Board of Studies

The Institute of Chartered Accountants of India

6th December, 2023

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Corrigendum to the April 2023 Edition (Reprint October 2023) of Study Material of
Paper 2 – Advanced Financial Management (Final Level- New Scheme)

The following are the changes made in the webhosted October 2023 Reprint edition.

Chapter Page No. Changes incorporated in the (Reprint October 2023) Edition
(printed
copy)
5 5.34
In the Question No. 7 in the first row of the given table please suffix (` 100
each) after Equity share capital.

8 8.28
In the Question No. 19 in last line of second last para the sentence ‘Other
investments are at par.’ should be read as ‘Other investments are valued at
par.’

10 10.39
In the second last line of 1st para of 12.3 ‘sport rate’ to be read as ‘spot rate’.

10 10.59
In the Question No. 36 in the first table 1 Month Forward and 3 Month Forward
Rates to be read 0.9501 and 0.9556 respectively instead of 0.9301 and 0.9356.

10 10.72
Answer of sub part (ii) of Question No. 10 to be read as “In Japanese Yen, the
net exposure is payable, and the forward rate is quoted at a discount,
effectively offsetting the position. Likewise, in the remaining currencies, the net
exposures are in receivables, and the related currencies are at a premium,
offsetting the positions in their respective currencies.” Instead of “The exposure
of Japanese yen position is being offset by a better forward rate.”

10 10.75
Answer of sub part (ii) of Question No. 15 stands revised as follows:

USD/ ` on 3rd September 49.3800

Swap Point for October 0.1300
49.5100
USD/ SGD on 3 rd September 1.7058
Swap Point for 2 nd
month Forward 0.0096
1.7154
 Professional Development Committee
The Institute of Chartered Accountants of India

SGD/ ` (49.5100/ 1.7154) 28.8621

Add: Exchange Margin 0.0500
28.9121

Thus, Cross Rate for SGD/ ` of 30th October shall be ` 28.9121.

10 10.85
Consequent upon the change in the values in the respective question
(mentioned above) In the answer of Question No. 36, the given table stands
revised as follows:

July Sept.
Can $ US $ Can $ US $
Covered by Contracts 1000000 940000 700000 665000
Balance bought at spot rate 10000 9501 5000 4778
Option Costs:
Can $ 50000 x 20 x 0.0102 10200 ---
Can $ 50000 x 14 x 0.0164 --- 11480
Total cost in US $ of 959701 681258
using Option Contract

12 12.17
In the Question No. 7 in third line please ignore the phrase ‘and the duration
of loan is four years’

Accordingly, those students having April 2023 Edition of Study Material are requested to make
note of these changes.