Answer:
E. January 1, 2017
Explanation:
Financial statements are prepared showing at least two years for the sake of comparability.
It will be important for the company in presenting its financial statement using the IFRS for the year ended December 31st 2018 to show the financial statements for the year ended 31st December 2017 as if it had always applied the IFRS.
The basic idea is to show in the financial statements the effects of adopting the IFRS from a preceding period in order for the entity to show the financial statement for 2017 and 2018 and be able to compare them having been prepared on the same basis.
Thus, the transition date will be the beginning of the preceding period when the IFRS was applied (1st Jan. 2017 oe 31st Dec. 2016).
I hope this explanation makes the concept easy to grasp.
Thank you.
Answer:
a. Depreciation expense reflects the decrease in the current value of an asset over time.
Explanation:
Depreciation is an accounting concept of allocating the cost of a physical asset over its useful life. The depreciation expense in a period shows the book value that the asset has lost in the period. Accumulated depreciation is the total value of depreciation recorded for an asset up to a specific date.
Depreciation helps a business spread the cost of an asset over several years. Acquiring an asset is costly. To expense, the cost of the asset on a single financial year is not prudent as the asset will generate revenue for the company for many years. Depreciation spreads the cost of the asset to the years it is expected to be economically viable.
Answer:
c. Must have a good faith belief that the tax return position has a realistic possibility of success if challenged by the IRS
Explanation:
Statement on Standards for Tax Services No. 1 establishes as a basic principle of providing tax services that the CPA
we know that
Giving assessment administrations is on the standard premise that it has a decent confidence conviction that the government form position can be supported whenever tested
therefore
option c is correct
c. Must have a good faith belief that the tax return position has a realistic possibility of success if challenged by the IRS