Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Mini exercises deferred tax q10 p208
- This topic has 3 replies, 2 voices, and was last updated 8 years ago by MikeLittle.
- AuthorPosts
- May 23, 2015 at 10:41 pm #248242
Hi mike
I will be finished these mini exercises after this one! 🙂
Can you let me know why in your solution you send the deferred tax 1800 charge for the year to the current tax account and then transfer it all to the income statement from there? Is this just the way it is or is there a thinking behind it?
My version of it was
Dr I/S 1800 (deferred tax)
Cr Deferred Tax 1800Dr I/S 24300 (current tax)
Cr Current Tax 24300Where you did this
Dr Current Tax 1800
Cr Deferred Tax 1800Dr I/S 26100
CR Current Tax 26100We get the same answer (I think), is it that there is no need to send two amounts to the income statement for taxaxation so its neater to transfer it from the current tax account?
Cheers
Hugh
May 24, 2015 at 8:42 am #248278According to the IAS the movement in the deferred tax shall be shown as “part of the tax charge for the year”
May 24, 2015 at 9:35 am #248300Cheers
May 24, 2015 at 9:36 am #248304Welcome
- AuthorPosts
- You must be logged in to reply to this topic.