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  • Deffered Tax Part 2

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    SARASVATHYDEVI SUBRAMANIAM
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    This document provides information about calculating deferred tax liabilities over multiple years for an asset with a carrying amount that is depreciating. It shows the tax base, temporary differences, deferred tax calculations, and accounting entries for deferred tax liabilities for the years 2003 through 2002. The calculations determine the closing deferred tax liability balance each year.

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    DEFERRED TAX

    Original Title

    DEFFERED TAX PART 2

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    This document provides information about calculating deferred tax liabilities over multiple years for an asset with a carrying amount that is depreciating. It shows the tax base, temporary differences, deferred tax calculations, and accounting entries for deferred tax liabilities for the years 2003 through 2002. The calculations determine the closing deferred tax liability balance each year.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    4 views16 pages

    Deffered Tax Part 2

    Uploaded by

    SARASVATHYDEVI SUBRAMANIAM
    This document provides information about calculating deferred tax liabilities over multiple years for an asset with a carrying amount that is depreciating. It shows the tax base, temporary differences, deferred tax calculations, and accounting entries for deferred tax liabilities for the years 2003 through 2002. The calculations determine the closing deferred tax liability balance each year.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    of 16

    STEP 1

    YEAR CARRY AMOUNT


    1/1/2003 70 000
    12/31/2003 60 000
    *(70000 - 10000)

    12/31/2004 50 000
    *(70 000 - 20 000)
    COST - ACC. DEP

    12/31/2005 40 000
    *(70 000 - 30 000)
    COST - ACC. DEP
    STEP 1
    TAX BASE TEMPORARY DIFFERENCES
    70 000
    57400 2600 = CA > TB = DTL
    *= 70 000 - (70 000 X 18%

    47 068 2932 = CA > TB = DTL


    *= 57400 - (57400 X 18%)
    Y1TB - (Y1TB X 18%)

    38 595.76 1404
    *=47 068 - (47 068 X 18%)
    Y2TB - (Y2TB X 18%)
    STEP 2
    TAX RATE DEFERRED TAX

    24% 624 = Y1

    22% 645 = Y2

    22% 309 = Y3
    STEP 3

    DT P & L 624
    CR DTL 624

    DT P & L 21
    CR DTL 21

    DT DTL 336
    CR P & L 336
    CLOSIING BALANCE FOR 2000
    OPENING BALANCE FOR 2001

    CLOSIING BALANCE FOR 2000


    OPENING BALANCE FOR 2001
    YEAR CARRY AMOUNT
    1/1/2001 - BAL B/F (OB) 250 000
    31/12/2001 - NEW PPE 15 000
    CLOSING FOR 2001 265 000 = COST
    LESS : DERECIATION (39 750) = DEP
    (265 000 X 15%) 225 250 = CA

    1/1/2002 - BAL B/F 225250


    LESS : DEPRECIATION -33787.5
    225 250 X 15% 191462.5
    CA
    TAX BASE TEMPORARY DIFFERENCES TAX RATE
    200 000 50 000 26%
    15 000
    215 000
    (43 000)
    172 000 = TB 53 250 26%

    172000 53 250 26%


    -34400
    137600 53862.5 24%
    TB
    DEFERRED TAX
    13 000

    13 845
    DT P & L 845
    CR DTL 845

    13 845 B/F

    12927

    DT DTL 918
    CR P& L 918
    STEP 3 : ACCOUNT FOR THE MOVEMENT ON DTL

    DTL B/F
    REQUIRED DTL AT THE YEAR END
    NEED TO INCREASE DTL BY

    STEP 4 : CALCULATE TOTAL TAX CHARGE

    CURRENT TAX CHARGE


    (+) INCREASE DTL
    TOTAL TAX CHARGE
    OVEMENT ON DTL

    13 000
    13 845
    845

    ARGE

    37 000
    845
    37 845

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