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Deferred tax
Example 9.1
Cubix Ltd’s statement of financial position includes a number of assets and
liabilities that give rise to temporary differences at the current reporting date.
Carrying amount Tax base
$000 $000
Property, plant and equipment 21,025 15,300
Financial assets 867 850
Accruals (1,020) 0
Provisions (18,870) (16,575)
The tax rate applicable to Cubix is 20%.
Required:
Work out the temporary differences arising from each transaction,
whether a deferred tax liability or asset is created and the net deferred tax
shown on the Cubix statement of financial position as at the year-end.
Give your answer to the nearest $000.
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