Page 317 - FR Integrated Workbook 2018-19

Statement of cash flows

Illustration 1

Calculation methods

Extracts from the financial statements of West show the following:

20X6 20X5
Statement of profit or loss $ $
Income tax expense (980) (800)

Statement of financial position
Non-current liabilities

Deferred taxation 440 400
Current liabilities

Taxation 900 820

Calculate the tax paid in 20X6.

When calculating cash flows for items with a current and non-current
element, combine the two to calculate a single cash flow.

Method 1 – T account

Taxation

Balance b/f: taxation 820
Balance: tax paid 860 deferred taxation 400
SPL: income tax expense 980

Balance c/f: taxation 900
deferred taxation 440
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2,200 2,200
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