PR-A5 Below is a list of relevant legislation, regulations or standards that may affect the preparation of financial

Question

PR-A5 Below is a list of relevant legislation, regulations or standards that may affect the preparation of financial statements for a non-reporting entity. Provide a description of each key feature in no more than three (3) sentences each Key feature Description Reporting entity concept Taxation of non- reporting entities AASB 101 Presentation of Financial Statements Good and Services Tax (GST)

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Key Feature Description Reporting Entity Concept When there are users who are dependent on the general purpose financial statements to gain an understanding of the financial position of the entity, and also its performance, such an entity is called as reporting entity. Taxation of non reporting entities Non reporting entities prepare special purpose financial statements. Hence they have concession for the tax purposes, as all the rules which apply to entities preparing general purpose financial statements don’t apply to entities preparing special purpose financial statements. AASB 101 Presentation of Financial Statements It has been made by Australian Accounting State board under section 334 of the Corporation Act, 2001. This standard enumerates overall requirements and basis for the presentation of General purpose financial statements. Goods and service tax (GST) It is a type of Indirect tax which is levied on certain Goods and Services. It is also called as value added tax. It is collected by the consumers and remitted to the government by the business entities who sell such goods or services.

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PR-A5 Below is a list of relevant legislation, regulations or standards that may affect the preparation of financial statements for a non-reporting entity

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Archived Solution

Key Feature	Description
Reporting Entity Concept	When there are users who are dependent on the general purpose financial statements to gain an understanding of the financial position of the entity, and also its performance, such an entity is called as reporting entity.
Taxation of non reporting entities	Non reporting entities prepare special purpose financial statements. Hence they have concession for the tax purposes, as all the rules which apply to entities preparing general purpose financial statements don’t apply to entities preparing special purpose financial statements.
AASB 101 Presentation of Financial Statements	It has been made by Australian Accounting State board under section 334 of the Corporation Act, 2001. This standard enumerates overall requirements and basis for the presentation of General purpose financial statements.
Goods and service tax (GST)	It is a type of Indirect tax which is levied on certain Goods and Services. It is also called as value added tax. It is collected by the consumers and remitted to the government by the business entities who sell such goods or services.