In this clip, we look at the components of tax expense and specifically focus on the calculation of current tax expense.
2 responses on "Current tax expense: Financial Reporting Module 4"
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In this clip, we look at the components of tax expense and specifically focus on the calculation of current tax expense.
You must be logged in to post a comment.
May i know why in the Taxable Profit column, the non deductible entertainment is amounted to 200 instead of 250?
Looking forward to get a reply soon. Thanks and have a nice day!
Hi Huiying,
Please refer to the clip at the 1:18 minute mark. It explains that entertainment expenses of 200 is not deductible for tax purposes. In other words, the treatment for tax purposes was given to you in the question. You had to work out what to do with it. That is, you need to add it back (200) since it was not allowed but the remaining 50 was allowed as a deduction.
Hope this helps.
Regards,