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Let, one entity has negative retained earnings i.e. loss. During the current year, the entity has profit that is under income tax. Till last year no deferred tax was accounted for. My question is how should I account for the income tax expenses?? Should I deduct the tax loss from tax liability arisi...

Let, We have been appointed on 31 December 20X3 as an auditor of XYZ company for the year ended 30 June 20X4. We started our field work on 01 August 20X4. And the management sent us the FS through email on 25 August 20X4. After finishing our fieldwork on 30 September 20X4, we furnished the FS and se...

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Let, last year we audited a company and disclaimed of opinion. In the current year during our verification, we find that last year there was an imbalance in the Balance sheet which was solved by a manual adjustment. Now what should we do? If the management agrees to correct the error then should the...

Let, a real estate company buy and sell land. My question is what the company should do regarding its revenue expenditure? Should the company capitalize its revenue expenditure and charge them against revenue when the control of the land is transferred to the customer or charge the administrative ex...

How should the language of notes to the financial statements be? Always in the language of the client? Or is there any opportunity for an auditor to add any information in the notes to the Financial statements as if the auditor is telling that?

Now, is it okay to add the land value and bank balance with retained earnings as the prior year errors adjustment and qualify the opinion?

What would be the solution if as an auditor we do not have relevant information and the client is not willing to give that?

Sorry. Please let me know the solution. Thank you

Dear Brother, what would be the journal entry of the unrecorded bank balance and land? The previous author skipped that According to me: Cash at bank-Dr Land-Dr Retained earnings- Cr. In addition, if the amount is material, should I give a retrospective adjustment as per IAS-8? Or I can only adjust ...

Can I avoid recognizing deferred tax if the deferred tax liability represents an immaterial amount?

A company has taken lease of a land for 99 years from a Govt authority for establishing industrial unit. The lease contract allows the lessee to transfer the the ownership of the industrial unit that indirectly also means that the lessee has the ability to transfer the right to use of the leased lan...

Due to temporary difference arising from PPE & Intangible asset.

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Should we recognize deferred tax liability for a newly incorporated company having continuous loss and not having any possibility of making profit within next five years?

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In case of deferred tax for the year 2020, should i consider the temporary difference that exist on 2020 only or all the years'?


Year Book Depreciation Tax depreciation
2020 9000 14000
2021 9000 9000
2022 9000 6000
2023 9000 3000

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Answer please

IAS 2 para 21 allows us to use standard costing subject to regular review and update. My question is if any company follows standard costing and charges all variance in P/L, is it allowed under IFRS? My client is using different general ledger for material / price variance and end of the period char...

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A local company is selling products of a foreign company as general trader but exceptional scenario is that the foreign company is reimbursing some portion of selling and marketing expenses of the local company. This reimbursement is nothing but an amount that is calculated on the invoice at fixed r...

Yet i haven’t got any explanation from client. But my thinking is that, they have given manual entry in FI to manipulate the inventory

I have asked my audit client. They haven’t given explanation yet. I will inform you later. Thanks a lot for your response.

I find, Material master and FI of SAP are showing different value of inventory. Which value is authentic? As an auditor which value should i consider as real value of inventory? Can the value of MM( material master) be wrong?

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Thanks a lot for your valuable information. Dear, as per IFRS -15 is it possible to determine these? 3)DETERMINE THE TRANSACTION PRICE
STEP 4 – ALLOCATE THE TRANSACTION PRICE TO EACH PERFORMANCE OBLIGATION
Again has there any other IFRS which deals with other Income specifically?

I have some scope limitation here. In the contract, nothing has been said about it only the contract mentions the name of expenses which will be paid by parent company. Even, the contract does not mention any consideration in return of this payment. The parent company has not mention in contract thi...

Dear, i have no word to thank you. I truly appreciate your response. Now come in details. Basically, the parent and subsidiary company made a contact that for the following 3 years the parent company will bear some expenses which are related with marketing and business brand promotion . The parent c...

Dear All, Greetings of the day Let, One tobacco parent company ( China)is bearing its one subsidy company's(Bangladesh) marketing and brand promotion expense. Quarterly subsidy company report the total expense of three months and parent company pay that on basis of contract . But the subsidy company...