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1. An entity has a present obligation as a result of past event.
2. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
3. A reliable estimate can be made of the amount of the obligation.
Wilfykil answered the question on February 8, 2019 at 06:14
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With respect to International Accounting Standard (IAS) 37 ,provisions ,contingent liabilities and contingent Assets, Distinguish between “provisions” and “Contingent liabilities”
Date posted: February 8, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)
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On 1 January 2009, Kamulu Limited leased a machine from General Machines Ltd. under a finance lease agreement. Kamulu Limited was to make installment lease payments of Sh. 14,000,000 every six months on 30 June and 31 December in arrears.The first payment was made on 30 June 2009.The fair value of the machine was Sh.60,000,000 with an estimated useful life of 3 years.The interest rate implicit in the lease was 10% per six months.
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Date posted: February 8, 2019. Answers (1)
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On 1 January 2009, Kamulu Limited leased a machine from General Machines Ltd. under a finance lease agreement. Kamulu Limited was to make installment lease payments of Sh. 14,000,000 every six months on 30 June and 31 December in arrears.The first payment was made on 30 June 2009.The fair value of the machine was Sh.60,000,000 with an estimated useful life of 3 years.The interest rate implicit in the lease was 10% per six months.
Determine Extracts of the statement of comprehensive income for the years ended 31 December
2009 and 2010.
Date posted: February 8, 2019. Answers (1)
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Distinguish between "deferred tax liabilities" and "deferred tax assets".
Date posted: February 8, 2019. Answers (1)
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Assure Ltd. borrowed Sh 30 million to finance two capital projects "A" and "B" on 1 July 201 1. The money was utilized on the two projects as follows:
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Date posted: February 8, 2019. Answers (1)
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Assure Ltd. borrowed Sh 30 million to finance two capital projects "A" and "B" on 1 July 201 1. The money was utilized on the two projects as follows:
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Date posted: February 8, 2019. Answers (1)
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Equip Agencies Ltd. purchased an equipment for Sh.4,000,000 on 1 July 2008. Depreciation on equipment is provided on a straight line basis at the rate of 25% per annum.
During the four years from 1 July 2008 to 30 June 2012 the profit after tax and allowed
wear and tear charges for tax purpose were as follows:
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Date posted: February 8, 2019. Answers (1)
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Equip Agencies Ltd. purchased an equipment for Sh.4,000,000 on 1 July 2008. Depreciation on equipment is provided on a straight line basis at the rate of 25% per annum.
During the four years from 1 July 2008 to 30 June 2012 the profit after tax and allowed
wear and tear charges for tax purpose were as follows:
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Date posted: February 8, 2019. Answers (1)
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Equip Agencies Ltd. purchased an equipment for Sh.4,000,000 on 1 July 2008. Depreciation on equipment is provided on a straight line basis at the rate of 25% per annum.
During the four years from 1 July 2008 to 30 June 2012 the profit after tax and allowed
wear and tear charges for tax purpose were as follows:
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Date posted: February 8, 2019. Answers (1)
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Differentiate between “taxable temporary differences” and “deductible temporary differences”
Date posted: February 8, 2019. Answers (1)
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In the context of international Accounting Standard (IAS) 39 “Financial instruments”.
Distinguish between a financial asset and financial liability
Date posted: February 8, 2019. Answers (1)
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Date posted: February 8, 2019. Answers (1)