a) In your own words, explain how do we account for service costs included within a contract to lease an asset?
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(a) In your own words, explain how do we account for service costs included within a contract to lease an asset?
(b) Briefly explain how a company calculates its current liability 'income tax payable'?
(c) In your own words, explain why a temporary difference relating to employee benefits obligations for long-service leave creates a
(d) In your own words, briefly explain a 'qualifying asset' and how we report exchange rate differences relating to the acquisition of qualifying assets? Contrast this with the treatment for assets that are not qualifying assets
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- Temporary differences result in future taxable or deductible amounts when the related asset or liability is recovered or settled. Some differences, though, are not temporary. What events create temporary differences? What events create permanent differences? Using an event at your own company or a company you are familiar with, provide an example of temporary and permanent differences.Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? When it is probable that future economic benefits will flow to the consignor and the fair value of the revenue can be measured reliably. When the consignor receives cash remittance from the consignee. When the consignor satisfies its performance obligation under consignment contract. When the consignor enters into a consignment contract with a consignee.Which of the following statements are true? When an employee has rendered service to an entity during a period, the entity shall recognize the contribution payable to a defined contribution plan in exchange for that service: As a liability, after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, an entity shall recognize that excess as an asset, regardless if the prepayment will lead to a reduction in future payments or a cash refund, or not. Group of answer choices Only statement 2. None of the statements are true. Only statement 1. Both statements 1 and 2.
- Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the correct letter: A. Revocable amount of the consideration received or receivable B. Book value of the consideration received or receivable C. Fair value of the consideration received or receivable D. Historical cost of the consideration received or receivableWhy should executory contracts be disclosed in the financial statements? Group of answer choices They create current income tax obligations They create an obligation contingent upon the occurrence of a past event They represent a possible outflow of economic resources None of the above PreviousNextA company has only one deductible temporary difference due to the use of the current expected credit loss method (CECL) of recognizing credit losses (ie, bad debts) for financial reporting purposes. The company is trying to determine how the resulting deferred tax asset will be reported on the balance sheet. Which section of the authoritative literature describes whether deferred tax assets and liabilities are classified as current or noncurrent? Enter your response in the answer fields below. Unless specifically requested, your response should not cite implementation guidance. Guidance on correctly structuring your response appears above and below the answer fields. Type the topic here. Correctly formatted FASB ASC topics are 3 digits. FASB ASC
- Which of these statements are correct? A contract for service is an independent contractor; the contractor is responsible for filing his/her own taxes. Emoluments refer to the salary and monetary benefits an individual receives because of being employed. There is no income that is exempt from PAYE. Contract of Service is a contract of employment, and the employer is responsible to account and pay all statutory taxes. a. i, ii and iv b. and iv c. i, only d. i, ii and iiiWhich statement is incorrect regarding recognition of employee benefits? a. The enterprise should recognize the expected cost years of service. of profit-sharing and bonus payments when, and only when, it has a legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the expected cost can be made b. For short-term employee benefits, the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period should be recognized in that period. c. The cost of providing employee benefits should be recognized in the period in which the benefit is earned by the employee, rather than when it is paid or payable. d. For post-employment benefits, the cost to be recognized in the period is the contribution payable in exchange for service rendered by employees during the period.Which of the following statements is not applicable to contract acquisition costs under ASC Topic 606 guidance for revenue recognition? Incremental costs of acquiring a contract must be capitalized and amortized over the life of the contract. Costs that would be incurred regardless of whether a contract is obtained are not capitalized. The capitalization requirement is subject to a practical expedient. Costs must be capitalized even if the amortization period is one year or less.
- Which of the following is/are true with regard to accounting for short-term employee benefits? Unpaid short-term benefits are reported as accrued under current liabilities at an undiscounted value. If the payment exceeds the undiscounted amount of the benefits, the excess is reported as prepayment under current assets. The benefits are reported as an expense under profit or loss, unless another standard requires or permits the cost of the benefits to be capitalized. Group of answer choices Only statement 1. All statements are true. Only statement 3. Only statement 2.for each has Ashley listed below indicate whether that item is a permanent difference or temporary difference. For transactions identified as temporary differences indicate whether they will create a deferred tax asset or a different tax liability. Choose from the following options: Type of difference: temporary, permanent Deffered Tax Classification: DTA, DTL, neither Advance rental receipts estimated future warranty costs installment sales excess tax depreciation over book depreciation long-term construction contracts premiums paid on life insurance of officersHow are deferred taxes calculated? What determines if the company has a deferred asset or a deferred liability?
