2012 Unit 5 Profit computation - s

Strictly profits will not arise for tax strictly

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Unformatted text preview: l completion of the contract. 29 Con’t Con’t However, if the accounts adopted the However, recommendation of HKAS 11 of including some HKAS profits or losses at various stages of the contract various then the tax computation may be based on those accounts. The accounting basis must be consistently followed and applied to all consistently contracts being carried out. 30 Valuation of Work in Progress on Valuation ( ) LT Contracts LT The recommendations contained in HKAS 11 on The recommendations valuation of work in progress on long term contracts will in general be admitted by the IRD (per DIPN 1 admitted (revised) Valuation and Ascertainment). Except the Except recommendation that a loss on a contract as a whole recognised in the accounts as soon as it is foreseen. 31 IRD’s View on Treatment of Foreseen Loss IRD considers that a proportion of the overall IRD proportion loss, calculated by reference to: loss, Time (normally up to the due completion date under the terms of the contract), or date Expenditure incurred May be taken into account year by year May year during the remainder of the contract period. during 32 HKSA 11 Construction HKSA Contracts ( ) Contracts When the out...
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This note was uploaded on 04/02/2013 for the course ECON 20222 taught by Professor Junelau during the Spring '13 term at City University of Hong Kong.

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