Clarifications and interpretations of some finance and audit aspects rmahmoud badawi
Relation Between Financial Statements
Cash Conversion Cycle in Arabic
Audit Risk Model in Arabic
Cost Recovery Example in Petroleum Production Sharing Agreement
Showcase the role of financial management with this content ready Financial Planning PowerPoint Presentation Slides. The ready to use financial management PowerPoint complete deck comprises of templates such as financial management goals, objectives, US financial system, financial instruments, rights issue, debenture, time value for money parameters, valuation of bonds, comparative statement, common size statement, balance sheet , cash flow statement, trend analysis, ratio analysis, cash flow for operating activities and many more. Estimate the requirement and make a forecast of funds needed. Get your audience focus on forex capital analysis, capital budgeting evaluation techniques of projects, capital structure and dividend policy, leverage analysis, cost of capital, working capital analysis, receivable management, inventory management, economic order quality, FIFO and LIFO method, commodity exchange basics and types, commodity exchange structure, financial risk management, types and components, financial risk analysis, capital asset pricing model, etc. Download the corporate finance management PPT slides to prepare financial plans. Leave them gaping with our Financial Planing PowerPoint Presentation Slides. They will be dumbstruck by your abilities.
PRIVATE EQUITY / VC FINANCIAL MODEL. A Real Estate CaseManuel Lacarte
Financial Valuation Model made for a real estate fund case, but easily adapted to any other investment profile.
Works automatically and allows to calculate different business scenarios by entering new assumptions just changing data (blue figures in "Front page & Inputs" sheet)
Sheets included:
-Front Page & Inputs
-Capital
-Revenues
-Expenses
-Financing
-P&L
-Cash Flow
-Shareholder`s Cash Flow
-Balance Sheets
-Investments
-Depreciations
-V.A.T.
1.
Prepare and analize the common statement for Anandam Manufacturing Company. Show all
calculations.
2.
Prepare and analize the cash flow statement for Anandam Manufacturing Company. Show all
calculations.
3.
Calculate the ratios based on case Exhibit 3. Show all calculations. Based on financial analysis
of financial statements, would a loan officer grant a loan to Anandam financial company?
EXHIBIT 3: INDUSTRY AVERAGE OF KEY RATIos Sector Average Ratio 2:301 Current
ratio Acid test ratio (quick ratio) 120 Receivable tunover ratioimes turnover 52 days Receivable
days Inventory turmover ratio Inventory days Long-term detttototal debt Debt-to-equity ratio
Gross profit rato Net profit ratio Retun on equity Retum on total assets 4.85 times 75 days 24%
35% 40% 18% 22% 10% Total asset turnover ratio Ti Fixed asset turnover ratio Current asset
tunover ratio3 interest coverage ratio (tmes 10 nterest earned Warking captal smover ratio Retu
on ed sset
Solution
1….Common -size Income statement 2012-13 % to Total sales 2013-14 % to Total sales
2014-15 % to Total sales Analysis of % to Total sales proportion Sales Cash 200 10.00%
480 10.00% 800 10.00% Credit 1800 90.00% 4320 90.00% 7200 90.00% Total Sales 2000
100.00% 4800 100.00% 8000 100.00% COGS 1240 62.00% 2832 59.00% 4800 60.00%
COGS has reduced in the last 2 yrs. Gross profit 760 38.00% 1968 41.00% 3200 40.00% so,
G/P has increased Operating Expenses: Gen.adm.& sell.exp. 80 4.00% 450 9.38% 1000
12.50% % to sales has doubled in 2013-14 & increased by more than 25% in 2014-15
Depreciation 100 5.00% 400 8.33% 660 8.25% Has increased by 3% in the last 2 yrs.
Int.exp.(on borrowings) 60 3.00% 158 3.29% 340 4.25% Has slightly increased in 2014-15
Profit before tax(PBT) 520 26.00% 960 20.00% 1200 15.00% PBT% has reduced gradually in
both the yrs.due to increase in all operating expenses esp.gen admn.& sell exp. Tax at 30% 156
7.80% 288 6.00% 360 4.50% Decrease % due to decrease in profit % Profit after tax(PAT) 364
18.20% 672 14.00% 840 10.50% PAT% has reduced gradually in both the yrs.due to increase in
all operating expenses esp.gen admn.& sell exp. Common-size Balance
Sheet Assets % to Total % to Total % to Total Fixed assets(net of dep) 1900 74.22%
2500 44.64% 4700 51.33% Assets have decreased to the total Current assets Cash & Cash
equivalents 40 1.56% 100 1.79% 106 1.16% Slight variation in ratio to total Accounts
Receivables 300 11.72% 1500 26.79% 2100 22.94% Has increased in 2013-14 & again
decreased in 2014-15 Inventories 320 12.50% 1500 26.79% 2250 24.57% Has increased in
2013-14 & again decreased in 2014-15 Total 2560 100.00% 5600 100.00% 9156 100.00%
Equity & Liabilities Equity share capital($ 10) 1200 46.88% 1600 28.57% 2000 21.84%
Decreased steadily in all the 2 yrs. Reserves & surplus 364 14.22% 1036 18.50% 1876 20.49%
Increased steadily in both 2 yrs.due to increase in $ net income in those yrs. Long-term
borrowings 736 28.75% 1236 22.07% 2500 27.30% Decreased in 2013-14 & again increased i.
Clarifications and interpretations of some finance and audit aspects rmahmoud badawi
Relation Between Financial Statements
Cash Conversion Cycle in Arabic
Audit Risk Model in Arabic
Cost Recovery Example in Petroleum Production Sharing Agreement
Showcase the role of financial management with this content ready Financial Planning PowerPoint Presentation Slides. The ready to use financial management PowerPoint complete deck comprises of templates such as financial management goals, objectives, US financial system, financial instruments, rights issue, debenture, time value for money parameters, valuation of bonds, comparative statement, common size statement, balance sheet , cash flow statement, trend analysis, ratio analysis, cash flow for operating activities and many more. Estimate the requirement and make a forecast of funds needed. Get your audience focus on forex capital analysis, capital budgeting evaluation techniques of projects, capital structure and dividend policy, leverage analysis, cost of capital, working capital analysis, receivable management, inventory management, economic order quality, FIFO and LIFO method, commodity exchange basics and types, commodity exchange structure, financial risk management, types and components, financial risk analysis, capital asset pricing model, etc. Download the corporate finance management PPT slides to prepare financial plans. Leave them gaping with our Financial Planing PowerPoint Presentation Slides. They will be dumbstruck by your abilities.
PRIVATE EQUITY / VC FINANCIAL MODEL. A Real Estate CaseManuel Lacarte
Financial Valuation Model made for a real estate fund case, but easily adapted to any other investment profile.
Works automatically and allows to calculate different business scenarios by entering new assumptions just changing data (blue figures in "Front page & Inputs" sheet)
Sheets included:
-Front Page & Inputs
-Capital
-Revenues
-Expenses
-Financing
-P&L
-Cash Flow
-Shareholder`s Cash Flow
-Balance Sheets
-Investments
-Depreciations
-V.A.T.
1.
Prepare and analize the common statement for Anandam Manufacturing Company. Show all
calculations.
2.
Prepare and analize the cash flow statement for Anandam Manufacturing Company. Show all
calculations.
3.
Calculate the ratios based on case Exhibit 3. Show all calculations. Based on financial analysis
of financial statements, would a loan officer grant a loan to Anandam financial company?
EXHIBIT 3: INDUSTRY AVERAGE OF KEY RATIos Sector Average Ratio 2:301 Current
ratio Acid test ratio (quick ratio) 120 Receivable tunover ratioimes turnover 52 days Receivable
days Inventory turmover ratio Inventory days Long-term detttototal debt Debt-to-equity ratio
Gross profit rato Net profit ratio Retun on equity Retum on total assets 4.85 times 75 days 24%
35% 40% 18% 22% 10% Total asset turnover ratio Ti Fixed asset turnover ratio Current asset
tunover ratio3 interest coverage ratio (tmes 10 nterest earned Warking captal smover ratio Retu
on ed sset
Solution
1….Common -size Income statement 2012-13 % to Total sales 2013-14 % to Total sales
2014-15 % to Total sales Analysis of % to Total sales proportion Sales Cash 200 10.00%
480 10.00% 800 10.00% Credit 1800 90.00% 4320 90.00% 7200 90.00% Total Sales 2000
100.00% 4800 100.00% 8000 100.00% COGS 1240 62.00% 2832 59.00% 4800 60.00%
COGS has reduced in the last 2 yrs. Gross profit 760 38.00% 1968 41.00% 3200 40.00% so,
G/P has increased Operating Expenses: Gen.adm.& sell.exp. 80 4.00% 450 9.38% 1000
12.50% % to sales has doubled in 2013-14 & increased by more than 25% in 2014-15
Depreciation 100 5.00% 400 8.33% 660 8.25% Has increased by 3% in the last 2 yrs.
Int.exp.(on borrowings) 60 3.00% 158 3.29% 340 4.25% Has slightly increased in 2014-15
Profit before tax(PBT) 520 26.00% 960 20.00% 1200 15.00% PBT% has reduced gradually in
both the yrs.due to increase in all operating expenses esp.gen admn.& sell exp. Tax at 30% 156
7.80% 288 6.00% 360 4.50% Decrease % due to decrease in profit % Profit after tax(PAT) 364
18.20% 672 14.00% 840 10.50% PAT% has reduced gradually in both the yrs.due to increase in
all operating expenses esp.gen admn.& sell exp. Common-size Balance
Sheet Assets % to Total % to Total % to Total Fixed assets(net of dep) 1900 74.22%
2500 44.64% 4700 51.33% Assets have decreased to the total Current assets Cash & Cash
equivalents 40 1.56% 100 1.79% 106 1.16% Slight variation in ratio to total Accounts
Receivables 300 11.72% 1500 26.79% 2100 22.94% Has increased in 2013-14 & again
decreased in 2014-15 Inventories 320 12.50% 1500 26.79% 2250 24.57% Has increased in
2013-14 & again decreased in 2014-15 Total 2560 100.00% 5600 100.00% 9156 100.00%
Equity & Liabilities Equity share capital($ 10) 1200 46.88% 1600 28.57% 2000 21.84%
Decreased steadily in all the 2 yrs. Reserves & surplus 364 14.22% 1036 18.50% 1876 20.49%
Increased steadily in both 2 yrs.due to increase in $ net income in those yrs. Long-term
borrowings 736 28.75% 1236 22.07% 2500 27.30% Decreased in 2013-14 & again increased i.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Property Plant Equipment Examples as per International Accounting Standard 16 ans IND AS 16
1. Example 4
Profit before depreciation 100 per year. Asset 100. Income tax rate 40%. Depreciation (SLM) –
Financial 25%, Tax 20%. Fair value 60 at the end of year 2.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Profit 100 100 100 100 100
Less: Depreciation 25 25 30 30 0
Profit After Depreciation 75 75 70 70 100
Less: Current Tax 32 32 32 32 32
Add: Deferred Tax Assets 2 2 4 4 -8
Profit before other Comprehensive Income 45 45 42 42 60
other Comprehensive Income
Revaluation Surplus 0 10 0
Less: Deffered Tax 0 4 0
Total Profit 45 51 42 42 60
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Revaluation Reserve 6 6 3 0
Less: Transferred to retained earnings 3 3
0 6 3 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 75 60 30 0
Less: Depreciation 25 25 30 30
Net Value 75 50 30 0 0
Revaluation 0 10
Closing WDV 75 60 30 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 80 60 40 20
Less: Depreciation 20 20 20 20 20
Closing WDV 80 60 40 20 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening Balance 2 0 4 8
Add/less -2 4 4 -8
Closing Balance 2 0 4 8 0
Property,Plant Equipment Examples Drafted By CA Ajay Biwal
Statement of Profit & Loss and Other Comprehensive Income
Statement of Change in Equity
Carrying Value of Asset
Tax Base of Asset
Deferred Tax Assets
2. Example 5
Profit before depreciation 100 per year. Asset 100. Income tax rate 40%. Depreciation (SLM) –
Financial 20%, Tax 20%.
Fair value 100 at the end of year 1 when life is increased by 1 year.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Profit 100 100 100 100 100 100
Less: Depreciation 20 20 20 20 20 20
Profit After Depreciation 80 80 80 80 80 80
Less: Current Tax 32 32 32 32 32 40
Add: Deferred Tax Assets 0 0 8
Profit before other Comprehensive Income 48 48 48 48 48 48
other Comprehensive Income
Revaluation Surplus 20 0 0
Less: Deffered Tax 8 0 0
Total Profit 60 48 48 48 48 48
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Revaluation Reserve 12 12 12 12 12 12
Less: Transferred to retained earnings 0 0 0 0 0 12
12 12 12 12 12 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Opening WDV 100 100 80 60 40 20
Less: Depreciation 20 20 20 20 20 20
Net Value 80 80 60 40 20 0
Revaluation 20
Closing WDV 100 80 60 40 20 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 80 60 40 20
Less: Depreciation 20 20 20 20 20
Closing WDV 80 60 40 20 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Opening Balance -8 -8 -8 -8 -8
Add/less 0 0 0 0 8
Closing Balance -8 -8 -8 -8 -8 0
Property,Plant Equipment Examples Drafted By CA Ajay Biwal
Statement of Profit & Loss and Other Comprehensive Income
Statement of Change in Equity
Carrying Value of Asset
Tax Base of Asset
Deferred Tax Liability
3. Example 6
Profit before depreciation 100 per year. Asset 100. Income tax rate 40%. Depreciation (SLM) –
Financial 20%, Tax 25%. Fair value 100 at the end of year 1 when life is increased by 1 year.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Profit 100 100 100 100 100 100
Less: Depreciation 20 20 20 20 20 20
Profit After Depreciation 80 80 80 80 80 80
Less: Current Tax -30 -30 -30 -30 -40 -40
Add/Less: Deferred Tax Assets/ (Liability) -2 -2 -2 -2 8 8
Tax Expenses -32 -32 -32 -32 -32 -32
Profit before other Comprehensive Income 48 48 48 48 48 48
other Comprehensive Income
Revaluation Surplus 20 0 0
Add/Less: Deferred Tax Assets/ (Liability) -8 0 0
Net Revaluation Surplus 12 0 0 0 0 0
Total Profit 60 48 48 48 48 48
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Revaluation Reserve 12 12 12 12 12 12
Less: Transferred to retained earnings 0 0 0 0 0 12
12 12 12 12 12 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Opening WDV 100 100 80 60 40 20
Less: Depreciation 20 20 20 20 20 20
Net Value 80 80 60 40 20 0
Revaluation 20
Closing WDV 100 80 60 40 20 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 75 50 25 0
Less: Depreciation 25 25 25 25 0
Closing WDV 75 50 25 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Opening Balance -10 -12 -14 -16 -8
Add/less -2 -2 -2 8 8
Closing Balance -10 -12 -14 -16 -8 0
Property,Plant Equipment Examples Drafted By CA Ajay Biwal
Statement of Profit & Loss and Other Comprehensive Income
Statement of Change in Equity
Carrying Value of Asset
Tax Base of Asset
Deferred Tax Liability
4. Example 7
Profit before depreciation 100 per year. Asset 100. Income tax rate 40%. Depreciation (SLM) –
Financial 20%, Tax 25%. Fair value – 100 at the end of year 1; and 60 at the end of year 3.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Profit 100 100 100 100 100
Less: Depreciation 20 25 25 30 30
Profit After Depreciation 80 75 75 70 70
Less: Current Tax -30 -30 -30 -30 -40
Add/Less: Deferred Tax Assets/ (Liability) -2 0 0 2 12
Tax Expenses -32 -30 -30 -28 -28
Profit before other Comprehensive Income 48 45 45 42 42
other Comprehensive Income
Revaluation Surplus 20 0 10 0 0
Add/Less: Deferred Tax Assets/ (Liability) -8 0 -4 0 0
Net Revaluation Surplus 12 0 6 0 0
Total Profit 60 45 51 42 42
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Revaluation Reserve: Opening Balance 0 12 9 12 6
Add: Creation 12 0 6 0 0
Less: Transferred to retained earnings 0 3 3 6 6
Revaluation Reserve: Closing Balance 12 9 12 6 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 100 75 60 30
Less: Depreciation 20 25 25 30 30
Net Value 80 75 50 30 0
Revaluation 20 10
Closing WDV 100 75 60 30 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 75 50 25 0
Less: Depreciation 25 25 25 25 0
Closing WDV 75 50 25 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening Balance -10 -10 -14 -12
Add/less -10 0 -4 2 12
Closing Balance -10 -10 -14 -12 0
- Through Carrying Value -2 -10 -10 -12 0
- Through Revaluation -8 0 -4 0 0
- - - - -
Property,Plant Equipment Examples Drafted By CA Ajay Biwal
Statement of Profit & Loss and Other Comprehensive Income
Statement of Change in Equity
Carrying Value of Asset
Tax Base of Asset
Deferred Tax Liability
5. Example 8
Profit before depreciation 100 per year. Asset 100. Income tax rate 40%. Depreciation – Financial
– 20%, Tax 25%.
Fair value 120 at the end of year 1. Life increased by 1 year at the end of year 3.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Profit 100 100 100 100 100 100
Less: Depreciation 20 30 30 20 20 20
Profit After Depreciation 80 70 70 80 80 80
Less: Current Tax -30 -30 -30 -30 -40 -40
Add/Less: Deferred Tax Assets/ (Liability) -2 2 2 -2 8 8
Tax Expenses -32 -28 -28 -32 -32 -32
Profit before other Comprehensive Income 48 42 42 48 48 48
other Comprehensive Income
Revaluation Surplus 40 0 0 0 0 0
Add/Less: Deferred Tax Assets/ (Liability) -16 0 0 0 0 0
Net Revaluation Surplus 24 0 0 0 0 0
Total Profit 72 42 42 48 48 48
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Revaluation Reserve: Opening Balance 0 24 18 12 12 12
Add: Creation 24 0 0 0 0 0
Less: Transferred to retained earnings 0 6 6 0 0 12
Revaluation Reserve: Closing Balance 24 18 12 12 12 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Opening WDV 100 120 90 60 40 20
Less: Depreciation 20 30 30 20 20 20
Net Value 80 90 60 40 20 0
Revaluation 40 0
Closing WDV 120 90 60 40 20 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 75 50 25 0
Less: Depreciation 25 25 25 25 0
Closing WDV 75 50 25 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Opening Balance -18 -16 -14 -16 -8
Add/less -18 2 2 -2 8 8
Closing Balance -18 -16 -14 -16 -8 0
- Through Carrying Value -2 -16 -14 -16 -8 0
- Through Revaluation -16 0 0 0 0 0
Property,Plant Equipment Examples Drafted By CA Ajay Biwal
Statement of Profit & Loss and Other Comprehensive Income
Statement of Changes in Equity
Carrying Value of Asset
Tax Base of Asset
Deferred Tax Liability
6. Example 9
Profit before depreciation 100 per year. Asset 100. Income tax rate 40%. Depreciation (SLM) –
Financial 20%, Tax 25%. Fair value – 100 at the end of year 1; and 40 at the end of year 3.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Profit 100 100 100 100 100
Less: Depreciation 20 25 25 20 20
Profit After Depreciation 80 75 75 80 80
Less: Current Tax -30 -30 -30 -30 -40
Add/Less: Deferred Tax Assets/ (Liability) -2 0 0 -2 8
Tax Expenses -32 -30 -30 -32 -32
Profit before other Comprehensive Income 48 45 45 48 48
other Comprehensive Income
Revaluation Surplus 20 0 -10 0 0
Add/Less: Deferred Tax Assets/ (Liability) -8 0 4 0 0
Net Revaluation Surplus 12 0 -6 0 0
Total Profit 60 45 39 48 48
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Revaluation Reserve: Opening Balance 0 12 9 0 0
Add: Creation 12 0 -6 0 0
Less: Transferred to retained earnings 0 3 3 0 0
Revaluation Reserve: Closing Balance 12 9 0 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 100 75 40 20
Less: Depreciation 20 25 25 20 20
Net Value 80 75 50 20 0
Revaluation 20 -10
Closing WDV 100 75 40 20 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 75 50 25 0
Less: Depreciation 25 25 25 25 0
Closing WDV 75 50 25 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening Balance -10 -10 -6 -8
Add/less -10 0 4 -2 8
Closing Balance -10 -10 -6 -8 0
- Through Carrying Value -2 -10 -10 -8 0
- Through Revaluation -8 0 4 0 0
- - - - -
Property,Plant Equipment Examples Drafted By CA Ajay Biwal
Statement of Profit & Loss and Other Comprehensive Income
Statement of Changes in Equity
Carrying Value of Asset
Tax Base of Asset
Deferred Tax Liability
7. Example 10
Profit before depreciation 100 per year. Asset 100. Income tax rate 40%. Depreciation (SLM) –
Financial 20%, Tax 20%. Fair value – 100 at the end of year 1; and 40 at the end of year 3.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Profit 100 100 100 100 100
Less: Depreciation 20 25 25 20 20
Profit After Depreciation 80 75 75 80 80
Less: Current Tax -32 -32 -32 -32 -32
Add/Less: Deferred Tax Assets/ (Liability) 0 2 2 0 0
Tax Expenses -32 -30 -30 -32 -32
Profit before other Comprehensive Income 48 45 45 48 48
other Comprehensive Income
Revaluation Surplus 20 0 -10 0 0
Add/Less: Deferred Tax Assets/ (Liability) -8 0 4 0 0
Net Revaluation Surplus 12 0 -6 0 0
Total Profit 60 45 39 48 48
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Revaluation Reserve: Opening Balance 0 12 9 0 0
Add: Creation 12 0 -6 0 0
Less: Transferred to retained earnings 0 3 3 0 0
Revaluation Reserve: Closing Balance 12 9 0 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 100 75 40 20
Less: Depreciation 20 25 25 20 20
Net Value 80 75 50 20 0
Revaluation 20 -10
Closing WDV 100 75 40 20 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 80 60 40 20
Less: Depreciation 20 20 20 20 20
Closing WDV 80 60 40 20 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening Balance -8 -6 0 0
Add/less -8 2 6 0 0
Closing Balance -8 -6 0 0 0
- Through Carrying Value 0 -6 -4 0 0
- Through Revaluation -8 0 4 0 0
- - - - -
Property,Plant Equipment Examples Drafted By CA Ajay Biwal
Statement of Profit & Loss and Other Comprehensive Income
Statement of Changes in Equity
Carrying Value of Asset
Tax Base of Asset
Deferred Tax Liability
8. Example 11
Profit before deprecation 100 per year. Asset 100. Income tax rate 40%. Depreciation (SLM) –
Financial 25%, Tax 20%. Fair value – 90 at the end of year 1; and 20 at the end of year 3.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Profit 100 100 100 100 100
Less: Depreciation 25 30 30 20 0
Profit After Depreciation 75 70 70 80 100
Less: Current Tax -32 -32 -32 -32 -32
Add/Less: Deferred Tax Assets/ (Liability) 2 4 4 0 -8
Tax Expenses -30 -28 -28 -32 -40
Profit before other Comprehensive Income 45 42 42 48 60
other Comprehensive Income
Revaluation Surplus 15 0 -10 0 0
Add/Less: Deferred Tax Assets/ (Liability) -6 0 4 0 0
Net Revaluation Surplus 9 0 -6 0 0
Total Profit 54 42 36 48 60
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Revaluation Reserve: Opening Balance 0 9 6 0 0
Add: Creation 9 0 -6 0 0
Less: Transferred to retained earnings 0 3 0 0 0
Revaluation Reserve: Closing Balance 9 6 0 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 90 60 20 0
Less: Depreciation 25 30 30 20 0
Net Value 75 60 30 0 0
Revaluation 15 -10
Closing WDV 90 60 20 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 80 60 40 20
Less: Depreciation 20 20 20 20 20
Closing WDV 80 60 40 20 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening Balance -4 0 8 8
Add/less -4 4 8 0 -8
Closing Balance -4 0 8 8 0
- Through Carrying Value 2 0 4 8 0
- Through Revaluation -6 0 4 0 0
Property,Plant Equipment Examples Drafted By CA Ajay Biwal
Statement of Profit & Loss and Other Comprehensive Income
Statement of Changes in Equity
Carrying Value of Asset
Tax Base of Asset
Deferred Tax Liability
9. Example 12
Profit before depreciation 100 per year. Asset 100. Income tax rate 40%. Depreciation (SLM) –
Financial 25%, Tax 20%.
Fair value – 90 at the end of year 1; 20 at the end of year 3 when life is increased by 1 year.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Profit 100 100 100 100 100
Less: Depreciation 25 30 30 10 10
Profit After Depreciation 75 70 70 90 90
Less: Current Tax -32 -32 -32 -32 -32
Add/Less: Deferred Tax Assets/ (Liability) 2 4 4 -4 -4
Tax Expenses -30 -28 -28 -36 -36
Profit before other Comprehensive Income 45 42 42 54 54
other Comprehensive Income
Revaluation Surplus 15 0 -10 0 0
Add/Less: Deferred Tax Assets/ (Liability) -6 0 4 0 0
Net Revaluation Surplus 9 0 -6 0 0
Total Profit 54 42 36 54 54
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Revaluation Reserve: Opening Balance 0 9 6 0 0
Add: Creation 9 0 -6 0 0
Less: Transferred to retained earnings 0 3 0 0 0
Revaluation Reserve: Closing Balance 9 6 0 0 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 90 60 20 10
Less: Depreciation 25 30 30 10 10
Net Value 75 60 30 10 0
Revaluation 15 -10
Closing WDV 90 60 20 10 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening WDV 100 80 60 40 20
Less: Depreciation 20 20 20 20 20
Closing WDV 80 60 40 20 0
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening Balance -4 0 8 4
Add/less -4 4 8 -4 -4
Closing Balance -4 0 8 4 0
- Through Carrying Value 2 0 4 4 0
- Through Revaluation -6 0 4 0 0
- - - - -
Property,Plant Equipment Examples Drafted By CA Ajay Biwal
Statement of Profit & Loss and Other Comprehensive Income
Statement of Changes in Equity
Carrying Value of Asset
Tax Base of Asset
Deferred Tax Liability