What the company do regarding its deferred income taxes

Assignment Help Accounting Basics
Reference no: EM132958750

Problem - Assume that a new effective tax rate is enacted which reduces the income tax rates from 30% to 25% was signed into law on March 2021, before the 2020 audited financial statements were approved for release. This law is effective January 2021. Following the guidance from PAS 10, Events after the Reporting Period and PAS 12, Income Taxes, determine whether the latter is an adjusting or a non-adjusting event. Document this on your working papers and provide recommendation as to what the company should do regarding its deferred income taxes.

Reference no: EM132958750

Questions Cloud

What is the invoice price for the bond that you choose : Suppose you sell a March 2010 T-bond futures contract at 98:26. Now it is time to consider delivery. What is the invoice price for the bond that you choose
Determine the market value of the bond : Coupon payments are made semiannually. If the market rate of interest of 3.80 percent, determine the market value of the bond
What was the pro?t or loss on this disposal : Company Ltd claimed €13,500 on an insurance policy and this was paid in December 2020. What was the pro?t or loss on this disposal
Journalize the elimination entry for working paper : In 31/12/2019 net income was 50000, and dividend 20000, in 31/12/2020income was 70000 dividend 40000. Journalize the elimination entry for working paper
What the company do regarding its deferred income taxes : Document this on your working papers and provide recommendation as to what the company should do regarding its deferred income taxes
What is the shutdown point in sales : The company expects to sell 100 units per month if it would continue to operate. What is the shutdown point in sales
How much revenue must the railway generate : If Pacific Coast Railway's fixed costs total $50,000 per month, the variable cost per passenger is $10, How much revenue must the Railway generate
What is the number of days sales in receivables : Based on the following data for the current year, what is the number of days' sales in receivables? Sales on account during year $584,000
What is the average inventory held during the year : What is the average inventory held during the year including safety stock if the store insists on a 1 days safety stock (assume 365 days a year)

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd