Cash vs Accrual Under the cash basis of accounting… 1. Revenues are reported on the income statement in the period in which the cash is received from customers. 2. Expenses are reported on the income statement when the cash is paid out. Under the accrual basis of accounting… 1. Revenues are reported on the income statement when they are earned—which often occurs before the cash is received from the customers. 2. Expenses are reported on the income statement in the period when they
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1) The advertising expense is absolutely to be claimed 100% for the amount incurred as it is a part of the business property investment. Repairs is categorized as to the extent which is to refresh the house as to its beginning state will be a deduction for example repair the leaking proof, repair the floor be tear out. However the repairs that is excessive relating to using the better material or replacing the stuff or equipment which are not supposed to be a part of the property such as electronic
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Differences between IFRS and U.S GAAP Duoyi Zhang (1) | Issue: |Measurement basis of agricultural crops, livestock, orchards, | | |forests. | |1.IFRS IAS 41, Para 10-33 |Fair value with value changes recognized in profit or loss. | |2.U.S GAAP
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Chapter 6 5 Delta Corporation purchased 3 assets during the current year: an automobile costing $60,000, office furniture $260,000 and a warehouse costing $750,000. Which assets should Delta elect Section 179 expensing for and why? It should expense the $206,000 in furniture. The amount for the automobiles is over the limitation of $11,060. The warehouse is not eligible. 8 Why would a business elect to use the ADS straight-line method to compute regular income tax depreciation rather than the
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Property tax trial: a sharp sword or a delicate needle? On Jan 28th 2011, China finally began to implement its property tax policy in two trial cities, Shanghai and Chongqing. The new tax policy was expected to be carried out through the whole year and to successfully cool the overheated real-estate market. However, the result seems complex and confusing. An Overview of the Property Tax Policy Property tax policy is different in Shanghai and Chongqing, varying in tax rate and charging targets
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Jones, 2011) Currently, governments request to use taxation in some situations for purposes which is different than raising funds to cover up its expenditure. To begin with, the economic resources, which are accessible for the nation are limited, thus a raise in government spending usually leads to a decrease in private expenditure. In addition to this, one technique of transferring recourses from the private to the public sector is the use of taxation, but there are also further methods. One of these
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CHAPTER 19 ACCOUNTING FOR INCOME TAXES IFRS questions are available at the end of this chapter. TRUe-FALSe—Conceptual Answer No. Description F 1. Taxable income. F 2. Use of pretax financial income. T 3. Taxable amounts. T 4. Deferred tax liability. F 5. Deductible amounts. T 6. Deferred tax asset. F 7. Need for valuation allowance account. T 8. Positive and negative evidence. F 9. Computation of income tax expense. T 10. Taxable temporary differences. F 11
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Financial Reporting and Analysis ChapterÊ12ÊSolutions Income Tax Reporting Exercises Exercises 1. Determining current taxes payable (AICPA adapted) The amount of current income tax liability that would be reported on Ross Co.’s December 31, 1998, balance sheet is determined as follows: Net income before depreciation expense and income taxes $100,000 Depreciation expense (for tax purposes) (20,000) Taxable income 80,000 Tax rate 30% Current income tax liability $24,000
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Taxation Determination FOI Status: may be released TD 95/10 Page 1 of 2 This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part . Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of
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role of taxes in everyday decisions will help people make informed decisions about the value of studying taxation or pursuing a career. Once you know how taxes effect your money, you can better plan for future expenses, gifts, or investments. 2. What are some aspect of business that require knowledge of taxation? What are some aspects of personal finance that require knowledge of taxation? Taxes are significant costs that influence many basic business, investment, and personal decision. Business
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