[nomantufail]

Thanks alot sir

[nomantufail]

I understood sir. Bundle of thanks. You saved my life.

[nomantufail]

Thanks sir

[nomantufail]

Secondly sir in your reply to even/odd perpetuity.
For 2,4,6 to perpetuity annuity, shouldnt the 1/r formula give value at year 1 and then we will discount it for 1 year to get value at year 0. And for 1,3,5 to perpetuity annuity the 1/r formula give value at the year 0 and therefore no adjustment is required. My understanding was that the annuity formula 1/r give present value one year before the value of “n”.

[nomantufail]

Sir Annuity due i mean annuity which is paid at the begining of year and ordinary annuity i mean annuity which is paid at the end of year

[nomantufail]

Sir my question was that
Usually we use annuity table for finding the annuity factors. But sometimes we have to use formulas for finding the annuity factors because required discount rates are not present in the table e.g. we cant find 17.5% in annuity table.
So we have to use formulae for finding the present value of oridinary annuity i.e;

PV annuity factor= 1-(1 i)-n/i

and future value of oridinary annuity

FV annuity factor = (1 i)n-1/i

Please guide me that how we should adjust these formulae of PV annuity factor and FV annuity factor if there is annuity due instead of ordinary annuity??
Thanks

[nomantufail]

I understood bundle of Thanks

[nomantufail]

Thanks 4 reply sir
I mean corresponding figures with reference to ISA 710 para 6. Where there are definations of comparatives and corresponding figures are mentioned. Side by side figures are comparative figures, my question was where are the corresponding figures in financial statmenents

[nomantufail]

But dear i dont think that we will get right answer this way. Because for perpetuity we use 1/r. There should be some effective rate for even/odd year occurring cash flows. So that we use that effective rate instead of “r” in formula.

[nomantufail]

Thanks for your reply
But why we have started from usage variance and then price variance. I mean to say that if this logic is right then it would make no difference if we say that.

For price variance, we imagine that all that changes is the price (and therefore cost out at the standard quantity).

Having changed the price, we now want to look at the effect of using the wrong quantity, which is why we cost out using the same (actual) price.
Am i thinking right ?
Thanx and regards
Noman tufail

[nomantufail]

Thankyou very much sir

[nomantufail]

Thanx 4 reply sir
It means that there is no effect on diluted eps calculation of whether the debentures are actually
converted or not during the year?

[nomantufail]

Thx 4 reply sir
It means that we would decrease NCI by 25% of 300 and decrease consolidated retained earnings by 75% of 300. And decrease inventory by 300

[Author]

Posts