What is a non-cash expense?
Non-cash expenses are such expenses that do not involve real cash outlay or against which no real cash outflow has taken place at least in the period in which such expense has been reported. And as they are recognized as an expense they will cause entity’s retained earnings to decrease but such expenses will not […]
What does Section 475 of UK’s Companies Act 2006 deals with?
Section 475 of the Companies Act 2006 requires Companies (such companies which qualify the definition of Companies under UK’s Companies Act 2006 only) are required to have their annual accounts audited unless it is exempted in accordance with the provisions of Companies Act 2006. In simple words the following companies are not required to have […]
How WWF and WPPF amounts are calculated?
The provisions regarding calculation of Worker’s Welfare Fund are given in section 4 of Worker’s Welfar Fund Ordinance, 1971. Whereas, the provisions related to calculation of Worker’s Participation Fund are given in section 3 of Companies Profits (Workers’ Participation) Act, 1968. According to Worker’s Welfar Fund Ordinance, 1971, every industrial establishment shall contribute to Worker’s Welfare Fund […]
What is meant by ‘net of’ in accounting or tax and other business related subjects?
The expression ‘net of’ represents the exclusion of something from a particular sum. For example net of tax means the resultant amount which is exclusive of tax or in other words the amount we get after deducting tax is net of tax amount. We can see its uses in wide variety of ways in accounting […]
