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TIMING OPTIONS
AFM
answered on 14-May-24 11:24
in the calcn of option value, since it is akin to American call, why do we not take Cd as 0 since payoff is -130L??
latest answer
Updated Q 30 Thanks for highlighting
Priyanka Udeshi
CFA L1
★ 14K+
4
225
Amalgamation of companies
Accountancy
answered on 15-Apr-24 09:24
Explain the whole question with solution.
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What is your doubt?
Avantika Gupta
CA Inter
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1
144
Dividend in Black Scholes model
AFM
answered on 14-Apr-24 22:08
Inn the question of growth option, we have subtracted D (0.0667) from calcn of D1 as well as considered it in working of C0.....whereas in ICAI Illus 3 solved earlier where BSM model was used in part 4 of that sum dividend was directly reduced from S0 and adjusted S0 was used for the working...can you pls explain the reason/ logic behind that.
latest answer
If dividend is given as an absolute value subtract PV from So. Else use the Method I explained in Ill 24 growth option( i.e adjustment in BSM formula including spot and d1). Dividend is a reduction in the price of a forward contract or for that matter any derivative - whether it is does on absolute basis or adjustment to yield basis depends on the data given in the question - ideally & in real world it is be done as adjustment to yield and change in BSM formula for d1as well
Priyanka Udeshi
CFA L1
★ 14K+
1
371
AS 23
Accountancy
answered on 24-Apr-24 19:30
IN Cae 3, while calculating carrying amount of investment on March 31, why they have reduced goodwill and capital reserve supposed to be Rs. 8000 is not done net off ?
latest answer
Thank you so much, Sir. I was waiting to clear this doubt.
Dhivyaa Latha
CA Inter
★ 4K+
2
348
SA 805
Auditing
answered on 15-Apr-24 19:51
If the complete set of financial statements contain qualified opinion and we can give unmodified opinion on Single Financial statement and State the modification in other matters . Was my understanding correct ma'am ?
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Thank you ma'am
M Naresh
CA Final
★ 3K+
2
312
Purchase consideration
Accountancy
answered on 15-Apr-24 19:26
why do we calculate the intrinsic value since nothing is given in the question so then we generally settle the selling co. with amt given in balance sheet?
latest answer
No of shares to be issued are not given.
Preethi S
CA Inter
★ 2K+
1
336
Benefit of Factoring - Opportunity Benefit of Receivables Not Considered?
Financial Management
answered on 24-Apr-24 19:54
Hi sir, hope you're well For credit period and discount policy, we see the opportunity benefit of the debtors being realized quicker, as a benefit. Why don't we take this benefit into account for factoring? Since a substantial part of debtors are essentially being realized at once, which is basically a lowering of 'credit period'. Thanks
latest answer
Both benefit and cost are considered for factoring. They are not at all ignored. Please watch the video where the concept of factoring has been explained while solving the problem.
Devaprasad Jothimani
CA Inter
★ 0
1
294
Ind AS 37 Contingent Liability
Financial Reporting
answered on 15-Apr-24 19:28
Page 9. 100 module 3 old syllabus book financial reporting Ind AS 37 Illustration 4 X Ltd has entered into an agreement with its selling agent Y, in accordance with which X Ltd has to pay a base percentage of commission on export sales and additional commission is to be paid if the export incentives are received. Here for the routine commission instead of passing provision entry can I create a liability account as routine commission is paid after understanding the quantity of sales. Data is known here. My understanding is provision is different and liability is different. That is the reason I am asking this
latest answer
Provision is anyways a liability. We use provisions as there could be returns etc.
swaminathan sundaram
CA Final
★ 110
1
251
Why ST loan 300 not taken into account for WC computation
AFM
answered on 14-Apr-24 20:55
WC=CA-CL, here short term loan not taken into account please clarify sir
latest answer
ST Loans + Prov is arrived at as 540 as Sales to ( ST Loans + payables + Prov ) ratio is given as 4:3 for yr 2 If we consider ST loans as part of WC and arrive at NWC for Yr 1 and use the ratio of NWC to sales of yr. 1 to arrive at NWC of year 2, we are getting ( ST Loans + payables + Prov ) as 360 [( 50% of 720= 360), 720 = 600 * (1+20%) and 360 = 300 * (1.2) or 720 * 50% , 50% = 300 NWC / Sales 600)] this is contradicting with first working of 540. However once we remove ST loans as % part of WC and compute the ratios, all numbers are fitting well with 540. This is a very poorly drafted question by ICAI with multiple issues. These kind of questions may not appear in exams. But if they do appear, please choose numbers & ratios that have overall sync and flow logically
kabilan sam
CA Inter
★ 3K+
1
296
Missing of some content of the lectures
AFM
answered on 15-Apr-24 10:43
Hello Sir, In this lecture i noticed that some part of the lecture is missing, the calculation of SD @ 90% of data was not shown and directly appeared in the video @3:56 mins. Also we have not taught to read the Z table used this lecture.
latest answer
sure . no worries
Sejal Gupta
CA Final
★ 0
3
212