asset received. Please clarify.
latest answer
If the entity is able to measure reliably the fair value of either the asset received or the asset given up, then the fair value of the asset given up is used to measure cost unless the fair value of the asset received is more clearly evident. This is as per Ind AS 40. Para 29. https://www.mca.gov.in/Ministry/pdf/IndAS40_2019.pdf
Gunda Sharan
CA Final
★ 150
1
394
Yield
AFM
answered on 12-Feb-24 10:53
Whether interest rate and yield same in this case?
latest answer
yes
shamanth rm
CA Final
★ 2K+
1
383
ICAI MCQ
Financial Reporting
answered on 12-Feb-24 19:41
How is this a provision? Please explain.
latest answer
ICAI MCQs are sometimes illogical. As per Ind As 37 A provision is a liability of uncertain timing or amount. Here the amount is certain and confirmed. Here the amount is confirmed. So a liability is to be created.
Ranjith Shettigar
CA Final
★ 1K+
9
550
videos
Auditing
answered on 12-Feb-24 21:07
when will all the videos get uploaded? the balance 27 hrs
latest answer
By the end of the month
Satha Sivam
CA Final
★ 7K+
1
240
Doubt regarding continuation
Auditing
answered on 12-Feb-24 06:26
i started my lectures and completed untill audit evidence now this video is uploaded inbetween .... will this affect my continuation? ,can i complete audit evidence and start watching this ? and when will this video get uploaded fully
latest answer
New videos you can watch subsequently. SAs are independent so there wont be any issue.
Satha Sivam
CA Final
★ 7K+
1
309