Monthly Archives: April 2016

Cash & Cash Equivalents

PAS 7 – Statement of Cash flows Cash – most liquid assets, cash on hand and demand deposits unrestricted. Cash Equivalents – Short term highly liquid investments readily convertible to cash. *Presented as one line item in the balance sheet. … Continue reading

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Tax Credit and Filing of Donor’s Tax

Who can claim Tax Credit? Only Citizen or Resident Alien Donor Limitations on Tax Credit: 1st Limitation Foreign Taxable Net Gifts / Total Taxable Net Gifts  X Philippine Gift Tax 2nd Limitation Total Foreign Taxable Net Gifts / Total Taxable … Continue reading

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Exemptions from Gross Gift

If donor is a Citizen or Resident Alien; Dowries or gifts made on account of marriage amounting to 10 000 before the celebration or within one year therafter) given by the parents to each of their: Legitimate Child Recognized natural: … Continue reading

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Composition of Gross Gift

Citizen or Resident Alien Donor: Real Property within and without the Philippines. Tangible and Intangible Property within and without the Philippines. Not a Citizen or Non- Resident Donor: Real Property within the Phil. Intangible and Tangible Personal Property within Phil. … Continue reading

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Donor’s Tax

It is a tax on transfer without consideration of property between two or more persons who are living at the time of transfer Kinds of Donation Donation Inter Vivos – one made between living persons which perfected from the moment … Continue reading

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Philippine Framework for Assurance Engagement

Objective of Assurance Engagement is for a professional accountant to evaluate or measure a subject matter that is the responsibility of another party against identified suitable criteria, and to express conclusion that provides intended user with a level of assurance … Continue reading

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Goodwill

Determination of Goodwill: Specific Attributes Approach  specific attributes identified  and valued accordingly such as highly advantageous strategic locations,superior management team, outstanding sales organization and unusually good reputation. Indirect Valuation goodwill is the difference between the purchase price and fair  value … Continue reading

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