Cash flow statements – Decrease in provisions of defrred tax

Hi,

I did a question in the Kaplan text book in regards to cash flows where there was a decrease in the provisions of deferred tax liability of $134.

Normally i would have deducted the $134 from the profit before tax under cash flows from Operating activities and used that amount to calculate the tax paid also….but the answer in the book did not do so. They did not deduct the decrease in provisions under Operating activities and did not include it in the calculation to calculate tax paid.

But however it is done the same answer is arrived at. See an example below:

My way:
Profit before tax $2,000
– decrease in provision ($134)
– Tax paid ($1000)
Cash flow will equal to $866

Book’s way:
Profit before tax $2,000
– decrease in provision (-)
– Tax paid ($1134)
Cash flow will equal to $866

I want to know if doing both ways are ok or one of the ways only (If so which one).

Thank you,

Lanna