Accounts faculty of our institute SHAKYAMUNI ACADEMY FOR CA identified some mistake in ICAI Study material and sent the message to Board of studies for rectification & the same was ACCEPTED BY THE ICAI FOR CORRECTION. Below is the change proposed.
Mistake noticed in ICAI IPC GR II Advaced accounting practice manual chapter no. 4 unit 1 page. no.10 related to debt Equity ratio calculation
Loan funds should include Long term borrowings + Short term borrowings + current maturities of long term borrowings.
We should exclude current liabilities from the ratio computation as it includes trade payables, short term provisions etc.
Below is the message sent to ICAI
Below is the respone Deputy director of board of studies of ICAI
We should really appreciate out faculty for such a great contribution.
CAclubindia
