Description
FAC3701 ASSIGNMENT 1 SEMESTER 1 – 2024 (702057)
DUE DATE: 5 APRIL 2024
REQUIRED:
a) Using the additional information, calculate the correct profit before tax in the statement of profit or loss and other comprehensive income of Ndlovu Jam Ltd for the year ended 31 December 2023.
b) Calculate the deferred tax balance in the statement of financial position of Ndlovu Jam Ltd at ended 31 December 2023 using the statement of financial position approach. Indicate if the balance is a deferred tax asset or deferred tax liability. Your answer must comply with the requirements of IAS 12, Income taxes.
c) Calculate the current tax due to the SA Revenue Service by Ndlovu Jam Ltd for the year ended 31 December 2023. Use the profit before tax calculated in (a) as your starting amount.
Your answer must comply with the requirements of IAS 12, Income taxes. The movement in temporary differences in the current tax calculation should be calculated using the statement of financial position approach.
d) Prepare the necessary journal entries to correctly record the deferred tax and the current tax respectively, as calculated in (b) and (c) above, in the accounting records of Ndlovu Jam Ltd for the year ended 31 December 2023.
Journal narrations are not required.
No abbreviations for general ledger account names in your journals may be used.
Indicate in your journal if it is statement of financial Position (SFP) or statement of profit or loss and other comprehensive income (P/L) general ledger account.
e) Disclose the income tax expense note, excluding the tax rate reconciliation, in the notes to the annual financial statements of Ndlovu Jam Ltd for the year ended 31 December 2023, according to the requirements of IAS 12, Income taxes.
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