An Analysis of the Term Actually Incurred in Section 11(a) of Income T
An Analysis of The Term Actually Incurred In Section 11(a) of Income Tax Action
Act No 58 of 1962
A TECHNICAL REPORT TO BE PRESENTED TO THE DEPARTMENT OF ACCOUNTING UNIVERSITY OF CAPE TOWN
IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE BATCHELOR OF COMMERCE (HONOURS) DEGREE IN TAXATION
BY
PETER CRAWFORD STUDENT NO. CRWPET005 APRIL 1996
I certify that the report is my own work and all references used, are accurately recorded.
1.SYNOPSIS
Generally Accepted Accounting Practice includes statement AC000: Framework for the preparation and presentation of financial statements. This sets out broad and definitive rules governing the recognition of liabilities and income and expenditure in financial statements. Specifically the following paragraphs need to be considered:
Recognition of liabilities:
91. A liability is recognised in the balance sheet when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take place can be measured reliably...
Recognition of expenses:
94. Expenses are recognised in the income statement when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be measured reliably. This means in effect that recognition of expenses occurs simultaneously with the recognition of an increase or a decrease in assets
95. Expenses are recognised in the income statement on the basis of a direct association between the costs incurred and the and the
Act No 58 of 1962
A TECHNICAL REPORT TO BE PRESENTED TO THE DEPARTMENT OF ACCOUNTING UNIVERSITY OF CAPE TOWN
IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE BATCHELOR OF COMMERCE (HONOURS) DEGREE IN TAXATION
BY
PETER CRAWFORD STUDENT NO. CRWPET005 APRIL 1996
I certify that the report is my own work and all references used, are accurately recorded.
1.SYNOPSIS
Generally Accepted Accounting Practice includes statement AC000: Framework for the preparation and presentation of financial statements. This sets out broad and definitive rules governing the recognition of liabilities and income and expenditure in financial statements. Specifically the following paragraphs need to be considered:
Recognition of liabilities:
91. A liability is recognised in the balance sheet when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take place can be measured reliably...
Recognition of expenses:
94. Expenses are recognised in the income statement when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be measured reliably. This means in effect that recognition of expenses occurs simultaneously with the recognition of an increase or a decrease in assets
95. Expenses are recognised in the income statement on the basis of a direct association between the costs incurred and the and the