IAS 12 - Bai Tap

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Chapter 7-IAS 12. Income tax

Section 7.1. Income tax overview
Section 7.1.1. Objective & scope of IAS 12
Section 7.1.2. The differences - Accounting Vs taxable profit; Current vs deferred tax)
Section 7.2. Current income tax
Section 7.3. deferred tax
Section 7.3.1. Tax base
Section 7.3.2. Temporary differences
Section 7.3.3. Measurement & recognition of eferred tax
Section 7.4. Presentation & disclosure income tax
MULTIPLE-CHOICE QUESTIONS
Section 7.1. Income tax overview
Section 7.1.1. Objective & scope of IAS 12
1. Standards require or permit certain items to be credited, or charged, directly to equity or other
comprehensive income. Examples of such items are:
(i). A change in carrying amount arising from the revaluation of property, plant and equipment
(ii). An adjustment to the opening balance of retained earnings, resulting from either a change in
accounting policy applied retrospectively, or the correction of an error. IAS 8 has seriously limited this
application
(iii). Exchange differences, arising on the translation of the financial statements of a foreign
undertaking
(iv). Amounts arising on initial recognition of the equity component of a compound financial
instrument
a. (i), (ii) and (iii) only
b. (i) only
c. (i) and (ii) only
d. (i) to (iv) all
Answer : skill: basic section: 7.1.1.
2. When different rates of tax apply to different types and amounts of taxable income:
a. Each item must be listed b. An average rate is used c.No deferred tax is charged
3. IAS 12 prescribes the accounting treatment for income taxes, and the tax consequences of: (1)
Transactions of the current period that are recorded in an undertaking's financial statements; (2) The
future liquidation of the of assets and liabilities that are recorded in an undertaking's statement of
financial position; and (3) Tax planning opportunities
a. 1 and 2 only; b. 1 only; , 1,2 and 3 all; d. 2 and 3
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4. Permanent differences require:

a. Provision c. Deferred tax liability (or deferred tax asset)
b. Contingent liability d. None of these
5. IAS 12 prescribes the accounting treatment for income taxes, and the tax consequences of:
(i) Transactions of the current period that are recorded in an undertaking's financial statements.
(ii) The future liquidation of the of assets and liabilities that are recorded in an undertaking's balance
sheet.
(iii)Tax planning opportunities.
a. (i) b. (i)-(ii). c. (i)-(iii)
Section 7.1.2. The differences - Accounting Vs taxable profit; Current vs deferred tax)
6. Deferred tax relates to: (i) Deductible temporary differences; (ii) Unused tax losses; (iii) Unused tax
credits; (iv) Taxable temporary differences; (v) permanent differences
a. (i) to (v) all; b. (i) and (ii) only c. (i), (ii) and(iii) only d. (i), (ii), (iii) and (iv) only
Answer : skill: advance section: 7.1.2
7. Not all temporary differences are recognised as deferred tax balances. The exceptions are:
(i) Goodwill; (ii) Initial recognition of certain assets and liabilities, (iii) Certain investments, (iv)
Property revaluations.
a. (i). b. (i)-(ii). c. (i)-(iii). d. (i)-(iv).
Answer : skill: basic section: 7.1.2
8. On its statement of financial position as at 31 Dec 20X0, an entity has capitalized its $1m product
development cost, and amortized this amount evenly over 10 years. Under Tax laws, this amount is
expensed at payment date. The entity is taxed at 30% for its annual profit. Deferred tax relate to this
product development cost is:
a. Deferred tax expense: CU 0 c. Deferred tax expense: CU 270,000
b. Deferred tax expense: CU 300,000 d. Deferred tax expense: CU 30.000
ANSWER: C Section: 7.2.1 Skill: Basic
Section 7.2. Measurement & recognition of current income tax
15. Extracted information form financial statement of a company as follow:
31 Dec 2017 (CU) 31 Dec 2018 (CU)
Dr Cr Dr Cr
Tax payable 20,000 10,000
Deferred tax liability 300,000 310,000
Assuming that the company has an accurate estimation of tax amount to be paid to tax authorities, what
is current tax expense included in statement of profit/loss
a. CU 10.000 b. CU 20.000 c. CU 300,000 d. CU 310.000
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ANSWER: Section: 7.2 Skill: Calculation

16. Extracted information form financial statement of a company as follow:
31 Dec 2017 (CU) 31 Dec 2018 (CU)
Dr Cr Dr Cr
Tax payable 20,000 40,000
Deferred tax liability 300,000 310,000
Deferred tax asset 0 10,000
Assuming that the company has an accurate estimation of tax amount to be paid to tax authorities, what
is current tax expense included in stament of profit/loss
a. CU 10,000 b. CU 20,000 c. CU 40,000 d. CU 50,000
ANSWER: Section: 7.2 Skill: Calculation
17. Current tax should be measured using tax rate and tax law that:
a. Have been enacted by the end of the reporting period
b. Have been enacted by the date that the financial statements are authorized for issue
c. Have been enacted or substantively enacted by the end of the reporting period
d. Have been enacted or substantively enacted by the date that the financial statements are authorized
for issue
Answer : skill: basic section: 7.2
Section 7.3. deferred tax
Section 7.3.1. Tax base
18. Under IAS 12, if tax base of an asset is higher than its carrying amount, a temporary different is
a. taxable b. deductible c. either taxwble or decutible d. neither taxable or deductible
ANSWER: Section: 7.3.1 Skill: Basic
19. An asset is used for production, costed CU100,000. This asset will be scrapped at the end of its 10
year useful life at Zero. This asset has been used for 2 years. Accumulation of this asset for tax
purposes is CU40,000. Revenue created by this assets is taxed 10%. Tax base of this asset is
a. CU100,000 b. CU0 c. CU60.000 d. CU40.000
20. The entity has a bond matured at 01 Feb 20X1. The accrued interest revenue/interest receivable has
been recorded on financial statement at CU 300,000. Tax authorities accept interest revenue on cash
basis. Tax base and temporal differences relating to this bond’s interest revenue/interest receivable is:
a. CU 0 and CU300,000 c. CU 300,000 and CU 0
b. CU 0 and CU 0 d. CU 300.000 and CU 300.000
21. On its statement of financial position as at 31 Dec 20X0, an entity has capitalized its $1m product
development cost, and amortized this amount evenly over 10 years. Under Tax laws, this amount is
expensed at payment date. Tax base of this product development cost is:
a. CU 0; b. CU 1,000,000; c. CU 900.000; d. CU 100.000
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22. Deferred tax asset are the taxes recoverable, in future periods, in respect of: (ii) Deductible
temporary differences; (ii) Unused tax losses; (iii) Unused tax credits; (iv) Taxable temporary
differences
a. i and ii only; b. i to iv all c.i only; d.i,ii,iii only
23. If revenue is taxed in the period received, the tax base:
a. Is only nil if the revenue is recognized in the following period
b. Is only nil if the revenue is recognized in the same period
c. Is the amount received
d. Is nil
24. A tax base of an asset or a liability is:
a. The amount that can be deductible in the future tax return with respect to that asset or liability
b. Difference between the temporary difference of that asset or liability and its fair value.
c. The amount attributed to that asset or liability for tax purposes.
d. Difference between the temporary difference of that asset of liability and the present value of future
cash flows derived from that asset or liability.
25. The difference between the carrying amount of a revalued asset and its tax base is a:
a.Temporary difference. b. Permanent difference. c.. Either a or b.
26. Research and development costs may be expensed in the current period, but deductible for tax
purposes over subsequent periods. The tax base:
a.Is nil.
b.Is the amount of the deduction that can be claimed in future periods.
c.Is the amount expensed.
Section 7.3.2. Temporary differences
27. During the year, the entity has a warranty cost provision recorde as follow
Opening balance: CU100,000
Closing balance: CU 120,000
Actually paid: CU 50,000
Under tax lawy, this provision is deductible when paid. Taxation temporal differences are:
a. A deductible temporal difference is CU 120.000
b. A taxable temporal difference is CU 120.000
c. Zero
d. A deductitble temporary difference: CU 30,000.
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28. Temporary differences arise:
a. When deferred tax differs from current tax
b. When the carrying amount of an asset or liability differs from its tax base
c. When deferred tax is applied
29. Taxable temporary differences occur when tax is charged in a period:
a. before the accounting period benefits from the income is recognized in the financial accounts
b. After the accounting period benefits from the income is recognized in the financial accounts
c. Either before or after the accounting period benefits from the income is recognized in the financial
accounts
30. Differences arising from fair value adjustments are treated:
a. The same as any other taxable and deductible differences
b. Separately for deferred tax
c. Differently depending on whether they arise on acquisition or otherwise
31. Which of the following statements is true?
a. When carrying amount of an asset is lower than its tax base, then taxable temporary difference arises.
b. When carrying amount of an asset is greater than its tax base, then deductible temporary difference
arises.
c. Taxable temporary differences result in a deferred tax asset and deductible temporary differences
result in a deferred tax liability.
d. Taxable temporary differences result in a deferred tax liability and deductible temporary differences
result in a deferred tax asset.
32. Temporary differences arise:
a.When the carrying amount of an asset or liability differs from its tax base.
b.When deferred tax is applied.
c.When deferred tax differs from current tax.
33. A deductible temporary difference generates a
a. Deferred tax Liability. b. Deferred tax Asset. c.Either a or b.
34. A taxable temporary difference gives rise to:
a.Deferred tax Liability. b. Deferred tax Asset. c. Either a or b.
35. Taxable temporary differences occur when tax is charged in a period:
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a.Before the accounting period benefits from the income in the financial accounts.
b.After the accounting period benefits from the income in the financial accounts.
c. Either a or b.
36. Deductible temporary differences occur when tax is charged in a period:
a.Before the accounting period benefits from the income in the financial accounts.
b.After the accounting period benefits from the income in the financial accounts.
c.Either a or b.
37. Differences arising from fair value adjustments are treated:
a.The same as any other taxable and deductible differences.
b. Differently depending on whether they arise on acquisition or otherwise.
c. Separately for deferred tax.
38. If the tax already paid exceeds the tax due for the period, the excess will be recorded as:
a.Deferred tax. b.A permanent difference. c.An asset.
39. Permanent differences require adjustments in the:
a. Periods prior to the transaction. c.The periods relating to the transaction.
b. Periods following the transaction. d. Both b & c.
40. The difference between the carrying amount of a revalued asset and its tax base is a:
a. Temporary difference
b. Permanent difference
c. It can either be temporary difference or a permanent difference
Section 7.3.3. Measurement & recognition of deferred tax
41. An entity is undertaking a reorganization. Under the plan, part of the entity’s business will be
demerged and will be transferred to a separate entity, Entity Z. This also will involve a transfer of part
of the pension obligation to Entity Z. Because of this, Entity Z will have a deductible temporary
difference at its year-end of December 31, 20X4. It is anticipated that Entity Z will be loss-making for
the first four years of its existence, but thereafter it will become a profitable entity. The future
forecasted profit is based on estimates of sales to intergroup companies. Should Entity Z recognize the
deductible temporary difference as a deferred tax asset?
a. The entity should recognize a deferred tax asset.
b. Management should not recognize a deferred tax asset as future profitability is not certain.
c. The entity should recognize a deferred tax asset if the authenticity of the budgeted profits can be
verified.
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d. The entity should recognize a deferred tax asset if the intergroup profit in the budgeted profit is
eliminated.
42. The carrying amount of a deferred tax asset should be reviewed for: (i)Changes in tax rates;
(ii)Changes in the expected manner of recovery of an asset; and (iii)Changes in future profits
a. i only; b. i,ii and iii all; c. i and ii only d. i and iii only
43. Not all temporary differences are recognised as deferred tax balances. The exceptions are:
(i)Goodwill; (ii) Initial recognition of certain assets and liabilities; (iii)Certain investments;
(iv)Property revaluations
a. i and ii only; b. i to iv all; c.i only d.i, ii and iii only
44. Deferred tax asset shall be recognized:

a. For all taxable temporary differences including the goodwill arising on business combination.
b. For all taxable temporary differences, to the extent that it is probable that taxable profit will be
available against which the taxable temporary difference can be utilised.
c. For all deductible temporary differences including the goodwill arising on business combination.
d. For all deductible temporary differences, to the extent that it is probable that taxable profit will be
available against which the deductible temporary difference can be utilised
45. Deferred tax shall never be recognized for:
a. Machinery revalued to its fair value.
b. Tax losses and tax credits.
c. Research expenses paid in previous periods that are not shown in the statement of financial position
but will be tax deductible in the future.
d. Goodwill arising on business combination.
46. Deferred tax shall be measured at the tax rates that are:
a. Enacted by the end of the reporting period and expected to apply in the future. These tax rate shall
be adjusted by the inflation.
b. Enacted and apply in the current reporting period.
c. Enacted or substantively enacted by the end of the reporting period and expected to apply when the
related asset / liability is realised.
d. Enacted or substantively enacted by the end of the reporting period; expected to apply when the
related asset / liability is realised and adjusted for the time value of money (discounting).
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47. A company recognized an interest receivable of CU 1 000 as at 31 December 20X1. The

interest will be paid by the bank in March 20X2. Tax legislation requires taxing interest on a cash basis.
Assume tax rate of 30%. A company should recognize:
a. Deferred tax liability of CU 300.
b. Deferred tax asset of CU 300.
c. Nothing.
d. Current tax liability of CU 300.
48. An undertaking should review unrecorded deferred tax assets to determine whether new conditions
will permit the recovery of the asset:
a.Every 3 years. b.Every 5 years. c.At each balance sheet date.
49. The carrying amount of a deferred tax asset should be reviewed for: (i) Changes in tax rates; (ii)
Changes in the expected manner of recovery of an asset; (iii) Changes in future profits.
a. (i), b.(i)-(ii), c.(i)-(iii).
50. The realisation of deferred tax assets depends on:

a.Accounting profits being available in the future.
b.Taxable profits being available in the future.
c.No increase in the rate of income tax.
51. When different rates of tax apply to different types and amounts of taxable income:
a.An average rate is used. b.No deferred tax is charged. c.Each item must be listed.
52. Deferred tax assets are the taxes recoverable, in future periods, in respect of: (i) Deductible
temporary differences; (ii) Unused tax losses; (iii)Unused tax credits. (iv)Taxable temporary
differences.
a. (i) b. (i)-(ii). c. (i)-(iii) d.. (i)-(iv)
53. Deferred tax

a. Reverses over time. b. May reverse over time. c. Does not reverse.
54. The use of deferred tax:

a.Change the dates of payment of tax.
b.May change the dates of payment of tax.
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c.Does not change the dates of payment of any tax.

55. An entity issued a convertible bond on January 1, 20X4, that matures in five years. The bond can
be converted into ordinary shares at any time. The entity has calculated that the liability and equity
components of the bond are $3 million for the liability component and $1 million for the equity
component, giving a total amount of the bond of $4 million. The interest rate on the bond is 6%, and
local tax legislation allows a tax deduction for the interest paid in cash. Calculate the deferred tax
liability arising on the bond as at the year ending December 31, 20X4. The local tax rate is 30%.
a. $1.2 million. b. $900,000 c. $300,000 d. $4 million.
Answer : skill: calculation section: 7.3.3
56. Deferred tax should be accounted for in relation to certain differences between taxable profit and
accounting profit. The differences which require an entity to account for deferred tax are:
a. Temporary differences
b. Permanent differences
c. Both temporary differences and permanent differences
d. Neither temporary differences nor permanent differences
57.A company's financial statements for the year to 30 June 2012 show a pre-tax profit of £500,000.
This is after charging depreciation of £100,000. Depreciation for the year for tax purposes is £160,000.
Assuming that the rate of tax paid by the company is 20%, the required transfer to or from the
company's deferred tax account is:
a. A transfer of £12,000 to the deferred tax account
b. A transfer of £12,000 from the deferred tax account
c. A transfer of £32,000 to the deferred tax account
d. A transfer of £32,000 from the deferred tax account
Section 7.4. Presentation & disclosure

58. In 20x0, Fasta Co has the following balances included on its trial balance at 31 December:
Current tax expense: $117,000
Deferred tax asset: $20,000 (Opening balance: $5,000)
Deferred tax liability: $10,000 (Opening balance: $15,000)
In 20x0, Fasta Co first time revalue its non-current assets and recognized a surplus of $10,000. Tax rate
is 30%.
What is the total income tax expense presented in profit/loss of Fasta Co in 20x0?
a. $124,000 ; b. $127,000; c. $137,000; d. $140,000
ANSWER: Skill: Calculation Section: 7.4
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Exercises:
EX 1- Section 7.2- Current tax, skill: calculation
Ex 2: Section 7.3.3. Measurement & recognition of deferred tax. Skill: caculation

ABC company acquires a machine for 400 000 EUR and decides to depreciate it straight-line over its
useful life of 5 years. Income tax legislation in ABC's country allows depreciating machines straight-
line over 4 years. In the years 1-5, ABC's taxable income before tax depreciation expense is 200 000
EUR and the tax rate is 30%.
Show ABC's current tax expense, deferred tax expense, deferred tax asset/liability and the net profit in
the years 1-5.
Ex 3: Section 7.3.1. Tax base, skill: advance

Based on the statement of financial position and notes of Taxico ltd. from previous example, calculate
tax base of its assets and liabilities as of 31 December 20X5. Note that statement of financial position
has been adjusted by current tax expense and liability.
Statement of financial position as of 31 December 20X5
ASSETS EUR EQUITY & LIABILITIES EUR
Equity
Non-current assets Share capital 600,000
Accumulated profits 368,719
Property, plant and equipment 600,000 Revaluation surplus 44,000
Product development costs 30,000
Investment in subsidiary
TaxPall 220,000 Long-term liabilities
Deferred income - government
grants 20,000
Liability for product warranty
costs 8,000
Deferred tax liability (from
Current assets 20X4) 11,081
Trading investments 104,000 Current liabilities

Trade receivables 313,000 Trade payables 382,000
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Health care benefits for

Inventories 152,000 employees 35,000
Current tax
Cash and cash equivalents 90,000 liability 40,200
TOTAL EQUITY &

TOTAL ASSETS 1,509,000 LIABILITIES 1,509,000
Notes:
1. Depreciation expense for the year 20X5 allowable in line with tax legislation is 103 000 EUR.
Accounting depreciation included in operating costs is 85 000 EUR. Cost of PPE is 800 000 EUR and
Taxico deducted expenses of 208 000 EUR in its tax returns prior the year 20X5. Moreover, as of 31
December 20X5, Taxico for the first time revalued its property, plant and equipment to market value of
600 000 EUR (revaluation surplus = 44 000 EUR)
2. In 20X2, Taxico incurred product development costs of 50 000 EUR. These costs were recognized
as an asset and amortized over period of 10 years . For tax purposes, Taxico deducted full product
development costs in 20X2
3. Trading investments were acquired in 20X4 with cost of 115 000 EUR. These investments are
classified as at fair value through profit or loss and thus recognized in their fair value. Fair value
adjustments are not allowable by the tax authorities.
4. Bad debt provision amounts to 65 000 EUR and relates to 2 debtors: debtor A - 40 000 EUR
(receivable originates in 20X3 and 100% provision was recognized in 20X4) and debtor B - 25 000
EUR (receivable originates in 20X4 and 100% provision was recognized in 20X5). Tax law allows
deduction of 20% of provision for debtors overdue for more than 1 year, another 30 % for debtors
overdue for more than 2 years and remaining 50% for debtors overdue for more than 3 years.
5. 5.Taxico accounts for inventory obsolescence provision. New provision created in 20X5 was 5 400
EUR (total provision: 9 000 EUR). This provision is not tax deductible, as it is a general provision.
6. Government grants are not taxable. Full government grant received in 20X5 is included in the
statement of financial position
7. In 20X5, Taxico increased a liability for product warranty costs by 2 500 EUR. Product warranty
costs are not tax deductible until the company pays claims. Claims paid in 20X5 amounted to 3 100
EUR.
8. During the year, Taxico introduced health care benefits for employees. The expenses are allowable
for tax purposes only when benefits are paid but in line with IAS 19, recognized in profit or loss when
employees provide service.
9. Expenses for representation and promotion included in operating expenses amount to 900 EUR.
These are not deductible for tax purposes.
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10. Tax law allows to deduct expenses for petrol only up to 2 000 EUR per vehicle per year. Taxico
had 4 vehicles in 20X5 and its total petrol expenses amounted to 10 300 EUR.
Ex 4: Section 7.3.2. Temporary differences, skill: advance
Based on the previous example of Taxico, calculate temporary differences and deferred tax. Note from
example 1: Tax rate for 20X5 is 30%, but the new tax rate of 32% for the year 20X6 and beyond has
already been enacted before the year end.
Ex 5: Section 7.3.3. Measurement & recognition of deferred tax- skill: advance
Investment & recognition
On 31 December 20X5, Taxico acquired 100% share in TaxPall for 220 000 EUR. The statement of
TaxPall's net assets is below. There is currently no deferred tax recognized in the accounts of TaxPall.
Goodwill arising on acquisition is not allowable for taxation and no amortization of goodwill has been
charged to the financial statements so far (as it's the date of acquisition). Together with results from
previous examples, calculate the deferred tax that would appear in Taxico's group accounts for the year
ended 31 December 20X5.
TaxPall - statement of net assets as of 31 December 20X5 (in EUR)
Fair Carrying Temporary Taxable /
Item Tax base
value amount difference deductible
Property, plant and equipment 145,000 130,000 120,000 25,000 taxable
Trade receivables 34,500 34,500 36,000 -1,500 deductible
Inventories 50,000 50,000 52,000 -2,000 deductible
Cash and cash equivalents 10,000 10,000 10,000 0
Health care benefit -18,000 -18,000 0 -18,000 deductible
Current liabilities -54,000 -54,000 -54,000 0
TOTAL NET ASSETS 167,500 152,500 164,000 3,500 taxable
Goodwill on acquisition of
TaxPall:
Cost of investment 220,000
Less FV of net assets -167,500
Goodwill 52,500
Ex 6: Section 7.4. Presentation & disclosure income tax, skill: basic:

Based on previous examples, draft numerical disclosures for Taxico's notes to the individual financial
statements as of 31 December 20X5 related to deferred tax.
1. Major components of tax expense
EUR
Current tax expense 40,200
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Deferred tax income related to the origination and

-13,740
reversal of temporary differences
Deferred tax expense resulting from increase in tax rate 739
Total tax expense 27,199
2. Income tax relating to the components of other comprehensive income
Deferred tax related to revaluation of property, plant
14,080
and equipment
3. Explanation of the relationship between tax expense and accounting profit
Accounting profit 85,000
Tax at the applicable rate of 30% 25,500
Tax effect of tax non-deductible
expenses:
representation & promotion expenses (900*30%) 270
petrol over limit (2 300*30%) 690
Increase of opening DTL resulting from increase in tax
rate 739
Total tax expense 27,199
Ex7.: Section 7.2- Current tax, skill: basic

In 20X8 Darton Co had taxable profits of $120,000. In the previous year (20X7) income tax on 20X7
profits had been estimated as $30,000.
Required
Calculate tax payable and the charge for 20X8 if the tax due on 20X7 profits was subsequently agreed
with the tax authorities as: (a) $35,000; or (b) $25,000. Any under or over payments are not settled
until the following year's tax payment is due.
Ex 8: Tax losses carried back- Section 7.2- Current tax, skill: basic
In 20X7 Eramu Co paid $50,000 in tax on its profits. In 20X8 the company made tax losses of $24,000.
The local tax authority rules allow losses to be carried back to offset against current tax of prior years.
Required: Show the tax charge and tax liability for 20X8.
EX9- Section 7.3.1. Tax base
Facts
An entity has spent $600,000 in developing a new product. These costs meet the definition of an
intangi-ble asset under IAS 38 and have been recognized in the balance sheet. Local tax legislation
allows these costs to be deducted for tax purposes when they are incurred. Therefore, they have been
recognized as an expense for tax purposes. At the year-end the intangible asset is deemed to be
impaired by $50,000.
Required
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Calculate the tax base of the intangible asset at the accounting year-end.
Ex 10: Section 7-3-1- Tax base. Skill: basic

State the tax base of each of the following liabilities.
(a) Current liabilities include accrued expenses with a carrying amount of $1,000. The related expense
will be deducted for tax purposes on a cash basis.
(b) Current liabilities include interest revenue received in advance, with a carrying amount of $10,000.
The related interest revenue was taxed on a cash basis.
(c) Current liabilities include accrued expenses with a carrying amount of $2,000. The related expense
has already been deducted for tax purposes.
(d) Current liabilities include accrued fines and penalties with a carrying amount of $100. Fines and
penalties are not deductible for tax purposes.
(e) A loan payable has a carrying amount of $1m. The repayment of the loan will have no tax
consequences.
EX 11 : Section 7.3.3. Measurement & recognition of deferred tax, skill: basic
Facts
An entity acquired plant and equipment for $1 million on January 1, 20X4. The asset is depreciated at
25% a year on the straight-line basis, and local tax legislation permits the management to depreciate the
asset at 30% a year for tax purposes.
Required
Calculate any deferred tax liability that might arise on the plant and equipment at December 31, 20X4,
assuming a tax rate of 30%.
EX 12 Section 7.3.3. Measurement & recognition of deferred tax- skill: basic:
Facts
An entity has revalued its property and has recognized the increase in the revaluation in its financial
statements. The carrying value of the property was $8 million and the revalued amount was $10
million. Tax base of the property was $6 million. In this country, the tax rate applicable to profits is
35% and the tax rate applicable to profits made on the sale of property is 30%. If the revaluation took
place at the entity’s year end of December 31, 20X4, calculate the deferred tax liability on the property
as of that date.
EX 13: Section 7.3.3. Measurement & recognition of deferred tax ( Interest receivable) skill:
basic
Entity B includes interest receivable of $ 4,000 in its financial statements at 31 Dec Year 1. Interest is
not taxed until it is received. The relevant tax rate is 30%.
Required: Calculate the deferred tax liability at 31 Dec Year 1
EX 14: Section 7.3.3. Measurement & recognition of deferred tax (Revaluation)- skill: basic
A company recently re-valued a non-current asset from is carrying amount of $300,000 to a revalued
amount of $ 400,000. The revaluation surplus is $ 100,000. The tax rate is 25%.
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Required: Calculate the deferred tax liability.
Ex 15: Section 7.3.3. Measurement & recognition of deferred tax. Skill: basic
A company purchased an asset costing $1,500. At the end of 20X8 the carrying amount is $1,000. The
cumulative depreciation for tax purposes is $900 and the current tax rate is 25%.
Required: Calculate the deferred tax liability for the asset.
Ex 16- Section 7.4. Presentation & disclosure. Skill: basic
Z Co owns a property which has a carrying value at the beginning of 20X9 of $1,500,000. At the year
end it has entered into a contract to sell the property for $1,800,000. The tax rate is 30%. How will this
be shown in the financial statements?
Ex 17: Section 7.2. Current tax. Skill: basic
In the accounting year to 31 December 20X3, Neil Down Co made an operating profit before taxation
of $110,000. Income tax on the operating profit has been estimated as $45,000. In the previous year
(20X2) income tax on 20X2 profits had been estimated as $38,000 but it was subsequently agreed at
$40,500. A transfer to the credit of the deferred taxation account of $16,000 will be made in 20X3.
Required
(a) Calculate the tax on profits for 20X3 for disclosure in the accounts.
(b) Calculate the amount of tax payable.
Câu 1: (Mục 3, Mức độ Dễ)
Vào cuối năm 20X0, doanh nghiệp X có một khoản chênh lệch tạm thời phát sinh do trích trước chi phí
bảo hành trị giá 100 triệu đồng. Giả sử các khoản trích trước chi phí dự phòng về bảo hành này không
đáp ứng các yêu cầu các quy định của ngành thuế.Trong năm 20X1, khoản chi phí đó thực chi là 80
triệu đồng, thỏa mãn các quy định của thuế.Doanh nghiệp tiếp tục chuyển số dư còn lại sang năm sau vì
theo dự tính, các chi phí bảo hành sẽ còn tiếp tục phải chi năm sau là 20 triệu đồng.Thuế suất thuế thu
nhập doanh nghiệp là 25%.
Yêu cầu: Xác định tài sản thuế thu nhập hoãn lại vào cuối năm 20X0 và 20X1.
Câu 2: (Mục 3, mức độ Khó)
Vào ngày 01.01.20X0, doanh nghiệp Thắng Lợi mua một thiết bị X trị giá 700 triệu đồng. Doanh
nghiệp Thắng Lợi áp dụng phương pháp khấu hao theo đường thẳng, thời gian hữu dụng của thiết bị
này theo kế toán là 7 năm, thời gian hữu dụng theo quy định của thuế cho thiết bị này là 5 năm.
Yêu cầu:
1. Lập bảng tính chi phí khấu hao theo kế toán và theo thuế trong thời gian hữu dụng của thiết bị X.
2. Tính thuế thu nhập hoãn lại phải trả của thiết bị X qua các năm (từ 20X0 đến 20X6), biết rằng thuế
suất thuế TNDN là 25%.
3. Viết bút toán liên quan đến thuế hoãn lại cho các năm 20X0 đến 20X6
15

IAS 12 - Bai Tap

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Nguyễn Thi Thu Hiền

Chapter 7-IAS 12. Income tax

4. Permanent differences require:

ANSWER: Section: 7.2 Skill: Calculation

ANSWER: Section: 7.3.1 Skill: Basic

ANSWER: Section: 7.3.2 Skill: Basic

44. Deferred tax asset shall be recognized:

47. A company recognized an interest receivable of CU 1 000 as at 31 December 20X1. The

50. The realisation of deferred tax assets depends on:

53. Deferred tax

54. The use of deferred tax:

c.Does not change the dates of payment of any tax.

Section 7.4. Presentation & disclosure

Ex 2: Section 7.3.3. Measurement & recognition of deferred tax. Skill: caculation

Ex 3: Section 7.3.1. Tax base, skill: advance

ASSETS EUR EQUITY & LIABILITIES EUR

Trading investments 104,000 Current liabilities

Health care benefits for

TOTAL EQUITY &

Ex 6: Section 7.4. Presentation & disclosure income tax, skill: basic:

Deferred tax income related to the origination and

Ex7.: Section 7.2- Current tax, skill: basic

Ex 10: Section 7-3-1- Tax base. Skill: basic

Required: Calculate the deferred tax liability.

Câu 1: (Mục 3, Mức độ Dễ)

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