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

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Tax estimate

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

  • This topic has 0 replies, 1 voice, and was last updated 1 year ago by alawi sayed.
Viewing 1 post (of 1 total)
  • Author
    Posts
  • July 7, 2021 at 12:24 pm #627156
    alawi sayed
    Participant
    • Topics: 153
    • Replies: 167
    • ☆☆☆

    Hello Sir,
    This a qusetion from Bpp Kit,

    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.
    What is the tax liability recognised in Jasper Orange Co’s statement of financial position for the year ended
    31 December 20X3?
    A $1 million
    B $2.4 million
    C $1.2 million
    D $3.6 million

    Their answer is
    134 C $1.2million
    $’000
    Prior year underprovision 700
    Current provision 4,500
    Movement of deferred tax (8.4 – 5.6) (2,800)
    Deferred tax on revaluation surplus (1,200)
    Tax liability for the year 1,20

    They are asking for Tax liability which goes to the SFP and usually this is estimate we get it from Tax authority ,but here why we deducted the deferred tax movement ,that usually that what we do for the tax expense when add the movements,

    as you said the deferred tax is internal calculation.

    when we say the directors have estimated the provision is it the same as saying the Tax authority has given the estimate.

    Thanks,

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

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

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

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

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

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • abdallah254 on FA Chapter 2 Questions The Statement of Financial Position and Statement of Profit or Loss
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • baraka42 on PM Chapter 13 Questions Standard Costing and Basic Variance Analysis

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy