9. Chicken Wings Company's profit before tax for the six months to September 30, 2021, was P5,000,000. However, the business is seasonal and profit before tax for the six months to March 31, 2022, is almost certain to be P9,000,000. Profit before tax equals taxable profit for this company. Chicken Wings operates in a country where income tax on companies is at a rate of 30% if annual profits are below P11,000,000 and a rate of 35% where annual profits exceed P11,000,000. These tax rates apply to the entire profit for the year. Under IAS 34 Interim Financial Reporting, what should be the income tax expense in Chicken Wings’ interim financial statements for the half year to September 30, 2021?
9. Chicken Wings Company's profit before tax for the six months to September 30, 2021, was P5,000,000. However, the business is seasonal and profit before tax for the six months to March 31, 2022, is almost certain to be P9,000,000. Profit before tax equals taxable profit for this company. Chicken Wings operates in a country where income tax on companies is at a rate of 30% if annual profits are below P11,000,000 and a rate of 35% where annual profits exceed P11,000,000. These tax rates apply to the entire profit for the year. Under IAS 34 Interim Financial Reporting, what should be the income tax expense in Chicken Wings’ interim financial statements for the half year to September 30, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9. Chicken Wings Company's profit before tax for the six months to September 30, 2021, was P5,000,000. However, the business is seasonal and profit before tax for the six months to March 31, 2022, is almost certain to be P9,000,000. Profit before tax equals taxable profit for this company. Chicken Wings operates in a country where income tax on companies is at a rate of 30% if annual profits are below P11,000,000 and a rate of 35% where annual profits exceed P11,000,000. These tax rates apply to the entire profit for the year. Under IAS 34 Interim Financial Reporting, what should be the income tax expense in Chicken Wings’ interim financial statements for the half year to September 30, 2021?
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