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The TB of Highwood at 31 March 20X6 showed credit balances of $800,000 on current tax and $2.6
million on deferred tax. A property was revalued during the year giving rise to deferred tax of $3.75 million.
This has been included in the deferred tax provision of $6.75 million at 31 March 20X6.
The income tax charge for the year ended 31 March 20X6 is estimated at $19.4 million.
What will be shown as the income tax charge in the statement of profit or loss of Highwood at
31 March 20X6?
$the question is What amount will be shown as tax payable in the statement of financial position of Julian at 31 December
20X4?
A $45,000
B $72,000
C $63,000
D $75,000BPP answer is A $45,000. The tax charge for the year.
The carrying amount of Julian’s property, plant and equipment at 31 December 20X3 was $310,000 and the tax
written down value was $230,000.
The following data relates to the year ended 31 December 20X4:
(i) At the end of the year the carrying amount of property, plant and equipment was $460,000 and the tax written
down value was $270,000. During the year some items were revalued by $90,000. No items had previously
required revaluation. In the tax jurisdiction in which Julian operates revaluations of assets do not affect the
tax base of an asset or taxable profit. Gains due to revaluations are taxable on sale.
(ii) Julian began development of a new product during the year and capitalised $60,000 in accordance with
IAS 38. The expenditure was deducted for tax purposes as it was incurred. None of the expenditure had been
amortised by the year end.
The corporate income tax rate is 30%. The current tax charge was calculated for the year as $45,000. May you now answer my question?here is the question. 191 The following information relates to an entity.
(i) At 1 January 20X8 the carrying amount of non-current assets exceeded their tax written down value by
$850,000.
(ii) For the year to 31 December 20X8 the entity claimed depreciation for tax purposes of $500,000 and
charged depreciation of $450,000 in the financial statements.
(iii) During the year ended 31 December 20X8 the entity revalued a property. The revaluation surplus was
$250,000. There are no current plans to sell the property.
(iv) The tax rate was 30% throughout the year.
What is the provision for deferred tax required by IAS 12 Income Taxes at 31 December 20X8?
A $240,000
B $270,000
C $315,000
D $345,000
Answer my question pleaseFor question 30, the gain on investment should be recorded in the statement of profit or loss since the shares are held for trading. however, the dividend received is an income. why is it not recorded in the statement of other comprehensive income?
for question 29, why are the transaction costs not removed from the value of the shares by 31 march 2004?
For question 28, why are non-current liabilities measured at amortised cost and not at fair value through profit and loss? they should be measured at FVTPL since convertible bonds contain rights in addition to the repayment of interest and principal( the right to convert the bond to equity). hence, they fail the contractual cash flow characteristic test and cannot be measured at amortised cost. moreover, must both the business model test and cash flow characteristic test be passed to measure an asset or liability at amortised cost?
For question 25, I think that the first answer is also right since the sale of the land is highly probable within 12 months of classification. Why is the first answer not right?
Hi sir for question 24 I do not understand how the lease rental expense figure is calculated. I think that there should be no lease rental expense since agreement ii) says no payment to be made in year one. may you please explain?
