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Are Those That Do Not Have Future Tax Consequences. Temporary Differences
Are Those That Do Not Have Future Tax Consequences. Temporary Differences
Are Those That Do Not Have Future Tax Consequences. Temporary Differences
1. What is the basis used in computing Accounting Profit and Taxable Profit?
Temporary Differences
Permanent differences are those differences that do not have future tax consequences as they arises
from non taxable or non deductible expenses or those that have already been subjected to final taxes.
While Temporary differences are those that give rise to deferred tax assets and liabilities.
4. It arises when the financial income is greater than the taxable income. What is it ?
5. ___________ is the amount of income taxes recoverable in future periods in respect of deductible
temporary differences.
PAS 16
a. Tangible assets
b. Long term in nature
c. Used in business
2. What is the frequency if the items are significant and volatile changes in fair value?
3. Compute for the annual depreciation: you have 20,000 cost, 5,000 residual value and 5 years useful
life?
Php. 3,000
4. in acquisition of exchange: if a fair value of asset given up is not applicable, what should we do to
measure in accordance of priority?
PAS 19
1. It is a type of employee benefit wherein the benefit can be contributory and not contributory,
funded and unfunded.
Multi-employer plans
3. A short-term benefit and a __________ have the same kind of accounting method except that
the _________ are not expected to be settled within a whole year.
4. Explain briefly the difference between defined benefit plan and defined contribution plan.
In defined benefit plan , the employer commits to pay a definite amount of retirement benefits
which can be determined using a plan formula while the defined contribution plan , the
employer commits to make a fixed contribution to a fund, periodically.
***Ito po yung new set of questions sa PAS 20, since meron pong may magkaparehas na tanong sa
kabilang section
1. These are the assistance received from the government in the form of transfers of resources in
exchange for compliance with certain conditions?
GOVERNMENT GRANTS
a. they should not be recognized at all since the asset will have no value eventually
C.
3. A forgivable loan from government is treated as a ________ when there is reasonable assurance that
the entity will meet the terms for forgiveness of the loan.
GOVERNMENT GRANTS
4. Government grants include government assistance whose value cannot be reasonably measured, such
as technical or marketing advice. True or False.
FALSE
5. What are the 2 approaches to the accounting for government grants. Define them (as short as
possible).
CAPITAL APPROACH - grant is recognized outside profit or loss or in equity. Used only when donations
are received from shareholders .
INCOME APPROACH- grant is recognized in profit or loss over one or more period
PAS 20
C.
a. they should not be recognized at all since the asset will have no value eventually
2. A forgivable loan from the government is treated as a ________.When there is reasonable assurance
that the entity will meet the terms for forgiveness of the loan.
GOVERNMENT GRANTS
3. Receipt of a grant provides of itself conclusive evidence that the conditions attaching to the grant
have been or will be fulfilled. True or False?
FALSE.
4. What are the 2 approaches to accounting for government grants. Define them (as short as possible).
CAPITAL APPROACH - grant is recognized outside profit or loss or in equity. Used only when donations
are received from shareholders .
INCOME APPROACH- grant is recognized in profit or loss over one or more period
PAS 21
Presentation currency .
2. Assets and liabilities are translated at ____ of the statement of financial position when translating to
presentation currency.
A. Currency that mainly influences the entity's sales price and cost of goods and services.
B. Currency in which cash flows from financing activities and operating activities are usually
generally and retained .
3. What is the difference between foreign currency transactions and foreign operations?
● Currency in which cash flow from operating and financing and operating activities are usually
generated or retained.
OTHER FACTORS
● whether the foreign operation is essentially an extension of the entity so the foreign's
operational currency is the same as that of the entity.
● Proportion of the foreign operation's transactions with the entity
● Nature of the foreign operation's cash flow in relation to the entity.
4. It is the currency in the primary economic environment in which the entity operates.
Functional currency
5. The difference resulting from translating a given number of units of one currency into another
currency at difference exchange rate is called?
Exchange Differences .