Hi this comment is in relation to the deferred tax 2nd cima lecturer video from 17.40 mins onwards.
I posted the question here- https://opentuition.com/cima/cima-f2/cima-f2-taxation-ias-12-deferred-tax-example/
but was told to post it in the ask cima tutor sections.
"Hi. Great video… you just lost me towards the end.
What do you mean you see the benefit of a 1 million pound depreciation? Because you say that the 1 million depreciation reduces profit to 2million… but the 2 million figure was given.. so how did you go from 5 million for the plant and equipment to 2 million profit? it gives us the profit figure.. it does not show us how to go from 5million to 2 million profit.
you also mention that the tax charge is 400? where did you get this from? I can only see 400m in x7 when we calculate the temp difference for x7… why did you say this was the tax charge?
CIMA Forums
Deferred Tax
9y ago#1Hi,
Thanks for the kind comment. The profit figure is not related to the figure for PPE, so there is no way of adjusting the 5 million to the 2 million.
In saying that we see the benefit of the 1 million depreciation charge, we're referring to the fact that if the take 20% of the 2 million profit we get the tax charge of 400k.
Are you studying CIMA F2 or ACCA F7?
Hope this helps.
Thanks
thanks yes that helps. I am studying cima.. but post questions under acca also. I post here from now on
normally I post under F7.. since more students visit that page and can help me if there is a delay in a tutors response. essentially they are the same topics F7 and cima F2. I prefer to post under ACCA.. but will sometimes post here
9y ago#4Hi,
I think it's best if you keep posting your questions here and use the CIMA F2 videos in your studies.
Thanks
ok will do ;-)
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