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

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

tax charge or credit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › tax charge or credit

  • This topic has 1 reply, 2 voices, and was last updated 8 hours ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 31, 2025 at 10:11 am #718610
    zainab4321
    Participant
    • Topics: 7
    • Replies: 4
    • ☆

    At 1 January 20X8, Clarinet Co had an estimated income tax liability of $2,350. This liability
    was settled by a payment of $2,050 made In March 20X8. Due to challenging trading
    conditions, Clarinet Co made a loss for the year ended 31 December 20X8 and expects to
    recover a repayment of income tax of $2,120 during 20X9.
    What amounts should be included in Clarinet Co’s financial statements for the year ended
    31 December 20X8 for income tax?
    Statement of profit or loss
    $2,420 tax charge
    $2,120 tax credit
    $2,420 tax credit
    $1,820 tax charge

    Statement of financial position
    $1,820 tax recoverable asset
    $2,120 tax payable
    $2,120 tax recoverable asset
    $2,120 tax recoverable asset

    i understand the sofp figure should be 2120 tax rec asset
    but what should be the sopl figure i cannot figure out what working do we do to find that

    August 1, 2025 at 9:13 am #718617
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54718
    • ☆☆☆☆☆

    The question states that they expect to receive a repayments of 2,120 and so this is a receivable in the SOFP.

    As at 1 Jan 20X8 the estimated that they owed 2,350. It turned out that they only owed 2,050 and so they had overcharged an expense of the difference of 300. This is corrected at the end of 20X8 and so they will show tax income in the SOPL of 300 together with the repayment expected of 2,120 – so a total of 3,420 credit.

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

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • finance123 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • finance123 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • John Moffat on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • John Moffat on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • finance123 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in