Now you see it, now you do not: the case of jet airways and its accounting policies Case Solution
Question – 6
Differed tax liability is the future liability which the company has to pay to the authorities and as from the four years’ data from 2006 to 2009, profit was less and there were more deferred tax liability, so by submitting deferred tax liability from profit before tax; we will get profit after tax. Differed tax liability as an indirect relation with net profit, as the deferred tax liability has been increasing from 2006 and the net profit has been decreasing. (Chen, 2000)
Question – 7
An increase in the book value of the asset brings about an increase in all out assets and value and then reduces the leverage. The diminishing in the book value of the asset decreases the net gain. The diminishing in the carrying amount brings about a decrease in ROA and ROE in the specific year. The revaluation affected the profit and loss account of 2008 – 2009 as the loss increased from (2531) to (4023).(Altman, Predicting financial distress of companies:,: 2000)
Question – 8
The notification permits the organizations to underwrite loss and gains emerging from the repetition of monetary things (assets and liabilities) credited to check the showcase accounting. Trade distinction emerging from the adjustment in the trade rates on extended unfamiliar money advances for the procurement of depreciate fixed resources, which could have been utilized for the capital resource’s expense. The trade difference can be devalued over the existence of the resource. Other trade loss and gains can be gathered under a different record, i.e. "Unfamiliar Currency Monetary Item standards”, identifying with unfamiliar trade loss and gains for accounting periods initiating from December 2006 and leading to 2011. For example, if there is a trade loss during the accounting year 2008; the equivalent can be expanded for more than 3 years. (Ayers, 2009)........................
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