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CIMA ගැන ඕන දෙයක්
- Thread starter ZULFAAN
- Start date
i think its a must to have a professional qualification, CIMA is everything about strategy not just an accounting qualification
guys i have few questions.
To this date i thought C.O.C rate is to cover inflation but our last lesson was about calculating NPV when there is an inflation for investment appraisal. I'm bit confused here.
If C.O.C rate is about interest rate does that mean in every NPV calculation it is assume that all investments are taken as loans or borrowings?
why it take different rate for inflation if (interest C.O.C is 10% and inflation is 5% why can't we take 15% straight away and do the calculations.)
Loss on disposal is a non-cash item so why is it deducted when calculating NPV with taxation for investment appraisal?
"The group company makes enough profits so that they can realize tax savings through losses"
Does it mean it good to earn losses? In here also why it take cash saving as cash inflow. The company didn't receive money from anyone it already exist in it.
To this date i thought C.O.C rate is to cover inflation but our last lesson was about calculating NPV when there is an inflation for investment appraisal. I'm bit confused here.
If C.O.C rate is about interest rate does that mean in every NPV calculation it is assume that all investments are taken as loans or borrowings?
why it take different rate for inflation if (interest C.O.C is 10% and inflation is 5% why can't we take 15% straight away and do the calculations.)
Loss on disposal is a non-cash item so why is it deducted when calculating NPV with taxation for investment appraisal?
"The group company makes enough profits so that they can realize tax savings through losses"
Does it mean it good to earn losses? In here also why it take cash saving as cash inflow. The company didn't receive money from anyone it already exist in it.
Last edited:
There are two types of cashflows...Real cashflows and nominal cashflows....One is adjusted for inflation and the other one is not...
COC comprises of inflation, the risk of undertaking the project as wells as the opportunity cost (You could have placed a FD rather than investing in the project)
By calculating NPV you determine whether it's worthwhile undertaking the project..Whatever the capital you infuse needs to be recovered including interest + return. If not the project will have a negative NPV and will be abandoned..
Loss on disposal is a relevant cost with regard to the project..
more explanation is needed for your last question ..
COC comprises of inflation, the risk of undertaking the project as wells as the opportunity cost (You could have placed a FD rather than investing in the project)
By calculating NPV you determine whether it's worthwhile undertaking the project..Whatever the capital you infuse needs to be recovered including interest + return. If not the project will have a negative NPV and will be abandoned..
Loss on disposal is a relevant cost with regard to the project..
more explanation is needed for your last question ..
Thank you for your explanation FD and opportunity cost I've forgotten about it.
Here is the question
A company is evaluating an investment of $20000. The investment qualify for tax depreciation at 20% reducing balance method. The asset can be sold for 15,000 at the end of the 3rd year. corporate tax rate is 30% and taxes are paid in 2 installments that is half of the tax in the year it arises and the balance in the following year.
The project is expected to generate net cash flows of 3000,10000, and 15000 in the next 3 years. The group company makes enough profits so that they can realize tax savings through losses using coc of 10% Evaluate the investment?
we were taught to take tax savings as cash inflow? my problem is the company didn't receive money from any external party. They made a loss and because of that the amount they should pay as tax was reduced. i don't see any inflow of cash
so does depreciation but i think we don't deduct it. (correct me if i'm wrong) But why this cash doesn't go out from the business.
Here is the question
A company is evaluating an investment of $20000. The investment qualify for tax depreciation at 20% reducing balance method. The asset can be sold for 15,000 at the end of the 3rd year. corporate tax rate is 30% and taxes are paid in 2 installments that is half of the tax in the year it arises and the balance in the following year.
The project is expected to generate net cash flows of 3000,10000, and 15000 in the next 3 years. The group company makes enough profits so that they can realize tax savings through losses using coc of 10% Evaluate the investment?
we were taught to take tax savings as cash inflow? my problem is the company didn't receive money from any external party. They made a loss and because of that the amount they should pay as tax was reduced. i don't see any inflow of cash
Last edited:
Thank you for your explanation FD and opportunity cost I've forgotten about it.
so does depreciation but i think we don't deduct it. (correct me if i'm wrong) But why this cash doesn't go out from the business.
Here is the question
A company is evaluating an investment of $20000. The investment qualify for tax depreciation at 20% reducing balance method. The asset can be sold for 15,000 at the end of the 3rd year. corporate tax rate is 30% and taxes are paid in 2 installments that is half of the tax in the year it arises and the balance in the following year.
The project is expected to generate net cash flows of 3000,10000, and 15000 in the next 3 years. The group company makes enough profits so that they can realize tax savings through losses using coc of 10% Evaluate the investment?
we were taught to take tax savings as cash inflow? my problem is the company didn't receive money from any external party. They made a loss and because of that the amount they should pay as tax was reduced. i don't see any inflow of cash
yes that's right..you need to take tax savings as cash inflows..you can be benefited by this tax savings because you undertook the project..so it's relevant and you need to consider it when arriving at the NPV...In some instances tax losses can be carried forward or set off against other profit making projects...that's an assumption that you'll have to make..
normal depreciation is not considered in NPVs...Basically there are two types of depreciations..One is Accounting deprecation and the other one is tax deprecation..the difference between these two multiplied by the corporate tax rate is your differed tax asset or liability...
so in the above question you have been given the tax depreciation rate as 20%..so this is relevant cash inflow interms of the project and the company can deduct this amount from the total tax liability when paying taxes to inland revenue....
CIMA managerial level official Study kit PDF waling thiyanawdha???
kowruhari thiyanawang link eke dhenna..
plz
kowruhari thiyanawang link eke dhenna..
plz
library ekata gihin photocopyak gaha ganinko...PDF ma ona nam ihin torrents poddak search karala balahan.CIMA managerial level official Study kit PDF waling thiyanawdha???
kowruhari thiyanawang link eke dhenna..
plz
CIMA managerial level official Study kit PDF waling thiyanawdha???
kowruhari thiyanawang link eke dhenna..
plz
http://www.mediafire.com/download.php?0pf4jpufsktqs35
http://www.mediafire.com/download.php?kbawe18aw0uw26j
overally wisdom hondai, subject wise gaththoth
EO-tharindu amarasekara @ wisdom
FO-pravinth rajarathnam @ ICBS
PO- Sugeeth patabandige @ wisdom
EM-tharindu amarasekara @ wisdom
PM- ravi edirisingha @ achievers
FM-pravinth rajarathnam @ ICBS
FS-Sugeeth patabandige @ wisdom/pravinth rajarathnam @ ICBS/gajendra @ icbs
ES- Arj wignaraja @ wisdom/gajendra @ icbs
PS-Channa @ widom/pravinth rajarathnam @ ICBS/gajendra @ icbs
Top CIMA- channa @ widom/gajendra @ ICBS/ Senaka @ achievers
these guys know dis in and out machan.... Good luck in ur xams!!!
EO-tharindu amarasekara @ wisdom
FO-pravinth rajarathnam @ ICBS
PO- Sugeeth patabandige @ wisdom
EM-tharindu amarasekara @ wisdom
PM- ravi edirisingha @ achievers
FM-pravinth rajarathnam @ ICBS
FS-Sugeeth patabandige @ wisdom/pravinth rajarathnam @ ICBS/gajendra @ icbs
ES- Arj wignaraja @ wisdom/gajendra @ icbs
PS-Channa @ widom/pravinth rajarathnam @ ICBS/gajendra @ icbs
Top CIMA- channa @ widom/gajendra @ ICBS/ Senaka @ achievers
these guys know dis in and out machan.... Good luck in ur xams!!!
Machan, uba qwa widiyata mama operational class yana gaman thaniyama pdf walin bala bala foundation okkoma kara machan b4 march 12th which ws d deadline
thnx a lot bro.. uba qwa hinda tamai mama wadeta athagahuwe..thumbs up 4 u
after completing top cima does somebody have to pay membership fee if he go no training.( stay as a passed finalist) ? and in that scenario if he is not pay any, annual fee or mem fee, what are the effects? those who are completed, plz answer are you paying membership fee or annual fee? 
ES arj is good only for theory, gajendra is better both theory and practicing questions
thanks foe the post bro
FAF, ECON, BLW hack questions thiyenawada mchn???
Next week mama karanda inne
sorry bro new syllabus ewa nam mage gawa na, class yana ekkenek gen ahala balanna
Machan, uba qwa widiyata mama operational class yana gaman thaniyama pdf walin bala bala foundation okkoma kara machan b4 march 12th which ws d deadline
thanks for the reply bro,
okkoma goda nam itin satutui, issarahata juniorlata meke udaw karanna puluwan widihata
Good luck with your operational level exams in May,
hope u already booked exams
colombo kittuwa nam inne cima libry ekath use karanna
after completing top cima does somebody have to pay membership fee if he go no training.( stay as a passed finalist) ? and in that scenario if he is not pay any, annual fee or mem fee, what are the effects? those who are completed, plz answer are you paying membership fee or annual fee?
no u can resign and re register later, (u have to pay the registration fee)
it will save u pounds
for more info contact cima SL division
after completing top cima does somebody have to pay membership fee if he go no training.( stay as a passed finalist) ? and in that scenario if he is not pay any, annual fee or mem fee, what are the effects? those who are completed, plz answer are you paying membership fee or annual fee?
after completing top cima within 4 years time you need to apply for the membership. Current membership fee is 240 pounds and cima passed finalist fee is 220 (not sure about the exact figures,check the CIMA site). There's no annual fee and only the annual membership fee.
if you dont pay this CIMA will remove your name from the members list and your name will be taken off from the website. You no longer will be able to use ACMA,CGMA. (if you are a passed finalist and did not pay the subscription fee, you won't be able to apply for the membership).
In most cases, companies pay your CIMA annual membership fee in Sri Lanka. So you dont need to worry. Finish CIMA and start working soon.
Good luck.
