The directors also advised the financial accountant to make a provision for: (i) bad and doubtful debts of $30,000; (ii) annual leave and long service leave of $60,000. The company directors come to you as the taxation adviser of the company and wish to know how each of the items mentioned above are to be treated for taxation purposes.
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The directors also advised the financial accountant to make a provision for:
(i) bad and doubtful debts of $30,000;
(ii) annual leave and long service leave of $60,000.
The company directors come to you as the
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- The Corporate Information worksheet asks the question, "Complete the return from GIFI?" Which of the following statements is INCORRECT? Question 4Answer a. GIFI refers to generally indexed financial information. b. If you answer yes, the amounts from the corporation's financial statements must be entered on schedules 100 and 125. c. Schedule 100 reports the amounts from the corporation's balance sheet. d. Schedule 125 reports the amounts from the corporation's statement of income. e. GIFI indicates that the financial information from the corporation's financial statements is not entered, as the T2 is prepared for income tax purposes only.There are two basis of accounting: cash basis and accrual basis. Personal finance often focuses on the cash basis, whereas corporate accounting focuses on the accrual basis, as prescribed by U.S. Generally Accepted Accounting Principles (GAAP). Furthermore, tax filers focus on the modified accrual basis. If you were about to select the basis of accounting for your organization, which basis would you select, and why?You are the audit senior with HLAM Chartered Accountants. Your audit manager Michael Lim has just assigned you to the audit of Fiabci Malaysia Limited (Fiabci) for the year ended 31 December 2020. The reason behind your assignment to Fiabci Limited’s audit was that you had recently been seconded for nine months to work with Fiabci’s financial reporting department. Your client is a property developer. Michael feels that your knowledge of Fiabci’s business will aid in increasing the efficiency of the current year’s audit. Fiabci has a reasonably steady growth in 2020, with sales holding up despite increasing competition from other property developers. Required (a) Identify and explain the significant threats to potential ethical problems in the audit of Fiabci Limited. (b) Suggest any relevant and practical safeguards you feel may be appropriate for the issues identified.
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- 1. List three types of records that a company must keep for tax purposes. 2. Explain why the ATO conducts audits. 3. List three key principles that should be followed when managing a work teamThe annual reports of public corporations normally include a section on Management Discussion and Analysis (MD&A). Please examine the MD&A section of your selected company and let us know about any comments included regarding management's assessment of the company's liquidity and the availability of capital to the company. Also, please select one of the profitability ratios and calculate or find it for your company. Please let us know what this profitability ratio indicates about the financial health of your company.The Sarbanes–Oxley Acta. requires the SEC to establish a federaloversight board for the accounting industry.b. requires CEOs to certify periodic financialstatements.c. subjects auditors, accountants, andemployees to imprisonment for destroyingfinancial documents.d. prohibits many types of consulting servicesby accounting firms.e. All of the above are true.