Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding. Development is the application of research findings or other knowledge to…
Generally, a period of 12 months is considered as a substantial period unless a shorter or longer period can be justified based on facts and circumstances of the case. Borrowing…
Each major part of an item of PPE with cost being significant in relation to total cost of the item, should be depreciated separately, even though it may not have…
As per Ind AS 101, the deemed cost exemption is applicable to PPE as defined under Ind AS 16 and recognised as Fixed Assets in the financial statements at the…
IAS 40 permits treatment of property interest held in an operating lease as investment property, if the definition of investment property is otherwise met and fair value model is applied.…
Corporate Social Responsibility (CSR) implies a concept, whereby companies decide voluntarily to contribute to a better society and a cleaner environment – a concept, whereby the companies integrate social and…
Cost of Inventory includes:The costs of purchase of inventories include: 1. Cost of purchase 2. Cost of conversion 3. Other cost to bring the inventory to the present location and…
An operating segment is a component of an entity: (a) that engages in business activities from which it may earn revenues and incur expenses (b) whose operating results are regularly…
The most common capital investment evaluation tools are the Payback Period (PP), Return on Investment (ROI), Net Present Value (NPR), and Internal Rate of Return (IRR). Each method can provide…
Q If the project’s initial investment is of 100 crores and NPV of the same is ₹10 lakhs, will you go for the project or not? Suppose I am getting…
Solvency is defined as the firm’s potential to carry on business activities in the foreseeable future, to expand and grow. It is the measure of the company’s capability to fulfil…
WACC – Weighted Average cost of capital - (E/E+D)*Ke + [D(1-t)/E+D]*Kd E – Market Value of Equity D – Market Value of Debt Ke – Cost of equity Kd –…
Submit application within 6 months of communication of order or decision in GST APL-03 along with relevant documents as follows:- 1. Grounds of Appeal 2. Form of verification 3. Certified…
Section 18 of CGST 2017 provides for availability of credit in special circumstances. Section 18(1): Subject to such conditions and restrictions as may be prescribed— a) a person who has…
As per the latest notification, Zomato, Swiggy, etc. shall be responsible for charging, collecting, and paying GST at the rate of five percent on supply of “restaurant services” made by…
Tax Evasion: Tax Evasion is an illegal way to minimize tax liability through fraudulent techniques like deliberate under-statement of taxable income or inflating expenses. It is an unlawful attempt to…
The Finance Act, 2022, introduced Section 194R, which pertains to the deduction of tax on benefits or perquisites in respect of businesses or professions. Businesses, companies, or entities often extend…
Internal Audit means “An independent management function, which involves a continuous and critical appraisal of the functioning of an entity with a view to suggest improvements thereto and add value…
An internal audit is an independent assessment of an organization's operations and financial reporting processes, conducted by employees of the organization or by an independent third party. The primary goal…
A reverse merger (also known as a reverse takeover or reverse IPO) is a way for private companies to go public, typically through a simpler, shorter, and less expensive process.…
▪ Synergy ▪ Diversification ▪ Growth ▪ Eliminating competition
Horizontal merger is when two companies which belong to the same industry merge – for example the Vodafone and Idea merger. They belong to the same industry i.e. telecommunications. A…
A conglomerate merger is a merger between firms that are involved in totally unrelated business activities. There are two types of conglomerate mergers: pure and mixed. Pure conglomerate mergers involve…
A merger occurs when two separate entities combine forces to create a new, joint organization. An acquisition refers to the takeover of one entity by another. A new company does…
▪ Competition Commission of India ▪ Reserve Bank of India ▪ Depositories ▪ Stock exchanges ▪ Registrar of Companies ▪ Regional Director ▪ Official liquidator ▪ NCLT – replaced High…
Advantages of mergers ▪ Economies of scale – bigger firms more efficient ▪ More profit enables more research and development. ▪ Struggling firms can benefit from new management. Disadvantages of…
This is one of the most commonly asked questions of all time, and irrespective of domain. It is as important as the "Tell me something about yourself question". You must…
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio incomparison to the market. A security's beta is calculated by dividing the covariance the…
CAPM = Rf + B (Rm-Rf) Rf = Risk Free rate B = Beta Rm = Market risk The capital asset pricing model (CAPM) is a model that describes the…
The Cost of Equity is always higher than Cost of Debt. Note that we have used the word ALWAYS not USUALLY. This is because for any given company, equity will…
An operating lease is treated like renting - payments are considered operational expenses and the asset being leased stays off the balance sheet. At the end of the operational lease…
Goodwill is an intangible asset that arises because of the acquisition of one company by another for a premium value. It is thought to represent the value of a company’s…
For partnerships, some traditional formulae are used 1. Calculating Goodwill Using Average Profits – Avg profits * no of years. 2. Goodwill using super profits (Actual profit – normal profit)…
Ind AS 17 classified leases as finance leases and operating leases. Ind AS 116 does not make this distinction. When compared to Ind AS 17, Ind AS 116 requires detailed…
FCF is an assessment of the amount of cash a company generates after accounting for all capital expenditures, such as buildings or property, plant and equipment. The Free Cash Flow…
Valuation is the process of determining "Value". It ultimately answers the question "What should I pay" for any asset, instrument or a company. Valuation can be categorised based on Relative…