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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Income taxes
Please could you assure that my understanding is right, in your video of Ex.4 – Accelarated capital allowance p.61 you explain SFP and SPL entries.
Is following correct:
SFP
Noncurrent liabilities:
Deferred tax -3500 -8625 -13969
SPL
Movement -3500
Expense
because our expenses increased from 0 to 3500
Movement -1625
Expense
because our expenses increased from 3500 to 5125
Movement-219
Expense
because our expenses increased from 5125 to 5344
Are only movements figures shown in SPL ?
Thank you.
Hi,
Yes, only the movement on the deferred tax balance is shown through profit or loss. Any increase in a liability is therefore an expense, as you’ve demonstrated correctly above.
Thanks