Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA FA

tax liability

AAndy5y ago
Income tax (remaining balance from previous year) $10 Sir the effect of the afforementioned sentence was that it was added to Income tax of this year and deducted from statement of profit or loss. This effect on income statement is pretty much understood by me. But what i dont understand is that why was this $10 not shown in the balance sheet, when its a liability still left to be settled? I understand it may been shown in the last year's balance sheet but what about the fact that its unpaid and a current liability to this date, so why not include in this year's BS too? thanks in advance!
John MoffatJohn MoffatTutor5y ago#1
Presumably it was paid this year and therefore there is nothing to show as owing at the end of this year.
Sign in to reply to this topic.