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Quite a shock for me.i got 82..and iam happy beyond imagination as i did not make the consolidated statement format and made some other mistakes too.but in the end iam amazed.thanks to ALLAH…by the way p2 tutor was a help too.thanks to him too..:)
thanks.iam relieved at least for sometime and i’d pray that you prove to be absolutely correct.
it should be deducted from A”s nci.because 20 percent nci relates to the sub not subsub.
hmmm….alright thanks.but i still think there may be something else too.anyway its useless worrying about it now.
Hi
i think you should go through ias 17 again.as in operating lease even if lessee is paying unequal amount of rentals, they’ll still be charged on straight line basis.which is total expense divided by total lease term.also rentals are tax allowed in the year they;re charged to income statement on cash basis, so no temporary difference arises on rentals, but it will arise only in the case of deposit money of 2000.its the kplan mock i guess.as you have paid 4000 in the 1st year, out of which 2000 is the deposit money and remaining 2000 is the rental.so that deposit money will be spread over the total term of lease and expensed out each year along with rental payments.667 out of 2000 of the deposit money expensed out in the 1st year, remaining is a prepaid expense recognized as asset in balance sheet.dis amount as being paid in cash, has already been allowed by tax authority,means deducted already on cash basis from taxable profits.so we have already gained tax benefit from it.so tax base is nil(remember tax base of an asset is the amount that is allowable in the future for tax purpose).and deferred tax liability generated.as wen in future wen we will charge this asset to the income statement as expense, we won’t gain any tax benefit on it as benefit already availed.
turnaround strategy is covered in chapter 15 of bpp book, under the title change management levers.
my last q is that why an accrued expense never deductible for tax purpose and accrued income never taxable?. i,ve totally tried to be specific.i hope you’ll answer.thanks.
a loan payable has tax base equal to carrying value. and thats why in the q as the loan had equity element the CV was reduced below the TB(tax base) right?
well that was my first ever post on open tuition, wasn’t expecting any response.so thanks for responding.
ok can you please guide me if iam right or wrong here.in the 1st adjustment the tax base of the financial asset is 9 as it is the cost of it but the carrying value being 10.5 gives a taxable temporary difference.right?
