• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! Lectures for ACCA AAA September 2022 Exams are now available >>

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

deferred tax

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › deferred tax

  • This topic has 2 replies, 2 voices, and was last updated 3 months ago by sooha.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • February 28, 2022 at 10:45 am #649502
    sooha
    • Topics: 22
    • Replies: 23
    • ☆

    kindly help !
    HIGHWOOD
    The following trial balance relates to Highwood at 31 March 20X1:
    Current tax (note (iii)) Cr 800
    Deferred tax (note (iii)) Cr 2,600

    Current tax represents the under/over provision of the tax liability for the year ended
    31 March 20X0. The required provision for income tax for the year ended 31 March
    20X1 is $19.4 million. The difference between the carrying amounts of the assets of
    Highwood (including the property revaluation in note (ii) above) and their (lower) tax
    base at 31 March 20X1 is $27 million. Highwood’s rate of income tax is 25%.

    revaluation goes like that
    land 5000 & property 10000

    * my question is when i want to calculate the tax that i should deduct from revaluation surpluses and the tax charge to SPL why should i include the land since there is no depreciation on it and the deferred tax come from the deference between the depreciation and capital allowance

    why is goes like this by including the land ??
    – as the revaluation surplus is 11250
    – tax charge to SPL is 400

    March 3, 2022 at 7:18 pm #649757
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6119
    • ☆☆☆☆☆

    Hi,

    The deferred tax does not come from the difference between the depreciation and the capital allowances. This is thinking under the old standard’s rules. We now look at the carrying value of the asset and compare this to the carrying value to get the temporary difference, hence why the land value will have been included.

    Thanks

    March 5, 2022 at 8:23 pm #649941
    sooha
    • Topics: 22
    • Replies: 23
    • ☆

    many thanks ^^

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • praveenmasih on PPE – revaluation upwards – ACCA Financial Reporting (FR)
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • nojwwnolife on The nature and structure of organisations – ACCA Paper BT
  • John Moffat on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy