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dear mike
i have few doubts to get clear .
one is about kam,and material uncertainty paragraph ..we are told that kam are resolved matters which do not qualiffy the report ,it means whenever a report is modified (irrespective of whether the opinion is modified or unmodified) we should say there are no kam to communicate …am i right /////???
this implies that if we have a paragraph on material uncertainty in relation to going concern ,this would not modify the opinion but the report is modified ..so in that regard kam should not be there ….could u confirm on this..
another doubt about revaluation of properties ,,qs parker june 2013 ,
the revaluation should have a deffered tax consequence defferd tax provision should be recognised ….i did not understand why there is a tax provision for revaluation whats the relation here …..please confirm ..
also in question bluebell ifrs 2 share based payments ,,have a tax consequence .i did not understand why to record a tax consequence on recognising share options in equity
“… we should say there are no kam to communicate …am i right …” – we say there are no kams to report if, in the opinion of the auditor, there are no significant matters that were key to the completion of the audit and that were felt necessary to be brought to the attention of stakeholders
“… if we have a paragraph on material uncertainty in relation to going concern ,this would not modify the opinion but the report is modified ..so in that regard kam should not be there”
Here’s an extract from the illustration of such an audit report taken from the technical article that you’ll find on this link:
“if we have a paragraph on material uncertainty in relation to going concern ,this would not modify the opinion but the report is modified ..so in that regard kam should not be there”
“… why there is a tax provision for revaluation whats the relation here …” A revaluation is acknowledging an increase in the value of an asset. That increase will surely lead to a tax charge on the gain on sale. But that tax charge is deferred until such time as that asset is sold
Hence, it’s deferred tax
I don’t know the question but it seems likely that the tax consequence is going to relate to the double entry. Dr ??? Cr Equity
If that ??? is, for example, wages and salaries, there’s clearly a tax consequence there
But equally any expense that is paid for by the issue of shares or any asset that is acquired by the issue of shares … all of these have tax consequences
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