Question 4 Company X operates a defined benefit plan for its employees. During the year ended 31 December 20X8, Company X records a total cost of CU 1 million, of which CU 800,000 is allocated to profit or loss and CU 200,000 to other comprehensive income (OCI). In January 20X9 it makes a funding payment of CU 400,000, a tax deduction for which is received through the current tax charge for the year ended 31 December 20X9. The tax rate is 40%. Assuming Company X is able to recognise a deferred tax asset for the entire CU 1 million charged in 20X8, what is the tax amount recognised in the OCI? CU 400,000 O CUO O CU 200,000 O CU 80,000
Question 4 Company X operates a defined benefit plan for its employees. During the year ended 31 December 20X8, Company X records a total cost of CU 1 million, of which CU 800,000 is allocated to profit or loss and CU 200,000 to other comprehensive income (OCI). In January 20X9 it makes a funding payment of CU 400,000, a tax deduction for which is received through the current tax charge for the year ended 31 December 20X9. The tax rate is 40%. Assuming Company X is able to recognise a deferred tax asset for the entire CU 1 million charged in 20X8, what is the tax amount recognised in the OCI? CU 400,000 O CUO O CU 200,000 O CU 80,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 4
Company X operates a defined benefit plan for its employees. During the year
ended 31 December 20X8, Company X records a total cost of CU 1 million, of
which CU 800,000 is allocated to profit or loss and CU 200,000 to other
comprehensive income (OCI). In January 20X9 it makes a funding payment of
CU 400,000, a tax deduction for which is received through the current tax charge
for the year ended 31 December 20X9. The tax rate is 40%.
Assuming Company X is able to recognise a deferred tax asset for the entire CU
1 million charged in 20X8, what is the tax amount recognised in the OCI?
CU 400,000
O CUO
O CU 200,000
O CU 80,000
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