The decrease in Jpy/usd makes import expensive for us citizens and thus improve current account deficit. This action is based on flow of current account mechanism and is based on elasticity of import and export.
The decrease in Jpy/usd makes import expensive for us citizens and thus improve current account deficit. This action is based on flow of current account mechanism and is based on elasticity of import and export.
The answer is B. It is misprinted in the solution i think. As for confidence interval to be wide we would require a lower alpha level because Confidence interval = 1- alpha. So lower the alpha level, wider the CI. This would be better understood in eventualities of hypothesis testing where the probaRead more
The answer is B. It is misprinted in the solution i think.
As for confidence interval to be wide we would require a lower alpha level because Confidence interval = 1- alpha. So lower the alpha level, wider the CI.
This would be better understood in eventualities of hypothesis testing where the probability of type 1 error was denoted by alpha.
Well you need to read it once more. Subordinate debt is less costly than equity, which makes it a better choice to issue when compared to equity. A company will choose to issue subordinate debt than equity. And the question is asking the least likely reason to issue subordinate debt. A is the most lRead more
Well you need to read it once more. Subordinate debt is less costly than equity, which makes it a better choice to issue when compared to equity. A company will choose to issue subordinate debt than equity.
And the question is asking the least likely reason to issue subordinate debt.
This is one of those aspects which you need to memorise as the other two statement falls out of line with SEC requirements. Plus if you fail to recall, try working with reasoning. Imparement charges can change the earnings substantially, and may/may not present a false report. An analyst would removRead more
This is one of those aspects which you need to memorise as the other two statement falls out of line with SEC requirements.
Plus if you fail to recall, try working with reasoning. Imparement charges can change the earnings substantially, and may/may not present a false report.
An analyst would remove the effect of imparement to drive out the true picture if imparement hit is too big. Hence, option B.
Assuming you already know what LIFO system is, let's jump straight into example. Suppose north company sells pens. They bought 10 pens at rs 2 each on 10th JAN Bought 20 pens at rs. 3 each on 25th JAN. They sold 10 pens on 20th JAN. Now, under perpetual LIFO method, the cost of pens would beRead more
Assuming you already know what LIFO system is, let’s jump straight into example.
Suppose north company sells pens.
They bought 10 pens at rs 2 each on 10th JAN
Bought 20 pens at rs. 3 each on 25th JAN.
They sold 10 pens on 20th JAN.
Now, under perpetual LIFO method, the cost of pens would be 10×2 = 20rs.
Under periodic LIFO (assuming that one period is considered to be a month) the cost would be 10 ×3 = 30rs.
Under a periodic LIFO system, you would wait until the end of the month( assuming a period to be one month) and then record the sales made, where as in perpetual method, sales are recorded as they are made.
Also, in a period of continually increasing prices, a periodic LIFO system will result in high COGS and therefore the low net income.
This question combines the concept of both long lived asset (revaluation surplus)and DTA/DTL. First we need to calculate the CV of asset. And since it has been revalued on 2014, we also need to account for the depreciation of that year. So, before the revaluation, by the accounting standards, the vaRead more
This question combines the concept of both long lived asset (revaluation surplus)and DTA/DTL.
First we need to calculate the CV of asset.
And since it has been revalued on 2014, we also need to account for the depreciation of that year.
So, before the revaluation, by the accounting standards, the value of asset at 2013 end was – 8000 -1200 = 6800
After revaluation in 2014 beginning, the value became 10000.
Revaluation surplus = 10000- 6800= 3200
Taking depreciation into account, value at the end = 1000- 500 = 9500
Adjusting the revaluation surplus, Carrying val = 9500-3500 = 6300
Now, value according to tax purposes at 2014 end = 8000- 4000 = 4000
Difference = 6300 -4000 = 2300
DTL = 30% of 2300 = 690.
Thanks for asking, took a good brainstormg while solving.
Pls share an example where you are having any difficulty. For time, let's take this example. Bond FV = 100 CR = 8% semi annually Time to maturity = 5 If the PV is 105, compute YTM Here, we would fill in FV and PV as stated, then N = 5×2 = 10, PMT = 8/2 = 4 and compute I/Y Here the I/Y you gotRead more
Pls share an example where you are having any difficulty.
For time, let’s take this example.
Bond FV = 100
CR = 8% semi annually
Time to maturity = 5
If the PV is 105, compute YTM
Here, we would fill in FV and PV as stated, then N = 5×2 = 10, PMT = 8/2 = 4 and compute I/Y
Here the I/Y you got is of 6 month, convert it by multiplying by 2 = 3.401×2 = 6.80
This is stated annual I/Y, compound semi annually.
Because CFS doesn't capture any activity beyond cash transactions, non cash transactions are left out of its jurisdiction. However there are lot of transactions (non cash) which affect the composition, one example being stock dividend etc. Hence, both IFRS and US GAAP require companies to disclose aRead more
Because CFS doesn’t capture any activity beyond cash transactions, non cash transactions are left out of its jurisdiction. However there are lot of transactions (non cash) which affect the composition, one example being stock dividend etc.
Hence, both IFRS and US GAAP require companies to disclose all significant non-cash investing and financing activities either at the bottom of the statement of cash flows as a footnote or in the notes to the financial statements.
So i'll be answering the question which i understood as best of my knowledge. 1. No, intangible asset with indefinite life cannot be amortized, however, it is subject to annual impairment test annually. 2. This is an example of revaluation model, and any upward revaluation over than the original cosRead more
So i’ll be answering the question which i understood as best of my knowledge.
1. No, intangible asset with indefinite life cannot be amortized, however, it is subject to annual impairment test annually.
2. This is an example of revaluation model, and any upward revaluation over than the original cost of acquiring the asset would fall under equity revaluation reserve.
BOP influence on exchange rates
The decrease in Jpy/usd makes import expensive for us citizens and thus improve current account deficit. This action is based on flow of current account mechanism and is based on elasticity of import and export.
The decrease in Jpy/usd makes import expensive for us citizens and thus improve current account deficit. This action is based on flow of current account mechanism and is based on elasticity of import and export.
See lessQM Sampling
The answer is B. It is misprinted in the solution i think. As for confidence interval to be wide we would require a lower alpha level because Confidence interval = 1- alpha. So lower the alpha level, wider the CI. This would be better understood in eventualities of hypothesis testing where the probaRead more
The answer is B. It is misprinted in the solution i think.
As for confidence interval to be wide we would require a lower alpha level because Confidence interval = 1- alpha. So lower the alpha level, wider the CI.
This would be better understood in eventualities of hypothesis testing where the probability of type 1 error was denoted by alpha.
See lessFixed income
Posted the solution in snap.
Posted the solution in snap.
See lessFixed income
Well you need to read it once more. Subordinate debt is less costly than equity, which makes it a better choice to issue when compared to equity. A company will choose to issue subordinate debt than equity. And the question is asking the least likely reason to issue subordinate debt. A is the most lRead more
Well you need to read it once more. Subordinate debt is less costly than equity, which makes it a better choice to issue when compared to equity. A company will choose to issue subordinate debt than equity.
And the question is asking the least likely reason to issue subordinate debt.
A is the most likely reason.
Boggled me once, i read it twice too.
See lessfra
This is one of those aspects which you need to memorise as the other two statement falls out of line with SEC requirements. Plus if you fail to recall, try working with reasoning. Imparement charges can change the earnings substantially, and may/may not present a false report. An analyst would removRead more
This is one of those aspects which you need to memorise as the other two statement falls out of line with SEC requirements.
Plus if you fail to recall, try working with reasoning. Imparement charges can change the earnings substantially, and may/may not present a false report.
An analyst would remove the effect of imparement to drive out the true picture if imparement hit is too big. Hence, option B.
See lessInventory
Assuming you already know what LIFO system is, let's jump straight into example. Suppose north company sells pens. They bought 10 pens at rs 2 each on 10th JAN Bought 20 pens at rs. 3 each on 25th JAN. They sold 10 pens on 20th JAN. Now, under perpetual LIFO method, the cost of pens would beRead more
Assuming you already know what LIFO system is, let’s jump straight into example.
Suppose north company sells pens.
They bought 10 pens at rs 2 each on 10th JAN
Bought 20 pens at rs. 3 each on 25th JAN.
They sold 10 pens on 20th JAN.
Now, under perpetual LIFO method, the cost of pens would be 10×2 = 20rs.
Under periodic LIFO (assuming that one period is considered to be a month) the cost would be 10 ×3 = 30rs.
Under a periodic LIFO system, you would wait until the end of the month( assuming a period to be one month) and then record the sales made, where as in perpetual method, sales are recorded as they are made.
Also, in a period of continually increasing prices, a periodic LIFO system will result in high COGS and therefore the low net income.
deffered taxed
This question combines the concept of both long lived asset (revaluation surplus)and DTA/DTL. First we need to calculate the CV of asset. And since it has been revalued on 2014, we also need to account for the depreciation of that year. So, before the revaluation, by the accounting standards, the vaRead more
This question combines the concept of both long lived asset (revaluation surplus)and DTA/DTL.
First we need to calculate the CV of asset.
And since it has been revalued on 2014, we also need to account for the depreciation of that year.
So, before the revaluation, by the accounting standards, the value of asset at 2013 end was – 8000 -1200 = 6800
After revaluation in 2014 beginning, the value became 10000.
Revaluation surplus = 10000- 6800= 3200
Taking depreciation into account, value at the end = 1000- 500 = 9500
Adjusting the revaluation surplus, Carrying val = 9500-3500 = 6300
Now, value according to tax purposes at 2014 end = 8000- 4000 = 4000
Difference = 6300 -4000 = 2300
DTL = 30% of 2300 = 690.
Thanks for asking, took a good brainstormg while solving.
Spot rates
Pls share an example where you are having any difficulty. For time, let's take this example. Bond FV = 100 CR = 8% semi annually Time to maturity = 5 If the PV is 105, compute YTM Here, we would fill in FV and PV as stated, then N = 5×2 = 10, PMT = 8/2 = 4 and compute I/Y Here the I/Y you gotRead more
Pls share an example where you are having any difficulty.
For time, let’s take this example.
Bond FV = 100
CR = 8% semi annually
Time to maturity = 5
If the PV is 105, compute YTM
Here, we would fill in FV and PV as stated, then N = 5×2 = 10, PMT = 8/2 = 4 and compute I/Y
Here the I/Y you got is of 6 month, convert it by multiplying by 2 = 3.401×2 = 6.80
This is stated annual I/Y, compound semi annually.
FRA
Because CFS doesn't capture any activity beyond cash transactions, non cash transactions are left out of its jurisdiction. However there are lot of transactions (non cash) which affect the composition, one example being stock dividend etc. Hence, both IFRS and US GAAP require companies to disclose aRead more
Because CFS doesn’t capture any activity beyond cash transactions, non cash transactions are left out of its jurisdiction. However there are lot of transactions (non cash) which affect the composition, one example being stock dividend etc.
Hence, both IFRS and US GAAP require companies to disclose all significant non-cash investing and financing activities either at the bottom of the statement of cash flows as a footnote or in the notes to the financial statements.
See lessImpairment under IFRS
So i'll be answering the question which i understood as best of my knowledge. 1. No, intangible asset with indefinite life cannot be amortized, however, it is subject to annual impairment test annually. 2. This is an example of revaluation model, and any upward revaluation over than the original cosRead more
So i’ll be answering the question which i understood as best of my knowledge.
1. No, intangible asset with indefinite life cannot be amortized, however, it is subject to annual impairment test annually.
2. This is an example of revaluation model, and any upward revaluation over than the original cost of acquiring the asset would fall under equity revaluation reserve.