An entity has the following assets and liabilities recorded in its statement of financial position at 31
Question:
An entity has the following assets and liabilities recorded in its statement of financial position at 31 December 2017:
The entity had made a provision for inventory obsolescence of €4 million that is not allowable for tax purposes until the inventory is sold, and an impairment charge against trade receivables of €2 million that will not be allowed in the current year for tax purposes but will be in the future. The tax rate is 30%.
Requirement Calculate the deferred tax provision at 31 December 2017.
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Related Book For
International Financial Accounting And Reporting
ISBN: 9781912350025
6th Edition
Authors: Ciaran Connolly
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