The draft statement of comprehensive income of Harrington, a public company, for the year to 31 March 2018 shows an income tax expense of £55,000. The draft statement of financial position shows a non-current liability of £280,000 for deferred tax but does not show a current tax liability.
Tax on the profit for the year to 31 March 2018 is estimated at £260,000. The figure in the draft statement of comprehensive income is the underestimate for the year to 31 March 2017. The carrying amount of Harrington’s net assets at 31 March 2018 is £1.4m more than their tax base on that date. The tax rate is 25%.
Required:
Restate the figures which should appear in relation to taxation in the company’s for the year to 31 March 2018.
