CAF 7 – IAS 12 IAS 12 Income Taxes 08kashifadeel.com/wp-content/uploads/2020/05/08-IAS-12.pdf · 2020-05-15 · C5 IAS 12 Income Taxes (other than Business combination) LO3.5.1

CAF 7 ndash IAS 12

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IAS 12 Income Taxes

08

DEFINITIONS

Accounting profit is profit or loss for a period before deducting tax expense

Taxable profit (tax loss)

is the profit (loss) for a period determined in accordance with the rules established by the taxation authorities upon which income taxes are payable (recoverable)

Tax expense (tax income)

is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax (net)

Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period

CURRENT TAX LIABILITY ASSET

Liability Current tax for current and prior periods shall to the extent unpaid be recognised as a liability

Asset If the amount already paid in respect of current and prior periods exceeds the amount due for those periods the excess shall be recognised as an asset

Measurement

Current tax liabilities (assets) for the current and prior periods shall be measured at the amount expected to be paid to (recovered from) the taxation authorities using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period

ACCOUNTING FOR CURRENT TAX

On accrual at year end

The amount is computed by the company while preparing tax return Dr Tax expense Cr Tax payable

On final assessment

Over provision (next year) Dr Tax payable Cr Tax expense (over)

under provision (next year) Dr Tax expense (under) Cr Tax payable

On Payment Usually tax accrued at one year end is paid in next year Dr Tax payable Cr Bank

CAF 7 ndash IAS 12

Latest update March 2020

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TAX BASE (DEFERRED TAXATION)

Definition The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes

Important point

Some items have a tax base but are not recognised as assets and liabilities in the statement of financial position For example research costs are expensed and charged to profit or loss in the period in which they are incurred (IAS 38) but the tax law may allow these as expense over a longer period

CALCULATION

For all assets

Carrying amount XXX Less Future taxable benefits - from recovery of carrying value (XX) Add Future deductible amounts XX Tax base XXX

For unearned incomes

Carrying amount XXX Less revenue not taxable in future (XX) Tax base XXX

For other liabilities

Carrying amount XXX Less future deductible amount (XX) Tax base XXX

TEMPORARY DIFFERENCES

Definition Temporary differences are differences between the carrying amount of an asset or liability in the statement of financial position and its tax base Temporary differences may be either taxable or deductible

Taxable Resulting in more tax in future giving rise to a liability Deductible Resulting in tax saving in future giving rise to an asset

GUIDE

Assets CA gt TB Taxable temporary differences Deferred Tax Liability CA lt TB Deductible temporary differences Deferred Tax Asset

Liabilities CA gt TB Deductible temporary differences Deferred Tax Asset CA lt TB Taxable temporary differences Deferred Tax Liability

MEASUREMENT ndash TAX RATE

Deferred tax assets and liabilities shall be measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period Present value Deferred tax assets and liabilities shall NOT be discounted

CAF 7 ndash IAS 12

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DEFERRED TAX ASSETS AND LIABILITIES

DEFERRED TAX LIABILITIES

Definition The amounts of income taxes payable in future periods in respect of taxable temporary differences

Recognition

A deferred tax liability shall be recognised for all taxable temporary differences except to the extent that the deferred tax liability arises from (a) the initial recognition of goodwill or (b) the initial recognition of an asset or liability in a transaction which

(i) is not a business combination and (ii) at the time of the transaction affects neither accounting

profit nor taxable profit (tax loss)

DEFERRED TAX ASSETS

Definition

The amounts of income taxes recoverable in future periods in respect of (a) deductible temporary differences (b) the carry forward of unused tax losses and (c) the carry forward of unused tax credits

Recognition

A deferred tax asset shall be recognised for all deductible temporary differences unless the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that (a) is not a business combination and (b) at the time of the transaction affects neither accounting profit nor

taxable profit (tax loss)

Limit on asset

A deferred tax asset is recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary difference unused tax losses or tax credit can be utilized An entity considers the following criteria in assessing the probability that taxable profit will be available against which the unused tax losses or unused tax credits can be utilised whether the entity has sufficient taxable temporary differences

relating to the same taxation authority and the same taxable entity which will result in taxable amounts against which the unused tax losses or unused tax credits can be utilised before they expire

whether it is probable that the entity will have taxable profits before the unused tax losses or unused tax credits expire

whether the unused tax losses result from identifiable causes which are unlikely to recur and

whether tax planning opportunities are available to the entity that will create taxable profit in the period in which the unused tax losses or unused tax credits can be utilised

Reassessment

At the end of each reporting period an entity reassesses unrecognised deferred tax assets The entity recognises a previously unrecognised deferred tax asset to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered For example an improvement in trading conditions may make it more probable that the entity will be able to generate sufficient taxable profit in the future for the deferred tax asset to meet the recognition criteria

CAF 7 ndash IAS 12


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Example Fatima Limited disclosed in its financial statements for the year ended December 31 2018 that it has available tax losses of Rs60 million The company losses are available for only 5 years The company expects that it is unlikely to utilize all the losses and therefore does not recognize a deferred tax asset Tax rate is 35 for the year and will remain same for future periods In 2019 the company restructures its business and expects that this restructuring will result in future taxable profits upto Rs50 million in next 5 years The company therefore shall recognize at December 31 2019 a deferred tax asset for the available tax losses to the extent future taxable profits will be available ie Rs175 (Rs50 million x 35)

CURRENT AND DEFERRED TAX CHARGE

Related to Charge to Items recognised in OCI

Other comprehensive income eg tax related to gain or loss on revaluation should be charged to gain on revaluation

Items recognised directly in equity

Directly in equity eg transfer of incremental depreciation from ldquorevaluation surplusrdquo to ldquoretained earningsrdquo is made net of deferred tax Further change in accounting policy and prior period errors are sometimes adjusted directly in equity and in such cases the related tax should also be charged directly to equity

Business combination Goodwill (not in syllabus)

Remaining Profit or loss STEPS 01 Calculate carrying amount and tax base for assets and liabilities 02 Calculate temporary differences and identify as either taxable or deductible 03 Apply tax rate to temporary differences to determine deferred tax liability or asset 04 Compare it with opening balance of deferred tax liability or asset and charge the

difference to OCI equity or SPL accordingly PRESENTATION

Offset of current tax assets and liabilities

Only if entity has legally enforceable right and intention to settle on net (or simultaneous) basis

Offset of deferred tax assets and liabilities

Only if entity has legally enforceable right and asset liability relates to income tax levied by same taxation authority on either the same taxable entity or different taxable entities who intend to settle on net (or simultaneous) basis

CAF 7 ndash IAS 12

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DISCLOSURE

Major Components

The major components of tax expense (income) shall be disclosed separately

Components of tax expense (income) may include (a) current tax expense (income) (b) any adjustment recognised in the period for current tax of prior

periods (c) the amount of deferred tax expense (income) relating to the

origination and reversal of temporary differences (d) the amount of deferred tax expense (income) relating to

changes in tax rates or the imposition of new taxes (e) the amount of the benefit arising from a previously unrecognised

tax loss tax credit or temporary difference of a prior period that is used to reduce current tax expense

(f) deferred tax expense arising from the write-down or reversal of a previous write-down of a deferred tax asset and

(g) the amount of tax expense (income) relating to those changes in accounting policies and errors that are included in profit or loss in accordance with IAS 8 because they cannot be accounted for retrospectively

Tax charge and reconciliation

The following shall also be disclosed separately (among other disclosures) (a) the aggregate current and deferred tax relating to items that are

charged or credited to equity (b) the amount of income tax relating to each component of other

comprehensive income (c) an explanation of the relationship between tax expense

(income) and accounting profit in either or both of the following forms a numerical reconciliation between tax expense (income)

and the product of accounting profit multiplied by the applicable tax rate(s) disclosing also the basis on which the applicable tax rate(s) is (are) computed or

a numerical reconciliation between the average effective tax rate and the applicable tax rate disclosing also the basis on which the applicable tax rates computed

(d) an explanation of changes in the applicable tax rate(s) compared to the previous accounting period

Note Average effective tax rate =Tax expense accounting profit

Dividend

An entity must disclose the amount of income tax consequences of dividends to shareholders of the entity that were proposed or declared before the financial statements were authorised for issue but are not recognised as a liability in the financial statements

CAF 7 ndash IAS 12


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Other disclosures

An entity must disclose the amount of a deferred tax asset and the nature of the evidence supporting its recognition when the utilisation of the deferred tax asset is dependent on future

taxable profits in excess of the profits arising from the reversal of existing taxable temporary differences and

the entity has suffered a loss in either the current or preceding period in the tax jurisdiction to which the deferred tax asset relates

SYLLABUS

Reference ContentLearning outcome

C5 IAS 12 Income Taxes (other than Business combination)

LO351 Define temporary differences and identify temporary differences that cause deferred tax liabilities and deferred tax assets (other than Business combination)

LO352 Determine amounts to be recognised in respect of temporary differences LO353 Prepare and present deferred tax calculations using the balance sheet

approach (other than Business combination) LO354 Account for the major components of tax expenseincome and its relationship

with accounting profit LO355 Formulate accounting policies in respect of deferred tax LO356 Apply disclosure requirements of IAS12 (other than Business combination)

Proficiency level 2 Testing level 2 Past Paper Analysis A14 S15 A15 S16 A16 S17 A17 S18 A18 S19 A19 S20 - - - 17 - 15 - 16 18 18 - 121

Objective Type 05 - 1 Total Marks 20 (including financial statements)

CAF 7 ndash IAS 12

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PRACTICE QampA

Sr Description Marks Reference CONCEPT BUILDING 1C Current tax double entry 05 ST 2C Tax base of assets 05 IAS 12 3C Tax base of liabilities 05 IAS 12 4C King Limited Complete financial statements DT issues 16 KA 5C Adeel Limited Matching concept and methods explained 16 KA 6H Offsetting deferred tax assets and liabilities 04 ST 7C Change in tax rate 04 ST 8C Tax reconciliations 05 ST

PRACTICE 9H SHEP DT calculation reconciliation over the years 36 QB

10H XYZ Ltd Disclosure with reconciliation 16 ST 11H Waqar Limited CT DT (PPE) SPL reconciliation 18 QB 12H Shakir Industries lease CWIP interest gratuity 15 QB 13H Mars Limited JE and note (lease) CT and DT 16 QB 14H Bilal Engineering Limited JE amp Reconciliation 18 QB 15H Galaxy International CT DT Reconciliation 20 QB 16H Apricot Limited CT DT reconciliation ndash 20 QB 17C Floor and Tiles Limited CT DT reconciliation 17 PE S16 18H Francesca Company DTL based on increase decrease 08 QB 19C Rose Limited Detailed computation 16 PE S18 20C Orange Limited CT DT Reconciliation 18 PE A18 21C Triangle Limited Disclosure note with reconciliation 18 PE S19

CAF 7 ndash IAS 12


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QUESTION 01 Fresh Company has a financial year ending on 31 December At 31 December Year 5 it had a liability for income tax (= tax on its profits) of Rs 77000 The tax on profits for the year to 31 December Year 6 was Rs 114000 The tax charge for the year to 31 December Year 5 was over-estimated by Rs 6000

During the year to 31 December Year 6 the company made payments of Rs 123000 in income tax Required Calculate the tax charge for the year to 31 December Year 6 to include in the statement of

comprehensive income the liability for income tax as at 31 December Year 6 to include in the statement of

financial position (05)

QUESTION 02 Calculate the tax base for each of the following asset separately (05) (a) A machine cost Rs100 For tax and accounting purposes depreciation of Rs30 has

already been deducted in the current and prior periods and the remaining cost will be deductible in future periods either as depreciation or through a deduction on disposal Revenue generating by using the machine is taxable any gain on disposal of the machine will be taxable and any loss on disposal will be deductible for tax purposes

(b) Interest receivable has a carrying amount of Rs100 The related interest revenue will be taxed on a cash basis

(c) Trade receivables have carrying amount of Rs100 The related revenue has already been included in taxable profit (tax loss)

(d) Dividends receivables from a subsidiary have a carrying amount of Rs100 The dividends are not taxable

(e) A loan receivable has a carrying amount of Rs100 The repayment of the loan will have no tax consequences

QUESTION 03 Calculate the tax base for each of the following liability separately (05) (a) Current liabilities include accrued expenses with a carrying amount of Rs100 The

related expenses will be deducted for tax purposes on a cash basis (b) Current liabilities include interest revenue received in advance with a carrying

amount of Rs100 The related interest revenue was taxed on a cash basis (c) Current liabilities include accrued expenses with a carrying amount of Rs100 The

related expense has already been deducted for tax purposes (d) Current liabilities include accrued fines and penalties with a carrying amount of

Rs100 Fines and penalties are not deductible for tax purposes (e) A loan payable has a carrying amount of Rs100 The repayment of the loan will have

no tax consequences

CAF 7 ndash IAS 12

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QUESTION 04 King Limitedrsquos first statement of financial position since incorporation for the year ended December 31 2011 is as follows (after current tax but before any effects of deferred tax) Non-current assets Rs Land 500 Building 500 Plant 100 Luxurious car 100 1200 Current assets Inventory 50 Trade receivables 40 Cash 30 120 1320 Equity Share capital 1000 Reserves (all) 50 1050 Non-current liabilities Long term loan 120 Current liabilities Trade payables 55 Provision 20 Government grant 25 Other payables 50 150 1320 (a) The building was purchased for Rs 700 and till now capital allowances of Rs 400

have been claimed (b) The land is freehold and was purchased for Rs 400 and revalued to Rs 500 during

the year Tax authorities do not consider revaluation of any asset (c) The luxurious car was purchased at start of the year for Rs 125 and KL intends to

use this throughout its useful life of 5 years and then dispose of it for a residual value of nil Depreciation of car is not deductible for tax purposes On disposal any capital gain would not be taxable and any capital loss would not be deductible

(d) The provision relates to accrued product warranty costs For tax purposes the product warranty costs will not be deductible until the entity pays claims

(e) The government grant is not taxable neither when received nor when it will be charged to profit or loss The depreciation of related asset is considered as if no grant was received for tax purposes

(f) Inventories have been written down by Rs 10 to their NRV (g) Tax base of all other assets and liabilities is equal to their carrying amount (h) Unused tax losses are of Rs 20 (i) Unused tax credit are Rs 5 (j) Applicable tax rate is 20 Required Calculate the deferred tax liability asset (16)

CAF 7 ndash IAS 12


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QUESTION 05 Adeel Limited made accounting profit before tax of Rs 500000 in each of the year ending 31 December 2019 2020 2021 and 2022 and pays tax 30 Adeel Limited bought an item of plant on 1 January 2019 for Rs 120000 This asset is being depreciated on straight line basis over 4 years and has an estimated residual value of Rs 28812 Accounting depreciation is not allowed as a taxable deduction in the jurisdiction in which the company operates Instead a tax allowance of 30 reducing balance method is allowed Required Prepare extracts of SPL for each year (ignore deferred tax) (06) Prepare extracts of SPL for each year (recognise deferred tax) (08) (calculate deferred tax using both income statement liability approach and balance sheet liability approach) QUESTION 06

The following deferred tax positions relate to the same entity Situation 1 Situation 2 Deferred tax liability 12000 5000 Deferred tax asset (8000) (8000) 4000 (3000)

Required Discuss how the above may be recognised in financial statements (04) QUESTION 07 31 December 2015 Profits were taxed at 30 A Ltd recognised a deferred tax liability of Rs 30000 (it had temporary differences of Rs 100000) 31 December 2016 The tax rate changed to 25 during the year At the year end A Ltd carried out the following deferred tax calculation Carrying amount Tax base Temporary difference

Rs Rs Rs Non-current assets 1000000 820000 180000

Deferred tax 25 45000 Required Prepare movement of deferred tax liability and journal entry to record the expense (04) QUESTION 08 B Ltd had an accounting profit before tax of Rs 500000 This contained income of Rs 20000 which is not taxable Accounting depreciation in the year was Rs 100000 and tax allowable depreciation was Rs 150000 This means that a temporary difference of Rs 50000 originated in the year Tax expense Rs Current tax 129000 Deferred taxation (30 Rs 50000) 15000 Tax expense 144000

CAF 7 ndash IAS 12

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B Ltdrsquos taxation computation is as follows Rs Accounting profit 500000 Add back inadmissible deductions

Depreciation 100000 Deduct admissible deduction

Tax allowable depreciation 150000 Income not taxed (exempt) 20000

(170000) Taxable profit 430000 Tax at 30 129000

Required Prepare tax reconciliation in absolute numbers and in percentages (05) QUESTION 09

Year 2015 Shep was incorporated on 1 January 2015 In the year ended 31 December 2015 the company made a profit before taxation of Rs 121000 during the period Shep made the following capital additions Rs Plant 48000 Motor vehicles 12000 During the period Accounting depreciation 11000 Tax depreciation 15000

Tax is chargeable at a rate of 30 Required (a) Calculate the corporate income tax liability for the year ended 31st December 2015 (b) Calculate the deferred tax balance that is required in the statement of financial

position as at 31st December 2015 (c) Prepare a note showing the movement on the deferred tax account and thus

calculate the deferred tax charge for the year ended 31st December 2015 (d) Prepare the statement of profit or loss note which shows the compilation of the tax

expense for the year ended 31st December 2015 (06)

Year 2016 The following information is relevant for the year ended 31st December 2016

(a) Capital transactions Rs Depreciation charged 14000 Tax allowances 16000

(b) Interest payable On 1st April 2016 the company issued Rs 25000 of 8 convertible loan stock Interest is paid in arrears on 30th September and 30th March Assume that tax relief on interest expense is only given when the interest is paid

(c) Interest receivable On 1st April Shep purchased debentures having a nominal value of Rs 4000 Interest at 15 pa is receivable on 30th September and 30th March Assume that interest income is not taxed until the cash is actually received

CAF 7 ndash IAS 12


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(d) Provision for warranty In preparing the financial statements for the year to 31st December 2016 Shep has recognized a provision for warranty payments in the amount of Rs 1200 This has been correctly recognized in accordance with IAS 37 and the amount has been expensed Assume that tax relief on the warranty cost is only given when the expense is paid

(e) Fine

During the period Shep has paid a fine of Rs 6000 The fine is not tax deductible (f) Further information

The accounting profit before tax for the year was Rs 125000

Tax is chargeable at a rate of 30

Required (a) Calculate the corporate income tax liability for the year ended 31st December 2016 (b) Calculate the deferred tax balance that is required in the statement of financial



expense for the year ended 31st December 2016 (e) Prepare a note to reconcile the product of the accounting profit and the tax rate to the

tax expense for year ended 31st December 2016 (10)


(a) Interest payableInterest receivable Shep still has Rs 25000 of 8 convertible loan stack in issue and still retains its holding in the debentures purchased in 2004

(b) Provision for warranty During the year Shep had paid out Rs 500 in warranty claims and provided for a further Rs 2000

(c) Development costs During 2017 Shep has capitalized development expenditure of Rs 17800 in accordance with the provisions of IAS 38 Assume that tax relief on this expenditure is taken in full in the period in which it is incurred

(d) Further information Rs Profit before taxation 175000 Depreciation charged 18500 Tax allowable depreciation 24700

(e) Entertainment

Shep paid for a large office party during 2017 to celebrate a successful first two years of the business This cost Rs 20000 Assume that this expenditure is not tax deductible



position as at 31st December 2017

CAF 7 ndash IAS 12

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(c) Prepare a note showing the movement on the deferred tax account and thus calculate the deferred tax charge for the year ended 31st December 2017

(d) Prepare the statement of profit or loss note which shows the compilation of the tax expense for the year ended 31st December 2017

(e) Prepare a note to reconcile the product of the accounting profit and the tax rate to the tax expense for year ended 31st December 2017 (10)

Year 2017 (Rate Change) Using the information provided for ldquoYear 2017rdquo and assumes that Shep is subject to a higher tax rate of 34 in 2017 Required (a) Calculate the corporate income tax liability for the year ended 31st December 2017 (b) Calculate the deferred tax balance that is required in the statement of financial




tax expense for year ended 31st December 2017 (10) QUESTION 10 XYZ Limited had an accounting profit before tax of Rs 90000 for the year ended 31st December 2016 The tax rate is 30 Opening deferred tax balance was Rs 3600 The following balances and information are relevant as at 31st December 2016

Carrying amount Tax base Note

Non-current assets Rs Rs Property 63000 1 Plant and machinery 100000 90000 2 Assets held under lease 80000 3

Receivables Trade receivables 73000 4 Interest receivable 1000 5

Payables Fine 10000 Lease obligation 85867 3 Interest payable 3300 5

Note 1 The property cost the company Rs70000 at the start of the year It is being depreciated on a 10 straight line basis for accounting purposes The companyrsquos tax advisers have said that the company can claim Rs42000 accelerated depreciation as a taxable expense in this yearrsquos tax computation Note 2 The balances in respect of plant and machinery are after providing for accounting depreciation of Rs12000 and tax allowable depreciation of Rs10000 respectively Note 3 The asset held under the lease was acquired on 1 Jan 2016 and have been depreciated over useful life of 5 years Rental expense for leases is tax deductible The annual rental for the asset is Rs 28800 (including Rs 14667 for interest) and was paid on 31st December 2016

CAF 7 ndash IAS 12


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Note 4 The receivables figure is shown net of an allowance for doubtful balances of Rs 7000 This is the first year that such an allowance has been recognised A deduction for debts is only allowed for tax purposes when the debtor enters liquidation Note 5 Interest income is taxed and interest expense is allowable on a cash basis There were no opening balances on interest receivable and interest payable Required Calculate current and deferred tax movement of deferred tax liability note showing components of tax expense and reconciliation disclosure for the year ended 31 December 2016 (16) QUESTION 11 Waqar Limited has provided you the following information for determining its tax and deferred tax expense for the year 2014 and 2015 (i) During the year ended December 31 2015 the companyrsquos accounting profit before

tax amounted to Rs 40 million (2014 Rs 30 million) The profit includes capital gains amounting to Rs 10 million (2014 Rs 8 million) which are exempt from tax

(ii) The accounting written down values of the fixed assets as at December 31 2013 were as follows

Cost Accumulated Depreciation

Written down value

Rs m Rs m Rs m Machinery 200 25 175 Furniture and fittings 50 10 40

No additions or disposals of fixed assets were made in the years 2014 and 2015 (i) Machinery was acquired on January 1 2013 and is being depreciated on straight-

line basis over its estimated useful life of 8 years The tax base of machinery as at December 31 2013 was Rs 90 million

(ii) Furniture and fittings are also depreciated on the straight line basis at the rate of 10 per annum The tax base of furniture and fittings as at December 31 2013 was Rs 405 million

(iii) Normal rate of tax depreciation on both types of assets is 10 on written down value

(iv) The tax rates for 2013 2014 and 2015 were 35 35 and 30 respectively

Required For each year (a) Calculate the corporate income tax liability for the year (b) Calculate the deferred tax balance that is required in the statement of financial

position as at the year end (c) Prepare a note showing the movement on the deferred tax account and thus

calculate the deferred tax charge for the year (d) Prepare the statement of profit or loss note which shows the compilation of the tax

expense (e) Prepare a note to reconcile the product of the accounting profit and the tax rate to the

tax expense (18)

CAF 7 ndash IAS 12

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QUESTION 12 Given below is the statement of profit or loss of Shakir Industries for the year ended December 31 2015 2015 Rs m Sales 14300 Cost of goods sold (9660) Gross profit 4640 Operating expenses (2870) Operating profit 1770 Other income 340 Profit before interest and tax 2110 Financial charges (530) Profit before tax 1580 Following information is available (i) Operating expenses include an amount of Rs 07 million paid as penalty to SECP on

non-compliance of certain requirements of the Companies Act 2017 (ii) During the year the company made a provision of Rs 24 million for gratuity The

actual payment on account of gratuity to outgoing members was Rs 16 million (iii) Lease payments made during the year amounted to Rs 065 million which include

financial charges of Rs 015 million As at December 31 2015 lease liabilities stood at Rs 12 million

The movement in assets held under lease is as follows

Rs m Opening balance ndash 01012015 250 Depreciation for the year (07) Closing balance ndash 31122015 180

The details of owned fixed assets are as follows

Accounting Tax Rs m Rs m Opening balance ndash 01012015 1250 1020 Purchased during the year 53 53 Depreciation for the year (11) (165) Closing balance ndash 31122015 1670 1385

(iv) Capital work-in-progress as on December 31 2015 includes financial charge of Rs

23 million which have been capitalized in accordance with IAS-23 ldquoBorrowing Costsrdquo However the entire financial charges are admissible under the Income Tax Ordinance 2001

(v) Deferred tax liability and provision for gratuity as at January 1 2015 was Rs 08425 million and Rs 07 million respectively

(vi) Applicable income tax rate is 35

Required Based on the available information compute the current and deferred tax expenses for the year ended December 31 2015 (15)

CAF 7 ndash IAS 12


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QUESTION 13 Mars Limited (ML) is engaged in the manufacturing of chemicals On July 1 2014 it obtained a motor vehicle on lease from a bank Details of the lease agreement are as follows (i) Cost of motor vehicle is Rs 1600000 (ii) Installments of Rs 480000 are to be paid annually in advance (iii) The lease term and useful life is 4 years and 5 years respectively (iv) The interest rate implicit in the lease is 13701 ML follows a policy of depreciating the motor vehicles over their useful life on the straight-line method However the tax department allows only the lease payments as a deduction from taxable profits The tax rate applicable to the company is 30 MLrsquos accounting profit before tax for the year ended June 30 2015 is Rs 4900000 There are no temporary differences other than those evident from the information provided above Required (a) Prepare journal entries in the books of Mars Limited for the year ended June 30

2015 to record the above transactions including tax and deferred tax (b) Prepare a note to the financial statements related to disclosure of lease liability in

accordance with the requirements of IFRS (16) (Ignore comparative figures) QUESTION 14 Bilal Engineering Limited earned profit before tax amounting to Rs 50 million during the year ended December 31 2015 The accountant of the company has submitted draft accounts to the Finance Manager along with the following information which he believes could be useful in determining the amount of taxation (i) Accounting deprecation for the year is Rs 10 million which includes Rs 1 million

charged on the difference between cost and revalued amount

(ii) A motor vehicle costing Rs 1 million was taken on lease in 2015 Related clauses of the lease agreement are as under Annual installment of Rs 03 million is payable annually in advance The lease term and useful life is 4 years and 5 years respectively The interest rate implicit in the lease is 13701 per annum Accounting depreciation on the leased vehicle is included in the depreciation

referred to in para (i) above (iii) Tax depreciation on the assets owned by the company is Rs 7 million

(iv) Research and development expenses of Rs 15 million were incurred in 2015 and are

being amortized over a period of 15 years For tax purposes research and development expenses are allowed to be written off in 10 years However 10 of these expenses were not verifiable and have not been claimed

(v) Expenses amounting to Rs 025 million were disallowed in 2014 Out of these Rs 015 million were allowed in appeal during the current year The company had initially expected that the full amount would be allowed but has decided not to file a further appeal

(vi) The applicable tax rate is 35

CAF 7 ndash IAS 12

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Required (a) Prepare journal entries in respect of taxation for the year ended December 31 2015 (b) Prepare a reconciliation to explain the relationship between tax expense and

accounting profit as is required to be disclosed under IAS 12 Income Taxes (18)

QUESTION 15 The following information relates to Galaxy International (GI) a listed company which was incorporated on January 1 2014 (i) The (loss) profit before taxation for the years ended December 31 2014 and 2015

amounted to (Rs 175 million) and Rs 235 million respectively (ii) The details of accounting and tax depreciation on fixed assets is as follows

2015 2014 Rs m Rs m Accounting depreciation 15 15 Tax depreciation 6 45

(iii) In 2014 GI accrued certain expenses amounting to Rs 2 million which were

disallowed by the tax authorities However these expenses are expected to be allowed on the basis of payment in 2015

(iv) GI earned interest on Special Investment Bonds amounting to Rs 10 million and Rs 125 million in the years 2014 and 2015 respectively This income is exempt from tax

(v) GI operates an unfunded gratuity scheme The provision during the years 2014 and 2015 amounted to Rs 17 million and Rs 22 million Respectively No payment has so far been made on account of gratuity


Required Prepare a note on taxation for inclusion in the companyrsquos financial statements for the year ended December 31 2015 giving appropriate disclosures relating to current and deferred tax expenses including a reconciliation to explain the relationship between tax expenses and accounting profit (20) QUESTION 16 The following information relates to Apricot Limited (AL) a listed company for the financial year ended 31 December 2015

(i) The profit before tax for the year amounted to Rs 60 million (2014 Rs 45

million)

(ii) The accounting and tax written down value of fixed assets as on 31 December 2014 was Rs 95 million and Rs 90 million respectively Accounting depreciation for the year is Rs 10 million (2014 Rs 9 million) whereas tax depreciation for the year is Rs 8 million (2014 Rs 7 million)

(iii) During the year AL sold a machine for Rs 3 million and recognized a profit of Rs 05 million The tax written down value of the machine as on 31 December 2014 was Rs 2 million There were no other additionsdisposals of fixed assets in 2014 and 2015

CAF 7 ndash IAS 12


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(iv) AL earned capital gain of Rs 6 million (2014 Nil) on sale of shares of a listed

company This income is exempt from tax

(v) Bad debt expenses recognized during the year was Rs 5 million (2014 Rs 7 million)

(vi) Bad debts written off during the year amounted to Rs 3 million (2014 Rs 4 million)

(vii) Deferred tax liability and provision for bad debts as on 31 December 2013 was Rs 1890 million and Rs 9 million respectively

(viii) The companyrsquos assessed brought forward losses up to 31 December 2013 amounted to Rs 1925 million

(ix) Applicable tax rate is 35

Required Prepare a note on taxation for inclusion in ALrsquos financial statements for the year ended 31 December 2015 giving appropriate disclosures relating to current and deferred tax expenses including comparative figures for 2014 and a reconciliation to explain the relationship between 2015 tax expense and 2015 accounting profit (20) QUESTION 17 Following are the relevant extracts from the financial statements of Floor amp Tiles Limited (FTL) for the year ended 31 December 2015

Rs in million Profit before tax 80 Provision for gratuity for the year 12 Bad debts expense for the year 10 Capital gain (exempt from tax) 5

The following information is also available (i) Opening balances of deferred tax liability provision for bad debts and provision for

gratuity were Rs 528 million Rs 2 million and Rs 13 million respectively

(ii) The cost and other details related to buildings (owned) included in property plant and equipment are as follows

Rs in million

Opening balance (purchased on 1 January 2013) 350 Cost of a building sold on 30 April 2015 (for Rs 35 million) 30 Purchased on 1 July 2015 40

(iii) Accounting depreciation on buildings is calculated 5 per annum on straight line

basis whereas tax depreciation is calculated 10 on reducing balance method Accounting depreciation of all other owned assets included in property plant and equipment is same as tax depreciation

(iv) On 1 January 2015 a machine costing Rs 120 million was acquired on lease Some of the relevant information is as follows The lease term as well as the useful life is 5 years Annual lease rentals amounting to Rs 30 million are payable in advance

CAF 7 ndash IAS 12

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The interest rate implicit in the lease is 1259 This machine would be depreciated over its useful life on straight line method

(v) On 1 June 2015 an amount of Rs 1 million was paid as penalty to the provincial government due to non-compliance of environmental laws

(vi) The amount of gratuity paid to outgoing members was Rs 10 million

(vii) During the year entertainment expenses and repair expenses amounting to Rs 6 million and Rs 8 million respectively pertaining to year ended 31 December 2013 were disallowed FTL has decided to file appeal only against the decision regarding repair expenses

(viii) Applicable tax rate is 32 Required Prepare a note on taxation (expense) for inclusion in FTLrsquos financial statements for the year ended 31 December 2015 giving appropriate disclosures relating to current and deferred tax expenses including a reconciliation to explain the relationship between tax expense and accounting profit (17) QUESTION 18 On 30 June 2014 Francesca Company had a credit balance on its deferred tax account of Rs 1340600 all in respect of the difference between depreciation and capital allowances During the year ended 30 June 2015 the following transactions took place (1) Rs 45 million was charged against profit in respect of depreciation The tax

computation showed capital allowances of Rs 50 million

(2) Interest receivable of Rs 50000 was reflected in profit for the period However only Rs 45000 of interest was actually received during the year Interest is not taxed until it is received

(3) Interest payable of Rs 32000 was treated as an expense for the period However only Rs 28000 of interest was actually paid during the year Interest is not an allowable expense for tax purposes until it is paid

(4) During the year Francesca incurred development costs of Rs 500600 which it has capitalized Development costs are an allowable expense for tax purposes in the period in which they are paid

(5) Land and buildings with a net book value of Rs 4900500 were revalued to Rs 6 million

The tax rate is 30 Francesca has a right of offset between its deferred tax liabilities and its deferred tax assets Required Calculate the deferred tax liability on 30 June 2015 Show where the increase or decrease in the liability in the year would be charged or credited (08)

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QUESTION 19 Rose Limited (RL) is finalizing its financial statements for the year ended 31 December 2017 In this respect the following information has been gathered (i) Applicable tax rate is 30 except stated otherwise

(ii) During the year RL incurred advertising cost of Rs 15 million This cost is to be

allowed as tax deduction over 5 years from 2017 to 2021

(iii) Trade and other payables amounted to Rs 40 million as on 31 December 2017 which include unearned commission of Rs 10 million Commission is taxable when it is earned by the company Tax base of remaining trade and other payables is Rs 25 million

(iv) Other receivables amounted to Rs 17 million as on 31 December 2017 which include dividend receivable of Rs 8 million Dividend income was taxable on receipt basis at 20 in 2017 However with effect from 1 January 2018 dividend received is exempt from tax Tax base of remaining other receivables is Rs 6 million

(v) On 1 April 2017 RL invested Rs 40 million in a fixed deposit account for one year at 10 per annum Interest will be received on maturity Interest was taxable on receipt basis at 10 in 2017 However with effect from 1 January 2018 interest received is taxable at 15

(vi) On 1 January 2016 a machine was acquired on lease for a period of 4 years at annual lease rental of Rs 28 million payable in advance Interest rate implicit in the lease is 10 Under the tax laws all lease related payments are allowed in the year of payment

(vii) Details of fixed assets are as follows On 1 January 2017 RL acquired a plant at a cost of Rs 250 million It has been

depreciated on straight line basis over a useful life of six years RL is also obliged to incur decommissioning cost of Rs 50 million at the end of useful life of the plant Applicable discount rate is 8

On 1 July 2017 RL sold one of its four buildings for Rs 60 million These buildings were acquired on 1 January 2013 at a cost of Rs 100 million each having useful life of 30 years

The dismantling costs will be allowed for tax purposes when paid Tax depreciation rate for all owned fixed assets is 10 on reducing balance method Further full yearrsquos tax depreciation is allowed in year of purchase while no depreciation is allowed in year of disposal Required Compute the deferred tax liabilityasset to be recognised in RLrsquos statement of financial position as on 31 December 2017 (16)

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QUESTION 20 Orange Limited (OL) is in the process of finalizing its financial statements for the year ended 30 June 2018 The following information has been gathered for preparing the disclosures related to taxation (i) Profit before tax for the year ended 30 June 2018 was Rs 508 million

(ii) Accounting depreciation for the year exceeds tax deprecation by Rs 45 million

(iii) During the year OL sold a machine whose accounting WDV exceeded tax WDV by

Rs 15 million

(iv) OL carries trademark of Rs 90 million having indefinite useful life which was acquired on 1 July 2015 Tax authorities allow its amortization over 10 years on straight line basis

(v) OL sells goods with a 1-year warranty and it is estimated that warranty expenses are 2 of annual sales Actual payments during the year related to warranty claims were Rs 54 million Of these Rs 38 million pertain to goods sold during the previous year Sales for the year ended 30 June 2018 was Rs 1750 million Under the tax laws these expenses are allowed on payment basis

(vi) During the year OL expensed out payments of Rs 175 million related to restructuring of one of its business segments As per tax laws these expenses are to be allowed as tax expense over a period of 5 years from 2018 to 2022

(vii) Expenses include accruals of Rs 26 million which will be allowed for tax purpose on payment basis cash donations of Rs 5 million which are not allowed as tax expense

(viii) Other income includes commission receivable of Rs 12 million dividend receivable of Rs 35 million Both incomes were taxable on receipt basis at 30 up to 30 June 2018 With effect from 1 July 2018 commission income is exempt from tax whereas dividend income is taxable at 10 on receipt basis

(ix) On 30 June 2018 OL received advance rent of Rs 16 million Rent income is taxable on receipt basis

(x) Net deferred tax liability as on 1 July 2017 arose on account of Rs in million Property plant and equipment 345 Trademark 54 Provision for warranty (147) 252

(xi) Applicable tax rate is 30 except stated otherwise Required (a) Prepare a note on taxation for inclusion in OLs financial statements for the year

ended 30 June 2018 including a reconciliation to explain the relationship between tax expense and accounting profit (11)

(b) Compute the deferred tax liabilityasset in respect of each temporary difference (07)

(Comparative figures are not required)

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QUESTION 21 Triangle Limited (TL) was incorporated in 2017 The following information has been gathered for preparing the disclosures related to taxation for the year ended 31 December 2018 (i) Profit before tax for the year amounted to Rs 125 million (2017 Rs 110 million)

(ii) Accounting depreciation for the year was Rs 25 million (2017 Rs 18 million)

(iii) Tax depreciation for the year was Rs 21 million (2017 Rs 42 million)

(iv) Rent is allowed for tax purposes on payment basis Rent accrued as at 31 December

2018 amounted to Rs 1 million (2017 Rs 3 million)

(v) Insurance is also allowed for tax purposes on payment basis Prepaid insurance as at 31 December 2018 amounted to Rs 5 million (2017 Rs 4 million)

(vi) Other income includes interest of Rs 10 million (2017 Rs 7 million) dividend of Rs 6 million (2017 Rs 8 million)

(vii) Borrowing cost of Rs 2 million was capitalized in 2018 on an under construction

building Borrowing cost is allowed for tax purposes in the year in which it is incurred

(viii) Applicable tax rates are as follows 2018 2017 Dividend income 35 20 Interest income Exempt 30 All other incomes 35 30

The rates were changed through the Finance Act enacted on 10 January 2018 Required Prepare the following (a) Note on taxation for inclusion in TLs financial statements for the year ended 31

December 2018 and a reconciliation to explain the relationship between tax expense and accounting profit (Show comparative figures) (11)

(b) Computation of deferred tax liabilityasset in respect of each temporary difference as at 31 December 2017 and 2018 (07)

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ANSWER 01

Tax expense Date Particulars Rs Date Particulars Rs

Tax payable (Y6) 114000 Tax payable (over) 6000 Profit or loss 108000 114000 114000

Tax payable

Date Particulars Rs Date Particulars Rs Tax expense (over) 6000 bd 77000 Bank (tax paid) 123000 Tax expense (Y6) 114000 cd 62000 191000 191000

ANSWER 02

(a) (b) (c) (d) (e) Carrying amount 70 100 100 100 100 Less Future taxable benefits (70) (100) 0 0 0 Add Future Deductible amounts 70 0 0 0 0 Tax base 70 Nil 100 100 100

ANSWER 03

(a) (b) (c) (d) (e) Carrying amount 100 100 100 100 100 Less Future deductible amount (100) 0 0 0 0 Less Revenue not taxable in future 0 (100) 0 0 0 Tax base Nil Nil 100 100 100

ANSWER 04

Asset Liab Carrying amount

Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)

Rs Rs Rs Rs Land 500 400 100 T 20 20 Liability Building 500 300 200 T 20 40 Liability Plant 100 100 0 Luxurious car 100 0 100 T 20 Note Inventory 50 60 10 D 20 (2) Asset Receivable 40 40 0 Cash 30 30 0 Long term loan 120 120 0 Trade payable 55 55 0 Provision 20 0 20 D 20 (4) Asset Grant 25 0 25 D 20 Note Other payables 50 50 0

Unused tax losses 20 20 (4) Asset Unused tax credit (5) Asset

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Total DT asset as at December 31 2011 (15) Total DT liability as at December 31 2011 60 Net Deferred tax liability as at December 31 2011 45 Opening balance 0 Increase in liability 45 Charge Charged to OCI Rs on revaluation surplus100 x 20 20 Charged to PL (remaining) 25 45 Tax base calculation Assets Building Rs 500 ndash 500 + 300 = Rs 300 or Rs 700 cost ndash Rs 400 allowances = Rs 300 Land Rs 500 ndash 500 + 400 = Rs 400 Luxurious car Rs 100 ndash 100 + 0 = Rs 0 Inventory Rs 50 ndash 50 + 60 = Rs 60 Liabilities ndash unearned revenue Grant Rs 25 ndash Rs 25 = Rs 0 Liabilities ndash others Provision Rs 20 ndash Rs 20 = Rs 0 Note Temporary differences arising from the initial recognition of asset or liability are not taken into account while recognising deferred tax asset or liability ANSWER 05 Part (a) Adeel Limited 2019 2020 2021 2022 SPL (Extracts) Rs Rs Rs Rs Profit before tax 500000 500000 500000 500000 Less Current tax (146039) (149279) (151547) (153135) Less Deferred tax 0 0 0 0 Profit after tax 353961 350721 348453 346865 Adeel Limited 2019 2020 2021 2022 Current tax computation Rs Rs Rs Rs Accounting profit 500000 500000 500000 500000 Add Accounting depreciation 22797 22797 22797 22797 Less Tax allowance (36000) (25200) (17640) (12348) Tax profit 486797 497597 505157 510449

Tax Rate 30 30 30 30 Current tax 146039 149279 151547 153135 Part (b) Adeel Limited 2019 2020 2021 2022 SPL (Extracts) Rs Rs Rs Rs Profit before tax 500000 500000 500000 500000 Less Current tax (as above) (146039) (149279) (151547) (153135) Less Deferred tax (3961) (721) 1547 3135 Profit after tax 350000 350000 350000 350000

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Adeel Limited 2019 2020 2021 2022 Deferred tax (Income approach) Rs Rs Rs Rs Accounting profit 500000 500000 500000 500000 Tax profit (486797) (497597) (505157) (510449) Difference 13203 2403 (5157) (10449)

Tax rate 30 30 30 30 Expense (income) 3961 721 (1547) (3135) Adeel Limited 2019 2020 2021 2022 Deferred tax (Asset liability approach) Rs Rs Rs Rs Carrying amount 97203 74406 51609 28812 Tax base (84000) (58800) (41160) (28812) Temp difference Taxable (Deductible) 13203 15606 10449 0 Tax rate 30 30 30 30 Deferred tax liability (asset) 3961 4682 3135 0 Less opening balance 0 (3961) (4682) (3135) Expense (Income) 3961 721 (1547) (3135)

ANSWER 06 In situation 1 the financial statements will report the net position as a liability of 4000 The existence of the liability indicates that the company will be able to recover the asset so the asset can be set off against the liability In situation 2 setting off the asset against the liability leaves a deferred tax asset of 3000 This asset may only be recognised if the entity believes it is probable that it will be recovered in the foreseeable future ANSWER 07

The movement on the deferred tax liability would be shown as follows Rs Deferred taxation bf 30000 Profit or loss Rate change (530 30000) (5000) Deferred taxation bf restated 25000 Profit or loss (balancing ndash due to origination of temporary differences in the period) 20000 Deferred taxation balance at the end of the year 45000

Journal Debit Credit Income statement (tax expense) [20000 ndash 5000] 15000 Deferred tax liability 15000 ANSWER 08 Tax reconciliation (in absolute numbers) Rs Accounting profit 500000 Applicable tax rate 30 Accounting profit the applicable tax rate 150000 Tax effect of untaxed income (30 of Rs 20000) (6000) Tax expense 144000 Tax reconciliation (in percentages) Applicable tax rate 300 Tax effect of untaxed income (6000 500000) (12) Effective tax rate (144000 500000) 288

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ANSWER 09

Year 2015 Part (a) Corporate income tax liability ndash year ended December 31 2015 Rs Accounting profit 121000 Add accounting depreciation 11000 133000 Less tax depreciation (15000) Taxable profit 117000 Tax payable 30 35100 Part (bamp c) Particulars CA TB TD Rate DT LA Charge Rs Assets 49000 45000 4000 T 30 1200 L PL Closing Balance 1200 L Opening Balance 0 L Charge to PL for the year 1200

Part (d) Statement of profit or loss note Rs Current tax 35100 Deferred tax 1200 36300 Year 2016 Part (a) Corporate income tax liability ndash year ended December 31 2016 Rs Accounting profit 125000 Add Accounting depreciation 14000

Interest payable 500 Provision 1200 Fine 6000

146700 Less Tax allowance (16000)

Interest receivable (150) Taxable profit 130550 Tax payable 30 39165 Part (bamp c) Particulars CA TB TD Rate DT LA Charge Rs Tangible Assets 35000 29000 6000 T 30 1800 L PL Interest payable 500 0 500 D 30 150 A PL Interest receivable 150 0 150 T 30 45 L PL Provision 1200 0 1200 D 30 360 A PL Closing Balance 1335 L Opening balance 1200 L Charge to PL for the year 135 Part (d) Statement of profit or loss note Rs Current tax 39165 Deferred tax 135 39300

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Part (e) Tax reconciliation Rs Accounting profit 125000 Tax 30 on accounting profit 37500 Tax effect of the fine (6000 x 30) 1800 Tax expense 39300 Year 2017 Part (a) Corporate income tax liability ndash year ended December 31 2017 Rs Accounting profit 175000 Add Accounting depreciation 18500 Interest payableN1 - Provision 2000 Entertainment 20000

215500 Less Tax allowance (24700) Interest receivableN1 - Development costs (17800) Provision (500) Taxable profit 172500 Tax payable 30 51750

N1 There is no adjustment to profit for the interest paid and the interest receivable

Consider the interest payable The tax authority will disallow the closing accrual but will allow last yearrsquos accrual (that has been paid in this year) as a deduction These amounts are equal so there is no net effect Similar comments can be made about the interest receivable

Part (b amp c)

Particulars CA TB TD Rate DT LA Charge Rs

Tangible Assets 16500 4300 12200 T 30 3660 L PL Interest payable 500 0 500 D 30 150 A PL Interest receivable 150 0 150 T 30 45 L PL Provision 2700 0 2700 D 30 810 A PL Development expenditure 17800 0 17800 T 30 5340 L PL Closing Balance 8085 L Opening balance 1335 L Charge to PL for the year 6750

Part (d) Statement of profit or loss note Rs Current tax 51750 Deferred tax 6750

58500

Part (e) Tax reconciliation Rs Accounting profit 175000 Tax 30 on accounting profit 52500 Tax effect of entertainment (20000 x 30) 6000 Tax expense 58500

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Year 2017 (Rate Change) Part (a) Corporate income tax liability ndash year ended December 31 2017 Rs Taxable profit (as before) 172500 Tax payable 34 58650 Part (bamp c) Particulars CA TB TD Rate DT LA Charge Rs Tangible Assets 16500 4300 12200 T 34 4148 L PL Interest payable 500 0 500 D 34 170 A PL Interest receivable 150 0 150 T 34 51 L PL Provision 2700 0 2700 D 34 918 A PL Development expenditure 17800 0 17800 T 34 6052 L PL Closing Balance 9163 L Opening balance 1335 L Adjustment due to change in rate (1335 x 430) 178 L Opening balance restated 1513 L Charge to PL for the year due to temporary difference 7650 Part (d) Statement of profit or loss note Rs Current tax 58650 Deferred tax due to temporary difference 7650 Deferred tax due to change in tax rate 178

7828 66478

Part (e) Tax reconciliation Rs Accounting profit 175000 Tax 34 on accounting profit 59500 Tax effect of entertainment (20000 x 34) 6800 Increase in opening deferred tax due to change of tax rate 178 Tax expense 66478 ANSWER 10 Current tax computation Rs Accounting profit 90000 Accounting depreciation on property 7000 Tax depreciation on property (42000) Accounting depreciation on plant and machinery 12000 Tax depreciation on plant and machinery (10000) Depreciation of leased asset 20000 Interest expense (on lease) 14667 Lease rental paid (28800) Increase in allowance for doubtful debts 7000 Interest payable accrual 3300 Fines (disallowed) 10000 Interest income (1000) Tax profit 82167

Current tax30 24650

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Deferred tax Carrying value Tax base Temp Diff Rs Rs Rs

Property 63000 28000 35000 T Plant and machinery 100000 90000 10000 T Right of use assets 80000 0 80000 T Lease liability 85867 0 85867 D Trade receivables 73000 80000 7000 D Interest receivables 1000 0 1000 T Interest payable 3300 0 3300 D Total taxable temporary differences 29833 T

Deferred tax 30 8950 Opening balance 3600

Profit or loss 5350 Tax expense Rs Current tax expense 24650 Deferred tax expense 5350

Tax expense 30000 Tax Reconciliation Rs Tax applicable rate [90000 x 30] 27000 Effect of disallowed expenses ndash fines [10000 x 30] 3000 Tax expense 30000 ANSWER 11 Part (a) 2015 2014 Rs in million Accounting profit before tax 4000 3000 Add Accounting depreciation 3000 3000 Less Exempt capital gain (1000) (800) Tax depreciation (1175) (1305) Taxable profits 4825 3895 Tax rate X 30 X 35 Current tax 30 35 14475 136325 Part (b) and (c) CA TB Temp Diff Tax

rate DTL DTA

Rs m Rs m Rs m Rs m 2013 Property plant and equipment 215 13050 8450 T 35 29575 L Difference ndash Deferred tax income 59325 2014 Property plant and equipment 185 11745 6755 T 35 236425 L Difference ndash Deferred tax income 88525 2015 Property plant and equipment 155 10570 4930 T 30 1479 L Part (d) 2015 2014 Rs in million Profit before tax 4000 3000 Tax Current tax 14475 136325 Deferred tax (88525) (59325) (56225) (770) 343775 2230

CAF 7 ndash IAS 12


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Part (e) 2015 2014 Rs in million Profit before tax x tax rate 12 1050 Less effect of exempt income [10 x 30] [8 x 35] (3) (280) Less effect of change in tax rates [236425 x 535] (33775) Tax expense (part d) 56225 770 Working 1 Accounting Tax Property plant and equipment Machine FampF Total Machine FampF Total Rs in million As at 31 December 2013 175 40 215 90 4050 13050 Depreciation ndash 2014 (25) (5) (30) (9) (405) (1305) As at 31 December 2014 150 35 185 81 3645 11745 Depreciation ndash 2015 (25) (5) (30) (81) (365) (1175) As at 31 December 2015 125 30 155 729 3280 10570

ANSWER 12

Rs in million Accounting profit before tax 1580 Add Penalty to SECP ndash disallowed 070 Provision for gratuity for the year 240 Interest on lease 015 Accounting depreciation ndash leased assets 070 Accounting depreciation ndash other assets 110 Less Lease payments (065) Tax depreciation ndash other assets (165) Interest included in capital work in progress (230) Gratuity paid (160) Taxable profits 1465 Current tax 35 513 CA TB Temp Diff Rs m Rs m Rs m Right of use assets 180 0 180 T Assets ndash owned 1670 1385 285 T Interest element in CWIP 230 0 230 T Provision for gratuity [bd 07 + PL 24 ndash Cash 16] 150 0 150 D Lease liability 120 0 120 D Net 425 T Deferred tax Liability 35 14875 Deferred tax expense Rs 14875 ndash 08425 opening 06450

ANSWER 13 Part (a)

Date Particulars Dr Rs Cr Rs 010714 Motor vehicle ndash cost 1600000

Lease liability 1600000 (capitalize the leased asset and corresponding liability)

0107 14 Lease liability 480000 Bank 480000 (Recording of first lease payment)

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3006 15 Interest expense 153451 Interest payable 153451 (W3)

300615 Depreciation 400000 Accumulated depreciation 400000 (Rs 1600000 4 years assuming that ownership is

not be transferred)

300615 Tax expense 1492035 Current tax payable 1492035 (W1)

300615 Deferred tax asset 22035 Tax expense 22035 (W2)

W1 Current tax Rs Accounting profit 4900000 Add Depreciation on leased motor vehicle 400000 Add Interest expense on lease 153451 Less Lease payment (480000) Taxable profit 4973451 Currrent tax 30 1492035 CA TB Temp Diff W2 Deffered tax Rs Rs Rs Motor Vehicle 1200000 0 1200000 T Lease liability (Non current + Current) 1120000 0 1120000 D Interest payable 153451 0 153451 D Net 73451 D Deferred tax asset 30 22035 Part (b) Statement of comprehensive Income (extracts) 2015 Rs Depreciation expense 400000 Interest expense 153451 Statement of financial position (extracts) 2015 Non-current assets Rs Motor Vehicle (Right of use) 1600000 Accumulated depreciation (400000) 1200000 Non-current liabilities Lease liability 793451 Current liabilities Lease liability 326549 Interest payable 153451

CAF 7 ndash IAS 12


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Disclosure Undiscounted cash payments Rs Up to 1 year 480000 2-5 years 960000 More than 5 year - Total 1440000 Working 3 Lease (Payments in advance) Schedule Payment

time Liability

at beginning

Rental Principal Element

Liability after payment

Interest 13701

T Rs 010714 1600000 480000 (480000) 1120000 153451 010715 1120000 480000 (326549) 793451 ANSWER 14 Date Particulars Dr Rs m Cr Rs

m 311215 Tax expense 1839 Current tax payable 1839 (W1) 311215 Deferred tax asset 033 Tax expense 033 (W2) Working 1 Rs in million Accounting profit before tax 50000 Add Accounting depreciation 10000 Interest on lease W3 0096 Accounting amortization of R amp D 1000 Less Tax depreciation (7000) Lease payment (0300) Tax amortization of R ampD (1350) Taxable profits 52446 Current tax 35 - Current year 18357 Current tax 35 - prior year on Rs 0100 (not appealed) 0035 Total 1839 Working 2 CA TB Temp Diff Rs m Rs m Rs m Accumulated depreciation (excluding lease dep) 975 7000 275 D Leased asset (after depreciation) 075 0 075 T Interest payable 0096 0000 0096 D Lease liabiliity 0700 0000 0700 D Intangible assets [15 ndash 1] and [15 ndash 15 ndash 135] 14 1215 185 T 0946 D

Deferred tax asset 35 033 A

CAF 7 ndash IAS 12

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Working 3 Lease (Payments in advance) Schedule Payment

time Liability at beginning Rental Principal

Element Liability after

payment Interest 13701

T Rs 010115 1000 0300 (0300) 0700 0096 Relationship between tax charge and accounting profit Rs m Accounting profit before tax 50000 Tax on accounting profit 35 1750 Add Tax effect of prior year expenses disallowed 0035 Add Tax effect of RampD expenditure disallowed 15 x 10 = 15 x 35 0525 Actual tax charge Rs 1839 ndash 033 1806 ANSWER 15

Taxation Rs m Current tax expense W2 084 Deferred tax expense W1 6948 Charge to income statement 7788

Reconciliation Rs m Expected tax Rs 235m x 35 8225 Effect of exempt income Rs 125 x 35 (0437) Actual tax (current + deferred) 7788

W1 CA TB Temp Diff Tax Rate

DTL DTA Rs M 2014 Rs m Rs m Rs m

Accumulated depreciation 15 45 30 T 35 105 L Accrued expenses 2 0 2 D 35 070 A Provision for gratuity 17 0 17 D 35 0595 A

9205 L Unused tax losses Rs 2905 x 35 10168 A Deferred tax asset 0963 A

2015 Accumulated depreciation 30 51 21 T 35 735 L Provision for gratuity 17 + 22 0 39 D 35 1365 A Deferred tax liability 5985 L Deferred tax expense 6948

W2 Current tax 2015 2014 Rs m Rs m

Accounting profit (loss) before tax 235 (175) Add Accounting depreciation 15 15 Provision for the gratuity 22 17 Accrued expenses disallowed - 2 Less Tax depreciation (6) (45) Accrued expenses paid (2) Exempt interest income (125) (100) Tax profit (loss) 3145 (2905) Tax loss adjusted (2905)

240

Current tax expense 35 084 Nil

CAF 7 ndash IAS 12


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ANSWER 16

Taxation 2015 Rs M

2014 Rs M

Current W1 2048 1076 Deferred (2135)W2 amp(158)W3 (158) (2135)

1890 (1059)

Relationship between tax expense and accounting profit 2015 Profit before taxation 60 Tax at the applicable rate of 35 21 Less Tax effect of exempt income (210)

1890

W1 ndash Computation of Current Tax 2015 Rs M

2014 Rs M

Profit before tax as per books 60 45 Add Allowable income Disallowed expenses

Accounting depreciation 10 9 Tax profit on sale of fixed assets 1 - Bad debt expense 5 7

Less Disallowed income Allowable expenses Tax depreciation (8) (7) Accounting profit on sale of fixed assets (05) - Capital gain (6) - Bad debts written off (3) (4)

Taxable income 585 50 Brought forward losses - (1925)

585 3075 Tax liability ( 35) 2048 1076 W2 ndash Computation of Deferred Tax - 2014 Particulars CA TB TD Rate DT LA Charge

Rs M Fixed Assets W4 95 90 5 T 35 175 L PL Provision for bad debts W5 12 0 12 D 35 42 A PL Closing Balance 245 A Opening Balance 189 L Charge to PL for the year (2135)

W3 ndash Computation of Deferred Tax - 2015 Particulars CA TB TD Rate DT LA Charge Rs M Fixed Assets W4 825 80 25 T 35 087 L PL Provision for bad debts W5 14 0 14 D 35 49 A PL Closing Balance 403 A Opening Balance 245 A Charge to PL for the year 158 W4 ndash Movement of Fixed Assets Accounting Tax Opening balance 95 90 Disposal during the year (25) (2) Depreciation for the year ndash 2015 (10) (8) Closing balance 825 80

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W5 ndash Movement of Provisions for Bad Debts 2015 2014 Opening balance 12 9 Provision for the year 5 7 Write off during the year ndash 2015 (3) (4) Closing balance 14 12

ANSWER 17

2015 4 Taxation Rs in million Current - for the year [8311(W-1) times 32] 2660 - for prior year (6 times 32) 192 Deferred (W-2) (228) 2624 41 Reconciliation of tax charge for the year Accounting profit before tax 8000

Applicable tax rate 32 Tax on accounting profit at 32 2560 Add Effect of permanent difference (1 times 32) 032 Add Effect of prior year taxation (6 times 32) 192 Less Effect of exempt income (5 times 32) (160) 2624 Workings W1 Computation of current tax expense for the year Rs in million Profit before tax 8000 Add Inadmissible expenses admissible income Accounting depreciation (W-3) 1750 Depreciation on leased assets (120 divide 5) 2400 Tax profit on disposal [35 ndash 243(W-4)] 1070 Finance charges on leases [(120 ndash 30) times 1259] 1133 Provision for bad debts 1000 Provision for gratuity 1200 Penalty paid 100 8653 Less Admissible expenses inadmissible income Tax depreciation (W-4) (2992) Accounting profit on disposal [35 ndash 265 (W-3)] (850) Gratuity paid (1000) Lease rental (3000) Capital gain (exempt) (500) (8342) Taxable profit 8311

CAF 7 ndash IAS 12


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W2 Computation of deferred tax liability (assets) Carrying Amount

Tax Base

Temp Diff

Building - owned (W-3) amp (W-4) 31100 26928 4172 Machine - lease [120-(120divide5)] 9600 - 9600 Provision for bad debts (2 + 10) 1200 - (1200) Lease liability (120-30) 9000 - (9000) Accrued finance charges on lease (120ndash30)times1259 1133 - (1133) Provision for gratuity (13+12-10) 1500 - (1500) Total differences 939 Closing deferred tax liability (939times32) 300 Less Opening deferred tax liability as given (528) Deferred tax income for the year (228)

W3 Accounting depreciation

Cost Opening

Acc Depreciation (costtimes5times 2)

Depreciation for the year

(cost times5) Carrying amount

A B C D=A-B-C Building(350-30) 320 32 1600 27200 Purchased 40 100 3900 Disposal 30 3 050 2650 Owned assets 390 35 1750 33750 Less disposed of asset (30) (2650) Owned assets at year end 360 1750 31100 W4 Tax depreciation

Cost Opening

Acc Depreciation


(WDV times 10) Carrying amount

A B = [A-(Atimes09times09)]

C= (A - B)times01 D=A-B-C

Building(350-30) 320 608 2592 23328 Purchased 40 400 3600 Disposal 30 57 2430 Owned assets 390 665 2992 29358 Less disposed of asset (30) (2430) At year end as per tax rules 360 2992 26928 ANSWER 18

Particulars CA TB TD Rate DT LA Charge Rs 000 Rs 000 Rs 000 Rs 000

Opening balance 13406 L Accumulated depreciation

45000 50000 5000 T 30 1500 L PL

Interest receivable 5 0 5 T 30 15 L PL Interest payable 4 0 4 D 30 12 A PL Development costs 5006 0 5006 T 30 15018 L PL Land amp Building 6000 49005 10995 30 32985 L OCI Closing Balance 332093 L

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ANSWER 19 Rose Limited

Computation of deferred tax liability asset As on 31 December 2017

Description Ref Carrying

value Tax base

Temporary Difference Tax

rate

DTL (A)

---------- Rs in million ---------- Rs m Advertising cost (ii) 0 12 (12) 30 (360) Trade amp other payable - Unearned commission (iii) (10) (10) - 30 - - Other (iii) (30) (25) (5) 30 (15) Other receivables - Dividend receivable (iv) 800 800 - 0 - - Other (iv) 900 600 300 30 09 Interest receivable 40times10times912 (v) 300 - 300 15 045 Machine (Right of Use) W (vi) 4881 Lease liability W (vi) (4859) Interest accrued (4859times10) (vi) (486) (464) - (464) 30 (139) Plant [(250+315)times(56)] amp 250times90) (vii) 23459 22500 959 30 288 Provision for decommissioning (PV) (vii) (3403) - (3403) 30 (1021) Buildings (300times25divide30) amp (300times095) (vii) 250 177147 7285 30 2186 Deferred tax liability - net 939 Working Right of use asset Lease liability PV of LP = Rental 28 x [1-10-3) 010] + 28 9763 9763 Depreciation 9763 4 years x 2 years (4882) Payment (28) Interest (9763 ndash 28) x 10 696 Payment (28) 4881 4859 ANSWER 20 Part (a) Orange Limited ndash Notes to the financial statements ndash For the year ended 30 June 2018 TAXATION Rs in m Current tax W1 1629 Deferred tax 56 (b) ndash 252 (x) (196) 1433 Reconciliation between tax expense and accounting profit Rs m Tax at applicable rate 508 x 30 Applicable tax rate 1524 30 Exempt commission income 12 x 30 (36) (071) Lower rate on dividend income 35 x 20 (70) (138) Cash donation inadmissible 5 x 30 15 030 Tax expense Average effective tax rate 1433 2821

CAF 7 ndash IAS 12


Page | 38

W1 ndash Current tax Ref Rs in million Accounting profit before tax (i) 508 Excess accounting depreciation (ii) 45 Excess tax gain on disposal lower tax loss on disposal (iii) 15 Amortisation of trademark [9010 years] (iv) (9) Warranty expense as per accounting 35 ndash 11 W2 24 Warranty payments (v) (54) Restructuring expenses disallowed (vi) 175 Restructuring expenses amortisation 175 5 years (vi) (35) Accrued expenses (to be allowed next year on payment basis) (vii) 26 Cash donations (inadmissible) (vii) 5 Commission income (to be taxed next year on receipt basis) (viii) (12) Dividend income (to be taxed next year on receipt basis) (viii) (35) Rent income received in advance (on receipt basis) (ix) 16

Taxable income 543 Tax 30 (xi) 1629

W2 ndash Provision for warranty Bank ndash previous year 38 bd [147 x 100 30] 49 Bank ndash current year 54 ndash 38 16 PL (1750 x 2) 35 PL (Reversal last year) 49 ndash 38 11 cd 19 84 84 Part (b) CA TB Temp Diff Rs m Rs m Rs m PPE 345 x 100 30 = 115 ndash 45 ndash 15 = 55 T Trademark 90 amp [90 ndash (10 x 3 years)] 90 63 27 T Restructyring costs 0 amp [175 ndash 35] 0 14 14 D Accrued exepenses 26 0 26 D Provision for warranty W2 19 0 19 D Rent in advance 16 0 16 D 7 T Tax 30 21 DTL Dividend receivable 35 0 35 T 35 T Tax 10 35 DTL Total 56 DTL ANSWER 21 Note on Taxation Tax expense 2018 2017 -------- Rs in million -------- Current tax W1 399 247 Deferred tax (91ndash75) W2 16 75 415 32 2

CAF 7 ndash IAS 12

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Page | 39

Reconciliation of tax expense and accounting profit 2018 2017 -------- Rs in million --------

PBT 12500 11000 Tax 35 (2017 30) 4375 3300 Effect of low rate on dividend 8 times 01 (080) Exempt interest income 10times35 (350) Effect of change in rate 75times5divide30 125 4150 3220 W1 Current Tax 2018 2017 --------- Rs in million --------- Profit before tax 125 110 Accounting depreciation 25 18 Tax depreciation (21) (42) Rent accrued (-3+1) (2) 3 Insurance prepaid (4-5) (1) (4) Interest (Exempt in 2018 Normal in 2017) (10) - Dividend (Normal in 2018 Low rate in 2017) - (8) Borrowing cost (2) - Taxable income 114 77 Tax 35 (2017 30) 399 231 Tax on dividend 20 in 2017 - 16 399 247

Deferred tax liability as at 31 December 2018

Carrying value

Tax base Difference Liability

35 ------------------- Rs in million -------------------

PPE - Cost 2 ndash 2 07 Accumulated Dep (25+18) (21+42) (43) (63) 20 70 Prepaid insurance 5 - 5 175 Accrued rent (1) ndash (1) (035) 26 91


Carrying value


30 ------------------- Rs in million -------------------

PPE Accumulated depreciation (18) (42) 24 7 2 Prepaid insurance 4 - 4 12 Accrued rent (3) - (3) (09) 25 75

CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

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Page | 41

ICAP OBJECTIVE BASED QUESTIONS

01 A piece of machinery cost Rs 500000 Tax depreciation to date has amounted to Rs 220000 and depreciation charged in the financial statements to date is Rs 100000 The rate of income tax is 30 Which of the following statements is incorrect according to IAS 12 Income Taxes

(a) The deferred tax liability in relation to the asset is Rs 36000

(b) The tax base of the asset is Rs 280000

(c) There is a deductible difference of Rs 120000

(d) There is a taxable temporary difference of Rs 120000

02 Tall Limited (TL)rsquos accounting records shown the following

Rs 000

Income tax payable for the year 60000

Over provision in relation to the previous year 4500

Opening deferred tax liability 2600

Closing for deferred tax liability 3200

What is the income tax expense that will be shown in the statement of profit or loss for the year

(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000

03 The following information has been extracted from the accounting records of Candle Limited Rs 000 Estimated income tax for the year ended 30 September 2020 Rs 75000 Income tax paid for the year ended 30 September 2020 Rs 80000 Estimated income tax for the year ended 30 September 2021 Rs 83000

What figures will be shown in the statement of comprehensive income for the year ended 30 September 2021 in respect of income tax

(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42

04 Home Limited (HL) has the following balances included on its trial balance at 30 June 2014 Rs 000 Taxation 4000 Credit Deferred taxation 12000 Credit

The taxation balance relates to an over-provision from 30 June 2013 At 30 June 2014 the directors estimate that the provision necessary for taxation on current year profits is Rs 15000000 The carrying amount of HLrsquos non-current assets exceeds the tax written-down value by Rs 30000000 The rate of tax is 30 What is the charge for taxation that will appear in the statement of profit or loss for the year to 30 June 2014

(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000

05 Hall Limited has the following balances included on its trial balance at 30 June 2014

Rs 000 Taxation 7000 Credit

Deferred taxation 16000 Credit

The taxation balance relates to an overprovision from 30 June 2013 At 30 June 2014 the directors estimate that the provision necessary for taxation on current year profits is Rs 12 million The balance on the deferred tax account needs to be increased to Rs 23 million which includes the impact of the increase in property valuation below During the year Hall Limited revalued its property for the first time resulting in a gain of Rs 10 million The rate of tax is 30 What is the charge for taxation that will appear in the statement of profit or loss for the year to 30 June 2014

(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million

06 Vase Limited (VL)rsquos assistant accountant has discovered that there is a debit balance on the trial balance of Rs 3000 relating to the overunder-provision of tax from the prior year What impact will this have on VLrsquos current year financial statements

(a) Increase the tax liability by Rs 3000 in the statement of financial position

(b) Decrease the tax liability by Rs 3000 in the statement of financial position

(c) Increase the tax expense by Rs 3000 in the statement of profit or loss

(d) Decrease the tax expense by Rs 3000 in the statement of profit or loss

CAF 7 ndash IAS 12

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Page | 43

07 A companys trial balance shows a debit balance of Rs 21 million brought forward on current tax and a credit balance of Rs 54 million on deferred tax The tax charge for the current year is estimated at Rs 162 million and the carrying amounts of net assets are Rs 13 million in excess of their tax base The income tax rate is 30 What amount will be shown as income tax in the statement of profit or loss for the year

(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million

08 A companys trial balance at 31 December 2013 shows a debit balance of Rs 700000 on current tax and a credit balance of Rs 8400000 on deferred tax The directors have estimated the provision for income tax for the year at Rs 45 million and the required deferred tax provision is Rs 56 million Rs 12 million of which relates to a property revaluation What is the profit or loss income tax charge for the year ended 31 December 2013

(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million

09 The following information relates to an entity (i) At 1 January 2018 the carrying amount of non-current assets exceeded their tax written

down value by Rs 850000 (ii) For the year to 31 December 2018 the entity claimed depreciation for tax purposes of

Rs 500000 and charged depreciation of Rs 450000 in the financial statements (iii) During the year ended 31 December 2018 the entity revalued a property The

revaluation surplus was Rs 250000 There are no current plans to sell the property (iv) The tax rate was 30 What is the deferred tax liability required by IAS 12 Income Taxes at 31 December 2018

(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000

10 The accountant of an entity is confused by the term tax base What is meant by tax base (a) The amount of tax payable in a future period (b) The tax regime under which an entity is assessed for tax (c) The amount attributed to an asset or liability for tax purposes (d) The amount of tax deductible in a future period

CAF 7 ndash IAS 12


Page | 44

11 The carrying amount of Jewel Limited (JL)s property plant and equipment at 31 December 2013 was Rs 310000 and the tax written down value was Rs 230000 The following data relates to the year ended 31 December 2014 (i) At the end of the year the carrying amount of property plant and equipment was Rs

460000 and the tax written down value was Rs 270000 During the year some items were revalued by Rs 90000 No items had previously required revaluation In the tax jurisdiction in which JL operates revaluations of assets do not affect the tax base of an asset or taxable profit Gains due to revaluations are taxable on sale

(ii) JL began development of a new product during the year and capitalised Rs 60000 in accordance with IAS 38 The expenditure was deducted for tax purposes as it was incurred None of the expenditure had been amortised by the year end

What is the taxable temporary difference to be accounted for at 31 December 2014 in relation to property plant and equipment and development expenditure

Property plant and equipment Development expenditure

(a) Rs 270000 Rs 60000 (b) Rs 270000 Nil (c) Rs 190000 Rs 60000 (d) Rs 190000 Nil

12 The carrying amount of Jewel Limited (JL)s property plant and equipment at 31 December 2013 was Rs 310000 and the tax written down value was Rs 230000 At the end of the year 31 December 2014 the carrying amount of property plant and equipment was Rs 460000 and the tax written down value was Rs 270000 During the year some items were revalued by Rs 90000 No items had previously required revaluation In the tax jurisdiction in which JL operates revaluations of assets do not affect the tax base of an asset or taxable profit Gains due to revaluations are taxable on sale The corporate income tax rate is 30 The current tax charge was calculated for the year as Rs 45000 What amount should be charged to the revaluation surplus at 31 December 2014 in respect of deferred tax

(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000

13 The carrying amount of Jewel Limited (JL)s property plant and equipment at 31 December 2013 was Rs 310000 and the tax written down value was Rs 230000 At the end of the year 31 December 2014 the carrying amount of property plant and equipment was Rs 460000 and the tax written down value was Rs 270000 During the year some items were revalued by Rs 90000 No items had previously required revaluation In the tax jurisdiction in which JL operates revaluations of assets do not affect the tax base of an asset or taxable profit Gains due to revaluations are taxable on sale The corporate income tax rate is 30 The current tax charge was calculated for the year as Rs 45000 What amount will be shown as current tax payable in the statement of financial position of JL at 31 December 2014

(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

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Page | 45

14 Deferred tax assets and liabilities arise from taxable and deductible temporary differences Which one of the following is not a circumstance giving rise to a temporary difference

(a) Depreciation accelerated for tax purposes (b) Development costs amortised in profit or loss but tax was deductible in full when incurred (c) Accrued expenses which have already been deducted for tax purposes (d) Revenue included in accounting profit when invoiced but only liable for tax when the

cash is received

15 Which of the following statements regarding taxation of lease arrangement are true (i) Depreciation expense and interest expense should be added back in accounting profit to

calculate current tax (ii) Rental payments should be deducted from accounting profit for calculating current tax (iii) Right of use asset has tax base of nil resulting in taxable temporary difference (iv) Lease liabilities have tax base of nil resulting deductible temporary difference

(a) (i) (ii) and (iii) (b) (ii) (iii) and (iv) (c) (i) (ii) and (iv) (d) (i) (ii) (iii) and (iv) all

16 Venice Limited (VL)rsquos assistant accountant estimated the tax expense for the year ended 31 December 2018 at Rs 43000 However he had ignored deferred tax At 1 January 2018 VL had a deferred tax liability of Rs 130000 At 31 December 2018 VL had temporary taxable differences of Rs 360000 VL pays tax at 25 All movements in deferred tax are taken to the statement of profit or loss What will be recorded as the tax expense in the statement of profit or loss for the year ended 31 December 2018

Rs ___________

17 The statements of financial position of Nitrogen Limited (NL) include the following extracts Statements of financial position as at 30 September

2012 2011 Rs m Rs m

Non-current liabilities Deferred tax 310 140 Current liabilities Taxation 130 160

The tax charge in the statement of profit or loss for the year ended 30 September 2012 is Rs 270 million What amount of tax was paid during the year to 30 September 2012

Rs ___________

18 The trial balance of Hall Limited (HL) at 31 March 2016 showed credit balances of Rs 800000 on current tax and Rs 26 million on deferred tax A property was revalued during the year giving rise to deferred tax of Rs 375 million This has been included in the deferred tax provision of Rs 675 million at 31 March 2016 The income tax charge for the year ended 31 March 2016 is estimated at Rs 194 million What will be shown as the income tax charge in the statement of profit or loss of HL at 31 March 2016

Rs ___________

CAF 7 ndash IAS 12


Page | 46

19 Orange Limited (OL) is in the process of finalizing its financial statements for the year ended 30 June 2018 OL sells goods with a 1-year warranty and it is estimated that warranty expenses are 2 of annual sales Actual payments during the year related to warranty claims were Rs 54 million Of these Rs 38 million pertain to goods sold during the previous year Opening balance of provision for warranty was Rs 49 million Sales for the year ended 30 June 2018 was Rs 1750 million Under the tax laws these expenses are allowed on payment basis Applicable tax rate is 30 What is the amount of deferred tax expense or income in respect of above for the year ended 30 June 2018

Rs ___________ 20 Orange Limited (OL) is in the process of finalizing its financial statements for the year ended 30

June 2018 Profit before tax for the year ended 30 June 2018 was Rs 508 million OL sells goods with a 1-year warranty and it is estimated that warranty expenses are 2 of annual sales Actual payments during the year related to warranty claims were Rs 54 million Of these Rs 38 million pertain to goods sold during the previous year Opening balance of provision for warranty was Rs 49 million Sales for the year ended 30 June 2018 was Rs 1750 million Under the tax laws these expenses are allowed on payment basis Applicable tax rate is 30 What is the amount of current tax after considering above information for the year ended 30 June 2018

Rs ___________ 21 Which of the following does NOT give rise to deferred tax [A19] (a) Difference between accounting depreciation and tax depreciation (b) Expenses charged in the statement of profit or loss but not allowable in tax (c) Revaluation of a non-current asset but not allowable in tax (d) Unused tax losses (01) 22 Which TWO of the following are examples where carrying amount is always equal to

tax base [A19]

(a) Accrued expenses that have already been deducted in determining the current tax (b) Allowance for bad debts where tax relief is granted when the debt is written-off (c) Accrued income that will never be taxable (d) Capitalized development costs which are allowable in tax upon payment (02) 23 The following information relates to a building of Jet Limited (JL)

At 1 January 2018 the carrying amount of the building exceeded its tax base by Rs 1275000

In 2018 JL claimed tax depreciation of Rs 750000 and charged accounting depreciation of Rs 675000

As at 31 December 2018 JL increased the carrying amount of the building by Rs 375000 on account of revaluation Revaluation is not allowed in tax

Applicable tax rate is 32 The deferred tax liability as at 31 December 2018 in respect of building is

[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

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OBJECTIVE BASED ANSWERS

01 (c) As carrying amount is greater than tax base of the asset the resulting temporary difference is taxable (not deductible)

02 (d) The tax expense in the statement of profit or loss is made up of the current year estimate the prior year over-provision and the movement in deferred tax The prior year over-provision must be deducted from the current year expense and the movement in deferred tax must be added to the current year expense as the deferred tax liability has increased Tax expense = Rs 60000000 ndash Rs 4500000 + Rs 600000 = Rs 56100000

03 (c) The tax expense in the statement of profit or loss is made up of the current year estimate and the prior year under-provision The year-end liability in the statement of financial position is made up of the current year estimate only Tax expense = Rs 83000 + Rs 5000 under provision = Rs 88000

04 (c)

Rs 000 Deferred tax provision required (30000 times 30) 9000

Opening balance per trial balance 12000

Reduction in provision (3000)

Tax expense Rs 000 Current year estimate 15000

Prior year overprovision (4000)

Deferred tax as above (3000)

Charge for year 8000

05 (a)

Rs000 Deferred taxation increase (23000 ndash 16000) 7000

Less tax on revaluation [OCI] (10000 times 30) (3000)

Charge to SPL 4000 Tax expense Rs 000 Current year estimate 12000


Deferred tax as above 4000


06 (c) A debit balance represents an under-provision of tax from the prior year This should be added to the current yearrsquos tax expense in the statement of profit or loss An under or over-provision only arises when the prior year tax estimate is paid so there is no adjustment required to the current year liability

CAF 7 ndash IAS 12


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07 (c)

Rs 000 Charge for year 16200

Under provision 2100

Adjust deferred tax (1500)

Profit or loss charge 16800

Deferred tax liability year end (13m times 30) 3900

Deferred tax liability opening balance (5400)

Deferred tax income (1500)

08 (c) Rs 000 Prior year under provision 700

Current provision 4500

Movement of deferred tax (84 ndash 56) (2800)

Deferred tax on revaluation surplus (1200)

Tax charge for the year in profit or loss 1200 hellip

09 (d)

Temporary difference Rs 000 Bf 850 Depreciation Year to 311218 (500 ndash 450) (50) Revaluation surplus 250 1150 Deferred tax 1150 30 345

10 (c) The amount attributed to an asset or liability for tax purposes

11 (c) PPE 460000 ndash 270000 = Rs 190000 Development cost 60000 ndash 0 = Rs 60000

12 (d) (90000 times 30) will go to the revaluation surplus

13 (a) Rs 45000 The tax charge for the year

14 (c) Accrued expenses which have already been deducted for tax purposes will not give rise to a temporary difference as there is no difference in accounting and tax in time of recognition of tax expense

15 (d) All the statements are true

16 Rs 3000 The tax expense in the statement of profit or loss consists of the current tax estimate and the movement on deferred tax in the year The closing deferred tax liability is Rs 90000 being the temporary differences of Rs 360000 at the tax rate of 25 This means that the deferred tax liability has decreased by Rs 40000 in the year This decrease should be deducted from the current tax estimate of Rs 43000 to give a total expense of Rs 3000

CAF 7 ndash IAS 12

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17 Rs 130 million

Rs m

Opening balances (140 + 160) 300

Charge for year 270

Closing balances (310 + 130) (440)

Tax paid 130

18 Rs 19 million Rs 000 Current charge 19400

Overprovision (800)

Deferred tax (W) 400

19000

Working

Required provision 6750

Less revaluation (3750)

3000

Balance bf (2600)

Charge to income tax 400

19 Rs 9 million expense

Provision for warranty

Bank (last year) 38 bd 49

Bank (current year) 16 PL (1750 x 2) 35

PL (Reversal last year) 11

cd 19

84 84 Rs m Opening deferred tax asset 49 x 30 147

Closing deferred tax asset 19 x 30 57

Deferred tax expense 9

20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50

Rs m Profit before tax 508

Add Warranty expense as per accounting 35 - 11 24

Less Warranty payments allowed in tax 38 + 16 (54)

478

478 million x 30 = Rs 1434 million

21 (b) Expenses charged in the statement of profit or loss but not allowable in tax (being permanent difference)

22 (a) amp (c) Accrued expenses that have already been deducted in determining the current tax amp Accrued income that will never be taxable

23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


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TAX BASE (DEFERRED TAXATION)

Definition The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes

Important point

Some items have a tax base but are not recognised as assets and liabilities in the statement of financial position For example research costs are expensed and charged to profit or loss in the period in which they are incurred (IAS 38) but the tax law may allow these as expense over a longer period

CALCULATION

For all assets

Carrying amount XXX Less Future taxable benefits - from recovery of carrying value (XX) Add Future deductible amounts XX Tax base XXX

For unearned incomes

Carrying amount XXX Less revenue not taxable in future (XX) Tax base XXX

For other liabilities

Carrying amount XXX Less future deductible amount (XX) Tax base XXX

TEMPORARY DIFFERENCES

Definition Temporary differences are differences between the carrying amount of an asset or liability in the statement of financial position and its tax base Temporary differences may be either taxable or deductible

Taxable Resulting in more tax in future giving rise to a liability Deductible Resulting in tax saving in future giving rise to an asset

GUIDE

Assets CA gt TB Taxable temporary differences Deferred Tax Liability CA lt TB Deductible temporary differences Deferred Tax Asset

Liabilities CA gt TB Deductible temporary differences Deferred Tax Asset CA lt TB Taxable temporary differences Deferred Tax Liability

MEASUREMENT ndash TAX RATE

Deferred tax assets and liabilities shall be measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period Present value Deferred tax assets and liabilities shall NOT be discounted

CAF 7 ndash IAS 12

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Recognition




DEFERRED TAX ASSETS

Definition


Recognition



Limit on asset






Reassessment


CAF 7 ndash IAS 12


Page | 4














CAF 7 ndash IAS 12

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Page | 5

DISCLOSURE

Major Components


















Dividend


CAF 7 ndash IAS 12


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Other disclosures




SYLLABUS









CAF 7 ndash IAS 12

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PRACTICE QampA




CAF 7 ndash IAS 12


Page | 8
















no tax consequences

CAF 7 ndash IAS 12

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Page | 9








CAF 7 ndash IAS 12


Page | 10






CAF 7 ndash IAS 12

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Page | 11















CAF 7 ndash IAS 12


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(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

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Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

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Page | 25






CAF 7 ndash IAS 12


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ANSWER 09






CAF 7 ndash IAS 12

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Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

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Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

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Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

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Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

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Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

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Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

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Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

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Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

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Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

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Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

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Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

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17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

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Page | 3




Recognition




DEFERRED TAX ASSETS

Definition


Recognition



Limit on asset






Reassessment


CAF 7 ndash IAS 12


Page | 4














CAF 7 ndash IAS 12

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Page | 5

DISCLOSURE

Major Components


















Dividend


CAF 7 ndash IAS 12


Page | 6

Other disclosures




SYLLABUS









CAF 7 ndash IAS 12

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Page | 7

PRACTICE QampA




CAF 7 ndash IAS 12


Page | 8
















no tax consequences

CAF 7 ndash IAS 12

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Page | 9








CAF 7 ndash IAS 12


Page | 10






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 11















CAF 7 ndash IAS 12


Page | 12


(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

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Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

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Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 4














CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 5

DISCLOSURE

Major Components


















Dividend


CAF 7 ndash IAS 12


Page | 6

Other disclosures




SYLLABUS









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 7

PRACTICE QampA




CAF 7 ndash IAS 12


Page | 8
















no tax consequences

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 9








CAF 7 ndash IAS 12


Page | 10






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 11















CAF 7 ndash IAS 12


Page | 12


(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 5

DISCLOSURE

Major Components


















Dividend


CAF 7 ndash IAS 12


Page | 6

Other disclosures




SYLLABUS









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 7

PRACTICE QampA




CAF 7 ndash IAS 12


Page | 8
















no tax consequences

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 9








CAF 7 ndash IAS 12


Page | 10






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 11















CAF 7 ndash IAS 12


Page | 12


(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 6

Other disclosures




SYLLABUS









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 7

PRACTICE QampA




CAF 7 ndash IAS 12


Page | 8
















no tax consequences

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 9








CAF 7 ndash IAS 12


Page | 10






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 11















CAF 7 ndash IAS 12


Page | 12


(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 7

PRACTICE QampA




CAF 7 ndash IAS 12


Page | 8
















no tax consequences

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 9








CAF 7 ndash IAS 12


Page | 10






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 11















CAF 7 ndash IAS 12


Page | 12


(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


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tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

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04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 8
















no tax consequences

CAF 7 ndash IAS 12

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Page | 9








CAF 7 ndash IAS 12


Page | 10






CAF 7 ndash IAS 12

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Page | 11















CAF 7 ndash IAS 12


Page | 12


(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

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Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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million)



CAF 7 ndash IAS 12


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Rs in million





CAF 7 ndash IAS 12

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CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Rs 15 million












CAF 7 ndash IAS 12


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CAF 7 ndash IAS 12

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ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


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CAF 7 ndash IAS 12

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CAF 7 ndash IAS 12


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ANSWER 09






CAF 7 ndash IAS 12

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Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

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Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

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not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

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240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

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ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

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Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

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Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

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Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


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(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

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Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


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(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

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Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

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04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 9








CAF 7 ndash IAS 12


Page | 10






CAF 7 ndash IAS 12

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Page | 11















CAF 7 ndash IAS 12


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(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

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CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


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Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


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CAF 7 ndash IAS 12

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ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


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CAF 7 ndash IAS 12

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Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

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Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

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Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

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Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

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Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

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Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

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Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

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Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


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(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

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Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

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Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 10






CAF 7 ndash IAS 12

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Page | 11















CAF 7 ndash IAS 12


Page | 12


(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

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Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


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Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


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CAF 7 ndash IAS 12

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Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

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Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

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Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

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Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

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Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

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Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

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Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

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Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 11















CAF 7 ndash IAS 12


Page | 12


(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

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Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


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Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

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Page | 25






CAF 7 ndash IAS 12


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ANSWER 09






CAF 7 ndash IAS 12

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Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

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Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 12


(e) Fine














(e) Entertainment





CAF 7 ndash IAS 12

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Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

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Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 13














CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

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Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

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Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

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Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 14





Written down value











tax expense (18)

CAF 7 ndash IAS 12

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Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

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Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 15














CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

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Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 16











CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 17













million)



CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

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Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 18













Rs in million





CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

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Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

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Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 19












CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 20












CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 21




Rs 15 million












CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 22














CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 23

ANSWER 01



Tax payable


ANSWER 02


ANSWER 03


ANSWER 04


Tax base

Temp Diff T(D) Tax

rate Deferred

tax Liab (Asset)



CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 24



CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 25






CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 26

ANSWER 09






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 27





Part (b amp c)




58500


CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 28


7828 66478


Current tax30 24650

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 29






rate DTL DTA


CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 30


ANSWER 12


ANSWER 13 Part (a)




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 31



not be transferred)




CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 32


time Liability

at beginning



Interest 13701




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 33















240


CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 34

ANSWER 16

Taxation 2015 Rs M

2014 Rs M


1890 (1059)


1890


2014 Rs M








CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 35


ANSWER 17



CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 36


Tax Base

Temp Diff



Cost Opening





Cost Opening

Acc Depreciation








45000 50000 5000 T 30 1500 L PL


CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 37




value Tax base


rate

DTL (A)


CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 38




CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 39




Carrying value


35 ------------------- Rs in million -------------------



Carrying value


30 ------------------- Rs in million -------------------


CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 40

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 41








Rs 000






(a) Rs 54900000

(b) Rs 67700000

(c) Rs 65100000

(d) Rs 56100000



(a) Rs 75000000

(b) Rs 80000000

(c) Rs 88000000

(d) Rs 83000000

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 43


(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 42



(a) Rs 23000000

(b) Rs 28000000

(c) Rs 8000000

(d) Rs 12000000





(a) Rs 9 million

(b) Rs 12 million

(c) Rs 23 million

(d) Rs 1 million






CAF 7 ndash IAS 12

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(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


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(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

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cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


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tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

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04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

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(a) Rs 156 million

(b) Rs 126 million

(c) Rs 168 million

(d) Rs 183 million


(a) Rs 1 million

(b) Rs 24 million

(c) Rs 12 million

(d) Rs 36 million





(a) Rs 240000 (b) Rs 270000 (c) Rs 315000 (d) Rs 345000


CAF 7 ndash IAS 12


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(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


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tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

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Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 44








(a) Rs 60000 (b) Rs 90000 (c) Rs 18000 (d) Rs 27000


(a) Rs 45000 (b) Rs 72000 (c) Rs 63000 (d) Rs 75000

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 45



cash is received





Rs ___________


2012 2011 Rs m Rs m



Rs ___________


Rs ___________

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 46





tax base [A19]






[A19]

(a) Rs 384000 (b) Rs 432000 (c) Rs 504000 (d) Rs 552000 (02)

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 47





04 (c)








05 (a)








CAF 7 ndash IAS 12


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07 (c)













09 (d)









CAF 7 ndash IAS 12

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Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 48

07 (c)













09 (d)









CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12

copy kashifadeelcom

Page | 49

17 Rs 130 million

Rs m


Charge for year 270


Tax paid 130


Overprovision (800)


19000

Working



3000

Balance bf (2600)







cd 19




20 Rs 1434 million





cd 19

84 84

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

CAF 7 ndash IAS 12


Page | 50




478




23 (d) Rs 552000 [1275000 ndash (675000 + 750000) + 375000] x 32

Documents

CAF 7 – IAS 12 IAS 12 Income Taxes 08kashifadeel.com/wp-content/uploads/2020/05/08-IAS-12.pdf · 2020-05-15 · C5 IAS 12 Income Taxes (other than Business combination) LO3.5.1