The other comprehensive income section shall present line items for amounts of other comprehensive income in the period, classified by nature and grouped into those that are in accordance with other PFRS/ 10. Statement 1: IFRS. An entity shall disclose the amount of income tax relating to each item in other comprehensive income, including reclassification adjustments, either in the statement of profit o loss and other comprehensive Statement 2: income or in the notes. Only the first statement is correct. a. b. Only the second statement is correct. C. Both statements are correct. d. Neither of the statements is correct.

The other comprehensive income section shall present line items for amounts of other comprehensive income in the period, classified by nature and grouped into those that are in accordance with other PFRS/ 10. Statement 1: IFRS. An entity shall disclose the amount of income tax relating to each item in other comprehensive income, including reclassification adjustments, either in the statement of profit o loss and other comprehensive Statement 2: income or in the notes. Only the first statement is correct. a. b. Only the second statement is correct. C. Both statements are correct. d. Neither of the statements is correct.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 8P

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10. Statement 1: The other comprehensive income section shall present line items for amounts of other comprehensive income in the period, classified by nature and grouped into those that are in accordance with other PFRS/ IFRS. An entity shall disclose the amount of income tax relating to each item in other comprehensive income, including reclassification adjustments, either in the statement of profit o loss and other comprehensive Statement 2: income or in the notes. а. Only the first statement is correct. b. Only the second statement is correct. С. Both statements are correct. d. Neither of the statenments is correct.
Under IAS 1 an entity must present a statement of profit or loss and other comprehensive income. Which of the following statements is true in respect of the other comprehensive income section? 1. Items should be grouped into those that may subsequently be reclassified to profit or loss and those that will not subsequently be reclassified to profit or loss. 2. All items must be shown inclusive of income tax 3. Extraordinary items should be listed separately with details of the nature of the item disclosed in the notes. Please select the right answer. All of the above 1 and 2 only 2 only 1 only
Which of the following statements best describes the income tax expense recognised in an entity’s income statement according to IAS 12? a. The income tax related to the accounting profit (pre-tax) for the period b. The income tax related to the taxable profit for the period c. The income tax paid in cash during the period d. The product of the applicable tax rate and the taxable profit for the period
describe the diff erences between accounting profi t and taxable income, and defi ne key terms,including deferred tax assets, deferred tax liabilities, valuation allowance, taxes payable, andincome tax expense;
Which of the following refers to the elements of Comprehensive Income? a) Net Income, Interest Payments and Income Tax Payments b) Retained Earnings and Other Comprehensive Income c) Net Income and Other Comprehensive Income d) Sales and Other Comprehensive Income
Indicate the type of Deferred Tax account created by Prepaid Expenses and Accrued Revenues, respectively. Select one: O a Asset Asset Ob. Liability, Liability Oc Asset, Liability O d. Liability, ASset
Additional disclosures are required pertaining to the income tax expense reported in the income statement. Whatare the needed disclosures?
Which of the following statements is not in accordance with AASB 101 Presentation of Financial Statements with respect to the statement of profit or loss and other comprehensive income? An entity shall not present any items of income or expense as extraordinary items, in the statement of profit or loss and other comprehensive income or the separate income statement (if presented), or in the notes. An entity shall disclose the amount of income tax relating to each component of other comprehensive income, including reclassification adjustments, either in the statement of profit or loss and other comprehensive income or in the notes. As a minimum, the statement of profit or loss and other comprehensive income shall include line items of each component of other comprehensive income classified by nature. An entity shall recognise all items of income and expense in a period in profit or loss unless an Australian Accounting Standard requires or permits otherwise,…
PROBLEM 3: EXERCISES 1. Park Co. has the following information for the current year: Pretax income 900,000 Penalty on late filing of income tax return Interest on borrowings incurred to acquire tax- 30,000 exempt securities Interest income on government securities Excess of tax depreciation over book depreciation Excess of revenue recognized over taxable income Excess of provision over actual expenditures Advanced rent received (taxable upon receipt) Unrealized loss on change in fair value of investment Temporary differences as at the beginning of the year 3,000 9,000 60,000 45,000 54,000 12,000 18,000 Income tax rate 30%
1. Which statement is true about intraperiod tax allocation? a. It arises because certain revenue and expense items appear in the income statement either before or after they are included in the tax return b. It is required for the cumulative effect of accounting changes but not for prick period adjustments c. The purpose is to allocate income tax expense evenly over a number of accounting periods d. The purpose is to relate the income tax expense to the items which affect the amount of tax 2. Which temporary difference would result in a deferred tax asset? a. Tax penalty or surcharge b. Dividend received on share investment c. Excess tax depreciation over accounting depreciation d. Rent received in advance included in taxable income but deferred for financial accounting 3. Which temporary difference would result in a deferred tax liability? a. Interest revenue on municipal bonds b. Accrual of warranty expense c. Excess tax depreciation over…
Choose the letter of the correct answer.
Accounting profit is O A. The The profit or loss is for a period determined before deducting in accordance tax expense O B. The profit or loss is for a period determined in accordance with tax law C. The profit or loss after for a period after deducting tax expense O D. The profit or loss after current tax expense determined accordance with tax law