Forward from: P1 FR : CA Final
FR Important Points -
1. Ind AS 116 - Whether Lease Payments are to be considered at Year Beginning or Year End?
Lease payments are considered at year end except in following 2 cases where it is considered at year beginning:
(i) Specifically mentioned in question.
(ii) Hint given in question regarding the same like
--> Lease incentive payable at beginning
--> Payment is due at beginning date (eg. 1st January in case of calender year)
2. Mainly Ind AS 116 & 109 - Where to use Revised Discounting Rate & Original Discounting Rate?
In whole FR, Revised Discounting Rate is used except in following 4 cases where Original Discounting Rate is used:
(i) Ind AS 109: Modification of FA [Step 2]
(ii) Ind AS 109: Modification of FL [Step 1]
(iii) Ind AS 116: Case B Modification [Step 5 - Gain/loss due to decrease in lease term]
(iv) Ind AS 116: Insignificant Remeasurement
3. Mainly Ind AS 116 & 109 - Format for calculation of PV when there are same cash flows in each period
It can be done either
1. Using PVAF or
2. Making full table & taking separate PV factors
Both formats are allowed (minor round off difference can arise, which is allowed in exams)
4. Ind AS 109 - Whether Convertible Instrument is Compulsory Convertible or Convertible at Option of Holder/Issuer?
It is assumed as convertible at option of holder unless specifically mentioned in question
💁♂By CA Ajay Agarwal
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1. Ind AS 116 - Whether Lease Payments are to be considered at Year Beginning or Year End?
Lease payments are considered at year end except in following 2 cases where it is considered at year beginning:
(i) Specifically mentioned in question.
(ii) Hint given in question regarding the same like
--> Lease incentive payable at beginning
--> Payment is due at beginning date (eg. 1st January in case of calender year)
2. Mainly Ind AS 116 & 109 - Where to use Revised Discounting Rate & Original Discounting Rate?
In whole FR, Revised Discounting Rate is used except in following 4 cases where Original Discounting Rate is used:
(i) Ind AS 109: Modification of FA [Step 2]
(ii) Ind AS 109: Modification of FL [Step 1]
(iii) Ind AS 116: Case B Modification [Step 5 - Gain/loss due to decrease in lease term]
(iv) Ind AS 116: Insignificant Remeasurement
3. Mainly Ind AS 116 & 109 - Format for calculation of PV when there are same cash flows in each period
It can be done either
1. Using PVAF or
2. Making full table & taking separate PV factors
Both formats are allowed (minor round off difference can arise, which is allowed in exams)
4. Ind AS 109 - Whether Convertible Instrument is Compulsory Convertible or Convertible at Option of Holder/Issuer?
It is assumed as convertible at option of holder unless specifically mentioned in question
💁♂By CA Ajay Agarwal
◈◉◎┄┅═❂❣❂═┅┄◎◉◈
┍━━━━═░★░═━━━┑
✪ ➻ t.me/canotes_final
ℑoin us 🔜
✪ ➻ t.me/cafinal_p1
┕━━━━═░◈░═━━━┙