Legal Entity Controller Interview Questions and Answers

Deferred taxes are taxes that are recognized in financial statements but not yet paid to the tax authorities.

• Deferred taxes arise due to differences in accounting methods and tax regulations.

• They can be either deferred tax assets (taxes paid in advance) or deferred tax liabilities (taxes owed in the future).

• Deferred tax assets can include items like tax credits or operating losses that can be used to offset future tax liabilities.

• Deferred tax liabilities can arise from items ...read more

Derivatives are financial instruments whose value is derived from an underlying asset or group of assets.

• Derivatives can be used for hedging, speculation, or arbitrage

• Common types of derivatives include options, futures, forwards, and swaps

• Derivatives can be traded on exchanges or over-the-counter (OTC)

• They can be used to manage risk or to leverage investment opportunities

The numbering of SA refers to the sequential numbering of statutory accounts.

• SA numbering is important for tracking and referencing financial statements.

• Each set of statutory accounts should have a unique number for identification purposes.

• Sequential numbering helps in maintaining a chronological order of financial reports.

• For example, SA001, SA002, SA003, etc.