You are truly gifted. I will inform the lecturers in my college to pass the word around so you will get more views. Thank you for your contribution to the accounting world
I am glad you found it useful. We are working on getting out much more content like this with the "IFRS principles" free on you tube, and paid for courses on tabaldi.org.
I couldnt quite grasp the concept, of the tax base of assets, in my study book. Thank goodness for this video. Great presentation, made it a lot easier to understand, and you spoke so well.
gezzie123456789 So glad we could help. We have our full course on IAS 12 up including some more complex issues such as assessed losses and changes in tax rate. www.tabaldi.org or if you prefer udemy search for IAS 12 on www.udemy.com
Thank you Laurent De Decker for your comment. We are please that you found our video lessons so helpful. Best wishes with all your studies. The Tabaldi Team
Thank you so much, the presentation is expressed in such a way that goes thru my mind and comprehend completely. I am doing CPA and doing Financial Reporting paper and realized IAS is full with jargon and difficult to understand. You bagged another token of appreciation from NZ. Keep it up mate.
Thank you Kashyapi Palicha for your comment, we are please you benefited from our videos, and appreciate you took time to post a comment. Best wishes for your future studies this new year. The Tabaldi Team
Hi Raju, we are going to try and put up a "Practical IFRS" course one of these days that will include excel and programs such as Caseware. Great suggestion, thanks
Hi Richard, Very well explained. But I think there is one typo error on slide 2 definition of an asset as per IAS 12 p7 - line 3 : its better to say "if those FEB will not be taxable, then TB=CA". What do you think?
Thank you so much, this short explanation video is useful for me! I have some questions about this tax base of asset. For the debtor (receivable) -100, how about if the debtor unable to pay the remaining 200. So, TB, TD and DT will be dif?
Hello. Many thanks for presentation. Just I got a qustion about the difference between future tax deductions and carring amount. Could you please make it clear for me?
Thank you for your comment Maanda Budeli We wish you well with your studies. For more comprehensive support and products view our site at www.tabaldi.org
Hi Adam.. the cost of the asset will be claimed as a deduction over time by means of wear and tear deductions (capital allowances). The tax base is the deductions that can be claimed in the future. The income we earn from the asset is totally separate from the tax base of the asset .
@@MrAlifadam The tax base of trade receivables is equal to the carrying amount because the future economic benefits are not taxable (revenue has already been taxed).
you mentioned the reason for considering the cash collection from debtors as non-taxable future economic benefit is that tax authority will tax us when we invoiced those cash receivable and they will not tax us again when we received the cash. It really confused me, sorry, because i was taught that tax office applies cash bases, so, for receivables, they will tax the actual amount we received. Could you please give me some detail explanation? thanks a lot
Hi JUN GE. Please note that the presenter was referring to the South African tax regime which may be different to your jurisdiction. In South Africa, the tax authorities levy income tax at the earliest of receipt or accrual. This means when the company invoices the customer, they are liable to pay tax on the invoiced amount. In future when the debtor makes payment, that receipt of cash will not be taxed a second time. Therefore in South Africa, cash collections from debtors are non-taxable future economic benefits.
Would you please explain about the second example about why is it when the economic benefits are not taxable, the tax base is still 1000, but not NIL? Thank you
Hi Will. This is in accordance with the definition of Tax Base of an asset. If you go back to it around minute 1.24 of the video, you will note that "if the economic benefits will not be taxable then the tax base is equal to the carrying amount". As the debtor payment will not be taxable, the tax base is therefore equal to the carrying amount of 1000 as per the IAS 12 par 7.
Thank you sir. I got it now. I appreciate if you could answer to my other question in your other video. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-gjdZBQ_YoSU.html
Hi Haider, What would be the reason for this? One I can think of is because of the provision for bad debts applied by the company is different from the provision for bad debts allowed by the tax authority in which case a higher carrying value of a provision would result in a deferred tax asset.
Hi. I don't think we covered Interest Receivable in this video. Generally, the tax base of a receivable will equal the carrying amount. Per IAS12.7, if the economic benefits of an asset are not taxable in the future (e.g. cash in the bank or trade receivables, because it has already been taxed), then the tax base is equal to the carrying amount. That's why there is no temporary difference.
@@TabaldiEducation hi, yes they said a new admin building was purchased for R2 000 000 , depreciated at 2% p.a . Residual value = R150 000 , and by wear and tear allowance = 0% , we were suppsed to find the carrying amount and the tax base so the 0% confused me
Hi Amjad, what we mean by tax deductible is that an amount will be deductible for your taxable income (tax profit) calculation, that is to say that an "expense" will be deductible when calculating your tax expense.
