Sir,
AS 22 says that "Assets and liabilities to be netted off only when the enterprise has a legally enforceable right to set off and intends to settle on net basis." most of the companies have shown it as net.
so it is legal in India? does company law say so? thanks

Problem statement: A new inventory management system for Argie Inc.
could be developed at a cost of $250,000. The estimated operating
costs and estimated benefits over six years of operation would be:

Year Costs Benefits
0 $250,000 $ 0
1 7,000 52,000
2 9,400 68,000
3 11,000 82,000
4 14,000 115,000
5 15,000 120,000
6 16,000 120,000

- Assuming a 10% discount rate, what is this investment's NPV?
- What is the ROI for this investment?
- What would the payback period be for this investment?
- What is the IRR?
- Would it be a good or bad investment? Why?



- The time value of money refers to the concept of comparing present
cash outlays to future expected returns. A dollar today is worth more
than a dollar one year from today because money can be invested. The
rate at which money can be borrowed or invested is called the discount
rate (symbolized with an r).
- The present value (PV) is a measure of the time value and
represents the current value of a future cash flow (or CF).
– Net Present Value (NPV): The calculation of the discounted projected
cash flows of the investment over a number of periods (typically
years) . The NPV formula is as follows:


where n is the number of periods over which the calculation is applied

Note that each cashflow CFi can be positive or negative. Period
0 typically signals initial
investment

- Internal Rate of return (IRR): The discount rate r that makes NPV
equal zero . Can be seen as a threshold discount rate above which
the project/ investment renders some net present value. Can bes
estimated as the discount rate that will make the present value of the
projected cash flows equal to the investment


- The return on investment (ROI) is the ratio of the net cash receipts
of the project divided by the cash outlays of the project
- Payback period: Time required for the investment/project to become break even

A company has incurred advertisement expenditure of Rs. 5 crore in 2007-08 the effect of which will sustain for 3 years. what will be the treatment of such expenditure-whether it will be deferred or charged to the P/L or be treated as per AS-26. Please suggest.

while preparing consolidated financials, for unrealised profits of subsidiary, should holding bear all liability or holding & minorities both should bear it. is thereany ICAI clarification over the same.. plz give reference

Our company is having accumulated loss, but from last 2 years it is making profit. We have to fix remuneration of directors, so we have to calculate net worth of the company.

Can anyone tell me the formula to calculate net worth of company.

Also I want to know the advantages of changing from LTD (Deemed) to Pvt. Ltd. like exemptions from following companies act provisions etc.

a) P/V ration
b) Break – Even point (in units and rupees)
c) Margin of safety (in units and rupees)
d) Variable cost per unit Rs. 15.00
e) Fixed cost per unit Rs. 9.00
f) Sales in units 10000

The selling price is fixed to yield 25% profit on cost.

Hi,
When I Completed my BCom ,Than In Holding Companies Chapter I prepared Consolidated Balance Sheet. But Now I M Confused That What Is Difference Between
(1)Consolidated Balance Sheet & Balance
Sheet.
(2)Consolidated Profit & Loss Account
Profit & Loss Account.
(3)Consolidated Cashflow Statement & Cash
Flow Sattement.

Actually I Want to Know Meaning of Consolidated. In Friendly & General Language not in Bookish Language.

Respected Sir,

I want know Revise Accounting Standard 15 Payment of Gratuity

What is major difference between previous Accounting Standard 15 & Revise Accounting
Standard 15 ?

This was made in previous year 2006-07

Your immediate reply will highly appreaciated


With best regards,


Vilas Choudhari

1. can a father and his son make a partnership firm.


2. a Huf(karta,his wife and his son)make a business in equal ratio .is the business is a proprietoriship of above huf or a partnership firm because there are some partners.

a company manufacturing medicines. and to sell their products they give samples of those product to doctors.so how the cost of samples to be accounted. for eg:

the opening balance is as follows:
Goods for sale=Rs. 50
Samples= Rs.10
Cost of goods produced:
For sale= Rs.150
Samples= Rs.20

Sales(Rs. 175 cost)= Rs. 250

Closing Stock:
For sale= Rs.25
Samples= Rs. 15
here Rs.15 worth samples were given to doctors and my doubt is whether we should disclose the samples given to doctors in the credit side of Trading A/c or not.

If my question is not clear pls tell me