- This topic has 4 replies, 2 voices, and was last updated 6 years ago by
.
- Posts
sir i am facing issues in this topic..in your lectures where can i find this topic?? which videos?
also sir should i be buying the acca exam cbe papers for $14 ? 3 papers? i have been studying really hard still getting 49/100 in open tuition mock exam..i need to get 70% atleast in other mocks to pass in the real exam..sir please help and suggest what to do?There is a chapter (and lecture) that explains what provisions are – they are effectively the same as accruals.
There is no need on a separate lecture on over and under provision, because it is standard English.
If the is an under-provision it means they have under-accrued i.e. not accrued enough. An over-provision means that they have accrued too much.
While writing, I assume that you have a Revision Kit from one of the ACCA approved publishers. If not, then you must buy one and work through every question learning from you mistakes. That is vital to passing the exam as we state everywhere on this website.
sir in the kaplan book i read..that over provision is we over -estimate but pay less..whereas under-provision is we estimate less but pay more..is this the right concept?
yeah sir i do have the bpp or kaplan kit..i am doing questions from it..would it be more helpful if i buy the acca exam papers too? will it help me get good marks? i am struggling a lot..At 1 Jan 2008 , Clarinet Co had an estimated income tax liability of $2,350. This liability was settled by a payment of $2050 made in march 2008. Due to challenging trading conditions, Clarinet Co made a loss for the year ended 31 December 2008 and expects to recover a repayment of income tax of $2,120 during 2009.
What amount should be included in the financial statement for the year ended 31 December 2008 for income tax?
Sir here the estimate is greater than the amount paid..so it is 300 over-provision..i dont understand how 2420 tax credit came? for statement of profit or loss..sofp i understandYour first post – that is correct and is exactly what I wrote.
Second post:
They accrued 300 too much at the end of last year. So last year the expense was 300 higher than it should have been. We can’t go back and reduce last years expense in the accounts – we show the 300 as income this year.
In addition instead of paying tax this year, they are received tax back of 2,120. So income of 2,120.
So the total income (a credit in the SOFP) of 2,120 + 300 = 2,420.
- The topic ‘under or over provision and acca paper confusion’ is closed to new replies.