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Deferred Tax

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Deferred Tax

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by AvatarMikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 14, 2016 at 9:03 pm #300452
    AvatarIbrahim
    Member
    • Topics: 41
    • Replies: 79
    • ☆☆

    Hi mike, help me out. A company`s trial balance at 31 march 20X3 shows a debit balance of $700,000 on current tax and a credit balance of $8,400,000 on deferred tax. the directors have estimated the provision for income tax for the year at $4.5m and the required deferred tax provision is $5.6m, $1.2m of which relates to property revaluation.

    the answer given is $1.2m

    what confused me is how to deal (using T format) with $1.2m of property revaluation which is included in $5.6.
    thanks

    February 15, 2016 at 8:14 am #300482
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    Credit deferred tax account $1.2m, debit revaluation reserve $1.2m

    February 15, 2016 at 8:40 am #300505
    AvatarIbrahim
    Member
    • Topics: 41
    • Replies: 79
    • ☆☆

    i am good to go now. thanks

    February 15, 2016 at 8:48 am #300509
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    You’re welcome

  • Author
    Posts
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