Education
Education related posts
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What is the purpose of disclosure requirements of IFRS 7?
What is the purpose of disclosure requirements of IFRS 7? Purpose of IFRS 7’s disclosure requirements is to Enhance understanding…
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Hierarchy In Determining Financial Instruments To Be Equity Instruments
Is there any hierarchy to use in determining a financial instrument to be liability or an equity instruments of the…
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What is equity risk and how it is useful in determining whether a financial instrument is a liability or an equity
What is equity risk and how it is useful in determining whether a financial instrument is a liability or an…
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Recognition Of Deferred Tax Assets Relating To Tax Losses
Deferred tax assets relating to tax losses are to be recognized? A history of accounting losses or the existence of…
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Is Income Tax Expense Always Recognized In Current Year?
In single word, Yes. Income tax expense always recognized in the current year! Tax effect accounting as mandated in IAS…
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Recognition Of Deferred Tax Asset And Deferred Tax Liability
Criteria for Recognition of deferred tax asset and deferred tax liability is set under IAS 12. Deferred tax liabilities must…
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How accounting profit and taxable profit differ in accounting for income taxes.
Accounting profit and taxable profit differ in accounting for income taxes in the following ways: Accounting profit is defined in…
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What is a temporary difference in deferred tax calculation?
Deferred tax calculation Temporary differences between accounting profit and taxable profit arise when revenues and expenses are recognized in different…
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What Is A Constructive Obligation And A Present Obligation?
Constructive obligation One of the essential characteristics of a liability is that there must be a present obligation arising from…
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How is Present Value Related to the Concept of a Liability?
Concept of a liability IAS 37 (para.42) requires that, the risks and uncertainties surrounding the events and circumstances should be…
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