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Final-FR- Goodwill valuation- FMP

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744 Points Posted on 11 April 2018
Ref: Q6 of MTP Aug 2017 series.
Why is depreciation on vehicle provided for 6 months in adjustment for computing FMP after calculation of average profits.
Please reply.
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On 11 April 2018 at 08:16 Report
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Student CA Final
11857 Points Posted on 11 April 2018
What is date of purchase vehicle... Is that in middle of year... In that case u hv to deduct 6 months depreciation... Bcz in future depreciation is for the year... In average profit only 6 months depreciation is provided..
49 Reply
On 11 April 2018 at 09:06
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744 Points Posted on 11 April 2018
in avg profit depn charged only in lastcyear because that is when asset was purchased. only 1/4th of half year depn is reflected in avg profit. but in future full depn will be needed na
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On 11 April 2018 at 09:12
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Student CA Final
11857 Points Posted on 11 April 2018
Didn't get u bro... When is vehicle purchase date... And u urself give answer... Then qery raised??
49 Reply
On 11 April 2018 at 09:15
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744 Points Posted on 11 April 2018
vehicle purchased in middle of last year.
5 Reply
On 11 April 2018 at 09:22
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Student CA Final
11857 Points Posted on 11 April 2018
Already told that may be the case... From next year full year depreciation is to be charged that's why 6 months depreciation is charged in FMP
49 Reply
On 11 April 2018 at 09:24
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744 Points Posted on 11 April 2018
ok. another doubt in same question is that they have taken 50% rectified profit in computing avg capital employed, then why they have not taken rectified prov for tax in liabilities?
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On 11 April 2018 at 09:29
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Student CA Final
11857 Points Posted on 11 April 2018
Hey i hv not that question... So can't reply ur query
49 Reply
On 11 April 2018 at 09:33
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744 Points Posted on 11 April 2018
give your mil ID
5 Reply
On 11 April 2018 at 09:34
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Chartered Accountant
86505 Points Posted on 12 April 2018
While calculate Avg. Cap. Employed,1/2 of C.y profit deducted from Total Cap. Employed
814 Reply
On 12 April 2018 at 07:44
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Student CA Final
11857 Points Posted on 12 April 2018
Hmm for calculating Average capital employed, 1/2 cy profit deducted
49 Reply
On 12 April 2018 at 07:52
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744 Points Posted on 12 April 2018
yes but why they haven't considered rectified provision for tax when calculating capital employed?
5 Reply
On 12 April 2018 at 10:52
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Chartered Accountant
86505 Points Posted on 12 April 2018
Attach screenshot of problem....
814 Reply
On 12 April 2018 at 23:31
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744 Points Posted on 13 April 2018
I am using mobile app, can't find a way to attach. can you find the MTP online? Aug 2017 Series.
5 Reply
On 13 April 2018 at 00:04
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Chartered Accountant
86505 Points Posted on 13 April 2018
Mail me at rash.0903 @ gmail.com
814 Reply
On 13 April 2018 at 00:48


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