The draft income statement of entity D, a public company, for the year ended 31 March 2009
Question:
The draft income statement of entity D, a public company, for the year ended 31 March 2009 shows an income tax expense of EUR 110,000. The draft balance sheet shows a non-current liability of EUR 560,000 for deferred tax but does not show a current tax liability.
Tax on the profit for the year ended 31 March 2009 is estimated at EUR 520,000. The figure in the draft income statement is the underprovision for the year ended 31 March 2008. The carrying amount of entity D’s net assets at 31 March 2009 is EUR 2.8m more than their tax base on that date. The tax rate is 25 per cent.
Restate the figures which should appear in relation to taxation in the entity’s income statement for the year ended 31 March 2009 and in the balance sheet at that date.
Step by Step Answer:
Advanced Financial Accounting An International Approach
ISBN: 9780273712749
1st Edition
Authors: Jagdish Kothari, Elisabetta Barone