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Exception point in DTL

Financial Reporting

answered on 01-Aug-24 14:23

Sir, Will you give another example for the second exception point in the definition of Deferred Tax Liability ?

latest answer

A company purchases a piece of machinery that requires decommissioning at the end of its useful life. The company is legally obligated to dismantle and remove the machinery when it is no longer in use. To reflect this obligation, the company recognizes a decommissioning liability on its balance sheet and also increases the carrying amount of the machinery by the same amount (i.e., the present value of the future decommissioning costs). Example - Initial Recognition: The company recognizes a decommissioning liability of ₹100,000. Tax base is Nil At the same time, it capitalizes this amount to the cost of the machinery, increasing its carrying amount by ₹100,000 - Tax base is Nil Tax Treatment: For tax purposes, the decommissioning costs are not deductible until the actual expenditure occurs in the future, i.e., when the machinery is decommissioned. When the company recognizes the decommissioning liability and increases the asset’s carrying amount, there is no immediate impact on the accounting profit.

Swathi S

Swathi S

CA Final

975

1

202

prospectus

Corporate & Other Laws

answered on 28-Jun-24 14:34

pls correct me where im wrong 1) pvt placement prospectus is needed ? 2) unlisted public Co can issue share to public ? (not via pvt placement) even if they're unlisted they'll take permission from sebi or recog st ex before issuing share ? 3) only listed Co can issue share to public ? (other than pvt placement)

latest answer

1)NO 2) Can't issue shares to public without getting listing permission 3) Yes 4) A Ltd. being the main company issuing shares, will issue prospectus 5) GDR can be issued to make private placement also.

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

3

269

prospectus

Corporate & Other Laws

answered on 28-Jun-24 16:46

prospectus filed to Roc on 1/9 prospectus can be issued 2/9 ? we dont hv to wait for Roc approval ?

latest answer

Yes

Sushmita Chowdhury

Sushmita Chowdhury

CA Inter

2K+

3

261

Penalty u/s 137

Corporate & Other Laws

answered on 28-Jun-24 09:14

What is the OPC penalty if the financial statement is not submitted to ROC

latest answer

Penality of 10,000 and further penality of Rs.100 per day forcontinuing failure and it is max of 2lakhs

Shivashankar Jawai

Shivashankar Jawai

CA Inter

2K+

1

219

Enacted Vs Substantially enacted

Financial Reporting

answered on 02-Jul-24 17:14

Sir, Will you explain what is meant by substantially enacted in detail?

latest answer

Budget is presented in February. Approved later by President. It is substantially enacted when presented. Once approved, it is enacted.

Swathi S

Swathi S

CA Final

975

1

187

Tds

Direct Taxation

answered on 30-Jun-24 16:01

A land is owned by a mother worth 50 lakhs and that has been transferred to their 4 children equally.Mother has paid thr tds. Since the children has availed CG can the children claim the tds also

latest answer

Why did mother pay TDS ? She is seller and children are buyer are right. If it is gift then there is no tax at all.

Gayathri S Nambiar

Gayathri S Nambiar

CA Final

2K+

3

301

Passing rate for may exams

CFA

answered on 28-Jun-24 10:15

Looks like Results for cfa may 2024 exams are out Can anyone say the passing rate CFA leve1 and 2?

latest answer

L1 46% https://www.cfainstitute.org/-/media/documents/support/programs/cfa/cfa-exam-results-since-1963.pdf

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

1

311

SPOM classes

Others

answered on 28-Jun-24 09:22

Sir I passes grup one in may 2022 and I given grup 2 in may waiting for my results I will have a doubt when will I give my spom test Only after completing ca inter and while registering for final or can I go for spom classes now itself

latest answer

SPOM classes will be available for you only after registering CA Final. You need to complete your CA Inter group 2 and then you can register for final

Sentoor Kumaran

Sentoor Kumaran

CA Inter

3K+

2

327

Final account

Accountancy

answered on 12-Jul-24 11:38

I want to know treatment of bad debts, discount on debtors and discount on creditors

latest answer

For calculation of debtors, Reduce landlord amount and goods sent on approval. From that amount reduce the bad debts ANd then calculate provision for bad debts.

Sathya S

Sathya S

CA Foundation

3K+

1

309

Discount received

Accountancy

answered on 12-Jul-24 11:51

Why discount received is debited with p/l account

latest answer

for debtors, we give discount which is an expense.

Sathya S

Sathya S

CA Foundation

3K+

1

259