Tuesday, September 15, 2009

Fun time baby

What's an auditor?
Someone who arrives after the battle and stabs all the wounded.

"A fool and his money are soon audited"


What's the most wicked thing a group of young accountants can do?
Go into town and gang-audit someone.


What did the terrorist who hijacked a plane full of accountants threaten to do if his demands weren't met?
Release one every hour.

What does an accountant say when you ask him the time?
It's 9.18 am and 12 seconds; no wait - 13 seconds, no wait - 14 seconds, no wait......

Why did the accountant stare at his glass of orange juice for three hours?
Because on the box it said Concentrate.

Why was the accountant so excited that he completed a jigsaw puzzle in only 59 weeks?
Because on the box it said 8-12 Years.


The accountant was visiting the Museum of Natural History and said to the person standing next to him, "That dinosaur is two billion years and ten months old."

"How did you get such exact information?"

"I was here ten months ago and the guide said the dinosaur was two billion years old."


How do you know accountants have no imagination?
They named a firm PricewaterhouseCoopers.

If an accountant's wife can't get to sleep, what does she say?
"Tell me about work today, dear"

How does an accountant make a bold fashion statement?
He wears his grey suit instead of the blue

What does CPA stand for?
Can't Produce Anything

What does FCPA stand for?
Finally Caught Pinching the Assets


Who was the first accountant?
Adam. He got interested in figures, turned the first leaf, made the first entry, lost interest after withdrawal, buggered up the monthly accounts and raised the first liability


An accountant is having a hard time sleeping and goes to see his doctor.
"Doctor, I just can't get to sleep at night."
"Have you tried counting sheep?"
"That's the problem - I make a mistake and then spend three hours trying to find it."


"The auditors have just left, sir."

"Did they check the books?"

"Very thoroughly."

"What did they say?"

"They want 15% to keep quiet."



A lady goes to see her doctor with some worrying symptoms and he examines her.

"I'm sorry," he says "but it's bad news.  You have only six months to live."

The patient says, "Oh Doctor. That's terrible.  What should I do?"

The doctor says, "I advise you to marry a Nepali CA."

"Will that make me live longer?"

"No," says the doctor. "But it will seem longer."

An accountant is in a car travelling with a farmer client around his farm.

They pass a large mob of sheep and the farmer says, "You're pretty good with numbers, Bijay  How many sheep do you reckon are in that paddock?"

The accountant looks at the sheep for a moment and says, "One thousand, eight hundred and thirty two."

The farmer is amazed. "Exactly right", he says. "How did you work that out so fast?"

"Easy," says the accountant "I counted the number of feet and divided by 4."



The managing partner in an accounting firm is very annoyed with one of his junior partners and has called him in to chastise him.

"How could you possibly advise the client in the way you did? That was completely unethical. We are always conscious of Ethics in this firm.  You do know what Ethics is don't you?"

The young partner is offended. "Of course I know what Ethics is.  It's a county in southern England."



The doctor comes to see his heart transplant patient.

"This is good news.  It is very unusual, but we have two donors to choose from for your new heart."

The patient is pleased.  He asks, "What were their jobs?"

"One was a teacher and the other was an accountant."

"I'll take the accountant's heart," says the patient.  "I want one that hasn't been used."



Saturday, September 12, 2009

Expert director

BAFIA, umbrella act of banks and finance companies, chapter 3, section 12 subsection (2) asks for independent expert director to be appointed for banks and financial institutions. But in most of banks and finance we do not find such provision to be complied.

Major Challenge for compliance:- the list of professional is maintained by NRB, many Banks and finance give reason, that even they wish to appoint independent expert director, they can't because of unavailability of such professionals.

Solution :- in my opinion NRB should include more professional in the expert list so that banks and finance will not escape the compliance of this provision…




Wednesday, September 9, 2009

Tax expense- helps to understand deferred tax

At its simplest, a company's tax expense, or tax charge, as it sometimes called, is computed in by multiplying the income before tax number, as reported to shareholders, by the appropriate tax rate. In reality, the computation is typically considerably more complex due to things such as expenses considered not deductible by taxing authorities ("add backs"), the range of tax rates applicable to various levels of income, different tax rates in different jurisdictions, multiple layers of tax on income, and other issues.[1]

Historically, in many places, a revenue-expense method was used, in which the income statement was seen as primary, and the balance sheet as secondary. Under International Financial Reporting Standards, as well as many other accounting principles, tax expense is the result of computing current and deferred tax payable using the asset-liability method in which the balance sheet is seen as primary and the income statement as secondary. The new approach in the United States was codified in SFAS 96 published in December 1987, and updated in February 1992 with SFAS 109, accounting for income taxes from a balance-sheet approach. See List of FASB Pronouncements.

Current tax payable is computed by multiplying the taxable income number, as reported to the tax authorities, by the appropriate tax rate. As with tax expense, the computation is made more complex by the range of tax rates that are applicable to various levels of income and the various deductions and adjustments that the tax authorities allow.

In the United States, the U.K. and elsewhere, companies are permitted to report one pre-tax income number called income before tax to shareholders, and another, called taxable income, to the tax authorities. The result is a gap between tax expense computed using income before tax and current tax payable computed using taxable income. This gap is known as deferred tax. If the tax expense exceeds the current tax payable then there is a deferred tax payable; if the current tax payable exceeds the tax expense then there is a deferred tax receivable.

In the long run, income before tax and taxable income will likely be equal. If the one is less in earlier years, then it will be greater in later years. Deferred taxes will reverse themselves in the long run and in total will zero out, unless there is something like a change in tax rates in the intervening period. A deferred tax payable results from a tax break in the early years and will reverse itself in later years; a deferred tax receivable results from more taxes being paid in early years than the tax expense reported to shareholders and will again reverse itself in later years. The deferred tax amount is computed by estimating the amount and the timing of the reversal and multiplying that by the appropriate tax rates.

Hey guys lets all make research about deferred tax and share our views in blog,,,,