Free ACCA & CIMA online courses from OpenTuition

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

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>

Tax

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Tax

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 6, 2022 at 1:03 pm #673665
    minhnguyen@abc
    Member
    • Topics: 12
    • Replies: 16
    • ☆

    I don’t understand ” the tax base of net asset was 15 million less than their carrying amounts”
    Can you explain what is this mean?
    Thanks very much

    December 30, 2022 at 9:09 am #675212
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7060
    • ☆☆☆☆☆

    Hi,

    Yes, it is saying that if the carrying value was 45 million then the tax base is 30 (15 million less than the carrying amount). The 15 million is effectively the temporary difference that is then subject to calculating the deferred tax amount.

    Thanks.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.