What is substance over form

answered on 11-Mar-23 14:21

Answer this question

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Example: Your company has purchased a property but the registration and other legal formalities are pending. Your company has the possession of the property and is using the property. So you will be showing this property as an asset in your balance sheet irrespective of whether or not the legalities are completed. This is substance over form i.e. reality over legality.

Harsh Kumar singh

CA Inter

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Confusions

answered on 12-Mar-23 16:27

Assets mins libality equals to capital Or asset minus libality equals to equity?

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Good Explanation!

Madhu Reddy

CA Inter

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Asset, liability, equity

answered on 12-Mar-23 16:28

Assest is resource which have capable to generate future economic benefit to entity Libality is a obligation Then what is euqity means... (With practical example...)

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Whatever is left with the entity after settling liabilities is equity.

Madhu Reddy

CA Inter

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170

Investment decisions

answered on 17-Mar-23 10:17

In illustration 15, how "earnings after taxation " are considered as Cash Flows After Tax(CFAT)? It should be PAT only no? . And in this question , they have given salvage value at the end of 5th year and cost of the machine too.So, we can calculate depreciation and CFAT = PAT +DEPRECIATION But why sir has taken earnings after taxation as CFAT?

latest answer

We have uploaded the revised video also

Pravin Nesaraj

CA Inter

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Investment decisions

answered on 11-Mar-23 17:38

Exclusion of finance costs is for certain topics (or) throughout the chapter, for calculating cashflows we ignore the finance costs?

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It's for the chapter overall.

Vasu Naidu

CA Inter

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178

Right isuue and preferential allotment

answered on 11-Mar-23 10:41

Can anyone plz clerly explain difference between right issue and preferential allotment

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In case of rights issue all shareholders get a right to subscribe. Non share holders cannot subscribe unless they purchase entitlement from existing shareholders. In case of preferential allotment only some get right to subscribe. Also here non-shareholders can subscribe.

Gauri Shete

CA Final

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Cum dividend price

answered on 11-Mar-23 21:25

Why we cannot determine and separate the amount of dividend include in the price of the share although we can do the same in case of debentures and bonds?

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Dividends and bonds have a fixed percentage so we can predetermine how much we are going to get..but in share we don't know how much percentage dividend is going to be

Atharv Sankliya

CA Inter

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132

Crypto currency

answered on 11-Mar-23 21:26

Basic excemption limit applies to crypto currency income? For example i earned 300000 profit Then basic excemption of 250000?

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Treat the crypto currency like equity shares

Adarsh Gudivada

CMA Final

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143

Forex

answered on 11-Mar-23 06:10

Hello Sir, What is the difference between forward rates and future spot rates?

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Ok sir, got it. Thank you.

Suresh Avinash

CA Final

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leverages

answered on 11-Mar-23 15:22

in mtp oct 22 ..ques 1b it is given 1,00,000 pref shrs of rs.10 each carrying a dividend rate of 10%.. then pref dividend amt would be rs.1,00,000 [ 1 lac shrs * rs 10 * 10%].. but it is given as rs.10,000 in the mtp answers.. how?

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In the updated MTP, they have included Rs. symbol with 1,00,000 preference shares. So, it's Rs. 1,00,000 preference shares of Rs. 10 each

kowselyaa G

CA Inter

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