The statement of financial position of Boomerang plc at 31 December 20X0 included a £1,000 liability for accrued expenses. On 10 October 20X1, Boomerang plc made the related payment and extinguished the liability. The following tax information is available: -Accrued expenses are deductible from taxable profit only when paid in cash. -The tax rate is 19%. Which of the following statements is CORRECT? (i) A taxable temporary difference exists at 31 December 20X0. (ii) Deferred tax income of £190 should be reported in Boomerang plc’s P&L for the financial year ending 31 December 20X1. (iii) No deferred tax assets or liabilities should be recognised by Boomerang plc on 31 December 20X0. (iv) The tax base of the accrued expense liability at 31 December 20X0 is £1,000. CHOOSE FROM: a. (iii) b. No statement is correct c. (ii) d. (iv) e. (i)
The
The following tax information is available:
-Accrued expenses are deductible from taxable profit only when paid in cash.
-The tax rate is 19%.
Which of the following statements is CORRECT?
(i) A taxable temporary difference exists at 31 December 20X0.
(ii)
(iii) No
(iv) The tax base of the accrued expense liability at 31 December 20X0 is £1,000.
CHOOSE FROM:
a. (iii)
b. No statement is correct
c. (ii)
d. (iv)
e. (i)
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