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When developing local Generally Accepted Accounting Principles (known as local GAAP) some countries start with International Financial Reporting Standards (IFRSs) which are then amended to reflect local needs and conditions.
When developing local Generally Accepted Accounting Principles (known as local GAAP) some countries start with International Financial Reporting Standards (IFRSs) which are then amended to reflect local needs and conditions. This type of approach is classified as:A . Adoption of IFRSs as local GAAC . Using IFRSs as a model...
Which of the following is a feature of a direct tax?
Which of the following is a feature of a direct tax?A . The formal incidence and effective incidence are usually the same.B . It is levied on one part of the economy with the intention that it will be passed on to another.C . It is not levied on the...
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CORRECT TEXT An entity opens a new factory and receives a government grant of $25,000 towards the cost of new plant and equipment. This new plant and equipment originally costs $100,000. The entity uses the net cost method allowed by IAS 20 Accounting for Government Grants and Disclosure of Government...
Which of the following would NOT be a risk or impact of overtrading?
Which of the following would NOT be a risk or impact of overtrading?A . Increase in interest paymentsB . Increased borrowingsC . Shortage of working capitalD . Expanding too quicklyView AnswerAnswer: D
How much capital tax will be payable on the capital gain recorded in 20X3?
CORRECT TEXT Country Q has the following rules in respect of capital tax on the disposal of assets: * Capital gains are subject to tax at 25%. * Capital losses can only be carried forward and offset against future capital gains. The following data relates to ABC: How much capital...
Which THREE of the following would be included in a cash budget?
Which THREE of the following would be included in a cash budget?A . Interest paymentsB . Depreciation on machineryC . Salaries paid to staffD . Impairment of goodwillE . Profit on disposal of motor vehicleF . Dividends received from associateView AnswerAnswer: A,C,F
Which TWO of the following powers is the tax authority likely to have in respect of these actions by the entity?
The tax rules in a country state that all tax returns must be filed by 31 March each year and that any outstanding tax balance must be paid by 14 April each year. An entity filed its tax return on 10 April 20X2 and paid the outstanding tax on 20...
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CORRECT TEXT Statements of financial position for FG, IJ and KL at 31 December 20X5 include the following balances: FG acquired 90% of IJ's equity shares for $358,000 on 1 July 20X5 when IJ's retained earnings were $98,000. FG acquired 100% of KL's equity shares for $360,000 on 1 January...
Which THREE of the following matters should an entity consider when determining the credit terms granted to a customer?
Which THREE of the following matters should an entity consider when determining the credit terms granted to a customer?A . Typical credit terms operating within the industryB . Risk of non-paymentC . Selling price of the goods being sold to the customerD . Bargaining power of the customerE . Number...
CORRECT TEXT
CORRECT TEXT Statements of financial position for FG, IJ and KL at 31 December 20X5 include the following balances: FG acquired 90% of IJ's equity shares for $358,000 on 1 July 20X5 when IJ's retained earnings were $98,000. FG acquired 100% of KL's equity shares for $360,000 on 1 January...
