The financial statements of M&S (GBR) are presented in Appendix A. The company’s complete annual report, including the notes to the financial statements, is available online.

Instructions

Refer to M&S’s financial statements and the accompanying notes to answer the following questions.

a. What amounts relative to income taxes does M&S report in its:

1. 2019 income statement?

2. 30 March 2019 statement of financial position?

3. 2019 statement of cash flows?

b. M&S’s provision for income taxes in 2018 and 2019 was computed at what effective tax rates? (See the notes to the financial statements.)

c. How much of M&S’s 2019 total provision for income taxes was current tax expense, and how much was deferred tax expense?

d. What did M&S report as the significant components (the details) of its 30 March 2019 deferred tax assets and liabilities?