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Some queries about the Examiner Answer
1.Q4 part (b) , why the answer will be related to part (a) management Commentary? is it because the question asks to explain to investor or usually question 4 will be interrelated?
‘Tax reconciliation’
2. What are the effective tax rate and statutory rate in the question? How to differentiate the tax rates in the question?
‘Deferred taxation’
3. The reversal of DTA that have a cash tax impact, is it refers to pay lesser tax when it’s the reverse?
Thank you.
1. Management commentary is relevant for all questions in the exam. I’m sure that none of the candidates mentioned it.
2. Actual rate = determined by legislation; effective rate is tax/PBT x 100.
3. You are correct – if DTA asset reverses, it means less tax to pay in future.
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