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I have some case studies about the treatment of current tax and deferred tax, please help me. Assume that the company had accounting profit before tax is $100 million.
1. ABC operates a defined benefit plan. The fair values of plan assets were $216 million at 31 March 2021 and $228 million at 1 April 2020. The present values of plan obligations were $251 million at 31 March 2021 and $243 million at 1 April 2020. Employees earned entitlements of $25 million during the year. The terms of the plan were amended during the year, increasing the present value of the obligation by $12 million. Chalice contributed $5 million to the plan during the year and the yield on high quality corporate bonds was 6% at 31 March 2021 and 4% at 1 April 2020. Plan members received $3 million of benefits during the year.
2. ABC entered into a non-cancellable contract to rent machinery to an external party for 3 months, from 1 March 2021. The agreed rent was $5 million per month payable in full at commencement of the contract, on 1 March. Chalice recognised $5 million income received as at 31 March 2021 and accrued the balance.
Please let me know which ACCA exam this is from and be much more specific with your question, stating what you think the answer is and what the examiner said it is.
(I guess you know but you have posted this in Ask the Tutor, not the general forum).