Extra Flashcards
What is withholding tax?
This is where the foreign country keeps (withholds) some tax on the dividend leaving
What is underlying tax?
Underlying tax is the tax that has been charged on the profits which gave the dividends
What does IAS 1 state?
Financial statements shall present fairly the financial position, financial performance and cash flows of an entity
What is inventory value at?
Lower of costs and NRV
Is selling inventory post year-end for lower than cost price an adjusting event?
Yes
If a customer goes into liquidation is it an adjusting event?
Yes
If a court case completes after year end is it a adjusting event?
Yes
If an insurance claim completes after year end is it an adjusting event?
Yes
Is an acquisition or disposal of a subsidiary after year end and adjusting event?
No
If a company announces plans to discontinue an operation is it an adjusting event?
No
If there is destruction of an asset due to flood or fire is it an adjusting event?
No
If there is an announcement of plans to restructure is it an adjusting event?
No
Is share capital transactions after reporting date an adjusting event?
No
What is the IFRS Foundation responsible for?
appointing members of board
reviewing strategy of board
approving the annual budget
promoting the board
establishing and amending operating procedures
What is the IASB responsible for?
Developing standards
preparation and publication of IFRS Standards, Exposure drafts
Withdrawal of standards
Interpretations of Interpretations comittee
What are the objectives of the advisory council?
give advice to board on agenda decisions
inform board of the views of individuals
give advice to board or to the Trustees
What are the two main responsibilities of the interpretations committee?
review new financial reporting issues not specifically addressed in IFRSs
Clarify issues where unsatisfactory or conflicting interpretations have developed developed
What is the agressive approach?
reduce costs by holding lowest levels of inventory. Short operating cycle.
What is the conservative approach?
reduce risks by holding high levels of inventory. Long operating cycle
When is an impairment review required?
When there is an indication that an asset has been impaired
What is included in investing activities?
Purchase of PPE
Purchase of investments
Proceeds from sale of PPE
Proceeds from sales of investments
Interest received
Dividends received
What is included in financing activities?
Proceeds from issue of ordinary shares
Proceeds from issue of preference shares
Proceeds from long-term borrowing
Redemption of long-term borrowing
Dividends paid
What is inventories value at?
Lower of cost and NRV
Is upwards revaluation of PPE shown separately in statement of changes in equity?
Yes
What is the two acceptable methods of determining cost of inventory?
LIFO
AVCO
Should all non-adjusting events be disclosed?
No
What is the recoverable amount before impairment?
Higher of value in use and fair value less cost to sell
Is decorating an office a capital expenditure?
No
Do you include dividends when calculating the tax charge?
No
What are the characteristics of faithful representation?
Completeness
Neutrality
Free from error
When will a item be recognised in the financial statements?
Meets definition of one of the elements
Relevant information on element
Faithful representation on element
What is the definition of an organisation produced by Buchanana and Huczynski?
Organisations are social arrangements for the controlled performance of collective goals
What are the two types of foreign tax?
Withholding tax
Underlying tax
What is the process of IFRS Standards?
Exposure drafts
Followed by discussion papers
completed by standard
What are the benefits of corporate governance?
Facilitates achievement of objectives in a less risky way
Enables efficient conduct of business
Ways to finance exports
Documentary credit
Bills of exchange
Export Factoring
Forfaiting
In the context of stewardship the relationship, where one person has a duty of care towards someone else is known as what?
Fiduciary relationship
What does GAAP stand for?
Generally accepted accounting practices
What is GAAP?
encompasses the conventions, rules and procedures necessary to define accepted accounting practice at a particular time.
Includes local legislation, accounting standards and any other local regulations
What are some types of direct tax?
Trading income tax
Capital tax
Property tax
Wealth tax
Employment tax
What are examples of indirect tax?
Excise duties
Consumption tax
Cascade tax
VAT
Sales tax
