get hold of a reliable revision booklet to help you in even better understanding

get hold of a reliable revision booklet to help you in even better understanding

get hold of a reliable revision booklet to help you in even better understanding

get hold of a reliable revision booklet to help you in even better understanding

get hold of a reliable revision booklet to help you in even better understanding

get hold of a reliable revision booklet to help you in even better understanding

get hold of a reliable revision booklet to help you in even better understanding

get hold of a reliable revision booklet to help you in even better understanding

The purpose of this booklet is to assist accounting students revise economics in preparation for the KASNEB Examinations. This kit serves no new purpose in that a serious student ought to look at examination papers for the past few sittings and whether compelled or not write out the answers to some of the questions in order to gain practice in self-expression.

Factors to be considered in choosing the presentation currency 1. Whether the activities of the foreign operation are carried out as an extension of the reporting entity or are being carried out with significant degree of autonomy. 2. Whether the transactions with the reporting entity are high or low proportion of the foreign operations activities. 3. Whether cash flows from the activities of the foreign operation directly affects the cash flows of the reporting entity or not. 4. Whether foreign operations is able to borrow and service its own debts independently. June 2010 Question Two (a) Differences between income statement view and balance sheet view of deferred taxes: When the income statement view of deferred taxes is taken, there is a focus on the differences between the accounting profit and and taxable profit ie timing differences. This was the view of deferred taxes taken internationally and in UK and USA until the 1990s.The balance sheet view focuses on the difference between the carrying amount of assets and liabilities and their tax bases. It is the method recommended by IAS 12. (b) (i) Nil provision This is where the financial statements are prepared without reflecting all the effects of tax iethere is not provision for deferred taxes. (ii) Partial provision Under this approach deferred tax is provided but not on all temporary differences. The management uses a subjective approach in deciding which temporary differences may crystallize.ie you provide for future tax consequences to the extent that you have reasonable evidence that it will reverse within a reasonable period of time usually 3 years.