- This topic has 4 replies, 2 voices, and was last updated 5 years ago by
.
- Posts
Sir I got a little confused here..
DEFERRED TAX PROVISION
Opening balance 689
Decrease in provision (134)
Closing balance. 555TAX PAYABLE
Opening balance 2989
Closing balance. 4278Tax charged in SOPL 2038
In kaplan text the reconciliation is done like this
Opening (2566+689) = 3255
P&L. +2038
Tax paid (balance). (1016)
Closin bal(3722+555)= 4277My ques is.. Why the decrease in provision is not taken into account in reconciliation ? Also the decrease in provision should be added back to Profit before tax in CFS because its a non cash adjustment..but it has not been added in book.
If we take into account the decrease in provision then the tax paid comes to 882. What is correct ?
ThanksI would have added together the 2 opening balances 689+2989
Added on the SPLOCI charges 2038 + anything in the OCI
Compared to the closing balances 555 + 4278
Balance would be cash paidRe your other question operating leases no longer exist in lessee accounting
Re: que2, sorry i meant how will be the cash flows for operating lease be classified from the lessee’s point of view.
- The topic ‘Deferred tax (cash flow statement)’ is closed to new replies.