IAS 12: Nov 2015

What is the tax base of the prepaid expense for FY2015?

• 0

• 10 000

What is the tax base of the provision for warranty?

• 0

• 18 000

• 22 000

• 40 000

Which of the following will NOT be a temporary difference in the current tax calc?

• Depreciation of machine

• Impairment of intangible asset

• Penalty paid

• Recoupment on disposal of machine

Choose the correct answer: The following differences pertaining to the intangible asset (trademark) should be accounted for under temporary differences in the current tax calculation:

• Amortisation only

• Amortisation and capital allowance

• Amortisation and capital allowance and reversal of impairment loss

• Capital allowance and reversal of impairment loss

Assuming that the c/b of deferred tax on 31 Dec 2015 is R129 465, select the correct journal entry to be processed on 31 Dec 2015 pertaining to the deferred tax expense:

• Dr. Income tax expense (p/l) R129 465

• Cr. Income tax expense (p/l) R129 465

• Dr. Income tax expense (p/l) R30 170

• Cr. Income tax expense (p/l) R30 170

The dividend income results in a...

• Non-deductible difference

• Non-taxable difference

• Deductible difference

• Temporary difference

The deferred tax balance attributable to the specialised tool at 31 December 2015 is...

• R29 820

• Exempt

• 0

The penalties paid results in a...

• Non-taxable difference

• Non-deductible difference

• Taxable difference

• Deductible difference