Investing Project NPV= sum of present value of each cash inflow – initial investment There are two types for sum of present value of each cash inflow : 1.Annuity 2. Not Annuity Project decision: if NPV>0=> accept the project if NPV<0=>reject the project if NPV=0=>indifference Advantage for NPV: it regards all period of project life in calculating. it considers the time value
Continue reading An entity shall disclose its significant accounting policies comprising: (a) the measurement basis (or bases) used in preparing the financial statements; and (b) the other accounting policies used that are relevant to an understanding of the financial statements. It is important for an entity to inform users of the measurement basis or bases used in the financial statements (for example,
Continue reading IAS 1 : Information to be presented in the statement of changes in equity The statement of changes in equity includes the following information: (a) total comprehensive income for the period, showing separately the total amounts attributable to owners of the parent and to non-controlling interests; (b) for each component of equity, the effects of retrospective application or retrospective restatement
Continue reading IAS 1 : Expenses recognised in profit or loss using a classification based on either their nature or their function An entity shall present an analysis of expenses recognised in profit or loss using a classification based on either their nature or their function within the entity, whichever provides information that is reliable and more relevant. The first form of
Continue reading IAS 1 : The statement of profit or loss and other comprehensive income (statement of comprehensive income) The statement of profit or loss and other comprehensive income (statement of comprehensive income) shall present, in addition to the profit or loss and other comprehensive income sections: (a) profit or loss; (b) total other comprehensive income; (c) comprehensive income for the period,
Continue reading TOP ONE TRADING COMPANY is a company incorporated in Cambodia since 2014. TOP ONE TRADING COMPANY is merchandising company, and company has two major products. Under the tax regulations, TOP ONE TRADING COMPANY is required to calculate and pay annual Tax on Profit. The following financial statements in relation to the tax year ended 31 December 2016. TOP ONE TRADING
Continue reading Section A Please choose the following non-deductible expenses or deductible expenses according to tax law for each question. Company makes Khmer Yew Year party for staff of $2,000. A. Non-deductible expenses B. Deductible expenses Accounting depreciation expense of $3,000. A. Non-deductible expenses B. Deductible expenses Company makes provision policy for warranty expense of 2% of sold product sale. A. Non-deductible
Continue reading Gold Trading Company is a merchandising company incorporated in Cambodia in 2014. Gold Trading Company purchases and sells phones, LCD and computers to local customers and distributers. Under the tax regulations, Gold Trading Company is required to calculate and pay annual Tax on Profit. The following extracts for provisions have been provided by Gold Trading Company’s accountant in relation to
Continue reading PTT Consulting Company Co., Ltd is a new service company incorporated in Cambodia in 2015. Under the tax regulations, PTT Consulting Company Co., Ltd is required to calculate and pay annual Tax on Profit. Revenues from each month for 2016 as follows: Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Revenue –
Continue reading Gold Consulting Company Co., Ltd is a new service company incorporated in Cambodia in 2015. Under the tax regulations, Gold Consulting Company Co., Ltd is required to calculate and pay annual Tax on Profit. Gold Consulting Company Co., Ltd is subject to profit tax rate of 20%. Financial statements of Gold Consulting Company Co., Ltd are as follows. Gold
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