accaf7

e = Balance of DTA Item Carrying amounts / tax bases assets Prepaid expenses Future expenses Accrued revenues Nonfuture revenues liabilities Unearned revenues Future revenues Accrued expenses

is first identified. Then different accounting treatment are adopted. • Principle of substance over form should be applied. ( Assets are resources controlled by enterprises.) F7 17 Accounting for

t – Expenditure can be measured reliably. F7 18 Continued • Development costs once treated as an expense can not reinstated as an asset. • Development costs should be amortised over its useful life