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SA-320

Auditing

answered on 11-Dec-24 19:47

In SA 320, while deciding materiality level we use % of benchmark, Like 1% of revenue or net profit like that, The result of that will give materiality level for transactions or class of transactions. How to decide materiality level for the financial statements as whole?

latest answer

benchmark will give materiality for the financial statements as a whole. Then for individual class of transaction, balances, a lower limit can be set considering the risk involved. that is called as performance materiality.

Varun Endukur

Varun Endukur

CA Final

4K+

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591

SA-328

Auditing

answered on 11-Dec-24 19:48

In SA 320, while deciding materiality level we use % of benchmark, Like 1% of revenue or net profit like that know, The result of that will give materiality level for transactions or class of transactions. How to decide materiality level for the financial statements as whole sir?

latest answer

there are two concepts- materiality for financial statements as a whole and performance materiality.

Varun Endukur

Varun Endukur

CA Final

4K+

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603

Deposit

Corporate & Other Laws

answered on 11-Dec-24 14:31

If company accepted deposit on 1/11/2020 Company didn’t accept any deposit after that Will company have to file return of deposit on 2021, 2022, 2023 every year ?

latest answer

Yes

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

1

551

Sec 80C

Direct Taxation

answered on 19-Dec-24 18:31

Premium paid is exempted when it's within the prescribed limit. What about the maturity amount received treatment?

latest answer

Exempt under Section 10(10D) if the premium payable does not exceed % of sum assured.

Soon to be CA

Soon to be CA

CA Inter

4K+

3

637

Illustration 16

Costing

answered on 11-Dec-24 10:35

The question says that there is an issue of 12 units for an amount of 5.75 rupees. So the rate per unit should be 0.115. Right? But while doing the solution, the rate is taken as 5.75 per unit. So there is a mismatch. Please do clarify this.

latest answer

The question says to use FIFO method , So the issue of 12 units will be done at Rs.6.5

SHAMIL SHAMSUDDHEEN

SHAMIL SHAMSUDDHEEN

CA Inter

4K+

1

174

Share price

AFM

answered on 11-Dec-24 10:32

Here the additional capital is raised by issuing shares of Rs.25 each and the face value is Rs.10. You have added it to ESC and not bifericated to ESc and Securities premium

latest answer

In AFM, unless you are asked to prepare balance sheet, you can add sec premium and FV of share capital to one item called equity. Focus is on substance & not form

MATURU HAMSA GAYATRI

MATURU HAMSA GAYATRI

CA Final

23K+

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168

.

AFM

answered on 11-Dec-24 09:46

which shall we follow either ICAI original solution sir?

latest answer

Solution

MATURU HAMSA GAYATRI

MATURU HAMSA GAYATRI

CA Final

23K+

1

161

Modified Duration

AFM

answered on 19-Aug-25 20:08

In earlier lectures, didn't we learnt that Modified duration= -Macaulay Duration/(1+y) then in this question why minus sign was not considered

latest answer

Modified duration

Hrishikesh Pradhan

Hrishikesh Pradhan

CA Final

18K+

3

507

Deferred Tax in while calculating net assets value

AFM

answered on 10-Dec-24 20:12

Generally we deduct Preliminary expenses while calculating Book value...Is it also required to deduct Deferred tax(as it is given in the question)

latest answer

They all are deducted only deferred taxes are not adjusted

MATURU HAMSA GAYATRI

MATURU HAMSA GAYATRI

CA Final

23K+

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231

(A) Question

AFM

answered on 10-Dec-24 19:06

Which method shall we take...Deducting Debt or without deducting debt while calculating EPS?

latest answer

You will not get such poorly framed questions in exam - they are provided in SM only for understanding If numerator is for all financiers ( D+E) denominator also has to be the same i.e WACC If things are unclear you make an assumption & state the same in your solution

MATURU HAMSA GAYATRI

MATURU HAMSA GAYATRI

CA Final

23K+

1

200