The following are examples of non-adjusting events after the reporting period that would generally result in disclosure, except A. The determination after the reporting period of the amount of profit-sharing or bonus payments. B. Changes in tax rates or tax laws enacted or announced after the reporting period that have a significant effect on current and deferred tax assets and liabilities. C. Entering into significant commitments or contingent liabilities, for example, by issuing significant guarantees. D.Abnormally large changes after the reporting period in asset prices or foreign exchange rates.

Q: Calculate the amount of goodwill recognized, if any, on July 31, 2020, Goodwill

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A: Shareholder equity includes ordinary shares + Share premium + Retained Earnings 

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A: Step 2 in solution. 

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A:

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A:

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.