Tutor profile: Manasvi M.
Subject: Microsoft Excel
How Ms-Excel solve any mathematical problem / formula?
To solve any mathematical formula / problem, Ms-Excel uses PEMDAS which stands for Parentheses Exponents Multiplication Division Addition Subtraction
A Japanese firm decides to acquire a UK based co. for a purchase consideration of 500 million pound. At that time, exchange rate was - 1 GBP = Yen 125.65/126.15 However, there was a 10 days delay and the exchange rate changed to, 1 Yen = GBP 0.00785/0.00795 What is the impact of the exchange rate change on the cost of acquisition of the Japenese firms in yen terms.
Japanese firm to pay 500 pounds to UK firm, so 1 Euro = Yen 125.65 / 126.15 Initial cost of acquisition = Yen 500*126.15 = Yen 63,075 million After 10 days rates are: 1 Yen = Euro 0.00785/0.00795 Cost of Acquisition after 10 days = 500/0.00785 = Yen 63,694.27 million So if there is a delay of 10 days there is a loss of (63,694.27 - 63,075) million = Yen 619.27 million
From the following details of an asset, find out impairment loss, how will you treat in books of accounts & current year depreciation - Cost of asset - $56 Lakhs Useful life period - 10 years Salvage value - Nil Current Carrying value - $27.30 Lakhs Useful life remaining - 3 years Recoverable amount - $12 Lakhs Upward revaluation done in last year - $14 Lakhs
According to the Accounting Standard - Impairment of asset, an impairment loss on a revalued asset is recognized as an expense in the statement of profit and loss. However, an impairment loss on a revalued asset is recognized directly against any revaluation surplus for the asset to the extent that the impairment loss does not exceed the amount held in the revaluation surplus for the same asset. It also says " after the recognition of an impairment loss, the depreciation (amortization) charge for the asset should be adjusted in the future periods to allocate the asset's revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life." Impairment loss and its treatment - (in $) Current carrying amount 27,30,000 (including revaluation amount of $14 lakhs) Less: Current recoverable amount 12,00,000 Impairment Loss 15,30,000 Impairment loss charged to revaluation reserve 14,00,000 Impairment loss charged to profit and loss account 1,30,000 In the given case, the carrying amount of the asset will be reduced to $12,00,000 after impairment. This amount is required to be depreciated over the remaining useful life of 3 years (including current year). Therefore the depreciation for the current year will be $4,00,000. ,
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