1. In accordance with IAS 12 Income Taxes, state any three disclosure requirements relating to the tax expense in the financial statements.

(6 Marks)

The following trial balance extracts relate to Torch ltd as at 31 March 2020:

			000
Current tax			500 (Cr)
Deferred tax at 31 March 2019			6,200 (Cr)

The directors estimate a provision for income tax of 2,000,000 for the year ended 31 March 2020 is required. The balance on current tax in the trial balance represents the under/over provision of the tax liability for the year ended 31 March 2019. At 31 March 2020, Torch had taxable temporary differences of 20,000,000 requiring a provision for deferred tax. Any deferred tax movement should be reported in profit or loss. The income tax rate applicable to Torch is 25%.

2. Using the information above, prepare extracts from the financial statements relating to taxation for Torch ltd in accordance with IAS 12 Income Taxes for the year ending 31^st March 2020.

(9 Marks)