06-12-2006, 02:17 PM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by insaan</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">As far as WPPF's treatment is concerned ICAP's ATR 8 adresses its treatment<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
treatment of WPPF = 5% of N.P before tax and before any deduction in respect of
a.interest on debentures , on capital A/Ce.gTFCs , on any sums which may be set aside in each year out of reserves
b.any special funds e.g WPPF,WWF etc.
this is treatment of WPPF as i know , do correct me if i am wrong
BUT what is ICAP's ATR 8
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">For deferred taxation concept just click on the following link and if you are still not cleared just inform me.
http//www.accountancy.com.pk/forum/topic.asp?topic_id=3411<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
i read the thread and got most of it..means the sole purpose for creating this deferred tax is to make our taxable and accounting income comparable....and after the final tax assessment we do adjust our accounting estimates respectively..isn't it
one more thing , i have heard that disclosure note for fixed assets has now changed...now we disclose only opening NBV,additions at cost,disposals at NBV & closing NBV..is it true and if it is should i make the disclosure note according to new format or should i stick to former one
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Treatment of WPPF is simple. 5% of NP befor charging WPPF. The treatment you have shown is Zuberi's view and not being practically followed, we don't add back interest on debentures etc. Refer ICAP's ATR 8
http//icap.org.pk/TRs/Tr-8.htm
Deferred tax arises due to temporary differences b/w accounting profit and taxable profit. The sole purpose of deferred tax is to depict the NP as the provision for taxation has been provided on the basis of accountig profit rather than taxable profit. As in illustration on the other thread it has been shown that after providing charge/income of deferred tax NP remain constant (keeping all the other things constant). We do not adjust our accounting estimates, the word estimate doesn't seem suitable here. Rather say, with the passage of time the temporary differences reverse and deferred tax asset/liability is recovered/settled thorugh income statement or Equity or Goodwill. However, this is a bit advanced topic and only basic knowledge is expected at Inter level. So, dont worry.
As far IAS 16 is concerned can you show me the reference of this change? You mean to say that we shall report figures on net basis? I don't agree with this statement. Refer disclosures IAS 16 (revised).
Waiting for your response
ICAPians, the unparalleled.
<br /><blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">As far as WPPF's treatment is concerned ICAP's ATR 8 adresses its treatment<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
treatment of WPPF = 5% of N.P before tax and before any deduction in respect of
a.interest on debentures , on capital A/Ce.gTFCs , on any sums which may be set aside in each year out of reserves
b.any special funds e.g WPPF,WWF etc.
this is treatment of WPPF as i know , do correct me if i am wrong
BUT what is ICAP's ATR 8
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">For deferred taxation concept just click on the following link and if you are still not cleared just inform me.
http//www.accountancy.com.pk/forum/topic.asp?topic_id=3411<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
i read the thread and got most of it..means the sole purpose for creating this deferred tax is to make our taxable and accounting income comparable....and after the final tax assessment we do adjust our accounting estimates respectively..isn't it
one more thing , i have heard that disclosure note for fixed assets has now changed...now we disclose only opening NBV,additions at cost,disposals at NBV & closing NBV..is it true and if it is should i make the disclosure note according to new format or should i stick to former one
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Treatment of WPPF is simple. 5% of NP befor charging WPPF. The treatment you have shown is Zuberi's view and not being practically followed, we don't add back interest on debentures etc. Refer ICAP's ATR 8
http//icap.org.pk/TRs/Tr-8.htm
Deferred tax arises due to temporary differences b/w accounting profit and taxable profit. The sole purpose of deferred tax is to depict the NP as the provision for taxation has been provided on the basis of accountig profit rather than taxable profit. As in illustration on the other thread it has been shown that after providing charge/income of deferred tax NP remain constant (keeping all the other things constant). We do not adjust our accounting estimates, the word estimate doesn't seem suitable here. Rather say, with the passage of time the temporary differences reverse and deferred tax asset/liability is recovered/settled thorugh income statement or Equity or Goodwill. However, this is a bit advanced topic and only basic knowledge is expected at Inter level. So, dont worry.
As far IAS 16 is concerned can you show me the reference of this change? You mean to say that we shall report figures on net basis? I don't agree with this statement. Refer disclosures IAS 16 (revised).
Waiting for your response
ICAPians, the unparalleled.
