Qarabag Ltd enters into a contract to pay $20 million to acquire fittings.Under which of the following situations would Qarabag Ltd recognise a liability?Qarabag Ltd has not received the fittings but has paid for it.O Until Qarabag pays for the fittings, regardless of whether it has received the fittings.Qarabag Ltd has received the fittings and has paid for it.O Qarabag Ltd has not received the fittings and has not paid for it.O Qarabag Ltd has received the fittings but has not paid for it.Question 5Coloma Ltd owns 80% of the shares in Shirak Ltd.In the context of preparing a General Purpose Financial Report, Shirak Ltd's relationship to ColomaLtd is best described as that of a:O ShareholderO ParentInvestmentO Non-controlling interestO Subsidiary

Parent Company: A company that holds more than 50% of shares or controlling interests in another…

Question 5 Coloma Ltd owns 80% of the shares in Shirak Ltd. In the context of preparing a General Purpose Financial Report, Shirak Ltd's relationship to Coloma Ltd is best described as that of a: Shareholder O Parent Investment Non-controlling interest Subsidiary

Question 5 Coloma Ltd owns 80% of the shares in Shirak Ltd. In the context of preparing a General Purpose Financial Report, Shirak Ltd's relationship to Coloma Ltd is best described as that of a: Shareholder O Parent Investment Non-controlling interest Subsidiary

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Qarabag Ltd enters into a contract to pay $20 million to acquire fittings.
Under which of the following situations would Qarabag Ltd recognise a liability?
Qarabag Ltd has not received the fittings but has paid for it.
O Until Qarabag pays for the fittings, regardless of whether it has received the fittings.
Qarabag Ltd has received the fittings and has paid for it.
O Qarabag Ltd has not received the fittings and has not paid for it.
O Qarabag Ltd has received the fittings but has not paid for it.
Question 5
Coloma Ltd owns 80% of the shares in Shirak Ltd.
In the context of preparing a General Purpose Financial Report, Shirak Ltd's relationship to Coloma
Ltd is best described as that of a:
O Shareholder
O Parent
Investment
O Non-controlling interest
O Subsidiary

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