1 COMPANIES INCOME TAX COMPUTATION AND TREATMENT IN FINANCIAL STATEMENTS PRESENTED BY OLUFUNKE SODIPO TAX MANAGER: PEAK PROFESSIONAL SERVICES IN HOUSE SEMINAR SERIES NO 4 PEAK PROFESSIONAL SERVICES (CHARTERED ACCOUNTANTS) NIGERIA A member of Kreston International A global network of independent accounting firms
2 INTRODUCTION Taxation is defined from elementary economics as the act of imposing a compulsory levy by the government or its agency on individuals or firms or goods and services. Taxes imposed on Individuals is known as Personal Income Tax while those imposed on Companies could take various forms like Companies Income Tax, Education Tax, Petroleum Profit Tax, or Capital Gains Tax. Value Added Tax is imposed on Goods and Services. The amount and time of tax to be paid by an Individual or business organization is guided by the enabling act governing the type of tax. For example, the amount of tax payable by an individual is governed by the personal income tax act, while the income tax payable by a company is regulated by the Company s Income Tax Act. The aim of this paper is to explain how the various taxes can be calculated within the framework of the enabling act. The paper also presents the accounting treatment of the computed tax to ensure that it is in accordance with relevant accounting standards. SESSION OBJECTIVE At the end of this session, members of staff will be able to compute the following taxes for companies. 1. Income Tax. 2. Withholding Tax 3. Education Tax 4. Deferred Tax 5. Value Added Tax 6. Capital Gains Tax In addition to the computation, members of staff will also be able to give the computed tax appropriate treatment in the accounts. This paper does not cover Personal Income Tax and Petroleum Profits Tax. They will be dealt with under a separate cover. This paper is very important because all our clients are required to pay one form of tax or the other. Since we also handle their tax engagements, the knowledge is important because it will help us to protect the interest of our clients. To facilitate ease of understanding, the paper is divided into two major sessions. Section one deals with tax computations while section two is the accounting treatment of the computed tax.
3 SECTION 1 TAX COMPUTATIONS The taxes covered in this section are as follows: 1. Value Added Tax 2. Withholding Tax 3. Capital Gains Tax 4. Education Tax 5. Companies Income Tax and 6. Deferred Tax. VALUE ADDED TAX Value Added Tax is the tax payable on supply of taxable goods and services. Businesses (even individuals) usually pay VAT when they buy goods and services and charge VAT on goods and services they sell. At the end of a given period (usually monthly) businesses will be required to file their VAT returns to the Federal Inland Revenue Service. This is done by comparing the amount of VAT paid on goods and services purchased (known as input VAT) with the amount charged on goods and services sold (known as output VAT). The net amount in the period is the amount to be remitted to the Revenue. ILLUSTRATION: ABC limited paid 5,000 as VAT for items purchased in the production process in January, 2013 and made VATable supplies of N100,000 during the same month. With a VAT rate of 5%, you are required to calculate the company s output VAT and the amount of VAT that should be remitted to the Revenue. CAUTION ON INPUT VAT 1) Input VAT is only recoverable from Output VAT if the input relates to goods and services purchased directly for resale or manufacture of a product 2) Certain goods and services are VAT exempt. E.g, Basic food items, medical supplies and exported goods and services Members of staff are required to familiarize themselves with the VAT act as it is essential for their professional practice and development.
4 WITHHOLDING TAX Withholding tax otherwise known as advance corporation tax is an advance tax on income deducted at source. Under the Nigerian Tax laws, the payers of sums due to another person are required to withhold certain amount from such sums as tax and pay the net amount to the payee. The amount withheld is known as withholding tax and it is payable to the relevant tax authority. The applicable rates depend on the nature of transaction and are briefly summarized in the following table: NATURE OF SERVICE OR ACTIVITY RATE COMPANY RATE INDIVIDUAL Building, Construction and related activity 2.5% 2.5% Consultancy and professional services 10% 5% Management Services 10% 5% Technical Services 10% 5% Commissions 10% 5% Computation of withholding tax payable is very simple. We are simply required to apply the relevant rate on the amount payable to the payee and remit to the relevant tax authority. Please note that the relevant tax authority for company is the Federal Inland Revenue Service while for individual or enterprise is the State Internal Revenue Service where the person is resident. QUESTION PPS is a firm of accountants with very smart people. They are about signing a consulting agreement with TNL who insists on doing things correctly by deducting appropriate WHT. If the objective of PPS is to minimize exposure to WHT, which platform should they use? Peak Professional Services or Peak Professional Services Limited? Please give reasons CAPITAL GAINS TAX (CGT) Capital Gains is chargeable at 10% on capital gains arising from disposal of assets. Section 3 of CGT Act defines Capital Assets as meaning all forms of property including: Options, debts and incorporeal property Any currency other than Nigerian Currency Any form of property created by the person disposing of it, or otherwise coming to be owned without being acquired. Stocks and shares are exempted from Capital Gains Tax.
5 Question XYX Limited bought a house in 2009 at 50 Million Naira and sold it at 200 Million in What is the capital gains tax payable by XYZ? If the house is the only asset owned by XYZ limited and the shareholders of the company decides to sell their shares, valued at 200 Million at the date of disposal what will be the capital gain tax on the transaction? POINT TO NOTE ABOUT CAPITAL GAINS Capital gains arising from the disposal of fixed assets may be deferred by the application of roll over relief. Roll over relief occurs if the proceeds of the disposal are reinvested on a qualifying replacement asset. COMPANIES INCOME TAX AND EDUCATION TAX Company s Income Tax and Education Tax are chargeable on the income of all companies operating in Nigeria except those that are specifically exempted by the enabling act. Company taxation is administered by the Federal Inland Revenue Service using the Company s Income Tax Act (CITA). The relevant section of CITA provides that company income tax shall be levied and payable for each year of assessment at the rate of thirty kobo for every Naira in respect of a company s total profits. For the purpose of calculating the amount of tax payable by a company, the Revenue will normally make use of the audited accounts of the Company. The audited accounts will be adjusted to arrive at a taxable profit to which a tax rate of 30% will be applied for Income Tax and 2% will be applied for Education Tax. ADJUSTMENTS TO AUDITED ACCOUNTS PROFITS In order to convert the audited accounts profits to taxable profit, certain adjustments will have to be made in the light of the tax laws. Such adjustments will take the form of I. Expenditure charged in the accounts but not allowable for tax purposes (known as disallowable expenses) II. Items chargeable to tax but not credited to profit and loss account III. Items credited to profit and loss account but not taxable and IV. Expenditure not charged to profit and loss account but allowable. The guiding principles for determining what to include in the tax computation are the rules of allowable and disallowable expenses.
6 ALLOWABLE EXPENSES Allowable expenses are expenses of a company that are wholly, exclusively, necessarily and reasonably incurred in the production of the profits of a company. Examples of expenses that will be allowed by the Revenue in a Company s Tax Computation are as follows: I. Interest on borrowed money II. Rent on office III. Repairs and maintenance IV. Contribution to approved pension fund V. Salaries and Wages VI. VII. VIII. IX. Members of staff should give more examples. DISALLOWABLE EXPENSES Expenses that are not allowed for tax purposes should be added back to accounting profit (even when they have been charged in the profit and loss account) to arrive at the taxable profit. Examples of expenses that are not allowed for tax purposes are as follows: Capital Withdrawn or repaid or any expenditure of a capital nature Depreciation of assets (Capital allowances are granted instead) All appropriation of profits such as dividends, share issue expenses, formation expenses etc Payment to unapproved pension scheme All other expenditure that are not incurred to earn the taxable profit. Illustration Funke Limited is a company engaged in the sale of computer hardware. Its results for the year ended 30 June 2012 revealed the following: Profit or Loss Account N 000 Turnover 23,000 Gross Profit 7,820 Overhead Expenses 4,950 Net Profit 2,870 Notes The overhead expenses include:
7 Depreciation N500,000 Share Issue Expenses N250,000 Fixed assets costing below N50,000 N25,000 You are required to calculate the adjusted profit for tax purposes. BASIS PERIOD The basis period for tax purposes is the period covered by a company s returns. It normally runs from January to December of the year. The general rule for deciding the basis period of assessment is contained in Section 25 of CITA. The Section states that the assessable profit of a company shall be the profits of the year immediately preceding the assessment year. This is what is referred to as the preceding year basis. For example, if we are to calculate the profit of a company for 2013 year of assessment, we will make use of the accounting results for However, this general rule will not be used under the following circumstances. Commencement of Business Change in Accounting Date Cessation of business Members of staff are advised to consult relevant literatures for a better understanding of these circumstances. TOTAL PROFITS OF A COMPANY Section 27 of CITA defines total profits of any year of assessment as the amount of any assessable profits from all sources for that year, together with any additions for balancing charge that may be applicable, less deductions for loss relief and capital allowance. Though this definition may seem complex, it could be better appreciated with the following table showing the structure of a typical tax computation.
8 XYZ LIMITED. INCOME TAX COMPUTATION FOR THE 201X YEAR OF ASSESSMENT Naira Naira NET PROFIT PER ACCOUNTS 6,413 ADD BACK DISALLOWABLE DEDUCTIONS Depreciation 1,170 Amortisation OF Intangible Assets 1,683 Gain / Loss on sale of Fixed Asset 3,569 6,422 Adjusted/ Assessable Profit 12,835 Education 2% Less Balancing Allowance (5,000) Add Balancing Charge 14,189 STATUTORY TOTAL INCOME 22,024 LESS CAPITAL ALLOWANCES Unutilised Brought Forward 29,123 Capital Allowance (Initial+Annual) 66,171 95,294 Relieved 14,683 14,683 Capital Allowance carried forward 80,611 Chargeable Profit 7,341 Company Income 30% 2, From the above table we should note the following: Education tax is chargeable on Assessable profit at 2%. Assessable profit is the profit arrived at after adjusting for allowable and disallowable expenses but before giving effect to balancing charge, loss relief and capital allowances.
9 OTHER BASES OF COMPUTING INCOME TAX PAYABLE Minimum Tax basis Section 33 CITA Turnover basis Section 30 CITA Dividend basis Section 19 CITA Minimum Tax is paid by a company which has (1) no total profit, (2) whose total profits results in no tax payable or (3) tax payable is less than minimum tax. If the turnover of the company is N500, 000 or below and the company has been in business for at least 4 calendar years. Minimum Tax basis is levied and payable by a company for any year of assessment where: 1 In ascertainment of total assessable profits from all sources a loss occurs, or 2 Tax on total profits is less than the minimum tax as determined below; 3 Where turnover is N500,000 or below, minimum tax payable shall be the highest of: 0.5% of gross profits 0.5% of net assets 0.25% of paid-up capital, or 0.25% of Turnover for the year. Where turnover is above N500,000, minimum tax payable shall be the sum of Highest factor in (1) above; plus 0.125% of turnover in excess of N500, Exception to Minimum Tax The minimum tax is not applicable to a company during the first four years of its commencement of business; It is also not applicable to agricultural trade or business as defined in Section 9 (8) of Companies Income Tax Act: and It is not applicable to any company with at least 25 per cent imported equity capital. POINTS TO NOTE Members of staff are strongly advised to read relevant books on company s income tax. The presentation is just a summary to stimulate your interest on the subject. DEFERRED TAXATION Perhaps it may be useful to start this topic with the often quoted phrase that deferred tax is the only tax that is computed which is not paid to any tax authority. That is why it is sometimes referred to as Tax Equalization Account.
10 It was pointed out in the earlier section that the profits according to the financial statements or audited account are often different from the profits for tax purposes. The main reason for this difference is as follows: I. The figure of depreciation shown in the profit and loss account may be different from the capital allowances figures used in tax computation. This is common because depreciation is based on the company s judgment of how long the asset would serve while the rate of capital allowance is as advised by the Revenue II. Some items of expenditure will not be allowed by the Revenue even if they are charged in the profit and loss account. For example political donations. Deferred tax seeks to address this mismatch. It is inherent in the recognition of an asset or liability that the reporting entity expects to recover or settle the carrying amount of that asset or liability and the recovery or settlement of that carrying amount will make future tax payments larger (or smaller) than they would be if such recovery or settlement were to have no tax consequences. Therefore, recognizing the tax effects of temporary differences resulting from the difference between tax and accounting rules, ensures that the correct tax expense is recognized in the financial statements. The recognition of this additional amount gives rise to deferred taxation either payable or recoverable in a subsequent accounting period. Therefore, the tax charge in the financial statements comprises deferred tax as well as current tax. HOW DEFERRED TAX ARISES DEFERRED TAX ASSET: This is tax that is paid or payable in the present which is likely to be recovered in the near future. Example Accounting Tax Profit 100, ,000 Provisions already charged Specific 10,000 General 30,000 30, , ,000 ======== ======= DEFERRED TAX LIABILITY: This is a tax that is not payable in the present but in the near future and it is being recognized as a liability in the present. Accounting Tax Cost of Asset 100, ,000 Depreciation (25,000) IA/AA (62,500) NBV 75,000 TWDV 37,500 ====== ======= From the above figures we can easily calculate the deferred tax asset and liability;
11 ACCOUNTING FOR TAXES As earlier stated in the opening paragraphs, taxes are not only computed using the rules in the enabling laws, their treatment in the financial statements of a company are also guided by relevant accounting standards. It is therefore important to note that we as professionals are not only required to know the rules governing the computations, we must also be familiar with the accounting treatment of the computed tax in the financial statements of our clients. In Nigeria, the relevant standard guiding the treatment of taxation in financial statements is SAS 19: ACCOUNTING FOR TAXES. This standard accords substantially with IFRS 12 on accounting for Taxes. We shall therefore be using our local SAS 19 as a guide in our presentation. We shall however highlight any area of significant difference. In line with our presentation format, the section will be structured as follows: Accounting for VAT Accounting for WHT Accounting for CGT Accounting for Education Tax Accounting for Company Income Tax Accounting for Deferred Tax ACCOUNTING FOR VAT In accounting for VAT, we must be careful to understand what the transaction relates to. VAT paid on items purchased should be treated in any of the following ways: If it is on allowed input into the production process, it should be debited to input VAT account. If it is VAT paid on the purchase of fixed asset, it should be capitalized as part of the fixed asset If it is paid on a non allowable expense, then it should be expensed alongside the amount. Example: Our client PDL purchased the following items: Motor vehicle 500,000 Spare parts for construction 60,000 Tissue papers 20,000 If they were charged VAT at 5% on the items, explain how each VAT element will be treated in their financial statements
12 Output VAT should be excluded from the turnover of the company. Example: One of our clients reported a Turnover of 10,000,000 which includes VAT at 5%. As the auditor to the company, you are required to compute the VAT element and state the Turnover correctly bearing in mind that VAT rate is 5% At the end of an accounting period, the net amount owing as VAT or recoverable as VAT should be stated as Creditors or Debtors in the balance sheet. WITHHOLDING TAX There are two aspects in the accounting treatment of withholding tax. 1) A company is required to deduct withholding tax from payments to third parties 2) The company also suffers withholding tax from its own receipts from its customers. The first aspect is known as withholding tax payable, while the second aspect is known as withholding tax receivable WITHHOLDING TAX PAYABLE When a company deducts withholding tax from payment due to a supplier, withholding tax payable is credited, while the suppliers account is debited. On payment of the amount deducted, cash/bank is credited while the withholding tax payable account is debited. At the end of the accounting period, the withholding tax payable is regarded as part of creditors and accruals in the balance sheet. Example: TNL is due to pay the audit fee of their auditor PPS. If the fee is 400,000 and PPS as a law abiding business entity charged VAT at 5%, you are required to calculate the amount of Withholding tax that TNL will deduct and how the amount will be recorded in their books. WITHHOLDING TAX RECEIVABLE Withholding tax receivable is regarded as an advance payment of tax. Therefore the tax credit should be used to set- off against the income tax payable. If the tax Credit is more than the computed tax, it is regarded as asset, while if it is less, the balance of tax payable is paid by cash. Example: ABC limited tax liability for 201X YOA is 50,000 while it has tax credit notes of 60,000. How much tax will the company pay by cash?
13 CAPITAL GAINS TAX EDUCATION TAX COMPANY INCOME TAX EDUCATION TAX The taxes listed above will be treated together in Accounting for taxes because they have one peculiar element. These taxes are regarded as an appropriation of profit rather than as an expenditure of a company. Therefore these taxes can only be presented after the profit for the year in the financial statements of a company. (ie below the line items). There are two aspects in the treatment of taxation in a company s financial statement. A) Profit and Loss account B) Balance Sheet. We shall now look at the components. PROFIT AND LOSS ACCOUNT The tax on the profit of a company is to be disclosed in the Profit and Loss account is calculated by aggregating the following: Income tax payable on the profit for the year Transfers to/ from deferred tax account Any under provision or overprovision of income tax on profits for previous years Example: INL limited has the following figures in respect of their 201x accounts: Education tax liability 20m Income Tax: 50m Capital Gains Tax 5m Deferred Tax Charge 10m A tax audit has just been concluded, an additional assessments where raised in respect of past three years amount to 40m Income Tax and 3M Education Tax. Calculate how much tax should be carried in the profit and loss account for the year 201X.
14 TAXATION IN THE BALANCE SHEET From our above explanations, it is clear that the tax in the profit and loss account need not be the same as the profit in the balance sheet. The tax account in the balance sheet is divided into two components. The Current Tax and Deferred Tax Current Tax: Current Tax consists of Tax charge in the profit and loss account (omitting deferred tax) Plus unpaid balance brought forward less Payment in the year For example: If the company in our example above had current tax outstanding of 300M at the beginning of the year and paid 150M in the year, what will be the current tax balance in their financial statement? Deferred Tax Deferred Tax is shown as non current liability in the balance sheet (also known as statement of financial position). The balance on the deferred tax account is the opening balance plus current year charge (less current year transfer). CONCLUSION I thank you for your time while hoping that the presentation will spur us to do some further reading and improve our performance on the job.
TAX NEWSLETTER July 2012 Issues Discussed Tax implications of carrying on business in Trinidad and Tobago Corporation tax Business levy Green Fund Levy Withholding tax PAYE National Insurance Value Added
Transition to International Financial Reporting Standards Topps Tiles Plc In accordance with IFRS 1, First-time adoption of International Financial Reporting Standards ( IFRS ), Topps Tiles Plc, ( Topps
NIGERIA INFORMATION CIRCULAR Published: April, 2012 Subject: EXPLANATORY NOTES ON THE CRITICAL TAX ISSUES FOR THE OPERATION OF BANK HOLDING COMPANY STRUCTURE IN NIGERIA This circular is made to address
HKAS 12 Revised May November 2014 Hong Kong Accounting Standard 12 Income Taxes HKAS 12 COPYRIGHT Copyright 2014 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial Reporting Standard
Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Period of accounts Start date: 1st June 2009 End date: 31st May 2010 Contents of the
FINANCIAL ACCOUNTING FORMATION 2 EXAMINATION - AUGUST 2012 NOTES: You are required to answer Question 1. You are also required to answer any three out of Questions 2 to 5. (If you provide answers to all
Company Taxation There is no difference in treatment in determining the profits and income from any source of a company. 1 Calculation of a tax payable for a company 1. Tax on Income taxable at special
www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial
Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Period of accounts Start date: 1st June 2008 End date: 31st May 2009 Contents of the
Accounts Information for General Traders Turnover between 320,000 and 13,000,000 ( 250,000) and ( 10,000,000) File Returns and Accounts Information online at www.revenue.ie Revenue On-Line Service Paper
46 Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements. The Company and
BPT Return INSURANCE COMPANIES MIRA 0 Version. BPT TIN (Taxpayer Identification Number) Taxpayer Name Your TIN as it appears on your Notification of Registration Your name as it appears on your Notification
FEDERAL INLAND REVENUE SERVICE Revenue House, Abuja INFORMATION No. 2010/01 CIRCULAR Date of Publication: 12 th April, 2010 GUIDELINES ON THE TAX IMPLICATIONS OF LEASING This Circular is issued pursuant
Accounts Information for Sole Traders Turnover less than 320,000 ( 250,000) File Returns and Accounts Information online at www.revenue.ie Revenue On-Line Service Paper Filers (Accounts Information - Income
Coimisiún na Scrúduithe Stáit State Examinations Commission Leaving Certificate 2014 Marking Scheme Accounting Higher Level Note to teachers and students on the use of published marking schemes Marking
Indian Accounting Standard (Ind AS) 12 Contents Income Taxes Paragraphs Objective Scope 1 4 Definitions 5 11 Tax base 7 11 Recognition of current tax liabilities and current tax assets 12 14 Recognition
Registered number 123456 Small Company Limited Report and Accounts 31 December 2007 Report and accounts Contents Page Company information 1 Directors' report 2 Accountants' report 3 Profit and loss account
Sri Lanka Accounting Standard LKAS 12 Income Taxes CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD-LKAS 12 INCOME TAXES OBJECTIVE SCOPE 1 4 DEFINITIONS 5 11 Tax base 7 11 RECOGNITION OF CURRENT TAX LIABILITIES
Correction To:0175/00014529 0175/00014699/en Half-Yearly Financial Report GLOBAL DIGITAL SERVICES PLC STC Corrected Consolidated Half Year Financial Report 9th February 2016 Global Digital Services PLC
TCS Financial Solutions Australia (Holdings) Pty Limited ABN 61 003 653 549 Financial Statements for the year ended 31 March 2015 Contents Page Directors' report 3 Statement of profit or loss and other
(SMALL COMPANY*) DIRECTORS REPORT & FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 Registered No. xxxx * Electrical Contracting Limited is a small company as defined by Section 350 of the Companies Act
Sample Exam Paper Question 1 The difference between an income statement and an income and expenditure account is that: A. An income and expenditure account is an international term for an Income statement.
Accounting Self Study Guide for Staff of Micro Finance Institutions LESSON 2 The Balance Sheet OBJECTIVES The purpose of this lesson is to introduce the Balance Sheet and explain its components: Assets,
STATUTORY BOARD SB-FRS 12 FINANCIAL REPORTING STANDARD Income Taxes This version of the Statutory Board Financial Reporting Standard does not include amendments that are effective for annual periods beginning
ACCOUNTING FOR AND AUDIT OF PROPERTY, PLANT AND EQUIPMENT PRESENTED BY SOLOMON SIMEON MANAGER: PEAK PROFESSIONAL SERVICES IN HOUSE SEMINAR SERIES NO 2 PEAK PROFESSIONAL SERVICES (CHARTERED ACCOUNTANTS)
Chapter 12 Current liabilities and payroll Current liabilities are obligations that the business has to discharge within 12 months or its operating cycle if longer than one year. Obligations that are due
APPROVED by Resolution No. 10 of 10 December 2003 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania 16 BUSINESS ACCOUNTING STANDARD CONSOLIDATED
Acal plc Accounting policies March 2006 Basis of preparation The consolidated financial statements of Acal plc and all its subsidiaries have been prepared in accordance with International Financial Reporting
Financial Statements The financial information forms the basis of financial planning, analysis & decision making for an organization or an individual. Financial information is needed to predict, compare
SYNDICATE ACCOUNTING BYELAW Purpose The purpose of this byelaw is to set out the principal requirements in connection with the closing of years of account, accounting records, the form and content of syndicate
1 ACCOUNTING 1 (ACN101- M) STUDY UNIT 1: THE NATURE AND FUNCTION OF ACCOUNTING DEFINITION: Accounting can be defined as the orderly & systematic recording of the monetary values of financial transactions
Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010 Contents Independent Auditors' Report 2 Financial Statements Balance Sheet 3 Statement of Operations and Unappropriated
Year-end Tax Planning Guide - 30 The end of the financial year is fast approaching. In the lead up to 30 June, this newsletter covers some of the year-end tax planning matters for your consideration. BUSINESSES
INSTRUCTIONS FOR COMPLETING INSURANCE COMPANY "DRAFT VERSION FOR FIRST REVIEW ONLY" Submitted to: Minstry of Finance and Economy Head of Insurance Department Republic of Armenia Submitted by: BearingPoint
MODULE - 6A Cash Flow Statement 30 CASH FLOW STATEMENT In the previous lesson, you have learnt various types of analysis of financial statements and its tools such as comparative statements, common size
Financial Statements Notes to the parent company financial statements 1. Parent company accounting policies Basis of preparation The separate financial statements of the Company are presented as required
. (1 st July 11-30 th June 12) The Computation of Tax of a Salaried Person has been defined under section 12, 13 and 14 of the Income Tax Ordinance, 2001 read with rules 2 to 7 of the Income Tax Rules,
Accounting policies REPORTING ENTITY The Waikato Regional Council is a territorial local authority governed by the Local Government Act 2002, and is domiciled in New Zealand. The main purpose of prospective
Volex Group plc Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement 1. Introduction The consolidated financial statements of Volex Group plc
SOLUTIONS TO EXERCISES Lesson 1: Definition of Accounting 1. What is accounting? What are its main functions? Accounting is the process of financially measuring, recording, summarizing and communicating
Self-employment (short) Tax year 6 April 2014 to 5 April 2015 (2014 15) Use these notes to help you fill in the Self-employment (short) pages of your tax return You should fill in the Self-employment (short)
CENTRE FOR CONTINUING EDUCATION BBA (AVIATION OPERATION) BATCH: SEMESTER: NAME: ROLL NO: ASSIGNMENT 1 & 2 FOR BUSINESS ACCOUNTING BBCF 131 UNIVERSITY OF PETROLEUM & ENERGY STUDIES Assignment-1 Note: All
Sri Lanka Accounting Standard SLAS 14 Accounting for Taxes on Income 199 Contents Sri Lanka Accounting Standard SLAS 14 Accounting for Taxes on Income Scope Paragraphs 1-2 Definitions 3 Differences Between
New Zealand Equivalent to International Accounting Standard 12 Income Taxes (NZ IAS 12) Issued November 2004 and incorporates amendments up to and including 31 October 2010 other than consequential amendments
Introduction This section covers the main tax issues that arise when buying or selling a business owned by a sole trader, a partnership or a company. The tax consequences differ, depending on whether the
15_1312MH_CH09 27/1/05 8:38 am Page 87 PREPARING part 3 FINAL ACCOUNTS 9 The final accounts of sole traders 10 Accounting principles, concepts and policies 11 Depreciation and fixed assets 12 Bad debts
Accounting Financial Accounting: Published Final Accounts and Issues of Shares Pack [ADVANCED HIGHER] Anne Duff abc The Scottish Qualifications Authority regularly reviews the arrangements for National
STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 16 Property, Plant and Equipment SB-FRS 16 Property, Plant and Equipment applies to Statutory Boards for annual periods beginning on or after 1 January
A DV I C E B O O K L E T how to finance the business HOW TO FINANCE THE BUSINESS Getting enough of the right funding is one of the more difficult tasks that you will face as a new entrepreneur. Typically,
ANNUAL RETURN: FORM - FUND BALANCE SHEET R98G General: Singapore Insurance Fund Annex Row No. ASSETS Equity securities A Debt securities B Land and buildings C Loans D Cash and deposits 5,96,57 Other invested
Accounting and Reporting Policy FRS 102 Staff Education Note 14 Credit unions - Illustrative financial statements Disclaimer This Education Note has been prepared by FRC staff for the convenience of users
Our 2014 financial statements The consolidated financial statements of plc and its subsidiaries (the Group) for the year ended 31 December 2014 have been prepared in accordance with International Financial
REVENUE ACCOUNT Income 1. Policyholders fund brought forward refers to policyholders fund and investment linked fund brought forward from the preceding financial/calendar year. It should correspond with
DIRECTORS REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2015 In accordance with a resolution of the Directors dated 16 December 2015, the Directors of the Company have pleasure in reporting on the Company for
Charities Accounting Standard Accounting Template Explanatory Notes Introduction Purpose of Accounting Template The Accounting Template is designed to help smaller charities prepare and present financial
A.B.N. 90 168 653 521 Appendix 4E - Preliminary Financial Report for the year ended 30 June 2015 Appendix 4E - Preliminary Financial Report For the year ended 30 June 2015 Preliminary Report This preliminary
CIRCULAR NO. 18 OF (INCOME TAX) TAXATION OF INCOME FROM SALARY TAX YEAR 2015 (July 01, 14 TO June 30, 15) The Circular on taxation of Income Salary is being updated as under:- The Computation of Tax of
Sole trader Vs Limited company The comparison is for a trading business. Many of the points summarised here are not relevant if you want to compare individuals or companies that manage investment business.
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 TOGETHER WITH AUDITOR S REPORT Translation of Auditor s report AUDITOR S REPORT TO THE SHAREHOLDERS OF Report on the Financial Statements We have audited
Partnership Life Assurance Company Limited Annual PRA Insurance Returns for the year ended 31 December 2013 IPRU(INS) Appendices 9.1, 9.3, 9.4, 9.6 Contents Balance Sheet and Profit and Loss Account Form
Self-Employment Guidance Note GN4 Issued by the Income Tax Division 23 April 2012 PLEASE NOTE: This guidance has no binding force and does not affect your right of appeal on points concerning your liability
T A S M A N I A N Accounting C E R T I F I C A T E Subject Code ACC5C O F E D U C A T I O N Question 1 T A S M A N I A N Q U A L I F I C A T I O N S A U T H O R I T Y (a) (i) Marking Scheme: 1 mark for
Part 13 Close companies CHAPTER 1 Interpretation and general 430 Meaning of close company 431 Certain companies with quoted shares not to be close companies 432 Meaning of associated company and control
Annual Accounts for the period Period start date To Period end date Charity Name Charity No (if any) Section A Statement of financial activities Descriptions by natural category Note Unrestricted funds
Answers Fundamentals Level Skills Module, Paper F6 (CYP) Taxation (Cyprus) (a) Costas Costoulas December 203 Answers and Marking Scheme (i) Income tax for 202 Employment (worldwide) Salary income 0.000
JOINT INSOLVENCY EXAMINATION BOARD Joint Insolvency Examination Monday 3 November 2008 LIQUIDATIONS (3.5 hours) ANSWER ALL FOUR QUESTIONS QUESTIONS 1 AND 2 CARRY TWENTY MARKS EACH QUESTIONS 3 AND 4 CARRY
Illustrative Financial Statements Prepared Using the Financial Reporting Framework for Small- and Medium-Entities Illustrative Financial Statements This component of the toolkit contains sample financial
Accounting Standard AASB 1020 December 1999 Income Taxes Issued by the Australian Accounting Standards Board Obtaining a Copy of this Accounting Standard Copies of this Standard are available for purchase
IFRS IN PRACTICE IAS 7 Statement of Cash Flows 2 IFRS IN PRACTICE - IAS 7 STATEMENT OF CASH FLOWS TABLE OF CONTENTS 1. Introduction 3 2. Definition of cash and cash equivalents 4 2.1. Demand deposits 4
SIMPLIFIED CONSOLIDATED BALANCE SHEET PROFIT AND LOSS ACCOUNT SIMPLIFIED CONSOLIDATED BALANCE SHEET ASSETS in thousand euro Year 2002 A. SUBSCRIBED CAPITAL UNPAID 0 0 of which called-up capital ( 0 ) B.
(AUDIT EXEMPT COMPANY*) DIRECTORS REPORT & FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013 Registered No. xxxx * Electrical Contracting Limited is a small company as defined by the Companies (Amendment)
Chapter 4 Statement of Cash Flows For Single Company 4.1 Single company statement of cash flows Statement of cash flows are primary financial statements and are required along side the income statement
Professional Level Essentials Module Corporate Reporting (United Kingdom) Tuesday 11 December 2007 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections:
Registered number: 08927013 CROSSWORD CYBERSECURITY PLC AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2014 COMPANY INFORMATION DIRECTORS T Ilube J Bottomley Professor D Secher
Financial Statements Heating Plumbing Supplies Limited Registered number: 04171695 Registered number:04171695 Company Information Directors R Walker A Curneen P Wilson A Meadows Company secretary CJ Hewer
C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,
Condensed Interim Consolidated Financial Statements of THE BRICK LTD. For the three months ended March 31, 2013 NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS Under National Instrument 51-102,
ANNUAL RETURN: FORM - FUND BALANCE SHEET I86G General: Singapore Insurance Fund Annex Row No. ASSETS Equity securities A Debt securities B,8,77 Land and buildings C Loans D Cash and deposits 5,6,76 Other
GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING NOVEMBER 2010 MARKS: 300 TIME: 3 hours This question paper consists of 21 pages and an answer book of 19 pages. Accounting 2 DBE/November 2010 INSTRUCTIONS