ABC plcs accountants have prepared the following IFRS income statement summary for the year ended 31 December
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Question:
ABC plc’s accountants have prepared the following IFRS income statement summary for the year ended 31 December 20X1:
(Amounts in £)
Revenue 20,000
Expenses (excluding tax) (18,000)
Profit before tax 2,000
The following information is available about ABC’s profit before tax:
Revenue includes a government grant of £1,500, which is not taxable. Expenses include fines of £1,000 paid by ABC plc during the period. The government does not allow tax-deductibility of fines.
The tax rate for the period is 20%.
What is the current tax expense reported on ABC plc’s P&L for the year ended 31 December 20X1?
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
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