Forums
Diluted EPS
Financial Reporting
answered on 21-Jul-25 14:27
Sir in this Question we are computing Basic and Dilutive EPS for the years 20X2 & X3, But the question mentions conversion of loan stock to Equity can be done from X6 to X9, Can we consider in this case as on X2 & X3 it is potential Equity [video Time Stamp: 20:29]
latest answer
Yes. They are considered as potential equity.
R Yashwanth Kumar
CA Final
★ 87K+
1
161
Allocation of Goodwill
Financial Reporting
answered on 21-Jul-25 14:37
Goodwill sometimes cannot be allocated on a non-arbitrary basis to individual cashgenerating units, but only to groups of cash-generating units. Each unit or group of units to which the goodwill is so allocated: (a) represent the lowest level within the entity at which the goodwill is monitored for internal management purposes; and (b) not be larger than an operating segment as defined by paragraph 5 of Ind AS 108 ‘Operating Segments’ before aggregation. Sir can you explain this again and what do they mean by lowest level of entity
latest answer
Tabular explanation for better clarity. If lower level goodwill is being monitored, impairment testing to be done at that level first.
Hariharan Ravichandran
CA Final
★ 2K+
2
179
Calculation
Indirect Taxation
answered on 22-Jul-25 11:22
So, generally anti subsidy duty is calculated on what amount ? Let us say in exam they are silent, will it be calculated on Assessable value or landed cost [Video Time Stamp: 18:08]
latest answer
Assessable value
Hrishikesh Pradhan
CA Final
★ 18K+
1
145
Ind AS 24 Related Party Disclosures
Financial Reporting
answered on 21-Jul-25 15:14
XYZ is a parent of PQR Ltd. PQR Ltd. has two subsidiaries: P Ltd. and Q Ltd. ABC Ltd. has subsidiaries: A Ltd. and B Ltd. If Mr. X is KMP of, a) XYZ, Is he a related person to PQR, P, Q, ABC, A, B? b)PQR, Is he a related person to XYZ, P, Q, ABC, A, B? C)P, Is he a related person to XYZ, PQR, Q, ABC, A, B?
latest answer
Thankyou sir
Durai Murugan
CA Final
★ 470
3
132
lecture no.26 : SUNK COST - (Historical costs)
Costing
answered on 21-Jul-25 15:26
Sir, i have a very specific query regarding Sunk Cost, wrt decision makings. By the end of this lecture , it was concluded that sunk costs lays no role in decision making process. But all the way to till the conclusion of this chapter, it was been taught that costing helps in taking managrial decisions. But suddenly in this lectures, the word costing is termed in its traditional name "historical cost", and which was later termed to be helpless in decision making. {MY INSIGHT} Is it due to the specific situation, where the validity to recover the cost has been concluded and hence, taking into consideration of such cost is no more meaningfull and hence termed as Sunk Cost.? Please guide me with this. Thank You sir
latest answer
The amount of cost you incurred to pay ticket is a sunk cost. You could save time by not watching the movie. Now this cost should not be considered for future decision making (i.e to continue to watch or not) However, if there is a cost being incurred in future or say a variable cost, such costs will be considered for decision making.
Vinod Kumar
CA Inter
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3
136
Dividend
AFM
answered on 20-Jul-25 08:58
Sir, in ICAI material page 9.9, they have given an example where they have used the formula (P-I)e^rt, where I is the present value of the income flow during the tenure of the contract. In the same example they have given dividend per share not the yield percentage. Just after the example, they have again rewritten this formula as Pe^n(r-y). Here they are saying y is the percentage yield. In this particular question also, we are following the second formula as we have the yield rate is given in the question. So my doubt is, do we need to follow the second formula if the dividend is given in percentage form and use the first formula if the dividend is given in Rupees? [Video Time Stamp: 05:52]
latest answer
Yes when yield is given it is continuous compounding and when direct int rate is given it is discrete compounding You can convert a discrete number to continuous value also, explained in one of the later problems
Abhijith K B
CA Final
★ 5
1
143
Cost of capital
Financial Management
answered on 20-Jul-25 08:59
While calculating ke , Some problems d1 is taken as directly and some other problems d1 is taken as d0(1+g). Please advise.
latest answer
Depends on question If there are indications I. Question that the value of dividend given pertains to next year we directly take d1 If q indicates that value is current dividend. Then we treat it as d0
Venkat L
CA Inter
★ 2K+
1
142
Q16-ICAI-Custom valuation
Indirect Taxation
answered on 28-Jul-25 17:45
Sir, in this question I am not understanding what and why i got the answer wrong because I added expenses based on our understanding of what to add and what to not. So, why my solution is not in line with that of the institute
latest answer
When 20% is considered it covers the entire cost of loading, unloading, freight and transport from factory of exporter till the port of importer.
Hrishikesh Pradhan
CA Final
★ 18K+
1
161
Value of Futures
AFM
answered on 19-Jul-25 21:13
Sir, I have a doubt regarding the valuation of the futures, here we are taking spot price + Carrying Cost - Dividends. If we use the formula given for continuous compounding, will we get the same result? If not, When can we use the formula given for continuous compounding for valuing the future contract? [Video Time Stamp: 06:54]
latest answer
Ok sir, understood. Thank you sir.
Abhijith K B
CA Final
★ 5
2
153
Non lease components
Financial Reporting
answered on 21-Jul-25 15:02
Why can't administrative tasks be non lease component. Since non lease components should involve transfer of goods or services. Administrative tasks isn't transfer of service?
latest answer
It can be considered as non-lease. Ind AS 116 allows a practical expedient to combine lease and non-lease
Banu Priya
CA Final
★ 6K+
1
127