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At 30 Sep, A has non-current assets with carrying value of $1,100,000 but a tax written down value of $700,000.
the brought forward balance on the deferred tax account is $300,000, tax rate 30%
Compute deferred tax at 30 Sep??- Topics: 0
- Replies: 27
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Deferred tax = Temporary difference x Tax rate
= $400,000 x 30%
In this case, ‘cos Carrying value in Tax base ($700,000) < Carrying value in Accounting treatment ($1,100,000), it is Deferred tax liabilityYou right, but can you make it clearer by show us how your accounting treatment impact the income statement at 30 Sep, thanks
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- Replies: 3
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In this case, the Temp Tax Difference is 400k. As Trangdh mentioned, as NBV is greater than the TWDV, a deferred tax liability arises.
At 30 Sep, the B/S figure for Deferred Tax should therefore be 400k x 30% = 120k
As Deferred Tax brought forward from last year is 300k, you must decrease this to 120k, with the corresponding entry going to the Income Statement.
i.e. Dr B/S Deferred Tax 180k
Cr I/S Tax Charge 180k- Topics: 0
- Replies: 27
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Hi Dragon,
Your question is lack of information to answer. Or I find it unclear to understand 🙂1. What is the starting day and end of period? ‘cos I cant understand 30/9 is the first day or last day of year.
2. “the brought forward balance on the deferred tax account is $300,000” –>
The brought forward balance at which time, which day? ‘cos it can be brought forward from last year or this yearPls make it clearer and we can find answer easier
Hi Trang, the answer of Ed1982 is the right answer, I got some query relavant to Deferred tax, but do not know how to express it, I ‘d better contact to your phone later :))
At 30 April 20X3 the non-current assets of Shades have a carrying amount of $365,700 and a tax written down value of $220,000. The credit balance brought forward on the deferred tax account at 1 May 20X2 was $33,000. The tax rate is 25%.
What is the balance on the deferred tax account at 30 April 20X3? (Answer in $ in the Answer box)
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