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Good afternoon, I wonder fi you would be able to advise on the following please – it is probably a simple answer or assumed knowledge, but try as I might I cannot work it out. On consolidated cash flow answers sometimes there are both income tax paid (sofp and i/s entry) and income tax payable line (just i/s), and some answers there is only a tax paid line. Is there a fundamental reason why sometimes you make one entry and sometimes both? thank you in advance
Just wanted to say also thank you so much for all the free help given on your website – love the lectures
Thanks for the last comment 🙂
Now, the question….I don’t understand why there are all these entries in the I/S and SoFP in the ANSWERS
We need the amounts payable brought forward and carried forward which, when combined with the tax CHARGE will give you the amount for the tax actually PAID.
But there’s only one line in the answer for tax ….and it’s the amount of cash actually paid.
Can you point me in the direction of the answers which show Cash Flow Statements with “both income tax paid (sofp and i/s entry) and income tax payable line (just i/s),”
Hi Mike – thanks so much for taking time to reply. I am owning up to having made a mistake in my question (oops) it is interest paid and payable I meant to say. Examples are in the question, ‘Topiary’ on p 428 of the BPP book, and also on past paper questions such as Warrburt (12/08) and Jocatt (12/10). I’ve had a few years away from study and have forgotten all my ‘assumed knowledge’ ha 🙂
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