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Income taxes

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Income taxes

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 31, 2018 at 1:20 pm #480340
    mika84
    Member
    • Topics: 99
    • Replies: 149
    • ☆☆☆

    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.

    November 3, 2018 at 7:11 am #483631
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7212
    • ☆☆☆☆☆

    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

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