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Chapter 20
CHAPTER 9 – DEFERRED TAX
Example 9.1
Answer = Deferred tax liability of 485k
Carrying Tax Temporary Deferred tax
amount Base difference liability/asset
$000 $000 $000
Property, plant and 21,025 15,300 5,725 liability
equipment
Financial assets 867 850 17 liability
Accruals (1,020) 0 (1,020) asset
Provision (18,870) (16,575) (2,295) asset
–––––––
2,427
–––––––
Tax rate 20%
Net deferred tax liability at year end 485
398
