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Classification between indas 16 vs indas 40

Financial Reporting

answered on 01-Sep-25 09:56

Hello Sir , Hotel company has given restaurant on operating lease. assuming the restaurant can be sold or finance lease the restaurant building separately . but the payment terms of operating lease such that it depends on the no of orders or hotel occupancy (the restaurant exclusively provides services to the hotel only) . based on the payment terms the cash flow is not independent of business performance (independent cashflow is necessary for classifying it as investment property ) but the restaurant building can be sold or finances lease independently . how will be this classified ? [Video Time Stamp: 16:05]

latest answer

You would see what is the intention of company primarily. For any property, there is always a possibility to sell or lease out. So classification should be based on what the management wants to do with the asset.

Akhil Reddy

Akhil Reddy

CA Final

6K+

1

122

Query

Financial Reporting

answered on 25-Aug-25 06:36

Sir, on 31/5 Why we are considering that we will have to pay 78 and accordingly doing the accounting as we entered into a future that we will buy $1000 @80 . [Video Time Stamp: 18:25]

latest answer

Here we are separating forward contract and purchase contract. Ultimately the gain loss on forward will get adjusted against the asset. The idea is to recognise PL on derivative leg.

K Vamshi

K Vamshi

CA Final

14K+

1

111

Binomial pricing model

CFA

answered on 24-Aug-25 22:47

We have 1 period and 2 period binomial model after doing lot of calculation we arrive at the PV of the payoff of the option and that is essentially the price of the option is that right?? But in CFA L1 we studied the price of the option as the sum of IV and TVM why do we use this binomial model when the price can be found by IV+tvm? Pls explain

latest answer

Thank you sir

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

2

89

Sale is not notified by the seller

Corporate & Other Laws

answered on 25-Aug-25 15:00

A- seller B- auctioneer C- Brother of A D-Highest bidder D bids highest bid of 60cr If D comes to know the brother of A which is C was present and C was also did second highest bid. Can D treat contract as fraudulent C is not appointed by A [Video Time Stamp: 00:00]

latest answer

D can treat the contract as fraudulent only if it is proved that C was acting for A. If C was genuinely bidding for himself (even if he is A’s brother), then the contract stands valid

Gurukanta Singh

Gurukanta Singh

CA Foundation

19K+

1

122

Ill. 10

Financial Reporting

answered on 25-Aug-25 14:28

Sir, what do they mean by over 3 years? Does that mean at the end of Third year or 10% in each years [Video Time Stamp: 11:06]

latest answer

The question is not drafted properly by ICAI. Generally over three years means cumulatively at the end of third year.

Hariharan Ravichandran

Hariharan Ravichandran

CA Final

2K+

1

128

2 nd basic condition is not applied?

Direct Taxation

answered on 28-Aug-25 13:53

Hello sir , Why 2nd basic condition is not applied for Srinath can you explain. [Video Time Stamp: 02:43]

latest answer

If an Indian Citizen is coming to India for a visit, then second basic condition is not applicable.

Anil Kumar.H

Anil Kumar.H

CA Inter

2K+

1

149

Put call parity formula

CFA

answered on 24-Aug-25 17:54

S+p = c+pv(X) Sometimes we short the call or short the put depending upon what we need to find out But shorting call/put means what? Is it selling or writing call/put options??and also shorting the bond which pays X(exercise price) at expire also explain

latest answer

Yes

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

5

112

round off

AFM

answered on 24-Aug-25 13:24

why we are rounding off to 66.5565 to 66.5575 [Video Time Stamp: 00:06]

latest answer

Rounding

Bala Manoj Kumar.S

Bala Manoj Kumar.S

CA Final

90

1

110

rounding off

AFM

answered on 24-Aug-25 13:27

why we are rounding off to 66.5575 instead of keeping in 66.5565 [Video Time Stamp: 54:12]

latest answer

okay sir

Bala Manoj Kumar.S

Bala Manoj Kumar.S

CA Final

90

2

121

On customer asks for execution

AFM

answered on 24-Aug-25 13:53

as we are entering optional deliverable fwd contract we buy from inter bank and we hold dollar so we can sell the same dollar on execution so the canellation loss will be diff of 65.99 and 66.84 but why we are selling to inter bank again and then we wont hold any dollars so how we can sell to customer at 65.99 instead of buy at spot 65.99 and sell customer 65.99

latest answer

oh ok, thank you sir

Bala Manoj Kumar.S

Bala Manoj Kumar.S

CA Final

90

2

109