Theory of Accountancy

 The following tax rates are applicable when computing tax on Tade and Investment Income: 1. Self-employed, sole trader, or partners 24.72% 2. Companies and trusts 24.72% 3. Special Mining Lease 15% 4. Licensed investor in Special Economic Zones (SEZ):        First five years of the arrangement 0%        Second five years of the arrangement 15% 5. An approved BOT arrangement:     First five years of the arrangement 0%     Second five years or the arrangement 24%     Thereafter 24% 6. Industrial Park Developer:     First five years of the arrangement 0%     Thereafter 24% 7. Export manufacturing company which exports:     Export level (%) 30-40 of its output 20%     Export level (%) 41-50 of its output 17.5%     Export level (%) above 51          15% 3% AIDS levy is applicable on income tax chargeable after tax credits. The normal rate is 2...

 When disclosing Property, Plant, and Equipment three things should be kept in mind: 1. That PPE affects the Statement of Profit or Loss and Other Comprehensive Income through depreciation, impairment, and revaluation. 2. That PPE affects the Non-Current Assets portion of the Statement of Financial Position 3. That PPE should be disclosed in the notes in two parts:            a. Accounting Policy and             b. PPE Note IAS 16 prescribes the following disclosures: 1. accounting policies for PPE (depreciation policy, useful lives or depreciation rates, subsequent measurement policies)  2. a reconciliation between the 'net carrying amount' at the beginning and end of the period separately disclosing each of the following: - additions - acquisitions through business combinations - disposals - assets transferred to non-current assets held for sale in accordance with IFRS 5 - depreciation - other movements (e.g. c...

When calculating taxable income or tax liability of a corporation or of an individual on his trade or investment income, the following framework should be adopted. Important sections of the Income Tax Act when computing the tax liability are Section 8 (which discusses Gross Income), Section 15 (which discusses deduction), and section 16 (which discusses prohibited deductions).  The framework will also depend on the information provided on a question. If an accounting profit is given, then starting with the accounting profit, adjust for prohibited deductions, exemptions, and additional allowable deductions. The below framework is based on the assumption that the taxable income is calculated from scratch. Computation of Taxation Income GROSS INCOME - sec 8 Sale of goods or service                                                          ...

In this article, I cover how to journalize the acquisition of an item of PPE by way of trade-in, where the figures in question are VAT inclusive and both parties are registered operators. I also cover how to account for the donation of an item of PPE. Consider the following question:              SOLUTION WORKINGS Article Details Written by: Joseph Gondo  Nitty-Gritty Private College Call/WhatsApp: +263 78 637 6813 ...... Sir Josef'