Page 266 - F1 Integrated Workbook STUDENT 2018
P. 266
Chapter 15
1.4 Summary
When we look at the trial balance after adjusting for tax paid in the year the following
applies:
Debit balance = Under-provision in respect of the previous year
Credit balance = Over-provision in respect of the previous year
When we are preparing the financial statements:
Statement of profit or loss = current estimate + under-provision – overprovision
Statement of financial position current liability = current estimate
1.5 Disclosures
Tax expense to the statement of profit or loss:
Current year estimate X
Under/(over-provision) X/(X)
Deferred tax increase/(decrease) X/(X)
––––
XX
––––
Note – deferred tax is NOT examinable under the F1 syllabus – this is for
reference only and will be taken forward into F2.
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