draft financial statements for Impact Sdn Bhd for the year ended 31 March 2021 included the following: RM'000 Statement of comprehensive income (extract) Tax expense for year ended 31 March 2021 1550 Notes to the accounts: Under provision for 31 March 2020 100 Estimate of income tax for 31 March 20
draft financial statements for Impact Sdn Bhd for the year ended 31 March 2021 included the following: RM'000 Statement of comprehensive income (extract) Tax expense for year ended 31 March 2021 1550 Notes to the accounts: Under provision for 31 March 2020 100 Estimate of income tax for 31 March 20
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 18E
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Question
Corporate Accounting
- The draft financial statements for Impact Sdn Bhd for the year ended 31 March 2021 included the following:
RM'000
Statement of comprehensive income (extract)
Tax expense for year ended 31 March 2021 1550
Notes to the accounts:
Under provision for 31 March 2020 100
Estimate of income tax for 31 March 2021 1200
Increase in
1650
Statement of
Tax paid in the year to 31 March 2021 900
Required:
- Explain how the under provision of RM100,000 in the income statement arose.
- In accordance with MFRS112 1ncome Taxes,
deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences. Explain what is meant by temporary differences and how deferred tax arises.
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