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Deferred tax

IIlham4y ago
Jasper Orange Co's trial balance at 31 December 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 $4.5 million and the required deferred tax provision is $5.6 million, $1.2 million of which relates to a property revaluation. Why do we remove the 1.2 million from the total tax liability for the year?
P2-D2P2-D2Tutor4y ago#1
The deferred tax on the 1.2 million goes through OCI and not through profit or loss, hence why it is removed. Thanks
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