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Amalgamation and shareholder's worth
Accountancy
answered on 13-Mar-24 13:48
Sir while studying amalgamation we have understood that equity or shareholder's worth is calculated by subtracting liabilities from assets, which denotes the amount shareholders earned throughtout they year and deserve while exiting the company. Now doubt is, when we listen that shareholder's worth has increased for whatever reason (like share prices in stock market have increased or profits have increased or both or for any other reason) the lia.side of balance sheet will increase but when SH's worth increase, how do they increase the corresponding assets in real life? Let's say stock prices have risen manifold and gone from ₹10 to ₹80, now how will asset side increase? Cash won't increase ofcourse BCz money won't come in bank by increase in share prices in stock market, so how exactly assets will increase?
latest answer
When you refer shark tank, the increase is in valuation of the company. Valuation is from market point of view. Net worth is from balance sheet point of view.
Garima Bhargava
CA Inter
★ 185
3
338
Borrowing cost illustration 7
Accountancy
answered on 07-Mar-24 08:52
Interst till completion is 18 lakhs.. int till mar is 25 laksh .. only the diff will be charged off to pnl whyyyy 25 lakhs to pnl
latest answer
ONly 7 lacs will be expensed
MONIKAA RAMESHKUMAR
CA Inter
★ 710
1
146
Borrowing cost
Accountancy
answered on 10-Mar-24 19:05
In illustration 2 book pg no 5.119 is the same method of this problem .. but slight difference is in.. can i use book method to solve the weighed avg interest method
latest answer
Yes
MONIKAA RAMESHKUMAR
CA Inter
★ 710
1
167
associates
Financial Reporting
answered on 04-Mar-24 22:02
In test your understanding 2 why we did not reduce the investment of associate in other investment ? and where it is mentioned that not to include?
latest answer
Because the investment is not recorded in the books. So if you add the investment amount and then reduce the investment amount, the impact is zero.
Anurag Jha
ACCA Skill
★ 0
1
277
Cost of capital
Financial Management
answered on 13-Mar-24 19:02
"To properly represent market value weights, the market value of equity shares should be apportioned in the ratio of the book value of paid-up equity capital and the book value of retained earnings", I didn't understand the statement sir, we will caluclate market value of equity shares based on market price of equity shares and not book value, So how can we classify the MV weights in book value, can you please explain sir?
latest answer
Pls share page number reference so that faculty can respond quickly
siva chaitanya
CA Final
★ 13K+
6
294
Cost of capital
Financial Management
answered on 04-Mar-24 01:48
"Discount rate makes the present value of the debt's cash flows equal to its current market price under YTM approach", can you please explain the statement in detail with some example to understand the statement sir
latest answer
When a doubt is raised on a statement, please post the full content for understanding the context and also the source of the content (from which material the lines are questioned)
siva chaitanya
CA Final
★ 13K+
1
225
Cost of capital
Financial Management
answered on 04-Mar-24 02:14
can you please explain the logic for the caluclation of 150/- in the example given in ICAI material sir Actually if the company is expected to get 30% return then (100+30% of 100)=130, So why the investor will be prepared to invest more than 130/-(In ICAI material, it gave investor will be prepared to give 150/- per share
latest answer
The information provided is insufficient to address the logic. To co-relate the concept and the numbers/formula, the information is missing. There can be errors from ICAI. Please ignore this
siva chaitanya
CA Final
★ 13K+
1
264
Cost of capital
Financial Management
answered on 04-Mar-24 02:18
can you please explain the question asked and how to proceed with the caluclation sir
latest answer
please post the pictures of the full question and the exact doubt
siva chaitanya
CA Final
★ 13K+
1
306
Cost of capital
Financial Management
answered on 04-Mar-24 02:22
How to caluclate net proceeds as there are printing expenses and other issue expenses in the attached question, please guide me in caluclation of net proceeds sir
latest answer
please post the questions, either from ICAI or IL material only.
siva chaitanya
CA Final
★ 13K+
1
296
Cost of capital
Financial Management
answered on 04-Mar-24 02:24
Can you please explain the question and guide in solving the problem sir
latest answer
please post questions from ICAI or IL material
siva chaitanya
CA Final
★ 13K+
1
290