Page 190 - Finac1 Test 1 slides

IAS 8

Illustrative Example - calcs

COMMENT

• The SARS will not re-open the tax assessments for

the financial years ended 31 August 20.9 and 20.10

to accommodate the change in the accounting

policy but will allow the new valuation method

from the current financial year (20.11).

• A deferred tax liability is raised on 31 August 20.9

and 20.10 due to the SARS only allowing inventory

valued using the old valuation method as a

deduction as part of cost of sales.

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