- 9 months ago
Category
π¦
CreativityTranscript
00:00:00A is no. 11, 12, 16 is common for CA, group 1 as well as CMA.
00:00:25A is no. 11, the effects of changes in foreign exchange rates, the effects of changes in foreign exchange rates.
00:00:47And in the accounting standards, 21 is shown.
00:00:53A is no. 11, the effects of changes in foreign exchange rates, the effects of changes in foreign exchange rates.
00:01:00In the accounting standards, the bigger than that, A is the bigger than Indian accounting standards.
00:01:07International level, we have IFRS, International Financial Reporting Standards.
00:01:13According standards, it is data, we have to jump in. All the accounts maintain as per AS, shifted to IFRS, IFRS, seems to be a bit complicated.
00:01:25That's why India has a gap.
00:01:37There is a gap.
00:01:39You have to move on to invest this education system.
00:01:42Once you are able to see this screen.
00:01:45Okay, Okay, So, Now you are able to see these screens.
00:01:47Okay, In the accounting standards.
00:01:49Okay. So, you need to understand the accounting standards, how far there is slight variations
00:01:58in the accounting standards. Here, effects of changes in foreign exchange rates, transaction
00:02:10in forex is applicable, translation is applicable, forward exchange contract is applicable. In
00:02:18these three places, this will be applicable. Transaction, translation, forward exchange
00:02:24contract. In these are the three areas, it will be applicable. Transaction in forex,
00:02:31foreign exchange. Either buying or selling or lending or borrowing will be called as
00:02:38transactions. US length, you know, one lakh dollars goods to buy you. Sellers, we have
00:02:43three months credit. We have three months payment. Three months later, while settling that,
00:02:50we came to know that dollar prices increased to 80. So, we are losing around 5 rupees because
00:02:57of buying and the extra loss you are facing is called transaction exposure. We may face loss
00:03:06also. Is that okay? That is called transaction. Exposure. Buying, selling, lending, borrowing.
00:03:13Translation, Amerikan. That is as per age number 11 only. Okay. That is as per age number 11 only.
00:03:25Okay. That is why the foreign branch will be converted into home branch. Okay. This is CMA
00:03:38group two students. I have a branch in US. They could have reported the financial reports in their currency. That is
00:03:53it is, President Frank. It should be converted into home
00:03:54currency. That is why the foreign branch and assets and li free business is
00:03:56unlimited and then it is. So, then I incorporate it. So, we can incorporate it as an
00:03:59property. So, the foreign branch should be converted into home
00:04:06currency value. The home currency should be converted into home currency.
00:04:10So, if you have a business owner you can make it any other currency. Now, I am
00:04:14There is a branch head, a financial report in the US dollar,
00:04:18that will be home currency, Indian rupees,
00:04:21re-recorded,
00:04:22some are considered.
00:04:24If we convert, profit or loss is a translation exposure.
00:04:30Is that okay? That will be called as translation exposure.
00:04:35If translation is a profit or loss, what do we do?
00:04:39If we handle two things,
00:04:42one is integral part, another one is non-integral part.
00:04:46Integral and non-integral part,
00:04:48the two parts we call.
00:04:49Is that okay?
00:04:51Integral and non-integral part follow up.
00:04:54Integral and non-integral part is one of our business.
00:04:58That's why,
00:04:59conversion and non-integral part is one of our business.
00:05:04If our business is a non-integral part,
00:05:08non-integral part of foreign currency conversion reserve,
00:05:11one of our business is one of our business.
00:05:13Okay, this is a loss and gain,
00:05:15this is a set-off currency conversion reserve,
00:05:17which is a balance sheet appear.
00:05:19So, your foreign branch,
00:05:22head show in India,
00:05:24branch office in USA.
00:05:26Branch office in USA.
00:05:28They might have prepared their balance sheet,
00:05:30India owned currency.
00:05:32That's how home currency investments you will.
00:05:34Convert.
00:05:35Convert.
00:05:36Convert.
00:05:37scherf
00:05:39Convert.
00:05:40Convert.
00:05:41the loss.
00:05:42This branch is integrated, if you translate
00:05:46to the profit loss, you can transfer
00:05:51to the FCCR.
00:05:53After transfer, it is translation
00:05:58one currency, one nation's currency to the other nation's currency.
00:06:02In this language, it is translated.
00:06:06If you have a fixed asset, you can see the conversion rate.
00:06:12That's the historical rate.
00:06:15If you have assets like stock, debtors, closing asset,
00:06:22closing conversion rate.
00:06:24Opening stock, opening asset, that's the opening rate.
00:06:27If you have a nominal account, print, salary, purchases, sales,
00:06:34this is the average rate.
00:06:37This is integrated.
00:06:40Non-integrated, all closing value convert.
00:06:44And nominal item of that, we have a average rate.
00:06:47We can convert.
00:06:48Okay, that's how we can handle the case of translation.
00:06:54Transaction, buying and selling layer,
00:06:57this is forward exchange contract.
00:07:01Forward exchange contract, agreement to exchange at a future date,
00:07:06future date at a future rate.
00:07:07If you want to say,
00:07:08A of India, B of USA.
00:07:11B of USA is about a,
00:07:13A of India is about a goods.
00:07:15They are about goods.
00:07:16It's about $1,000.
00:07:18But,
00:07:19they will say,
00:07:203 months time,
00:07:21I am happy.
00:07:24Okay,
00:07:26I have to pay him 1 lakh dollar, there is no argument, so we have to make the payment of 1 lakh dollar,
00:07:47after 1 lakh into 80, 80 lakhs we have to make the payment, 75 lakhs is equal to 80 lakhs, 5 lakhs excess is equal to 5 lakhs, there is excess 5 lakhs, what we can do, what we call the forward exchange,
00:07:57it is one of the transaction next portion.
00:07:59Income tax, if you are aware of the future, the rate may be either increasing or decreasing, it will be having exposure, exposure is exposed to the risk, exposed to the risk,
00:08:24so now that you have Launched bank is going to agree, what we need to buy in your RMB's UK,
00:08:30you have regular that assets are, you need to come 1 lakh, 10 lakhs, that had the application started to extend the Tudogeist.
00:08:33Are you responsible now?
00:08:36Now they have an agreement, mitad of the bank, money came 90 Laves,
00:08:42then you put this incomeΕ, % market is 1 lakh, 2 lakhs have a perfect son and 5 lakhs have a perfect son,
00:08:45now if you are looking at the budget , 5 lakhs can you keep anything more than 3 lakhs have worth the money,
00:08:51You are able to freeze the amount of payment.
00:09:16You are able to freeze the amount.
00:09:20If you are entering into forward contract.
00:09:25Forward exchange contract.
00:09:27Agreement made for exchanging the thing in the future date for the future rate.
00:09:34Where our rate.
00:09:35In the 77 ankar inni kadayadu.
00:09:37Munu maasadhuk appura amma tharavindiya value.
00:09:39Eppu moonu maasadhuk appura.
00:09:41Is that okay?
00:09:43Now, so three types of exposure we have.
00:09:46Transaction exposure translation exposure forward exchange contract exposure.
00:09:51But disclose the change in reporting currency.
00:09:58Okay.
00:09:59But disclose the change in reporting currency.
00:10:04Nammu tebe illa.
00:10:05Cash flow statement as number three.
00:10:07Difference in exchange.
00:10:09Difference in exchange.
00:10:10Where foreign currency borrowings to the extent of interest of it.
00:10:15People are going to be given into account.
00:10:16I have to use that as a person.
00:10:17I have to use that as a person.
00:10:18So far, that is the protection of the amount of oil.
00:10:20This means a customer.
00:10:21You have to use that as a person.
00:10:22To respect the current currency.
00:10:23Of course, it does have two types or not.
00:10:24You have to have to limit the transfer.
00:10:25Like, you have to use the dollar.
00:10:26Studies.
00:10:27You have to get a dollar currency.
00:10:281555
00:10:321555
00:10:351555
00:10:371555
00:10:381855
00:10:4119
00:10:4419
00:10:5219
00:10:5519
00:10:57μ°¨οΏ½ary
00:10:58Borrowings payment pannam both interest component extent irukkaththu nama payment pannamata
00:11:02So these are the components you have to keep in your mind
00:11:05Right so foreign operations in the end are thawam
00:11:09Subsidiary vetsch irukklaam associate vetsch irukklaam joint venture irukklaam foreign branch irukklaam
00:11:15Translation exposure irukkuk varudhu
00:11:18So foreign illa namakku subsidiary irukklaam
00:11:20Nama today business associated irukklaam
00:11:23Naa nuhu foreign illa arukklaoowdum chain thanggong one business pannalaam
00:11:26Naa nuhu foreign entity or foreign branch irukklaam
00:11:28Naa nuhu foreign entity or foreign branch irukklaam
00:11:30Naa nuhu foreign entity or foreign branch irukklaam
00:11:34Naa nuhu entity illa prepare pannapattta financial report
00:11:37Naa nuhu day panggum irukkabdi chunakka
00:11:39Naa nuhu current currency irukklaam
00:11:41But it should be converted to in our own currencies
00:11:44Only then we can identify how much profit is made in terms of Indian currency
00:11:48Naa nuhu convert pannampudhe irukklaam profit and loss
00:11:51Naa nuhu inda nuhu shodhi irukklaam
00:11:53Translation profits and loss and so on
00:11:55Yeppawarum api chanakya branch
00:11:57Mattangkade hadu substeeriyya urukklaam
00:11:59Associates irukklaam joint venture harukklaam
00:12:01Foreign branch oom irukklaam
00:12:03Come on finish off copying the recorded necessary information here
00:12:07Make it faster
00:12:09Purchase and payables. Purchase and payable. The following details are provided by an import
00:12:20house. Goods purchased on 24th August, US dollar 2 lakhs.
00:12:27Purchase and payable. Purchase and payable. Purchase and payable. Purchase and payable to creditors.
00:12:42So you have to make a payment of 94 lakhs 20 thousand.
00:12:5394 lakhs 20 thousand. Is that okay? This happens on 24th August 12 and 18th.
00:13:1124th August 12 and 18th. Month year end over a month.
00:13:19If payment is on 25th May, we have to make a payment of 95th May.
00:13:2525th May is a payment of 95th May.
00:13:30So you have to pay more now.
00:13:35You should not wait until the date of payment if any year end comes in between.
00:13:43That date will adjust the date. So 31st March is a date.
00:13:47In this date, we compare the date.
00:13:50If we compare the date,
00:13:5147th May, 10th May is 57 rupees 20 paise.
00:13:54So you have to pay 7 rupees 10 paise as on the date.
00:13:58So the entry will be 31, 3, 2013 and 2 creditors.
00:14:08The amount payable to the creditors is increases by another 14 lakhs 20 thousand rupees.
00:14:1414 lakhs 20 thousand rupees. Is that okay?
00:14:17That's okay.
00:14:18That's okay.
00:14:19That's okay.
00:14:20That's okay.
00:14:2114 lakhs 20 thousand.
00:14:22is a payment payment proposal.
00:14:25That is okay.
00:14:26What is that?
00:14:27If you can see the need of debit.
00:14:28Can be debited to the payable.
00:14:31Named as exchange loss.
00:14:34On the final day of payment...
00:14:37What is that?
00:14:38What is that?
00:14:3925th May and name payment payable.
00:14:4225th May 13th and name payment payment payable.
00:14:47Creditors are khoorn debit.
00:14:49to bank,
00:14:51my creditors are using
00:14:559420 plus
00:14:571420,
00:14:591 crore
00:15:018,40,000
00:15:031 crore
00:15:058,40,000
00:15:071 crore
00:15:098,40,000
00:15:11but
00:15:1356.30
00:15:15multiplied
00:15:17these two, come on
00:15:192 lakhs into 56.3
00:15:21you are making a payment of
00:15:231 crore 12 lakhs
00:15:2560,000
00:15:27so the extra payment is nothing
00:15:29but debited to PNL account
00:15:31as exchange loss
00:15:33in the exchange loss
00:15:35PNL debit to creditors
00:15:37payment
00:15:39campaign
00:15:41the extra payment is nothing but
00:15:4356.3
00:15:45difference which is 2.1
00:15:472.1 into number of dollars
00:15:49we supposed to pay is 2 lakhs
00:15:514 lakhs
00:15:5320,000 rupees is payable
00:15:55single entry
00:15:57PNL debit to creditors
00:15:59420, 420
00:16:01creditors to bank
00:16:031 crore 12 lakhs
00:16:05rent entry
00:16:07transaction
00:16:09transaction
00:16:11this is what about the process for
00:16:13this is what about the process for
00:16:15question number 2
00:16:17question number 2
00:16:19Z limited sold goods to
00:16:21U.S. company for
00:16:23U.S. dollar
00:16:25U.S. dollar
00:16:2750,000
00:16:29on 10, 2017
00:16:31and released the due
00:16:33on 36, 2017
00:16:35sale
00:17:05purchase and payables
00:17:07purchase and payables
00:17:09sales and receivables
00:17:11Z limited closes the books of account
00:17:13on 31st March every year
00:17:15exchange rates
00:17:17so first case 65.4
00:17:19at the time of transaction
00:17:2165.4 into 50,000
00:17:23that is what about the amount recoverable
00:17:25entry PNL
00:17:27debtor second debit to sales
00:17:2932,70,000
00:17:3132,70,000
00:17:3332,70,000
00:17:35and meanwhile
00:17:3731st March
00:17:39if there is any difference
00:17:41what we have to do
00:17:43identify whether it is a profit or loss
00:17:4565.4
00:17:47if you are
00:17:4966
00:17:51extra
00:17:53right
00:17:55you are pretty happy that
00:17:57for the 50,000 dollar
00:17:5950,000 into 0.6
00:18:0130,000
00:18:03debtor second debit to PNL
00:18:05is the entry for this
00:18:07and original settlement date
00:18:09rate
00:18:1165.8
00:18:130.2
00:18:15into 50,000
00:18:17I am losing
00:18:1920,000
00:18:21I am losing
00:18:23as such now the debtors
00:18:25get the amount
00:18:2732,70
00:18:29and
00:18:3133 lakhs
00:18:3333 lakhs
00:18:35and now
00:18:37bank
00:18:39two debtors
00:18:41debtors
00:18:4310,000
00:18:4510,000
00:18:47that will be now
00:18:49charged to the PNL as
00:18:51exchange
00:18:53loss
00:18:55in the illustration
00:18:57gain
00:18:59loss
00:19:01amount
00:19:0329,90,000
00:19:05is that ok
00:19:07that is all about the question number 2
00:19:09make it faster
00:19:11this is 32,90,000
00:19:15make a correction
00:19:1732,90
00:19:19ok
00:19:25asset purchased
00:19:27a machine
00:19:31costing rupees 72 lakhs
00:19:33in terms of Indian rupees
00:19:35on 14,0014
00:19:37and then the same
00:19:39was fully financed by a foreign currency
00:19:41US dollars
00:19:43payable
00:19:45payable in two annual equal installments
00:19:47rent installments
00:19:49payable in two annual equal installments
00:19:51the exchange rate of US dollar
00:19:5357.6
00:19:55per US dollar
00:19:5757.6
00:19:59per dollar
00:20:01on
00:20:03borrowing date
00:20:052014
00:20:07and the 60 rupees on
00:20:092015
00:20:11ok
00:20:1331,3
00:20:152015
00:20:16the value being
00:20:1760
00:20:18per dollar
00:20:1960
00:20:20per dollar
00:20:21first
00:20:23installment was paid on
00:20:2431,3
00:20:252015
00:20:27first installment
00:20:28in the regular
00:20:29what is the amount of difference
00:20:31to be charged to the profit loss account
00:20:33for the year
00:20:342014
00:20:35and 2015
00:20:36we have to pay
00:20:38loan
00:20:391 dollar
00:20:4057.6
00:20:41that is
00:20:42and payment
00:20:43first installment
00:20:44payment
00:20:45that is
00:20:4660 rupees
00:20:47definitely
00:20:48I have to pay extra
00:20:492 rupees
00:20:5045
00:20:51I have to pay
00:20:5211
00:20:532
00:20:54lecture
00:20:551
00:20:56dollar
00:20:57loan
00:20:581 dollar
00:20:5998
00:21:00dollar
00:21:01come on
00:21:02get me
00:21:03the value
00:21:041
00:21:0525
00:21:06dollar
00:21:07we have to pay
00:21:081,25
00:21:09dollar
00:21:101
00:21:11dollar
00:21:121
00:21:13dollar
00:21:141
00:21:151
00:21:161
00:21:171
00:21:181
00:21:191
00:21:201
00:21:211
00:21:221
00:21:231
00:21:241
00:21:251
00:21:261
00:21:271
00:21:281
00:21:291
00:21:301
00:21:311
00:21:322
00:21:331
00:21:342
00:21:352
00:21:362
00:21:372
00:21:382
00:21:391
00:21:402
00:21:412
00:21:422
00:21:432
00:21:442
00:21:452
00:21:462
00:21:472
00:21:482
00:21:492
00:21:502
00:21:512
00:21:522
00:21:531
00:21:542
00:21:553
00:21:562
00:22:092
00:22:102
00:22:112
00:22:122
00:22:132
00:22:142
00:22:152
00:22:181 lakh 25,000 is the last but today as on 31, 3,015 lakh
00:22:23all amount pending arukkhu and the date leh
00:22:25and the date leh na vandhu 1 dollar 57.6 in arukkhu
00:22:29i have to pay almost 2.4 x's per dollar
00:22:33so the number of dollars to be payable here is 1 lakh 25,000 is multiplied with 2.4
00:22:38so the overall amount payable here is 3 lakhs x's
00:22:41which is the last debited we never mind about the next year
00:22:44can you have next year irunthalipte irukkharthu guidance kutthirukkharthu in the question arukkhekkallan
00:22:48is that ok
00:22:49shall I move on to the next illustration
00:22:53borrowing irukkhu and the borrowing mothay thang
00:22:56borrowing case irukkhu mothay thang
00:22:58springly limited borrowed US dollar 6 lakhs
00:23:03on 31.12.2013
00:23:06which will be repaid settled as on 31.3.2014
00:23:11in the date leh vandhu in the date leh payment pannikkinom
00:23:15ok the company prepares its financial statements
00:23:19on 31.3.2014
00:23:23ok the payment onthu 36
00:23:29ok 36 ammaartik
00:23:3336th naikki payment pannik wendita irukkhu
00:23:36ok the company prepares its financial statements ending on 31.3.2014
00:23:4231.3.2014 rate of exchange exchange in the different rate leh kutthirukkharthu raha ghaan
00:23:48borrow pannumbo 64 irukkhu pappha
00:23:51app borrow pannumbo renna interview aral kamaant bank account debit bank account debit to loan or borrowings
00:24:01ewele borra pannik wendita irukkhu nha 6 lakhs
00:24:05over dollar under 64 na renda manipulay pannik wendita
00:24:08the value being 384 lakhs
00:24:11384 lakhs amma right
00:24:130 sir karpanik wendita 6 inter 64 manipulay pannik wendita
00:24:180 sir karpanik wendita 684 lakhs will be the real borrowing in terms of indian currency
00:24:24ere end l le vandha nama adjustγ panna vinda ghaway nokan
00:24:29the borrowing happens on 31 12 13 age
00:24:31ere end naar 131 3 14 contains
00:24:35amma adjust pani teaching the value
00:24:37so b BRD tag
00:24:43pay $3,000, excess of pay $3,000, loan increases by $3,000 to loan,
00:24:49the value being $3,000. Then, $36,14,00, $36,14,00, real settlement
00:25:05to loan. Okay, 0.25 into 6 lakhs into now, 1.5 lakhs is the loss. Okay, the loan repayment
00:25:22here is, loan here is repayable by this way. Loan account debit to bank.
00:25:28If you pay the loan, the loan is 384 and 31st March, the loan is 0.3 increase is 387. Settlement
00:25:40to pay the loan, the loan is 1.5 lakhs is the original payment.
00:25:47Is that okay? Come on, finish up copying this.
00:26:13Now, Forward Exchange Contract for Hedging Purpose. Now, one of the three months, a dollar payment
00:26:26is that you are going to buy or sell in future, agreed today itself. That is the future contract.
00:26:28Forward Exchange Contract or Future Exchange Contract.
00:26:30Forward Exchange Contract or Future Exchange Contract?
00:26:322.5 lakhs.
00:26:33Forward Exchange Contract.
00:26:34Forward Exchange Contract or Future Exchange Contract?
00:26:36Forward Exchange Contract.
00:26:37Forward Exchange Contract.
00:26:38Forward Exchange Contract.
00:26:39Is that okay?
00:26:40And, finally, the Thani paper are going to buy or buy or sell in future.
00:26:41You are going to buy or sell in future, agreed today itself. That is the future contract.
00:26:42Forward Exchange Contract or Future Exchange Contract?
00:26:432.5 lakhs.
00:26:44Forward Exchange Contract.
00:26:452.5 lakhs.
00:26:46And, finally, it is the RDI sign for Hedging Purpose.
00:26:47So, 1.5 lakhs.
00:26:48So, 5053, If you have written, dieseriΕ spending, first of the rejection, the sales
00:26:49order to buy or sell in future, agreed today itself.
00:26:51This is the future contract.
00:26:52Forward Exchange Contract or Future Exchange Contract?
00:26:552 lakhs.
00:26:56Marine owe each other year.
00:26:57Forward exchange contract?
00:26:584 lakhs.
00:26:594 lakhs.
00:27:005 lakhs.
00:27:015 lakhs.
00:27:025 lakhs.
00:27:035 lakhs.
00:27:046 lakhs.
00:27:055 lakhs.
00:27:065 lakhs.
00:27:075 lakhs.
00:27:085 lakhs.
00:27:095 lakhs.
00:27:105 lakhs.
00:27:115 lakhs.
00:27:125 lakhs.
00:27:13Now 50-53.
00:27:15If you see the amount of excess of 3 plus you have not been able to pay, you know?
00:27:17How do you know?
00:27:18If you see the amount of excess of 3 plus you have not been able to pay, you know?
00:27:21Why do you know?
00:27:22In the price of $1.00, you can pay it.
00:27:23In the price of this rate, what do you have to spend, you know?
00:27:26In the 3 months, you have to pay it.
00:27:28That's about three months.
00:27:31Then, you have to pay it.
00:27:34Now, the logic of this $1.00, you have to pay it, you have to pay it.
00:27:36Forward exchange contract in the case of hedging of a road.
00:27:40Hedging of a road.
00:27:41Let's see here. Rukmini Limited purchased a plant for US dollar 2,50,000 on 1st March 2015. Payable after 3 minutes. 1st March annaikki vaayenge irikkararar. 3 months ikki pereg kudukunoh.
00:27:58April 1, May 1, June 1. 1st June annaikki kudukunoh. Panath. The company entered into a forward contract for 3 months at 54.10.
00:28:13In the date l e enakku dollar vayenu nsulhiittu na banker ikketa unnaa var enna sulhaar. Saring sir, nao 54,50 sir, 30 sir. 1 dollar. Exchange rate. And the exchange rate per dollar on 1st March. Transaction annaikki enna rate irikkarna 53.74 irikkar. Per dollar. Per dollar.
00:28:343 maas ikkak aprena ikkak veenu sir, nao banker ikketa 54.10 kudukunoh. O.K. sir, peenuittu naen. Aprod nanda agreement pporttu banker ikketa reserve papanenu.
00:28:44I am reservation maa eurdunoh. I am doing the reservation for purchasing the dollar in the later period. Aprod reservation papanenu na, anthi netthila seat karekama pukutsu naenna pundududu.
00:28:54Anthi netthila 1 dollar arosurwa yelloosurwa pukutsu naenna pundudu. Adana inge logic. Aprod karekya maa pujutsu naenekki lost annaikki adukkave prevent pundududu kaza,
00:29:02in the reservation paithari pannikkaru that is called forward exchange contract anna sulu. Right. So, as it is now you are paying
00:29:10almost 36 paise excess per dollar. 1 dollar, 36 paise extra kudukkavudu ready arukkireenke inna karno, 3 maas ikkku munnariye reserve papanenududu naala.
00:29:20Aprod papanenthikku 0.12 ni inge amortize papanenukkala. Year rent up, 31st March is, 31st March is 2015. Aprod,
00:29:3015. Aprod, inge aenthi idu varikku 1 month irukkku, inge aenthi idu varikku 2 months irukkku. Aprod inna 0.12 of p inna
00:29:36ulokkule repeat papanenukkala. In the period kuriayadhu, rent maas idu kuriayadhu 0.24, 1 dollar irukkku.
00:29:40Eitha vandhu ni inge, aduthta versundhile ni inge amortize papanenukkala. You can amortize that in the next year, not in the current year. Eitha versundh papanenukkala.
00:29:50Is that okay? Motha eithna dollar irukkku? 2 and a half dollars. So, I multiply with the 2 and a half dollars, then I know how much is going to be debited in that particular year.
00:30:02Yolongha? 90,000. 90,000? 90,000? 90,000? Yahuwada varudhu. Total 90,000 varudhu. Appah, yidhila, in the period kuriayadhu, nama yewu debit papanenukkala.
00:30:1230,000 debit papanenukkirikken. Mitcherikkar 60,000 aarabudhanayarup, aaduthta versundhukuriya amortizle debit papanenukkirikkeno. Is that okay?
00:30:18Itth forward contract premiumu peter. Forward contract premiumu aqkku debit to bankkuna uc ciklaam. In the forward contract premium, 90,000 pay papanenukkala,
00:30:28nengye over the period amortizle papanenukkala, first year endi illa. 30% March 1 ikkya varambudhu, peter lukkan debit to forward contract premium, debit papanenukkirikken 30.
00:30:36Mitcher 30, aaduthta gartta versundhuk nengye debit papanenukkala, aaduthta versundhuk nengye assets lalukkum. Is that okay?
00:30:40Come on, finish up, copying this. Now, forward exchange contract le,
00:30:56trading and speculation afi yirindhal, we have to do mark to market. Mark to market.
00:31:06Aadah was forward contract, 3 reasons kakha papanenukkala, one hedging, trading in one unhappy speculation.
00:31:14Eppu p iPad dahthad hedging. Hedging shunnanal, yenakpapanen thewel.
00:31:18Thank you very much.
00:31:48requirement, it's not your requirement, you want to do business out of it, that is trading
00:31:53and speculation.
00:31:55Trading calculated, speculation, guessing, okay, some applications of knowledge to determine
00:32:03the price moment, trading, knowledge is not available, gambling is not available, speculation,
00:32:10in this case, this is the price, I am marking it to the market rate, market to market rate
00:32:23that will be transferable to the PA account, loss to market, mark to market, mark to market,
00:32:32a dealer has bought 3 months forward contract, dollar 1 lakh at 47.10 per dollar, on 1-6-2018,
00:32:461-6-2018, the dealer closes its accounts on 30th June, 30th June on the account closing date,
00:32:56every year, 3 months in general, it's a company that is 16, 36, 162, 17, 18, 19th account close
00:33:08clear, 19th account close, 3 months in the account, 3 months in the account, close to the account,
00:33:15it's not hedging, it comes into trading and speculation, it's not hedging, it comes into trading and speculation,
00:33:28it's not hedging, it comes into trading and speculation, it's not hedging, it comes into trading and speculation,
00:33:41so we start with 1st June and 1st September and 30th June on the account closing date,
00:33:54exchange rate on the account closing date on the account closing date on the 47.02, so 47.02
00:34:11per dollar per dollar, and on 36, and 36, 2008, okay, now, either 47.10 per dollar, dealer closes its accounts
00:34:3830th June every year, exchange rate on 16, 2008 was 47.02 per dollar,
00:34:48that was very recent, so this is the forward rate, this is spot rate,
00:34:51the market had a proper price, the price which was $1.02,
00:34:56$1.50 $2.00,
00:34:58Sir, you can go to bus ticket and go to bus.
00:35:02Sir, bus is a time to get a ticket.
00:35:04500 miles away.
00:35:06Sir, I am now at 3 months,
00:35:08I am at 5.50.
00:35:10This is a reservation.
00:35:12It is a $40.
00:35:14If you are at 3 months,
00:35:16I am at 47.10.
00:35:19This is a spot rate.
00:35:22Ok.
00:35:24Then,
00:35:26account close date is 47.15.
00:35:30And 2 months forward contract selling on the date is 47.18.
00:35:36Actually, this is 3 months earlier,
00:35:381 months, 2 months,
00:35:401 months, 2 months,
00:35:42this rate is on the date,
00:35:4447.18.
00:35:48Per dollar.
00:35:50That rate is on the spot rate,
00:35:521 month,
00:35:541 month,
00:35:561 month,
00:35:581 month,
00:36:0047.15.
00:36:02Is that ok?
00:36:04And actually,
00:36:06account close on the date,
00:36:0815,
00:36:101 month,
00:36:1215, 7,
00:36:132008,
00:36:14close on the date,
00:36:1647.11.
00:36:18Per dollar.
00:36:20Forward round.
00:36:22Sold, forward contract sale
00:36:247.anda
00:36:38Okay.
00:36:401th dollar,
00:36:421,
00:36:432,
00:36:442008,
00:36:46which
00:36:48sold
00:36:50So, how much do you do?
00:36:52If you look at your rate, you are in 500?
00:36:54No sir, it's not that you are in 3 months.
00:36:58It's 55.
00:37:00Now, it's forward,
00:37:02now it's 500,
00:37:04the 3 months.
00:37:06So, when you look at your rate,
00:37:08you are in 550.
00:37:10It's 1 month.
00:37:12If you look at your rate,
00:37:14you are in 9.
00:37:16You are in 500.
00:37:18Sir, now sir, we have two years of time.
00:37:21Two years of time, sir, reservation cost is $5.50.
00:37:27Is that okay?
00:37:33That's okay.
00:37:38It's 3 years of time.
00:37:41First case, 3 years of time.
00:37:43That's 1-9 years of time.
00:37:451-9 years of time.
00:37:471-9 years of time.
00:37:495 years of time.
00:37:512-9 years of time.
00:37:53You have a reservation ticket.
00:37:55Correct.
00:37:5715-7 years of time,
00:38:01a customer has a ticket.
00:38:05He said,
00:38:07he said,
00:38:09he said,
00:38:11$5.50.
00:38:13He said,
00:38:15the $5.50.
00:38:17He said,
00:38:19he said,
00:38:21he said his ticket is $5.50.
00:38:23The $5.50
00:38:25He said,
00:38:27he said,
00:38:29the $5.50.
00:38:31If you give a change a day, you will be to A$50.
00:38:33A$50.
00:38:35So, your fam is $50, and the date is $50.
00:38:39If you give a ticket to A$50, they will receive $50.
00:38:43How is that?
00:38:45The request is $50.
00:38:47So I travel in the same time.
00:38:49So, let's identify the two difference.
00:38:53If you have a profit, the profit is worth, because of operating this one, because of operating this one,
00:39:01this is a bookman, and if you travel, the profit is worth, and you have a profit.
00:39:10That's how it's appearing here.
00:39:12I am losing 20 rupees per ticket.
00:39:19I am losing 20 rupees per ticket.
00:39:27I am losing 20 rupees per ticket.
00:39:32I am losing 20 rupees per ticket.
00:39:42I am losing 20 rupees per ticket.
00:39:46I am losing 20 rupees per ticket.
00:39:52I am losing 20 rupees per ticket.
00:40:02In the example of trading and speculation,
00:40:21exercise and i can show you when i vote for 50 years and 16 years and 18 years and i count $7 towards a dollar
00:40:29$1 to give it $1 to $0 to $7 towards a dollar
00:40:33So now i can knock the credit to the dollar
00:40:36This is mark to market as on the date of closing of the books
00:40:42alert he was originally the date in the month of $0.57
00:40:471 1948 length rate 1 1,000 pay 41417.7 purchase $40,000 forty four?
00:40:53400 and $47.11 and $40.
00:40:55Which was received $50?
00:41:00That tax is open to the potential of the P&L account?
00:41:03Is that okay?
00:41:04Hope you could understand
00:41:06from up for 240 communicationmacks and support contract.
00:41:15Now, India is number 21, according standard 11, same according standards.
00:41:29But India is number 21, which is a forward exchange contract.
00:41:35And translation on the integral level handle problem, non-integral level handle problem, AS number 11, foreign branch.
00:41:47But non-integral level handle problem, option to recognize exchange differences in case of long term monetary items.
00:42:00This is AS, India is number 21, 11 and 21.
00:42:06So, the difference between AS and AS, India is number 21, 11 and 21.
00:42:12So, what is the difference between AS and AS?
00:42:16This is AS number level, but this is the difference between AS and AS, India is number 21, 11 and 21.
00:42:30Functional currency in which the entity operates.
00:42:31Functional currency in which the entity operates.
00:42:45Indian currency will be the functional currency or HO, means home currency.
00:42:51Foreign currency, foreign currency translation difference.
00:42:55So, foreign currency, conversion reserve.
00:42:57So, now, where is it?
00:42:59That is where is it?
00:43:01One word questions.
00:43:02Balance sheet, reserves and surplus.
00:43:04That may be asking reserves and surplus.
00:43:06So, with that AS number 11 is over.
00:43:09over, we will now move on to the AS number 12. AS number 12 varambooth, AS number 12 varambooth
00:43:18nama yehrekne yeh one the electricity company la pattu churup hoon. Subsidiela one this
00:43:25na epi handle pattu nthi nthi. Adhi logik thai iddu. AS number 12 accounting for government
00:43:31grants. Government grants kudukaragi, edo ur asset vangir inga adh grants kudukaragi enapamma.
00:43:38Basic model, practical problems paathirukhna engul klarthi karajchicuroo. Gvernige.
00:43:45Indhe problem paathirikna kujhe easier ondhru humkli. Unnu peenye complication kare yeh.
00:43:50J.A. Krishna Mills Limited runs a modern beet floured mill. The CFO has prepared the draft
00:43:56accounts, dually considering the monetary accounting standards. Following note appears, the company
00:44:03purchased on 15-6-2015 special purpose machinery for 75 lakhs, machinery 75 lakhs and it received
00:44:13a state government grant 10% of the price, government grants, state government grants,
00:44:20that is 10%, 7.5 lakhs, effective life is 10 lakhs.
00:44:26And it can be depreciated over the 10 years period and it can be depreciated over the 10 years period.
00:44:41If you have an entry, asset to the bank, it is 67.5 lakhs, 67.5 lakhs.
00:44:49Depreciation level, 67.5 divided by 10, 6.75 is depreciated to asset account.
00:44:56It is method 1.
00:44:58In this method, you can handle this.
00:45:03In this method, this is 75 lakhs, machinery and debit to bank account.
00:45:10This is the government grants.
00:45:13Government grants, the bank account debit to deferred government grants.
00:45:18Bank account debit to deferred government grants.
00:45:22That is the asset depreciation to asset, 75 divided by 10, 7.5 lakhs debit.
00:45:30That is the 1.5 lakhs.
00:45:31If the deferred government grants paid 1.5 lakhs, 2 lakhs, 1 lakhs.
00:45:365 lakhs, 3 lakhs, 1 lakhs, 1 lakhs, 5 lakhs.
00:45:41That is a result.
00:45:431 lakhs.
00:45:461 lakhs.
00:45:471 lakhs.
00:45:491 lakhs.
00:45:512 lakhs.
00:45:521 lakhs.
00:45:531 lakhs.
00:45:551 lakhs.
00:45:571 lakhs.
00:45:59full value added to government grants, that's what the assets over the period depreciate
00:46:04is paid to government grants, deferred government grants, that's over the period P&O credit
00:46:14is paid to.
00:46:15So this is what about the government grants in the case of monetary where the asset being
00:46:24depreciate. Now, in case of monetary grants for non-depreciable assets, depreciation
00:46:35kada yadhu, madh apri shen dhane. Poorvi Limited received a grant from government of India,
00:46:41amounting to 35 lakhs towards purchase of price of land, piece of land for 140. 140, government
00:46:48grants certified, abhi nana rate eritthuklaam, 105 eritthuklaam. Of course, we no need to
00:46:55depreciate this, this is the method one, land account debit to bank account. Method two
00:47:00le, ith dhaniayavung, ith dhaniayavung khaaam inge abdikarad method two, ith ok, ith one
00:47:05dhu capital reserve pundun deferred government grants in poodaveindu avasayam illa, can be kept
00:47:09in the government, capital reserve pundun poodaveindu avasayam illa, capital reserve pundun
00:47:16poodaveindu avasayam illa, ith one dhu monetary grants for non-depreciable assets. And then, promoter's
00:47:28contribution madhuri vandhal and the sum eppei irukkoam. How about the promoter's contribution? In case of promoter's contribution, how this will appear?
00:47:38How this will appear? Right. Top Top Limited has set up its business in designated background area which entails the company to receive from government of India a subsidy of 50% of the cost of investment.
00:47:59This will appear here, who will look at the price of 20% of the government contribution. And once they look at the for the cost of investment, ith one of the cost of investment is tremendous money. The cost of mortgage is very much
00:48:07ms. Now that you will try to get a high investment, ith one of the cost of investment is very much smaller. Ith one of the cost of investment is there. And the cost of investment is very much too much. And the cost of investment is not
00:48:16That's all.
00:48:19That's all.
00:48:22That's all.
00:48:26That's all.
00:48:31chip.
00:48:32Mobile is the hard cake, like any product is demanded in the market, that is mobile.
00:48:38Any even single mobile if you purchase a share will go forth to China and Taiwan.
00:48:43India's chip manufacturing culture is not.
00:48:46That is industry.
00:48:48It is not related to the asset.
00:49:00Having fulfilled all the conditions under the scheme, the company on its investment of 50 crores in capital assets
00:49:07has received 10 crores from the government.
00:49:1050 kod investment nadhala 20 percentage patthu kod irubai yella condition fulfilled panadhanal government subsidy receive panneerukkaraanga.
00:49:17According period being 20 and 21, the company wants to treat these assets as an item of revenue
00:49:23and they may reduce the losses of profit and loss of kong.
00:49:26Profit and loss of kong kong kredit pander laamaa nuk kakaranga.
00:49:29Of course, government grants a P&L kod kod kredit pander mmoediyadhu.
00:49:32It is a capital reserve account la portable.
00:49:35It should be transferable to the capital reserve account only.
00:49:38Is that okay?
00:49:40So, one day after capital contribution a P&L kod kod kredit pander mmoediyadhu.
00:49:44That is why you capital reserve account la portable.
00:49:46It is also called as a contribution from the owner like.
00:49:49That is a promoter's contribution like.
00:49:51And the last point here I am going to discuss here is non-monetary grants.
00:50:03Adhanasar non-monetary grants.
00:50:04Adhanasar non-monetary grants abdicchanakka.
00:50:06Free away kurttur raangang.
00:50:08Shiva limited has received a grant of 15 crores from the government for setting up a manufacturing unit in backward area.
00:50:24Also Shiva limited received land free of cost from the state government but it has not been recorded at all in the books of account as no money has been spent.
00:50:35Okay.
00:50:36In the light of AIS non-12 examine whether the treatment of both a grant is correct.
00:50:41You have to accept and receive Boeing aliens by 12%εΎε towards 15 crores.
00:50:49Free also takes care of & 8 .
00:50:5210 crores to tax, will be free of cost.
00:50:56Which comes in the business setting as promoter's contribution for V&L hin complete.
00:51:02This is a free land. Two come here.
00:51:07This is the two records.
00:51:13First case, if you are free,
00:51:17if you are free, if you are free,
00:51:19if you are free,
00:51:21if you are free,
00:51:23if you are free,
00:51:27if you are free,
00:51:29because you are free,
00:51:35this tree is free,
00:51:36if you are free,
00:51:38this tree is free.
00:51:41Those need to be free.
00:51:45You can compare it to this tree
00:51:50So, as mentioned previously,
00:51:53So, that will be shown as a capital visa, that will be shown as a capital visa, that will be shown as a capital visa, is that okay?
00:52:17Now, let's see, government grants may be subsidies, cash incentive, duty drawback, cash or kind, it is applicable.
00:52:31Now, government assistance or participation in the ownership enterprises, now 50% share support, and you get 50% government said, government participation, BHL like, BHL, RECL, that will be share.
00:52:49Now, government assistance or government participation is a commander age number 12. Okay?
00:52:59That will be the government grants like subsidy, cash incentive, incentives, and that will be the account of the assets.
00:53:06But, reasonable assurance of the residents, that will be the conditions that will be fulfilled.
00:53:12So, that will be fulfilled, that will be fulfilled, that will be fulfilled, that will be fulfilled, that will be fulfilled, that will be fulfilled.
00:53:19Okay, accounting treatment, capital approach, income approach, it will be quite easy now. Right?
00:53:27Right?
00:53:28What is the policy adapted?
00:53:29What is the policy adapted?
00:53:30Are you going to adjust the depreciation?
00:53:31Means the government grants in the capital assets?
00:53:33Well, it is the depreciation and, there is the default grants in the capital assets, or the depreciation in the deferred grants.
00:53:48According policy, you will have method one, method two, and two methods, and you can follow up?
00:53:53Method of presentation, asset and latest.
00:53:56And government grants recognize pundra model, these are the three things you have to disclose in, in respect, with response to this one. Okay, government grants is SME refund pundra madheri varom.
00:54:23Refund pundra, pundra situation, extraordinary items irukku. Refund pundra, these are the three things you have to do, after you have to reverse. With that, so AS number 12 is over. Is that okay?
00:54:36Now, we have to go for the borrowing cost. Now, we will be dealing with AS number 16, borrowing cost pakkuparom.
00:54:50And linked with AS number 23 in the AS.
00:54:57Now, if you borrow, up to put to use of the asset varikkim, that's why interest is capitalized. We have seen that. Any asset you borrow, up to the construction period, up to ready to put to use, that's why you borrow interest is capitalized.
00:55:16So, that's why we borrow, up to the asset. That's why we borrow, up to the asset. That's why we borrow, up to the asset. That's why we borrow interest.
00:55:23So, if you borrow, up to the asset, you borrow, up to the asset. That's why we borrow, up to the asset. That's why we borrow, up to the asset.
00:55:30That's why we borrow, up to the asset. That's why we borrow, up to the asset. That's why we borrow, up to the asset.
00:55:37That's why we borrow, up to the asset. That's why we borrow, up to the asset. That's why we borrow, up to the asset.
00:55:44We borrow routes, up to the collateral.
00:55:46Capitalization.
00:55:51CapitalizedLittleP ΡΠΊΡΠΏΠ΅Ρhtbild one, up to the asset.
00:55:52CapitalizedWhite meantime οΏ½eren, up to the asset.
00:55:55That's why we borrow, up to the premises.
00:55:57We borrow through the diffuse.
00:55:59That's why we borrowΞ½ dabei, up to the asset.
00:56:01Why ballot and down.
00:56:04You borrow under Ideal Casement.
00:56:09Names.
00:56:11Rainbow Limited borrowed an amount of 150 crores and 148 for construction of boiler
00:56:18plant at the rate of 11 percentage per annum.
00:56:22The plant is expected to be completed in 4 years in all version of them.
00:56:27Since the weighted average cost of capital is 13 percentage, the accountant of Rainbow
00:56:34Limited capitalized 19.5 crores for 150 crores.
00:56:40On income of it is 3.5 crores was earned and credited to the profit and loss of gold.
00:56:45That's why you comment on the about rate of 10.
00:56:49Borrow did 150 crores.
00:56:52This borrowing loan interest is 11 percentage.
00:56:57The cost of capital is 13 percentage.
00:57:0113 percentage is general borrowing.
00:57:04You have general borrowing.
00:57:05You have general borrowing.
00:57:06Considered 13 percentage.
00:57:0813 percentage.
00:57:10You know?
00:57:11You know?
00:57:12You know?
00:57:13You know?
00:57:14You know?
00:57:15You know?
00:57:16Okay.
00:57:17You know?
00:57:18You know?
00:57:19You know?
00:57:20You know?
00:57:21You know?
00:57:22You know?
00:57:23You know?
00:57:24You know?
00:57:25You know?
00:57:26You know?
00:57:27You know?
00:57:28You know?
00:57:29You know?
00:57:30You know?
00:57:31You know?
00:57:32You know?
00:57:33You know?
00:57:34You know?
00:57:35You know?
00:57:36You know?
00:57:37You know?
00:57:39What?
00:57:41You know?
00:57:42You then?
00:57:43You know?
00:57:44You know?
00:57:45You know?
00:57:47So,
00:57:48one for 150 crore into
00:57:50One first quarter of two.
00:57:5112%
00:57:54One hundred hundred thousand.
00:58:00you know?
00:58:01A pro is,
00:58:02let's spend some of this loan in the rent,
00:58:05it's cheaper than the one asset,
00:58:08and it is cheaper than just the owner,
00:58:10but if you can buy the loan from the home,
00:58:13as you can buy the loan from home and the other first loan,
00:58:16the loan was already available.
00:58:18I can spend 10 months of money from a bank to have that loan,
00:58:21but they are only the only loan when you buy loan,
00:58:24so they have only the bank to be the one.
00:58:27But if you get the loan from a loan,
00:58:30Lender is the first loan loan.
00:58:34Sir, I have 4 years of debt.
00:58:36I have 5 years of debt.
00:58:38You can pay for the debt.
00:58:40You can pay for the debt.
00:58:42You can pay for the debt.
00:58:44You can pay for the debt.
00:58:46You can pay for the debt.
00:58:48On the interest payment, that revenue could be subtracted.
00:58:51Balance is your cost.
00:58:53And the cost is the capitalized.
00:58:55In this illustration,
00:58:56you can pay for the debt.
00:59:02During the interest payment period,
00:59:04the amount of capitalized is only 13 lakhs.
00:59:08Is that okay?
00:59:10Paras Limited had the following borrowing during a year
00:59:14in respect of capital expansion.
00:59:16Plant PQR3
00:59:20Cost of assets
00:59:22Cost of assets
00:59:24Plant P
00:59:26How much is specific borrowing?
00:59:28Bank loan
00:59:3065 lakhs
00:59:32Plant Q
00:59:34Okay
00:59:3665 lakhs
00:59:38Bank loan
00:59:40Bank loan
00:59:41Bank loan
00:59:42Bank loan
00:59:4365 lakhs
00:59:50That is the rate of interest
00:59:5210 percentage is applicable.
00:59:54This is the Q
00:59:56Why?
00:59:58R is 175 lakhs
01:00:0095 lakhs
01:00:01So,
01:00:02That is the rate of interest
01:00:049 percentage
01:00:05Depends
01:00:06125 lakhs
01:00:07It is the rate of interest
01:00:11on the 9 percentage
01:00:12It is the R
01:00:15Because
01:00:16In addition to the EBO specific stated borrowing
01:00:19The company had obtained term loans from the 2 banks
01:00:22100 lakhs
01:00:24100 lakhs
01:00:25110 lakhs
01:00:26Term loan
01:00:28Corporation bank loan
01:00:30100 lakhs
01:00:31100 lakhs
01:00:32And the 100 lakhs rate of interest being 10 percentage
01:00:36It is the 9 percentage
01:00:37And the 100 lakhs rate of interest being 10 percentage
01:00:39It is the 9 percentage
01:00:42That is the state bank of India
01:00:45Loan interest one the loan
01:00:47Loan 110 lakhs
01:00:49That is the rate of interest
01:00:5111.5 percentage
01:00:52To meet its capital expansion requirement
01:00:56Determine the amount of borrowing cost to be capitalized in each of the
01:01:00Each of the
01:01:01EVEMO plant
01:01:02Is the price of interest
01:01:03Step 2
01:01:04To start
01:01:05To start
01:01:06Capitalize
01:01:07P
01:01:08Plant
01:01:09Q
01:01:10Sorry
01:01:11Plant
01:01:12P
01:01:13Q
01:01:14R
01:01:15Plant
01:01:16P
01:01:17If you are
01:01:18$100 lakhs
01:01:19$100 lakhs
01:01:20$100 lakhs
01:01:21$1
01:01:22$1
01:01:23$1
01:01:24$2
01:01:25$1
01:01:26$1
01:01:29So, this is the general borrowing, so this is the general borrowing 1.00,000,000.
01:01:35So, why should you use 125,000,000?
01:01:41Specific borrowing 1.00,000,000.
01:01:52Or 175 lakhs, that is 125 lakhs specific borrowing balance on the general borrowing
01:02:02is that okay? Specific borrowing, that is specific borrowing rate, in the 65 and the 10 percentage, in the 125 and the 9 percentage,
01:02:18this is a 5,000, which is a 5,000, which is a 6,000 and the 10 percentage, it is a 5,000.
01:02:37Q to come to 125 is 65 specific borrowing in balance 60 is general borrowing in balance 60 is general borrowing in order to come to 175 is specific borrowing is 125 balance 50 is general borrowing in balance is that okay?
01:02:55So if we could 4-10 general borrowing in balance R general earnings per year general, then P use in balance and P use in balance, Q use in balance R and R use in balance and R use in balance so they say is 65,000,000 for Q, and LB is 65,000,000.
01:03:23Plant R is going to show you, but if you borrow all the company specific borrowers,
01:03:30General Borrowing is 2-10 lakhs.
01:03:322-10 lakhs is 100 lakhs, Corporation Bank is 10%.
01:03:36SBA is 12% loan.
01:03:40Interest is $100.
01:03:43Plant P is completed, General Borrowing is 100.
01:03:47Plant Q, General Borrowing is 60.
01:03:50I am specific to balance it is General Borrowing, reason so long, cut and venus and sir,
01:03:54I am using it is General Borrowing.
01:03:57This purpose is, sir, if you bring to the price, you will have to come back to specific borrowing.
01:04:02You understand that?
01:04:03In the 65-10% capitalized, in the 125-9% capitalized,
01:04:099% of the capitalization is 9% of the capitalization.
01:04:16But in general borrowing, what rates are used to go?
01:04:22That's why we use the weighted average cost of capital.
01:04:27Corporation bank, this is cut.
01:04:30210 lakhs, we have general borrowing.
01:04:35And the interest of the corporation bank is 100 lakhs.
01:04:40If we have 100 lakhs, we have 11% of the capitalization.
01:04:44That value is 12.65 lakhs.
01:04:54And the total borrowing cost is 22.65 lakhs.
01:04:59What is the cost of this capital, weighted average cost of capital of general borrowing?
01:05:05You pay 22.65 lakhs for 210.
01:05:1010.79 is the general borrowing rate.
01:05:16That rate can be applied for these areas.
01:05:2010.79 percentage.
01:05:2310.79 percentage.
01:05:2710.79 percentage.
01:05:30For the first case,
01:05:32100 into this one,
01:05:34your finances are 6.79 reach will be.
01:05:35So,
01:05:38you at the total,
01:05:4010.79 they reach.
01:05:42You have to make,
01:05:44fifty percent.
01:06:03POD value is $100.00, capitalized asset is $110.79. QOD value is $125.00, capitalized interest is $137.97.
01:06:30Punditing now, $191.64 will be the new assets value in the balance sheet. Is that okay? Clear? Is there any variations? Come on finish up cupping this. Borrowing cost now.
01:06:49Finance charges, under financed lease are there. Exchange difference in interest cost.
01:06:58Borrowing cost now. Exchange difference in interest related is $11.00, capitalized is $11.00, capitalized is $11.00.
01:07:05So, what do we need to do? We need to deal with interest. We need to deal with interest. We need to deal with interest.
01:07:12So, what do we need to deal with interest? Interest is $16.00, capitalized is $11.00, capitalized is $11.00.
01:07:19assets are $11.00, capitalized is $11.00.
01:07:21That is why we need to deal with interest.
01:07:23So, what do we need to deal with interest?
01:07:26Then, if we need to deal with interest, we need to deal with interest.
01:07:28That is what we need to deal with interest.
01:07:30requirement.
01:07:31One, two or so, three or so.
01:07:32That's how we apply.
01:07:33That's how we apply.
01:07:34For example, fixed assets are the construction process, intangible assets are the development
01:07:43phase.
01:07:44We apply.
01:07:45Direct attribution to acquisition, and the assets in the loan, we apply.
01:07:58And the assets are the future economical benefit.
01:08:01Capitalize.
01:08:02Capitalize.
01:08:03Condition for capitalization.
01:08:05In the loan with the asset that you know, capitalized is the future economical benefit.
01:08:12Capitalize.
01:08:14Right.
01:08:16We have two borrowing, specific and general borrowing.
01:08:20That's how we apply.
01:08:22Capitalize.
01:08:24Capitalize.
01:08:25Capitalize.
01:08:28Commencement of capitalization.
01:08:30Three conditions satisfy.
01:08:31Automatically, and the regular capitalized.
01:08:33That's how we apply.
01:08:34That's how we apply.
01:08:35And the assets.
01:08:36And the assets.
01:08:37That.
01:08:38That.
01:08:39That.
01:08:40That.
01:08:41That.
01:08:42That.
01:08:43That.
01:08:44That.
01:08:45That.
01:08:46That.
01:08:47That.
01:08:48That.
01:08:49That.
01:08:50That.
01:08:51That.
01:08:52That.
01:08:53That.
01:08:54That.
01:08:55That.
01:08:56That.
01:08:57That.
01:08:58That.
01:08:59That.
01:09:00That.
01:09:01That.
01:09:02That.
01:09:03That.
01:09:04That.
01:09:05That.
01:09:06That.
01:09:08That.
01:09:09That.
01:09:10That.
01:09:11That.
01:09:12That.
01:09:13That.
01:09:14That.
01:09:15That.
01:09:16That.
01:09:17That.
01:09:18That.
01:09:19That.
01:09:20That.
01:09:21That.
01:09:22That.
01:09:23That.
01:09:24That.
01:09:25That.
01:09:26That.
01:09:27That.
01:09:28That.
01:09:29That.
01:09:30That.
01:09:31That.
01:09:32assets in the sale, we can use it, and we can satisfy the 3 conditions, that date
01:09:38will be the interest capitalized RMK log. Okay, when we stop? Ceases, when substantially
01:09:50all the activities necessary to prepare the qualifying asset is over, that's why we stop
01:09:55starting 1-4-2015, 3-1-3-2017, we need to operate this, we need to capture this.
01:10:06In the beginning, 1-10-2015, 1-2-2016, we need to hold the strike, we need to hold it
01:10:17in the end, 1-1-2015, 1-2-2015, 1-2-2015, 1-2-25-20 comes in the middle of this period.
01:10:27Interruption
01:10:29Then you have to suspend the capitalization of interest for this period
01:10:51Suspension of capitalization
01:10:53when active development is interrupted, but if you have a temporary delay, you can suspend
01:11:00it.
01:11:01Is that okay?
01:11:02Qualifying assets.
01:11:03So, that's all about the A.
01:11:06A.
01:11:07B.
01:11:08B.
01:11:09B.
01:11:10B.
01:11:11B.
01:11:12B.
01:11:13B.
01:11:14B.
01:11:15B.
01:11:16B.
01:11:17B.
01:11:18B.
01:11:19B.
01:11:20B.
01:11:21B.
01:11:22B.
01:11:23B.
01:11:23B.
Comments