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the treatment for deffered tax

+2 Votes
May 2nd 2014 AN ACCA USER 140 Points

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Movement in deferred tax is posted to Income statement
-Dr Income statement for increase in Deferred tax
-Cr Income statement for decrease in deferred tax
(a bit same treatment as prov. for doutbful debt)

New deferred tax for the year is posted under current liabilities in SOFP

May 2nd 2014 AN ACCA USER 240 Points