The other comprehensive income section shall present line items for amounts of other comprehensive income in the period, classified by nature and grouped into those that are in accordance with other PFRS/ 10. Statement 1: IFRS. An entity shall disclose the amount of income tax relating to each item in other comprehensive income, including reclassification adjustments, either in the statement of profit o loss and other comprehensive Statement 2: income or in the notes. Only the first statement is correct. a. b. Only the second statement is correct. C. Both statements are correct. d. Neither of the statements is correct.

The other comprehensive income section shall present line items for amounts of other comprehensive income in the period, classified by nature and grouped into those that are in accordance with other PFRS/ 10. Statement 1: IFRS. An entity shall disclose the amount of income tax relating to each item in other comprehensive income, including reclassification adjustments, either in the statement of profit o loss and other comprehensive Statement 2: income or in the notes. Only the first statement is correct. a. b. Only the second statement is correct. C. Both statements are correct. d. Neither of the statements is correct.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 15DQ

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The purpose of Schedule M-1 on the corporate tax return is to: Reconcile accounting (book) income to taxable income. Summarize the dividends received deduction calculation. List the officers of the corporation and their compensation. Calculate the net operating loss deduction.
Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards 2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively 3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively 4. The future effects on income taxes, as measured by the applicable enacted tax rate and provisions of the enacted tax low, resulting from temporary differences and operating loss carryforwards at the end of the current year 5. The change during the year in a corporations deferred tax liabilities and assets 6. The deferred tax consequences of future taxable amounts 7. The portion of o deferred tax asset for which it is more likely than not that a tax benefit will not be realized 8. Temporary difference that results in deductible amounts in future years when the related asset or liability is recovered or settled, respectively 9. The sum of income tax payable and deferred tax expense (or benefit) 10. The amount of income taxes paid or payable (or refundable) for the current year 11. An excess of tax deductible expenses over taxable revenues in a year that may be carried forward to reduce taxable income in a future year 12. The excess of taxable revenues over tax deductible expenses and exemptions for the year 13. Income tax expense divided by income before income taxes
Under IAS 1 an entity must present a statement of profit or loss and other comprehensive income. Which of the following statements is true in respect of the other comprehensive income section? 1. Items should be grouped into those that may subsequently be reclassified to profit or loss and those that will not subsequently be reclassified to profit or loss. 2. All items must be shown inclusive of income tax 3. Extraordinary items should be listed separately with details of the nature of the item disclosed in the notes. Please select the right answer. All of the above 1 and 2 only 2 only 1 only
Which of the following statements is not in accordance with AASB 101 Presentation of Financial Statements with respect to the statement of profit or loss and other comprehensive income? An entity shall not present any items of income or expense as extraordinary items, in the statement of profit or loss and other comprehensive income or the separate income statement (if presented), or in the notes. An entity shall disclose the amount of income tax relating to each component of other comprehensive income, including reclassification adjustments, either in the statement of profit or loss and other comprehensive income or in the notes. As a minimum, the statement of profit or loss and other comprehensive income shall include line items of each component of other comprehensive income classified by nature. An entity shall recognise all items of income and expense in a period in profit or loss unless an Australian Accounting Standard requires or permits otherwise,…
Which of the following statements best describes the income tax expense recognised in an entity’s income statement according to IAS 12? a. The income tax related to the accounting profit (pre-tax) for the period b. The income tax related to the taxable profit for the period c. The income tax paid in cash during the period d. The product of the applicable tax rate and the taxable profit for the period
Which statement is incorrect regarding other comprehensive income? A. Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognized in other comprehensive income in the current or previous periods. B. An entity may present items of other comprehensive income either net of related tax effects or before related tax effects with one amount shown for the aggregate amount of income tax relating to those items C. Reclassification adjustments arise on all items of other comprehensive income. D. Other comprehensive income comprises items of income and expenses (including reclassification adjustments) that are not recognized in profit or loss as required or permitted by other PFRSs
describe the diff erences between accounting profi t and taxable income, and defi ne key terms,including deferred tax assets, deferred tax liabilities, valuation allowance, taxes payable, andincome tax expense;
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The results of the discontinued operations are presented separately in the statement of profit or loss and other comprehensive income a. as a single amount gross of tax b. as a single amount net of tax C. as part of regular line item d. as part of other comprehensive income
Classify the following items that may cause discrepancy between accounting profit and taxable income, into the following types of differences. Also, provide an explenation why that is their classification. A. Non-deductible expenses B. Non-taxable revenues C. Deductible temporary difference D. Taxable temporary difference Interest earned on investments in tax-exempt government securities. Interest earned on deposits with bank. Excess of profit earned over the profit reported under the installment method for income tax purposes.
Additional disclosures are required pertaining to the income tax expense reported in the income statement. Whatare the needed disclosures?
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