QUESTION FOUR

Sequa Ltd is a company operating in the household cleaning industry. The following information has Additional information:

The tax base of the property, plant and equipment balance at $31$ December $2022$

was R$290000.$

During $2023$ depreciation was R$35000$ and wear and tear allowed was R$25000.$

There was no other movement of property, plant and equipment during $2023.$

Profit before tax is R$300000.$

Dividend income of R$5000$ was earned during $2023.$

There are no other temporary or permanent differences other than those evident

from the information provided.

The normal income tax rate is $30\%.$

Required:

$4\mathrm{.}1$ Calculate the deferred income tax balance at $31$ December $2022$ and $2023.$

$4\mathrm{.}2$ Calculate the current income tax for the year ended $31$ December $2023.$

$4\mathrm{.}3$ Journalise the current and deferred income tax adjustments for the year

ended $31$ December $2023.$

$4\mathrm{.}4$ Disclose the deferred tax note to the balance sheet as at $31$ December $2023$ in

accordance with International Financial Reporting Standards $($IFRS$).$been presented to you:

Extracts from the Statement of Financial Position as at $31$ December $2023$