In US Gaap there is no specific requirement regarding comparative information.
IFRS requires comparative information for prior year.
In US Gaap comprehensive income may be presented as a stand-alone statement or at the bottom of the income statement and changes in equity may be presented in the notes.
IFRS requires either a separate statement of comprehensive income and statement of changes in equity or a single statement of profit or loss and comprehensive income.
Presentation of certain items as extraordinary is required in US Gaap.
Extraordinary items are not allowed in IFRS.
In US Gaap deferred taxes are classified as current or noncurrent in the balance sheet based on the nature of the related asset.
In IFRS deferred taxes must be classified as noncurrent in the balance sheet.
Subsequent events are evaluated through the financial statement issuance date in US Gaap.
Subsequent events are evaluated through financial statement authorization to be issued date in IFRS.
Which of the following is not one of the criteria for revenue recognition for sales of goods under IFRS?
Choice A - The significant risks and rewards of ownership of goods are transferred. Choice B - Payment has been received. Choice C - The entity does not retain either a continuing managerial involvement or control over the goods. Choice D - The costs incurred can be measured reliably
Choice “B” is correct because payment has to be received is not a criteria for revenue recognition for sales of goods under IFRS.
Criteria for revenue recognition for sales of goods under IFRS includes
The significant risk and rewards of ownership of goods be transferred
The entity does not retain either a continuing managerial involvement or control over the goods.
Upon first-time adoption of IFRS, an entity may elect to use fair value as deemed cost for
Choice A - Biological assets related to agricultural activity for which there is no active market. Choice B - Intangible assets for which there is no active market. Choice C - Any individual item of property, plant, and equipment. Choice D - Financial liabilities that are not held for trading.
Choice “C” is correct because the entity may use fair value as deemed cost for any individual item of property, plant and equipment upon adoption of IFRS.
Sometimes there may be a mistake in any order passed by the Assessing Officer. If the mistake is clearly visible, understood and obvious, income tax authority can correct such order. If due to such correction, if your tax liability is increased or refund reduced, remember that you should be given an opportunity of being heard. Income tax authority can rectify mistakes on its own, or you can intimate the mistake to the income tax authority by making an application. Consider checking the time-limit within which, the order can be corrected or rectified. Before making any rectification application, consider studying the order. There can be a situation wherein you may feel that there is a mistake but your calculations could be incorrect and the central processing cell of income tax department might have corrected the mistakes. So be sure to confirm the existence of mistake. You can file an online application for rectification of mistake. Consider checking rectification procedure on www.incometaxindiaefiling.gov.in. For rectification of TDS consider checking e-tutorial on Traces website.
According to IASB Framework, the two criteria required for incorporating items into the income statement or statement of financial position are that
Choice A – It meets the definition of relevance and faithful representation
Choice B – It meets the definition of an element and can be measured reliably
Choice C – It satisfies criteria of capital maintenance
Choice D – It meets the requirements of comparability and consistency.
Choice "B" is correct because in order for an item to be recognized in the financial statements, IFRS requires that it meet the definition of an element and can be measured reliably
According to the IASB Framework, the financial statement element that is defined as increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants, is
Choice A – Revenue
Choice B – Income
Choice C – Profits
Choice D – Gains
Choice "B" is correct as the IASB Framework has five elements: asset, liability, equity, income, and expense. The definition said is that of income. Income includes both revenues and gains.
Which organization is responsible for setting International Financial Reporting Standards? Choice A - Financial Accounting Standards Board Choice B - International Accounting Standards Committee Choice C - Financial Accounting Committee Choice D - International Accounting Standards Board
Choice "D" is correct because the International Accounting Standards Board issues International Financial Reporting Standards.
Have you paid excess tax as against the tax you were required to pay?
Don’t worry. You are eligible to claim a refund.
In normal course, you are entitled to refund of excess tax paid.
You can claim refund, in your income tax return itself.
But remember, there are certain cases, in which refund can be claimed by other person.
If income of some other person is included in your income, you are entitled to a refund.
For example, if you are legal representative, trustee, guardian or receiver, of a person, you are entitled to claim his refund. In such case, you can claim refund, by filling Form No. 30.
Remember, you will be entitled to a refund, only if you can satisfy the Assessing Officer that, the amount of tax paid by you, is more than the amount of tax you had to pay.
Also remember that you need to claim, the refund within one year, from the last day of assessment year.
If, you are not able to claim your refund in time, consider checking conditions, wherein delayed claim of refund is allowed.
If you do not receive your refund in time, you are also eligible to receive interest on your refund amount.
But remember, there are certain conditions, wherein you may not receive such interest.
Remember, tax authority can also set-off your refund amount of one year, against the income tax payable in other year.
But they will do so, only after providing you a written intimation regarding such set-off.
If you have purchased, or sold of any vehicle, other than a two wheeler vehicle you will require a PAN. If you wish to open an account with a bank, you will be required to quote your PAN. If you are making an application for issue of a credit or debit card, you will have to quote your PAN in the application. If you wish to open a demat account with a depository, participant, custodian of securities, you will have to quote a PAN in the application. If you are making a payment in cash, of an amount exceeding Rupees 50,000 to a hotel, or restaurant against a bill at any one time you may need to quote your PAN. If you are making a payment in cash, of an amount exceeding Rupees 50,000 to a travel agent for your foreign trip, or if you are making a payment to travel agent for purchase of any foreign currency of an amount exceeding Rupees 50,000 in cash, at any one time you will need your PAN. If you are making a payment of an amount exceeding Rupees 50,000 to a Mutual Fund for purchase of its units, you will have to quote your PAN. If you are making a payment of an amount exceeding Rupees 50,000 to a company, or an institution for acquiring debentures or bonds issued by it you will have to quote your PAN. If you are making a payment of an amount exceeding Rupees 50,000 to the Reserve Bank of India, for acquiring bonds, you will have to quote your PAN. If you are depositing cash, exceeding Rs. 50,000 during any one day with a bank, you will have to mention your PAN in the deposit slip. If you are making a payment in cash for an amount exceeding Rupees 50,000 during any one day, for purchase of bank drafts or pay orders or banker's cheque, from a bank you will have to quote your PAN in the application. If you wish to invest in a time deposit, of amount exceeding Rupees 50,000, or aggregating to more than Rs. 5 lakh, during a financial year with a bank, or a Post Office; or a Nidhi or ,a nonbanking financial company, PAN will be required. If you are making a payment of an amount aggregating to more than Rupees 50,000 in a financial year, as life insurance premium to an insurer, you will have to quote your PAN. If you are entering into a contract for sale or purchase of securities, other than shares, for amount exceeding Rupees 1 lakh per transaction, you will have to quote your PAN. If you sell or purchase, shares of a company not listed in a recognized stock exchange, for amount exceeding Rupees 1 lakh per transaction, you will have to quote your PAN. If you sell or purchase any immovable property, for an amount exceeding Rupees 10 lakh or, if you sell or purchase any immovable property valued by stamp valuation authority exceeding ten lakh rupees, you will required a PAN. Remember, Minor person can quote PAN of his father, or mother, or guardian, provided he does not have to pay any tax. If you do not have PAN and which to enter into any of mentioned transaction, you can make a declaration in Form No.60, or you can apply for a PAN.
If your total income exceeds certain amount, you need to obtain a PAN.
If you run a charitable trust, you will have to obtain a PAN for your trust.
If you are carrying on any business or profession whose total sale, turnover, or gross receipts are, or is likely to exceed, certain amount in any previous year, you need to apply for a PAN
If you are an importer or exporter, who is required to obtain Import Export code, you required to apply for a PAN.
If you receive any income after deduction of tax at source, you are required to apply for a PAN.
If you are liable to pay excise duty, or if you are aproducer or manufacturer of excisable goods, or if you are a registered person ofa private warehouse, in which excisable goods are stored, or if you are an authorized agent of suchperson, you will have to obtain a PAN.
If you are issuing invoices, as definedunder Central Excise Rules, 1944, you are required to apply for a PAN.
If you are liable to pay the service tax, you are required to apply for a PAN. Your agent is also required to apply for a PAN.
If your company is registered under the Central Sales Tax Act, or the general sales tax law of relevant state or union territory in India, you are required to apply for a PAN.
If you wish to enter into certain specified transactions, in which quoting of PAN is mandatory, you will have to apply for a PAN.
If your PAN card is lost then you can apply for duplicate PAN card. You will have to submit a Form named, “Request for New PAN Card, or, and Changes or Correction, in PAN Data." You can also submit a copy of FIR along with the form. If the PAN card is lost and you don't remember your PAN, then in such a case, you can know your PAN by using the facility of "Know Your PAN" provided by the Income Tax Department. This facility can be availed of from the website of Income Tax Department which is www.incometaxindia.gov.in. You can know your PAN online by providing the details like your name, your father's name and your date of birth.After knowing the PAN you can apply for duplicate PAN card by submitting the Form named, "Request For New PAN Card, Or, And Changes Or Correction, in PAN Data".
Do you wish to apply for Permanent Account Number? You can apply for your Permanent Account Number through Internet. There are two ways to apply for your permanent account number. You can use the NSDL portal or you can use UTITS L portal. If you require your Permanent Account number to be delivered to your address in India, your application fees will be Rupees. 107. In case you wish that the Permanent Account number is delivered to you at any other location outside India, your application fees will be Rupees. 994. You can pay Application fees using your credit card as well as your debit card. You can also use net banking facility to pay your application fees. Demand drafts are also accepted. You will have to make an application online and pay the application fees. Once application is made and fees are paid, you will have to send supporting documents through courier to NSDL or UTITSL depending on the portal where you made your application. You can also send the supporting documents using India Postal Service. NSDL and UTITSL will process your application only after they receive the supporting documents.
If your Form W-2, Wage and Tax Statement, Or your Form 1099-R , Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., are not available to you, or if your information is incorrect on these forms, contact your employer or payer. If you still have not received the missing or corrected form, you may call the IRS at 800-829-1040 for assistance. When you call, please have the following information available: Your name, address (including ZIP code), phone number, and social security number, Your employer or payer's name, address (including ZIP code), and phone number, If known, your employer or payer’s identification number, An estimate of the wages you earned, your federal income tax withheld, and your dates of employment. The IRS will contact the employer or payer for you and request the missing or corrected form. The IRS will also send you a Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., along with a letter containing instructions. If you do not receive the missing or corrected form in sufficient time to file your tax return, you may use Form 4852 to complete your return. If you receive the missing or corrected Form W-2 or Form 1099-R after you file your return and the information differs from your estimates, use Form 1040X , Amended U.S. Individual Income Tax Return
You may not have filed your federal income tax return for this year or previous years. Regardless of your reason for not filing a required return, file your tax return as soon as possible. If you are not sure you are required to file a return, visit Do I Need to File a Tax Return. If you are required to file a return, but you cannot pay all of the tax due on your return, the IRS may be able to help you establish a payment agreement. If your return was not filed by the due date (including extensions of time to file), you may be subject to the failure to file penalty. If you did not pay your tax in full by the original due date of the return (regardless of extensions of time to file), you may also be subject to the failure to pay penalty. Additionally, interest is charged on taxes not paid by the due date, even if you have an extension of time to file. Remember, Interest is also charged on penalties. Also remember, there is no penalty for failure to file if you are due a refund. But, if you wait to file a return or otherwise claim a refund, you risk losing a refund altogether. An original return claiming a refund must be filed within 3 years of its due date for a refund to be allowed in most instances. After the expiration of the three-year window, the refund statute prevents the issuance of a refund check. However, the statute of limitations for the IRS to assess and collect any outstanding balances does not start until a return has been filed. In other words, there is no statute of limitations for assessing and collecting the tax if no return has been filed.
Do you know Where’s My Refund? has the most up to date information available about your refund. Use it to get your personalized refund status. The tool is updated once a day so you don't need to check more often. You can also download a free mobile app, I R S 2 Go, from an iPhone or Android device. Both are available 24 hours a day, 7 days a week. You can start checking on the status of your return within 24 hours after the IRS has received your e-filed return or 4 weeks after you have mailed a paper return. Have your tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund shown on your return. If you don't have Internet access, you may call the refund hotline at 800-829-1954. Where’s My Refund? includes information for the most recent tax year filed in the current year and does not include information about amended returns. To check the status of an amended return, use Where’s My Amended Return? The Where’s My Refund? tool includes a tracker that displays progress through 3 stages: (1) Return Received, (2) Refund Approved, and (3) Refund Sent. Where’s My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Where’s My Refund? provides the most accurate and complete information that IRS has. Remember, unless Where’s My Refund? tells you to call IRS, there’s no need. Also note that updates to refund status are made no more than once a day - usually at night.
Do you know the IRS has an administrative appeals process that works with taxpayers to try to settle tax disputes in an effort to avoid court proceedings? The role of Appeals is to make an independent review of a tax dispute and to consider the positions taken by both the taxpayer and the IRS. The Appeals unit strives to resolve tax disputes in a fair way and remain impartial to both parties. The IRS will send you a report and, or a letter that will explain the proposed adjustments or proposed or taken collection action. The correspondence also tells you of your right to request a conference with an Appeals or Settlement Officer, as well as how to make your request for a conference. In addition to examination adjustments, many other things can be appealed such as penalties, interest, trust fund recovery penalties, offers in compromise, liens, and levies. Remember, if you request Appeals conferences which are informal meetings; be prepared to support your position with records and documentation. You may represent yourself or have an attorney, accountant, or an individual enrolled to practice before the IRS represent you. If you do not reach an agreement with the Appeals or Settlement Officer or you do not wish to appeal within the IRS, you may appeal certain actions through the courts.
US Gaap considers subsequent events through the financial statements issuance date. IFRS considers subsequent events through the date the financial statements are authorized to be issued. In US Gaap, if there is an intent and ability to refinance the liability before the issuance of financial statement, a liability may be classified as non-current liability. In IFRS, if an agreement to refinance the liability is executed prior to the financial statement date, the liability may be classified as noncurrent liability. US Gaap permits classification of items as extraordinary. IFRS does not permit classification of items as extraordinary. US Gaap classifies expenses by functions such as cost of goods sold and operating expenses. IFRS allows expense classification by nature or by function.
