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Illustration 30
AFM
answered on 05-Jun-26 22:40
Sir while computing value of u and d why consider denominator as investment value rather the present value of 250 [Video Time Stamp: 05:20]
latest answer
Because 250 per year is value of current savings per year and that is irrelevant. When you look at risk neutral method for financial options also, you are indifferent to gap between current spot and strike. You are only bothered abt future spot and strike. Same logiic applies here too
Mhd Mmp
CA Final
★ 870
1
79
DTA resulting from initial recognition of goodwill
Financial Reporting
answered on 08-Jun-26 10:26
Can you give an example as to in which case DTA arises as to initial recognition of goodwill
latest answer
This results in an accounting challenge because if we include DTA, goodwill amount will change. And again causing a circular effect.
AKSHAYA PRAKASH
CA Final
★ 560
2
90
Closing stock Adjustment
Financial Reporting
answered on 08-Jun-26 11:28
we’re supposed to value inventory at the lower of cost or NRV, but I’m a bit stuck on the actual process for writing it down. Do I need to pass a specific journal entry for the difference, or is there a way to adjust the closing stock value directly? I’m also a bit confused about the impact—if I pass a journal entry, it hits the P&L as a loss and also reduces the closing stock. Does that mean it affects the profit twice, or is that just how the double-entry system is supposed to work? How big companies did the same?
latest answer
Thank you sir
Rishi jain
CA Final
★ 1K+
4
142
the fundamental law
CFA
answered on 05-Jun-26 16:53
sir you missed to explain the grinold rule in the text, I have attached the text for it.
latest answer
Did u go through all videos of PM pls go through and let me know if it is not there anywhere- because I recollect having taught it somewhere I have missed I shall definitely add
Kaarthick Abishek
CFA L1
★ 0
1
112
Enterprise value
CFA
answered on 05-Jun-26 19:47
1. Is EV a valuation metric like DCF,P/E and other comparable company analysis? 2.I have studied EV but still could't understand the logic behind it so basically EV = Market cap + borrowing -cash and cash equivalents Here why do we add borrowings and less cash when we try to find what the company is worth? Whats the idea behind this
latest answer
We are adding debt to equity not to EV think of EV as market price equivalent of liabilities side of balancehseet which has equity and debt If I have to start a new plant I need both debt and equity EV represents that money required in market value terms
Dhakshana Dhakshana
CFA L2
★ 18K+
3
129
Ind AS 105 - Initial Recognition where Asset acquired for subsequent disposal
Financial Reporting
answered on 11-Jun-26 10:16
Hi sir, In this example for Asset acquired for Subsequent Disposal, if the Net Fair Value is 9L, and cost is 10L, the 1L is treated as an impairment loss right? I mean from a journal entry POV [Video Time Stamp: 09:06]
latest answer
Ok sir. Thank you
Vishnu Muraleedharan
CA Final
★ 32K+
2
130
Equity research report
CFA
answered on 04-Jun-26 15:34
How to practically prepare an equity research report ?and is 3 statement model a part of equity research report
latest answer
Covered this in financial modelling course we provided along with cfa classes Yes 3 statement model is part of equity research report
Dhakshana Dhakshana
CFA L2
★ 18K+
1
101
doubt
AFM
answered on 03-Jun-26 21:18
sir can you explain how beta is calculated in a broad manner and also what are the values provided in excel sheet like R. R^2.etc. [Video Time Stamp: 12:30]
latest answer
Please go through excel sheet . It is available for download and all formulae are available there for your to check on your own
pavan kumar
CA Final
★ 4K+
3
95
Advance Received from Customers
Financial Reporting
answered on 09-Jun-26 06:35
Sir, Why did we classify advane received from customers as financial liability? There is no obligation to deliver cash , right sir? [Video Time Stamp: 01:25]
latest answer
understood sir.
Selvakumar R
CA Final
★ 470
4
95
doubt
AFM
answered on 03-Jun-26 20:00
what is CAGR and how it is computed [Video Time Stamp: 18:39]
latest answer
Thank you sir for your clarification.
pavan kumar
CA Final
★ 4K+
2
192