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HI Mike!
I need your help for a question in the BPP kit.
The following information relates to an entity.
(i) At 1 January 20X8 the carrying amount of non-current assets exceeded their tax written down value by
$850,000.
(ii) For the year to 31 December 20X8 the entity claimed depreciation for tax purposes of $500,000 and
charged depreciation of $450,000 in the financial statements.
(iii) During the year ended 31 December 20X8 the entity revalued a property. The revaluation surplus was
$250,000. There are no current plans to sell the property.
(iv) The tax rate was 30% throughout the year.
What is the provision for deferred tax required by IAS 12 Income Taxes at 31 December 20X8?1.The answer is $345,000
2. The working in the book makes life complicated.
3. Please help !Put in some imaginary figures!
2,000,000 carrying value brought forward
( 450,000) depreciation
250,000 revaluation
1,800,000 carrying value carried forwardSo far as the taxman is concerned …
1,150,000 tax wdv brought forward
( 500,000) capital allowances this year
650,000 tax wdv carried forwardCarrying value exceeds tax wdv by 1,150,000
1,150,000 @ 30% = 345,000
Is that any better for you?
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