Forums
Adjusting Events - Additional Evidence
Accountancy
answered on 07-Mar-24 08:44
Hi sir, hope you're well. Let us say at balance sheet date, provision for doubtful debts from a customer stood at 20%. However due to a tsunami the customer's entire premises were wiped out and thus had to be 100% written of in our company's books. Here, would this constitute an adjusting event? Since we cannot really say that the circumstances of 100% write-off existed at balance sheet date, since the event of the tsunami happened after balance sheet date only. So my question is would this be considered an adjusting event, and if so, why. Thanks
latest answer
Non adjusting event since conditions were not existent on balance sheet date.
Devaprasad Jothimani
CA Inter
★ 0
1
737
Dividend decisions - lecture no.10 - video timings 3m 48s and 4m 12s
Financial Management
answered on 04-Mar-24 20:01
Dear sir, as per the question given, b=40% and r=25% What is the logic behind writing " b*r" as "40*0.25" ( i.e. only r as decimal) {3m 48s} and writing "b*r" as "0.4*0.25" (i.e both b and r as decimals) {4m 12s} ?
latest answer
Got it sir, thank you
Srinidhi
CA Inter
★ 270
2
190
Chain holding
Corporate & Other Laws
answered on 04-Mar-24 12:32
What is mean by chain holding Please let me know
latest answer
For example if company A owns significant shares of company B and company B inturn owns significant shares of company C.This creates a chain like structure called chain holding. This means company A indirectly influences company C through it's control over company B
Sruthi sruthi
CMA Inter
★ 640
1
547
Calculation doubt
Financial Reporting
answered on 03-Mar-24 21:02
When I was solving , I thought about the amount to be transferred to current liab as on 31 March of year 1 shall be 24000 ( 30000*50000/62500) I divided 25000 in the ratio of number of months. As training period is 18 months which means in 12 months of first year and 6 month of next. Hence I divided the training cost as 50 k for year 1 and 12500 for year 2 and accordingly solved. What logic went wrong?
latest answer
Okk! Noted !! Thank You
Hrishikesh Pradhan
CA Final
★ 18K+
7
314
IFM
AFM
answered on 03-Mar-24 18:29
Hello Sir, In the complier illustration-10, in calculating MIRR I think instead of Cashflows PV of cashflows are multiplied with the FVF. Also, in illustration excel file few solutions are missing (3, 4, 7, 14 and 15).
latest answer
Thanks for highlighting the error. have fixed it . will upload the correct computation in the new e notes / pdf. Also excel is correct . error is in the printed notes
Suresh Avinash
CA Final
★ 3K+
4
335
P590 - poertfolio management - 70th Illustration
AFM
answered on 03-Mar-24 16:19
(iii) Whether the new Equity Beta (β_E) justifies increase in the value of equity on account of leverage? For this sub question, actually after leveraging the value of equity got reduced right? Can you explain me this part solution
latest answer
Yes equity value has gone down. but beta has increased, When broader market moves up, this equity value will also increase at a much higher rate as t it has high beta
Dhanushree Shanmugam
CA Final
★ 3K+
1
315
Audit evidence
Auditing
answered on 03-Mar-24 18:18
if the materiality level is high, then should the items for sampling be high or low?
latest answer
Depends upon the assessment of ROMM. the final understanding is Audit risk should be low. If ROMM is high. the detection risk should be low. So more samples to be selected. Materiality lower. If ROMM is low, the detection risk will be high. So less samples can be selected. Materiality high
Roobashree Rajagopal
CA Inter
★ 1K+
2
335
Consideration payable to the customer
Financial Reporting
answered on 03-Mar-24 18:55
The recognition of consideration payable to the customer is later of revenue recognized or amount payable to the customer. Whether this is the type of variable consideration? If so, then it should be accounted at earlier of the revenue recognized or amount payable because variable consideration should be accounted only if revenue reverse will not occur subsequently. Kindly explain on the above part whether consideration payable to the customer is a variable consideration or not?
latest answer
Variable consideration is received from customer. Variable consideration is different from consideration payable to customer.
Nivethithaa S
CA Final
★ 2K+
1
231
Test Series
Exams
answered on 03-Mar-24 16:58
Can anyone suggest where I can get a test series for cheap. I don't want them checked just want the test papers chapter wise.
latest answer
Okay thanks
Pallavi Shinde
CA Final
★ 2K+
3
387
Difference btw closing stock and closing inventory
Accountancy
answered on 31-Mar-24 11:20
Sir what is the difference btw closing stock and closing inventory . give some examples.
latest answer
They can be used in each other's place
Ajaykumar Parit
CA Inter
★ 815
2
349