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Chemclean dec/15 q

ZZainb8y ago
I didnt understand part b .. Non recurring items Could u make a general points or summary for answering ? Plz. I did read the examiner answer but still not clear for me
ZZainb8y ago#1
In part c) for same question How did we got the figure 53.3 million profit . That chemclean have to recognize?
P2-D2P2-D2Tutor8y ago#2
Hi, In the question they have included a 'non-recurring' item, so something that will not arise again but this is not allowed per IAS 1. The 53.3 million comes from 16 / 0.3 (tax rate), the reason being that if we made a profit of 53.3 million and paid tax at 30% then the tax would be 16 million that we can then use the deferred tax asset against. Thanks
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