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Mutual funds query
AFM
answered on 27-Mar-24 12:58
Hello, In the above sum, absolute return over 5 years is 52.78% and yearly is 52.78 divided by 5 years i.e. 10.56% I wanted to know how do we calculate annualized return including the effect of compounding.
latest answer
(1+52.78) power (1/5) - 1 use calculator trick to find out
Lalit Sanpal
CA Final
★ 6K+
1
347
Multiple sale transactions & Illustration 15
Financial Reporting
answered on 28-Mar-24 15:08
Sir in this question, while derecognizing NCI = we directly took its balance as a % share of Net assets. We did not add 10% of given adjustments to find out the balance of NCI. Why did we not add 10% of adjustments balance to find the amount of NCI to be derecognized ?
latest answer
Net Assets attributable to NCI is 10% i.e. 6 crores. This will be shown on the equity and liabilities side which we are derecognising. 100% of assets & liabilities that are included will be recognised on disposal. Amount under equity will be retained as it is or reclassified as applicable.
Bhoomi Makhecha
CA Final
★ 35
1
283
Net worth Vs Net assets.
Corporate & Other Laws
answered on 03-Jun-25 14:05
Could you plz explain the logic behind the concept of net assets and networth. Y net assets is not considered as Net worth ? Usually I feel confused in both terms .
latest answer
Great question — and you're not alone. A lot of people confuse net worth and net assets because they sound similar and are closely related. But here’s the logic behind the terms: Net Worth Net worth is a broad financial term used to describe the overall value of an individual or entity (like a person, company, or even a country). It’s calculated as: Net Worth = Total Assets – Total Liabilities So, if you own a house, some investments, and a car (your assets), and you have a mortgage, student loans, and credit card debt (your liabilities), your net worth is what’s left over after subtracting what you owe from what you own. This term is commonly used for individuals, public figures, and celebrities — think of it as a snapshot of someone’s financial standing. Net Assets Net assets, on the other hand, is a term more commonly used in accounting and business contexts. It’s especially relevant in nonprofit organizations and corporate balance sheets. Net Assets = Total Assets – Total Liabilities (same formula, different context) But here’s the nuance: net assets often refers to how assets are classified — for example: • Restricted vs. unrestricted net assets (in nonprofits) • Equity structure (in corporations) So technically, net assets and net worth use the same math, but the difference is in application and terminology: • "Net worth" = Used for individuals and general financial health • "Net assets" = Used in corporate/accounting frameworks TL;DR: • They’re mathematically the same but used in different contexts. • Net worth = You, me, celebrities (personal finance) • Net assets = Organizations, companies, nonprofits (accounting) If you’re ever curious about the net worth of public figures and want to see real-world examples broken down in plain terms, sites like TheNetWorths.com are helpful — they show how assets and income sources contribute to overall net worth. Hope that clears it up! 👌
1 Minute Review
CA Inter
★ 405
16
1K+
SBU
Strategic Management
answered on 28-Mar-24 15:29
If Tobacco business contains some independent functions like marketing, sales.. and some shared services like finance, HR. Even now Tobacco business can called as SBU ?
latest answer
Yes.
Harish Kumar
CA Inter
★ 17K+
1
318
Overall
Strategic Management
answered on 27-Mar-24 11:28
When can we expect an revision of entire syllabus just like FM
latest answer
SM will be done in first/second week of April
Pranesh N
CA Inter
★ 4K+
1
303
Derivatives
AFM
answered on 27-Mar-24 11:47
How to compute the value of N(d1) & N (d2) in black scholes model in calculator? Whether we will be provided with normal distribution table in the exam? In qn also they have not given.
latest answer
Yes. Distribution table will be provided
VISAAGAN R
CA Final
★ 940
2
350
Branch Accounts
Accountancy
answered on 28-Mar-24 15:12
Good morning sir.. I solved these sum using all three methods but I can't the answer using trading and profit and loss method?..Sir,May I know what is the mistake sir?..
latest answer
Ok sir..let me try sir..thank you sir
shanthini hariharan
CA Inter
★ 10K+
12
360
Depreciation
Financial Reporting
answered on 28-Mar-24 15:13
The PPE given in B/S is the net block since there is no acc dep given seperately. So why do we reduce depn seperately while computing CF from investing activities? can you please elaborate which situations this adj is required and in what cases we only adjust depn in operating activities
latest answer
You can prepare a ledger account of PPE for the year considering opening balance, depreciation and acquisition. You will be able to understand. What I have done here basically is derived the closing balance with the help of opening balance, current year depreciation, consolidation impact. This is done to find out if at all there is any hidden adjustment of any PPE acquired.
Dhvaritha Ravishankar
CA Final
★ 7K+
2
192
Investment in associate
Financial Reporting
answered on 28-Mar-24 15:20
why do we reduce dividend of 30, that is also an income earned from the investment right? aside from 120 profit share we also receive 30 dividend
latest answer
INcome from associate is accounted using equity method on accrual basis. Cash is not received. Cash is received when dividend is paid.
Dhvaritha Ravishankar
CA Final
★ 7K+
1
206
Time value of money !
Financial Management
answered on 27-Mar-24 10:40
Hi In ICAI material after Ratio analysis chapter next chapter mentioned as cost of capital.May I know where the time value of money mentioned as different chapter as shown in video??
latest answer
It is a basic concept that a lot of students have asked us to ad and hence we have added it. PVF, PVAF, FV etc. are all concepts discussed in this chapter It is a pre read that is necessary for you to understand before you go to advanced topics in FM It is not there in FM syllabus but is definitely required for students
Shini Sasidharan
CA Inter
★ 10
1
353