Get premium membership and access questions with answers, video lessons as well as revision papers.
i) The deferred tax asset should not be recognized
- IAS 12 requires timing differences to be recognized when there is reasonable expectation of realization
- Deferred tax arising from tax losses should be recognized as an asset only where there is assurance beyond any reasonable doubt that future taxable income would be sufficient to allow the benefit of the loss to be realized
- In the case of Wepesi ltd there is high degree that recent losses raises significant concerns whether the management plan is achievable or not
ii)The Factors To Consider Are
- The probability that management will implement the plan
- Management ability to implement the plan by the example obtaining concessions from labour unions
- The level of detailed analysis and sensitivity analysis prepared by management
- The extent to which the plan of Wepesi ltd could be verified objectively
Wilfykil answered the question on February 13, 2019 at 06:06
- Briefly explain the following Committees.
i. Public Accounts Committee.
ii. Public Investments Committee.(Solved)
Briefly explain the following Committees.
i. Public Accounts Committee.
ii. Public Investments Committee.
Date posted: February 13, 2019. Answers (1)
- The following revenue was collected by the Ministry of Finance in the financial year 2009/2010 in respect of Revenue Head 130-070-Other Taxes:
Prepare:
i. Extracts from the...(Solved)
The following revenue was collected by the Ministry of Finance in the financial year 2009/2010 in respect of Revenue Head 130-070-Other Taxes:
Prepare:
i. Extracts from the statement of assets and liabilities as at 30 June 2010 in respect of items for Revenue Head 130-070-Other Taxes.
ii. Statement of Revenue for the year ended 30 June 2010.
iii. List two items which should be shown by way of footnotes to the statements
Date posted: February 13, 2019. Answers (1)
- Outline the powers of the Auditor General in the exercise of his duties(Solved)
Outline the powers of the Auditor General in the exercise of his duties
Date posted: February 13, 2019. Answers (1)
- The following information was extracted from the books of the Ministry of Commerce and Industrialization for the fiscal year ended 30 June 2011:
Prepare:
(i) Statement of...(Solved)
The following information was extracted from the books of the Ministry of Commerce and Industrialization for the fiscal year ended 30 June 2011:
Prepare:
(i) Statement of financial performance for the year ended 30 June 2011.
(ii) Statement of financial position as at 30 June 2011.
Date posted: February 13, 2019. Answers (1)
- Explain two requirements that should be met for government grants to be recognized in the financial statements in the context of International Accounting Standard (IAS)...(Solved)
Explain two requirements that should be met for government grants to be recognized in the financial statements in the context of International Accounting Standard (IAS) 20.
Date posted: February 13, 2019. Answers (1)
- In the context of International Accounting Standard (1AS) 21, distinguish between the accounting treatment for foreign currency transactions "on initial recognition" and "at the end...(Solved)
In the context of International Accounting Standard (1AS) 21, distinguish between the accounting treatment for foreign currency transactions "on initial recognition" and "at the end of subsequent reporting periods".
Date posted: February 13, 2019. Answers (1)
- The following information was extracted from the books of a government entity for the year ended 30 June 2011:
Prepare Statement of financial performance for the...(Solved)
The following information was extracted from the books of a government entity for the year ended 30 June 2011:
Prepare Statement of financial performance for the year ended 30 June 2011
Date posted: February 13, 2019. Answers (1)
- The following information was compiled by the Ministry of Finance for the fiscal year ended 30 June 2012.
Prepare Budget out-turns for the Ministry of Finance...(Solved)
The following information was compiled by the Ministry of Finance for the fiscal year ended 30 June 2012.
Prepare Budget out-turns for the Ministry of Finance in accordance with International Public Sector Accounting Standard (IPSASs 24).
Date posted: February 13, 2019. Answers (1)
- List the circumstances under which a subsidiary should be excluded from the consolidated financial statement(Solved)
List the circumstances under which a subsidiary should be excluded from the consolidated financial statement
Date posted: February 12, 2019. Answers (1)
- Explain four circumstances in which a parent company is exempted from consolidating investments in subsidiaries in accordance with International Accounting Standards (IAS)27- Consolidated and separate...(Solved)
Explain four circumstances in which a parent company is exempted from consolidating investments in subsidiaries in accordance with International Accounting Standards (IAS)27- Consolidated and separate financial statements
Date posted: February 12, 2019. Answers (1)
- Auma Ltd. acquired 80% of the ordinary shares of Sakwa Ltd. on 31 October 2009 for Sh. 117 million. At this date, the net assets...(Solved)
Auma Ltd. acquired 80% of the ordinary shares of Sakwa Ltd. on 31 October 2009 for Sh. 117 million. At this date, the net assets of Sakwa Ltd. were Sh. 127.5 million. The fair value of the non-controlling interest on the acquisition date was Sh.28.5 million.
Calculate the value of goodwill using the two methods
Date posted: February 12, 2019. Answers (1)
- Distinguish between the full method and the partial method of determining goodwill arising on acquisition of a subsidiary company(Solved)
Distinguish between the full method and the partial method of determining goodwill arising on acquisition of a subsidiary company
Date posted: February 12, 2019. Answers (1)
- Briefly explain three circumstances in which a parent company need not present consolidated financial statements in accordance with International Accounting Standard (IAS ) 27 ,Consolidated...(Solved)
Briefly explain three circumstances in which a parent company need not present consolidated financial statements in accordance with International Accounting Standard (IAS ) 27 ,Consolidated and Separate financial Statements
Date posted: February 12, 2019. Answers (1)
- Differentiate between full consolidation and equity method of accounting for subsidiaries and associate companies(Solved)
Differentiate between full consolidation and equity method of accounting for subsidiaries and associate companies
Date posted: February 12, 2019. Answers (1)
- International Accounting Standard (IAS) 28, Investment in Associates prescribes the use of the equity method of accounting for investments in associates over which the investor...(Solved)
International Accounting Standard (IAS) 28, Investment in Associates prescribes the use of the equity method of accounting for investments in associates over which the investor has significant influence.
Required:
i) Describe the term "significant influence" in the context of IAS 28.
ii) Explain four circumstances under which the investor is exempted from use of the equity method.
Date posted: February 12, 2019. Answers (1)
- Explain the circumstances in which an entity is permitted to change its accounting policies.(Solved)
Explain the circumstances in which an entity is permitted to change its accounting policies.
Date posted: February 12, 2019. Answers (1)
- What meetings of creditors must be held and for what purpose in the course of a creditors’ voluntary winding up?(Solved)
What meetings of creditors must be held and for what purpose in the course of a creditors’ voluntary winding up?
Date posted: February 12, 2019. Answers (1)
- The following trial balance was extracted from the books of ABC Retirement Benefits Scheme for the year ended 30 September 2003:
Prepare:
(i) Statement of changes in...(Solved)
The following trial balance was extracted from the books of ABC Retirement Benefits Scheme for the year ended 30 September 2003:
Date posted: February 12, 2019. Answers (1)
- Briefly explain the meaning of the term “abatement”(Solved)
Briefly explain the meaning of the term “abatement”
Date posted: February 12, 2019. Answers (1)
- The following trial balance was extracted by the trustees of XYZ Retirement Benefit Scheme as at 31 May 2007
Prepare:
(i) Statement of changes in net assets...(Solved)
The following trial balance was extracted by the trustees of XYZ Retirement Benefit Scheme as at 31 May 2007
Date posted: February 12, 2019. Answers (1)