• Indicate for each of the statements whether it is T or F according to NZ IAS 12.

• If the statement is false, rewrite the statement to make it true. If the statement is true, you do NOT need to explain.

Q2(a) Information: At the end of the financial year, a company has a taxable profit of $100,000 and an accounting profit before tax of $120,000. The tax rate is 28%.

Statement: Therefore, under the taxes payable method, the tax expense reported in the Income Statement will be $33,600.