Alice Ltd has the following projected information: Year ended 31 December 2018 2019 2020 2021 Depreciation...
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Alice Ltd has the following projected information: Year ended 31 December 2018 2019 2020 2021 Depreciation £'000 4,800 960 2,340 6,720 Capital allowance £'000 960 Profit before tax £'000 14,040 12,480 10,320 10,080 1,920 2,880 1,920 There was no deferred tax balance as at 1 January 2018. Tax rates % 33% 33% 33% 33% e) Prepare the deferred tax computation worksheet for the years 2018 to 2021, if the tax rates are: 2018: 33%, 2019: 30%, 2020: 28%, 2021: 25%. Apply the liability method as prescribed by the accounting standards IAS 12. (20 marks) f) Based on the deferred tax computation in e), after the revised tax rates, show the relevant information on the extracts of the statement of comprehensive income and statement of financial position including the current and deferred taxes for the years 2018 to 2021 under the following methods: (i) Flow-through method (ii) Full provision method (10 marks) (20 marks) (Total 100 marks) Alice Ltd has the following projected information: Year ended 31 December 2018 2019 2020 2021 Depreciation £'000 4,800 960 2,340 6,720 Capital allowance £'000 960 Profit before tax £'000 14,040 12,480 10,320 10,080 1,920 2,880 1,920 There was no deferred tax balance as at 1 January 2018. Tax rates % 33% 33% 33% 33% e) Prepare the deferred tax computation worksheet for the years 2018 to 2021, if the tax rates are: 2018: 33%, 2019: 30%, 2020: 28%, 2021: 25%. Apply the liability method as prescribed by the accounting standards IAS 12. (20 marks) f) Based on the deferred tax computation in e), after the revised tax rates, show the relevant information on the extracts of the statement of comprehensive income and statement of financial position including the current and deferred taxes for the years 2018 to 2021 under the following methods: (i) Flow-through method (ii) Full provision method (10 marks) (20 marks) (Total 100 marks)
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Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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