powered by logo

Forums

Ind AS Applicability

Financial Reporting

answered on 01-Sep-26 09:57

1. If a holding company met applicability criteria, IND AS applies to its subsidiary also; whether it applies to its step - down subsidiaries too? Likewise whether holding also includes ultimate holding company? 2. If a company voluntarily adopts IND AS, whether it applies to its holding, subsidiary, associated and JV?

latest answer

Yes, if a company meets the mandatory applicability criteria, Ind AS will apply to its step-down subsidiaries as well. If a company voluntarily adopts Ind AS, it does not automatically become applicable to its holding, subsidiary, associate, or joint venture companies. The rule of automatic applicability to group companies is only triggered when an entity meets the mandatory statutory thresholds

SANJITHA

CA Final

1K+

1

26

Cash flow statement

Financial Reporting

answered on 03-Sep-26 09:47

Good evening sir. I have a small doubt. Savings Bank interest/ FD Interest (where FD is classified as part of cash and cash equivalents), this interest will form part of cash and cash equivalents or investing activity?

latest answer

It will form part of Investing Activity. Even though the principal amount of a short-term, highly liquid FD might be classified as 'cash and cash equivalents', the interest received on it represents a return on investment.

Roobashree Rajagopal

Roobashree Rajagopal

CA Inter

1K+

2

28

Cash component

Financial Reporting

answered on 04-Sep-26 14:59

In illustration 9 as per parent we deducted cash balance but in return the subsidary receiving cash but we are not charging that in consolidated statements or subsidy statment

latest answer

Subsidiary is not receiving cash. The share holders (NCI are receiving cash)

Seetha Ram

Seetha Ram

CA Final

20K+

1

38

Extention window

Exams

answered on 01-Sep-26 09:56

Last date for course extension?

latest answer

15th Sep

Preeshma Manasa

Preeshma Manasa

CA Inter

2K+

1

32

Not a question..small change in LDR revision chart

Financial Management

answered on 31-Aug-26 12:18

page 224, benefits of reverse merger same as tests to be satisfied.

latest answer

Thanks for highlighting Looks like some dtp error

VIDIKSHA PAWAR

VIDIKSHA PAWAR

CA Final

550

1

29

PM

CFA

answered on 31-Aug-26 10:44

The break-even inflation rate is expected to be 2% over the next year. What is the credit spread for a 2% annual pay corporate bond maturing in one year with a market price of $96.91 ($100 par) if the real risk-free rate of return over the next year is 1%? A) 2.00% Incorrect Answer selected Option A is 2.00% is incorrect B) 2.25% Correct Answer unselected Option B is 2.25% is correct C) 0.19% how to solve this sum

latest answer

NOMINAL RF = 1.01 X 1.02 - 1 = APPROXIMATELY 3% YTM OF A BOND with maturity value = 100 + last year int of 2 and cmp = 96.91 = 5.25% credit spread = 5.25 - 3 = 2.25

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

1

26

Chapter 7 - TDS

Direct Taxation

answered on 11-Sep-26 11:28

Sir in ITA 2025, Section 393 (1): 1. Commission or brokerage: (i) Any income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of insurance policies). 1. sir here Payer is "Any Person" so the payer can be Insurance Company or An Individual (Subject to Audit condition) or Any other Person (Company/LLP/HUF/Firm), is everyone cover ? 2. CASE I - Insurance Company (payer) pays insurance commission to its agent (payee) - payer (any Person). CASE II - If Agent (payer) pays insurance commission to its sub agent (payee) - Payer (any person). CASES III - If Company (other than insurance) pays to Authorise agent as a separate fee/reward for arranging/procuring that insurance for its business (not insurance company paying to agent) - Payer (any person). sir my doubt is revolve around "any person" it can the above three case payer or else insurance company only the payer for this provision.

latest answer

It is any person not necessarily insurance company.

39 - Sri Sankar G

39 - Sri Sankar G

CA Inter

0

1

33

PM

CFA

answered on 30-Aug-26 18:03

The sensitivity of a corporate bond’s spread to changes in the business cycle is most likely to be: A. uncorrelated with the level of cyclicality in the company’s business. B. positively correlated with the level of cyclicality in the company’s business. C. negatively correlated with the level of cyclicality of the company’s business. ans is B why not C if the gdp is inc that means spread will decrease hence -ve correlation

latest answer

A company with highly cyclical operations (like an airline or automotive company) sees its earnings drop severely during a recession. Because its financial health is tied closely to the economy, investors demand a massive risk premium, causing its credit spread to blow out dramatically. Its spread is highly sensitive to the cycle. Ans is b C is incorrect because a negative correlation would imply that highly cyclical companies have rock-stable bond spreads that don't react to the economy, while non-cyclical companies have highly volatile spreads. This is the exact opposite of how credit markets price macroeconomic risk.

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

1

21

Rule 3 condition 4 problem 16

Corporate & Other Laws

answered on 01-Sep-26 17:56

In problem 16, the amount withdrawn from the free reserves is first utilised to set off the loss. Remaining is available for distribution of dividend. So while checking the condition 4 , whether we need to deduct amount withdrawn before set off of loss (25l) or amount withdrawn after set off of loss (5l). To check whether the balance in FR doens't fall below 15% of psc. [Video Time Stamp: 36:22]

latest answer

Use the amount withdrawn Before set-off of loss (₹25 lakhs), not the balance after set-off (₹5 lakhs).

Geeta B

Geeta B

CA Inter

8K+

1

22

illu 3 partnership

Accountancy

answered on 31-Aug-26 10:20

c purchSE 1/3 OF GOODWILL 20000 NOT 2000 [Video Time Stamp: 07:23]

latest answer

Thanks for highlighting. We will correct it

Jeevethan

Jeevethan

CMA Inter

0

1

30