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accounting policiesaccounting policies are the specific assumptions bases principles and practices that are adopted by firms in preparing financial
illustration of marked up by an additional amounte limited sent goods to its branch in thika invoiced at selling price which was cost plus 505 of
illustration of accounting treatment of deferred taxa ltd bought an item of plant at a cost of pound100000 in year 2000 the estimated useful life of
accounting treatment of deferred taxthe objective of accounting for deferred tax is to ensure that the profits for the period d onto fluctuate due to
types of temporary differencesthere are two main types of temporary differences1 taxable temporary differenceif the carrying amount is more than the
illustration of deffered taxa firm bought an item of plant at a total amount of pound50000 during the first year the firm provided for depreciation
temporary or timing differencestemporarytiming differences relate to those items that are adjusted in the current period and are again adjusted in
deferred taxa company may enter into transactions in the current financial period that may result in the firm either paying or saving some tax in the
illustration of corporate taxduring the year ended31122003 a ltd had estimated the corporation tax for the year to be pound100000 the amount was
corporation taxthis is the tax payable by companies on their trading activities of a given financial period the standard doesnrsquot give the
dividendsduring the year the company paid a dividend of sh2 per share on the ordinary share s outstanding and sh1 on the preference shares
property plant and equipment normal 0 false false false en-us x-none x-none microsoftinternetexplorer4
profit for the periodthe profit for the period has been arrived at after charging the following expenses normal 0 false false false en-us
accounting policiesthese financial statements have been prepared under the historical cost basis of accounting which is modified to accommodate the
the notes to the accountsthe notes to the accounts provide additional information on the ac policies that the company has adopted the make-up of some
the statement of changes in equity this is a very important report because it explains the movements in the shareholder funds during the year and
format of the balance sheetit shows the financial position of the company as at the end of a given financial period the standard requires that assets
the balance sheetit shows the financial position of the company as at the end of a given financial period the standard requires that assets and
illustrations of income statementprofitloss on disposal of non-current assets material write down or reversal of write down on assets eg ppe
classifying expenses by natureunder this format expenses are not classified by their nature ie referred to specifically according to their type and
by classifying by functionunder this format the expenses of the company are classified into 5 major categories iecost of sales opening stock
the income statementit shows the financial performance of the company during the given financial period it discloses the income and expenses and thus
ias 1 contents of financial statementsias 1 prescribes the contents of published financial statements the major reports that are included as part of
ias 1 rulesias 1 requires companies to observe the following rules in preparing published financial statements1 the financial statements should
presentations of financial statementsthe objective is to give guidance regarding the preparation of published financial statements and prescribe the