A provision is liability of uncertain timing or amount ( a liability being a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resource embodying economic benefits)
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because:
1. It is not probable than an outflow of resources embodying economic benefits will be required to settle the obligation or
2. The amount of the obligation cannot be measured with sufficient reliability.
Wilfykil answered the question on February 8, 2019 at 06:13
-
Outline the four main categories of financial instruments in the context of International Accounting Standard (IAS) 39
(Solved)
Outline the four main categories of financial instruments in the context of International Accounting Standard (IAS) 39
Date posted:
February 8, 2019
.
Answers (1)
-
Determine Extracts of the statement of financial position as at December 2009 and 2010
(Solved)
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 financial position as at December 2009 and 2010
Date posted:
February 8, 2019
.
Answers (1)
-
Determine Extracts of the statement of comprehensive income for the years ended 31 December 2009 and 2010
(Solved)
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)
-
Distinguish between "deferred tax liabilities" and "deferred tax assets".
(Solved)
Distinguish between "deferred tax liabilities" and "deferred tax assets".
Date posted:
February 8, 2019
.
Answers (1)
-
Calculate The value of the assets: 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...
(Solved)
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:
Calculate The value of the assets in the books of Assure Ltd as at 30 June 2012
Date posted:
February 8, 2019
.
Answers (1)
-
Calculate Borrowing costs: Calculate Borrowing costs: 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...
(Solved)
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:
Calculate Borrowing costs to be capitalized for each of the projects as at 30 June 2012
Date posted:
February 8, 2019
.
Answers (1)
-
Calculate the Deferred tax account: 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...
(Solved)
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:
Calculate the Deferred tax account
Date posted:
February 8, 2019
.
Answers (1)
-
Calculate the Temporary differences: 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...
(Solved)
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:
Calculate the Temporary differences
Date posted:
February 8, 2019
.
Answers (1)
-
Calculate the Taxable profits: 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...
(Solved)
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:
Calculate the Taxable profits
Date posted:
February 8, 2019
.
Answers (1)
-
Differentiate between “taxable temporary differences” and “deductible temporary differences”
(Solved)
Differentiate between “taxable temporary differences” and “deductible temporary differences”
Date posted:
February 8, 2019
.
Answers (1)
-
In the context of international Accounting Standard (IAS) 39 “Financial instruments”.
Distinguish between a financial asset and financial liability
(Solved)
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)
-
Distinguish between a finance lease and an operating lease indicating how they should be treated in the financial statements as per International Accounting Standard (IAS)...
(Solved)
Distinguish between a finance lease and an operating lease indicating how they should be treated in the financial statements as per International Accounting Standard (IAS) 17 “Leases”.
Date posted:
February 8, 2019
.
Answers (1)