Statement 1: The other comprehensive income section shall present line items for amounts of other comprehensive income in the period, classified by nature and grouped into those that are in accordance with other PFRS/ IFRS. An entity shall disclose the amount of income tax relating to each item in other comprehensive income, including reclassification adjustments, either in the statement of profit o loss and other comprehensive Statement 2: income or in the notes. а. Only the first statement is correct. b. Only the second statement is correct. с. Both statements are correct. d. Neither of the statements is correct.

Q: S1: Only public entities are required to prescribe the accounting requirements of PAS 12 S2:…

A: Financial income refers to the revenue which is generated through the temporary surplus of cash…

Q: cases would affect the current assets portion of the balance sheet

A: First option is wrong because when Current Tax Expense > Tax Payments, there is a current…

Q: Revenues, expenses, and components of other comprehensive income can be reported in a single…

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: Total comprehensive income is: Select one alternative: profit or loss after tax other…

A: Solution: Total comprehensive income is "profit or loss after tax + other comprehensive income after…

Q: Explain the folllowing  a-  what is Income Taxa compliance b- Are Tax rates influence Income  Tax…

A: Income tax compliance refers to the act of following all applicable tax laws and regulations related…

Q: In accordance to MFRS 101, Presentation of Financial Statements, describe presentation requirements…

A: The Malaysian Financial Reporting Standards (MFRS) 101, "Presentation of Financial Statements," sets…

Q: Which item, if it exists, is NOT required to be presented as a line item on the face of statement of…

A: The statement of profit or loss is prepared at the end of the accounting period and it is also a…

Q: 24. Which    statement    is    incorrect    regarding    other comprehensive income? a.   Other…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: TRUE OR FALSE? 1. Assets of the component held for sale shall be depreciated. 2. The income or loss…

A: The assets are treated as held for sale when the company intends to sell the assets in the near…

Q: Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income. reported on…

A: M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the…

Q: What is the main principle of tax-effect accounting as outlined in AASB 112/IAS

A: Answer: According to data - This report discusses the main principle of tax effect accounting and…

Q: The statement of profit or loss and other comprehensive income shall present

A: Profit or loss and other comprehensive income: this is a statement prepared by the company for…

Q: All of the following are calculated on Form 990-PF, EXCEPT:    Excise tax on investment income.…

A: It is the return of private foundation or Section 4947(a)(1) Trust Treated as Private Foundation.

Q: Timing differences are differences between accounting income and taxable income that originate in…

A: As per IFRS 12 or PFRS12 , INCOME TAXES  Temporary differences are two types  1.Taxable temporary…

Q: Which of the following best demonstrates the full disclosure principle? A. the separate income…

A: Following is the answer to given question

Q: Objective-type Question: According to the Accounting Tax Principle, when should taxes be recognized…

A: The accrual base of accounting records earnings and charges when they're earned or incurred, anyhow…

Q: Listed below are several terms and phrases associated with income statement presentation and the…

A: Since multiple questions are posted, only the first question will be answered.  Kindly resubmit the…

Q: Discuss how the provision for income taxes is computed and reflected in interim financial…

A: Interim financial statements are abbreviated financial reports that are prepared and issued at…

Q: Which is not generally accepted in presenting the income statement?

A: Prior period errors are accounting errors that occur in a company's financial statements in one…

Q: How/where is a revenue increase shown on a pro forma income statement?

A: Pro forma income statement is the budgeted or estimated income statement which shows all estimated…

Q: analyze disclosures relating to deferred tax items and the eff ective tax rate reconciliation,and…

A: Disclosures relating to deferred tax items can provide valuable information to the analysts. But the…

Q: All items of gross income, legitimate or not, are taxable unless exempted by law or treaty.…

A: c. Only statement 1 is true

Q: problem 28 ... Briefly explain the concepts of accounting profit, taxable profit, temporary…

A: Accounting Concept There are different types of concepts which are related in the accounts helps to…

Q: Schedule B - Include interest and dividends. Schedule 1 - Include additional income and adjustments.…

A: On Schedule B, you need to report the interest and dividends. In this case, the interest income from…

Q: A. For some assets, straight-line depreciation is used for tax purposes while double-declining…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: When using the discrete view to prepare interim statements, two exceptions that are permitted deal…

A: A company's financial reports for a period less than a complete fiscal year, often a quarter or six…

Q: Financial Assets representing a contractual right to receive cash in the future. Financial Liability…

A: Financial asset, is an asset that gives contractual right to an entity, to receive cash or another…

Q: assets, and currenț and non-current liabilities, a separate classification in its statement of…

A: STATEMENT 1 :  Current assets are those assets which gives economic benefits up to one year.  Non-…

Q: The amount of tax assessed by the ATO based on the entity's operations for the period will be…

A: Income taxes are amount or dues which is payable by business or individual on amount of income…

Q: Which accounting principle guides the application of the installment method for reporting income? a…

A: Lets understand the basics.Matching principle says that expense should be recorded in the period in…

Q: temporary difference Interest earned on investments in tax-exempt government securities. Interest…

A: Nondeductible expenses refer to those expenses which a company can subtract from its income in order…

Q: the total income tax expense for the current period.  b. the prima facie tax on accounting profit…

A: The tax is an expense for the company but becomes a liability when payable.

Q: Which of the following indicates that a decision has precedential value for future cases?

A: Temporary book-tax differences arise when there is a difference between the amount of income or…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.