Month: February 2021

.  GENERAL PRINCIPLES In tax law, the taxation of incomes earned by companies is based on some general principles. These include the following: The company is a subject of tax law distinct from its shareholders; The company is taxable on Read More …

WHO IS LIABLE TO PERSONAL INCOME TAX? One important concept to consider is that of residence. Residence can be defined as the place where someone lives. However, it has a very specific meaning as far as taxation is concerned. For Read More …

DEFINITION OF TAX AND DISTINCTION FROM OTHER CONCEPTS Definition of tax Several authors have tried to define tax with limited degrees of success. But taking into account different concepts, tax has various definitions. Basing on the definition given by Gaston Read More …

GOVERNMENT SECTOR FINANCIAL REPORTING An International Perspective  In recent decades, accounting has become increasingly global. The trend towards globalisation began with the development of International Financial Reporting Standards (IFRSs) in the private sector. However this has in more recent times Read More …

FOREIGN BRANCH INTRODUCTION Introduction A head office may set up a  branch in another country as part of its expansion policy.  The currency of the foreign branch may differ from that of the head office.  Thus it will be necessary Read More …

. BRANCH ACCOUNTS – INTRODUCTION A branch may maintain a complete set of records, leading to an Statement of Comprehensive Income and Statement of Financial Position being prepared for the branch.  This practice is not very common where a company Read More …

BRANCH ACCOUNTS Introduction As an organisation increases in size or where an organisation intends diversifying, the company structure will often change.  The resultant change will depend on the management policy and available funds.  Expansion may be by establishing a system Read More …

PURCHASE OF OWN SHARES If purchased shares are cancelled, the purchase must be financed by a fresh issue of shares, thus ensuring that share capital is maintained, or by the transfer from distributable profits to a capital redemption reserve fund Read More …

INTRODUCTION Large companies can often operate within several different business sectors and/or in different geographical locations. Each of these sectors/locations can involve risks and opportunities that can differ significantly from each other. For example, while an entity’s toy division might Read More …

INTRODUCTION Agriculture is fundamentally different from other types of business.  Instead of wearing out or being consumed over time, many agricultural assets actually grow. It can be argued that depreciation is irrelevant in this situation. Hence, biological assets are measured Read More …