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Reason for not considering the changes in fixed assets

AFM

answered on 27-Jul-25 20:56

We directly used ₹4 Cr as given in the working. Is that because, when Capital Expenditure is explicitly mentioned in the question, we should use that instead of computing it from changes in fixed assets? Also, can you please clarify in what cases we should use the change in Net Fixed Assets + depreciation method — only when CapEx is not given?

latest answer

Fixed assets

Shinisha  Rose R

Shinisha Rose R

CA Final

5K+

1

101

FCFF AND FCFE

AFM

answered on 27-Jul-25 15:04

value of business -find PV of FCFF and proceed value of share-Find PV of FCFE and proceed am i right?

latest answer

They are referring to valuation of market share price and the company hence we have to arrive at share price / equity value

Muhammed Mubaris

Muhammed Mubaris

CA Final

190

3

111

Dilutive Calculation for Quarter 2

Financial Reporting

answered on 28-Jul-25 16:35

For the calculation of weighted average shares issued on opening a new retail site, why do I need to consider it as potential ordinary shares to use 3/3? As the condition is satisfied, can't I show 2/3 for Dilutive EPS calculation?

latest answer

weight for issued shares = 2/3 Weight for diluted shares = 1/3 [since it was potential for 1 month] Total becomes 3/3

pooja lakshmi

pooja lakshmi

CA Final

2K+

2

116

Foreign Exchange Gain/ Loss not recognised

Financial Reporting

answered on 01-Aug-25 16:38

Hi sir 1.We are not recognising Exchange Gain on Inventory in Consolidated Fs because it's a non monetary item? Or is it as per Ind As 2. So applies only for inventory? 2. We are not treating the 24 lakhs as an exchange gain from Monetary item called Receivables, since 1020 of Receivables cancelled against 1020 of pavables and respective exc loss or gain will get cancelled. Is this correct understanding sir? (Time stamp:12:50)

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1. In the consolidated financial statement we carry inventory at cost to group or NRv whichever is lesss (consolidation principle. Any unrealised profits are eliminated). IF we translate the balance sheet of subsidiary , Inventory would be valued at closing rate (lf goods were purchased from a third party). however, in this case, goods were purchase from parent so in group books, the profits are eliminated. 2. Correct.

Vijay Ramesh

Vijay Ramesh

CA Final

985

1

139

FMV

Direct Taxation

answered on 28-Jul-25 17:40

It is 'not-listed on a recognized stock exchange', right? [Video Time Stamp: 10:36]

latest answer

You are right. Thanks for pointing out.

Elzabeth Britty PJ

Elzabeth Britty PJ

CA Inter

2K+

1

140

Marks allocation

Auditing

answered on 26-Jul-25 21:28

Does examiner cut marks in ca exams for spelling mistakes.

latest answer

Thank you sir

Pihu Jain

Pihu Jain

CA Inter

3K+

2

135

Exemption

Indirect Taxation

answered on 28-Jul-25 17:26

Business Facilitator and business correspondent service to insurance company in rural area - exempted Whether agent of bf/bc service in rural area - taxable or exempted ?

latest answer

Law is silent. But technically it should be exempt.

Pradeep Ravikumar

Pradeep Ravikumar

CA Final

1K+

1

125

FUTURES CONTRACT

Financial Management

answered on 26-Jul-25 22:52

Sir, under this type of contract, parties do not know each other, hence it is regulated by agencies such as Exchanges, also it was mentioned that there is no physical transfer of assets. Then what are they trading exactly? SIr, also in this context, i want to understand the futures and options market. how this works. had i been hearing only these terms in my articleship period, from my seniors. Due to which my curiosity exites to know more about these types of market. [Video Time Stamp: 04:15]

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understood sir, thank you.

Vinod Kumar

Vinod Kumar

CA Inter

11K+

2

100

Cross rate

AFM

answered on 27-Jul-25 02:08

Sir please tell if there is any straightaway method to get cross exchange rate with illustration no. 78 [Video Time Stamp: 00:00]

latest answer

Thanks a lot sir

Akshat Sharma

Akshat Sharma

CA Final

510

5

176

types of utilities

Economics

answered on 26-Jul-25 16:02

sir for form utility you gave the example of cotton and for place of utility iron&steel. and sir for place utility the material is moved from one place to another to make final product and in form utility the cotton example the cotton is also moved from one place to other then why it was form utility,not place utility as the place of production to cotton is different form cotton t-shirt. [Video Time Stamp: 04:21]

latest answer

Utility

Rudransh Aheer

Rudransh Aheer

CA Foundation

3K+

1

145