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AFM

answered on 24-Apr-24 10:45

Hello Sir In this question if we consider the net cash settlement in Selling put option strategy- we will have a loss of 145.2-144.9 which is 0.3 Yen/USD which will total to 0.3 million Yen. Premium receipt of 2.53 million. Now when we buy 1 million USD @ ask rate 145.05. So total payment is 145.05-2.53+0.3= 142.82. But institute has considered taking delivery. How should we decide whether to take delivery or settle in cash?

latest answer

Good point - if options are OTC, only then delivery is possible. If options are exchange traded, then only Net cash settlement. In exam suggest you take both scenarios and explain the same and give solutions as per both options with assumptions clearly stated

Suresh Avinash

Suresh Avinash

CA Final

3K+

1

301

As 16

Accountancy

answered on 23-Apr-24 16:40

Is my understanding correct? Maximum amount that can be capitalised to cost of asset is to the extent of NRV Hence only5k is capitalised

latest answer

Yes

Krishnan K

Krishnan K

CA Inter

5K+

1

341

Mtp may 24

Indirect Taxation

answered on 23-Apr-24 16:36

Anyone has solved mtp series of idt may 24

latest answer

Is there any doubt in the MTP?

Adithiya Bala

Adithiya Bala

CA Final

1K+

1

357

Dividend decisions

Financial Management

answered on 31-Aug-24 11:38

Will any one solve this to me plzz

latest answer

Thnkuhhh soo much sir ..

G Creddy

G Creddy

CA Inter

945

10

377

AS 10 - Trade and Cash Discounts

Accountancy

answered on 25-Apr-24 18:50

Are settlement discounts considered as Cash Discounts? Would a discount for full payment at the time of completion of sale also be a Cash Discount? How do we treat it as per AS-10

latest answer

For deferred payment, calculate present value using discount rate.

Vishnu Muraleedharan

Vishnu Muraleedharan

CA Final

32K+

5

611

Trail balance items

Accountancy

answered on 23-Apr-24 16:40

Why the items in trail balance will appear only once in the financial statement?

latest answer

In trial balance - you have either income or expense or asset or liability or equity. So only once.

sitaram kollepara

sitaram kollepara

CA Inter

2K+

1

177

E invoice limit

Indirect Taxation

answered on 23-Apr-24 00:17

Sir. What is the limit applicability for E-invoice. Relevant to May- 2024 exam

latest answer

Thank you sir

Satheesh Kumar

Satheesh Kumar

CA Inter

15K+

2

441

Interest on margin trading

Direct Taxation

answered on 23-Apr-24 16:38

Is interest on margin trading dedutable under capital gains as expenses..?

latest answer

Interest paid towards Margin trading can be claimed as an expense if you are reporting your share trading as business income. However, if you report profits from swing trading as capital gains and pay tax as short-term capital gains (STCG) or long-term capital gains (LTCG), then the interest cannot be claimed to reduce the profit.

Shru Kanda

Shru Kanda

CA Inter

610

1

370

Slab rate

Direct Taxation

answered on 23-Apr-24 16:43

Sir what is difference btw tax rate and slab rates?

latest answer

Tax rate is the % of tax that a person can pay on his income Slab rates are the ranges of income and the rate that is applicable.

Ajaykumar Parit

Ajaykumar Parit

CA Inter

815

1

330

In IL Study Material Additional Information In Illustration 2 is not there printing mistake

Costing

answered on 30-Apr-24 14:47

In IL Study Material Additional Information In Illustration 2 is not there printing mistake so, shall I refer for the same ICAI SM

latest answer

We have mostly cleared all the mistakes. Please refer to the notes in the website.

GOKUL KOLATE

GOKUL KOLATE

CA Inter

1K+

2

193