A531-8UFS

A531-8UFS - Requirement (a) The 2010 balances of future tax...

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Requirement (a) The 2010 balances of future tax asset or liability account at Dec 31,2010 would be as follows: Future Taxable amounts: 2011 2012 2013 Total CCA vs Depreciation $(17,500) $(12,500) $(2,000) $(32,000) Tax rate enacted 30% 29% 28% Future Tax Liability $(5,250) $(3,625) $(560) $(9,435) Future Deductible amounts 2011 2012 2013 Total Accrued Pension Liability $11,000 $11,000 $12,600 $34,600 Tax rate enacted 30% 29% 28% Future Tax Asset $3,300 $3,190 $3,528 $10,018 Depreciable Assets Total Carrying Amount $125,000 $18,500 $34,600 Tax Basis $93,000 Taxable Differences $(32,000) $18,500 $34,600 Tax rate 29.48% 30% 28.95% Future Tax Asset/Liability $(9,434) $5,550 $10,017 $6,133 So, the total Future Income Tax Asset for December 31st, 2010 is $6,133. According to IFRS, all overdue tax assets and liabilities should be reported as Long Term amounts on Income Statement or Balance Sheet. So this amount should be reported on the Dec 31, 2010 Balance Sheet as follows: Long Term Assets: Future Income Tax Asset $6,133 Requirement (b) The future tax asset or liability account for Dec 31,2011 could be calculated using the same schedule made in (a), in this case we will not include 2011 calculation: Future Taxable amounts: 2012 2013 Total CCA vs Depreciation $(12,500) $(2,000) $(14,500) Tax rate enacted 29% 28% Future Tax Liability $(3,625) $(560) $(4,185) Future Deductible amounts 2012 2013 Total Accrued Pension Liability $11,000 $12,600 $23,600 Tax rate enacted 29% 28% Future Tax Asset $3,190 $3,528 $6,718 Depreciable Assets Total Carrying Amount $- $22,300 $23,600 Tax Basis $- $- $- Taxable Differences $(14,500) $22,300 $23,600 Tax rate 28.86% 29% 28.47% Future Tax Asset/Liability $(4,185) $6,467 $6,719 $9,001 So, the total Future Income Tax Asset for December 31st, 2011 is $9,001 (rounded).
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A531-8UFS - Requirement (a) The 2010 balances of future tax...

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