The following circumstances can create self-interest threat
i. Financial interests in a client or jointly holding financial interest with a clients
ii. Undue dependence on rental fees from a client
iii. Having close business relationship with a client e.g. being a client’s supplier
iv. Concerns about the possibility of loosing clients
v. Charging fees which is contingent to the outcome e.g. earning fees in form of commissions
vi. Borrowings to or from a client
vii. Family relationships
Wilfykil answered the question on February 26, 2019 at 06:24
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Date posted: February 26, 2019. Answers (1)
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Kamere Ltd. commenced manufacturing operations on 1 January 2003. The management of the company has prepared the following financial statement for the year ended 31 December 2005.
Balance sheet as at 31 December 2005
Additional information:
1. Non-current assets are stated net of depreciation including for year 2005. It is the policy of the company to charge depreciation at 20 % per annum on a straight line method.
2. The company has not claimed capital allowance since it commenced operations.
3. The company's reported taxable profits for the year ended 31 December 2003 and 2004 were sh.8,000,000 andsh.6,400,000 respectively
4. Factory building includes an extension to the factory constructed at a cost of sh. 1,600,000 which was put into use on I January
5. Machinery include generator and conveyor belts bought for sh. 1,400,000 and sh. 800,000 respectively.
6. Motor vehicles include a forklift purchased in 2003 at sh. 1,160,000.
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8. The loan was received on 1 January 2005 and is subject to interest at the rate of 8% per annum
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Date posted: February 26, 2019. Answers (1)
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The Kenya Revenue Authority ("KRA") is geared towards a function-based organization rather than one structured along the types of taxes. This is evidenced by the integration of VAT, Income Tax and Excise departments into the Domestic Department. Asses the likely benefits and drawbacks to KRA arising from this integration
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Fruit farm Ltd. produces pineapple juice for sale in both local and export markets. The company owns plantations in Sagan which supply pineapples to the processing factory located in Thika.
The following is a summary of the company’s income statement for the year ended 31 December 2006.
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Date posted: February 26, 2019. Answers (1)
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The following information relates to ABC Ltd. for the year ended 31 December 2006.
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Compensating tax payable by ABC Ltd. for the year ended 31 December 2006.
Date posted: February 26, 2019. Answers (1)