ACCA FR · Chapter 14 · Question 4 of 15
Impala Co's statement of financial position shows current tax payable of $90k at the start of the year and $110k at the end, and a deferred tax liability of $40k at the start and $55k at the end. The tax charge in profit or loss for the year was $150k. What is the tax paid in the statement of cash flows?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) $115k
Explanation
Combine current and deferred tax in one account: opening balances (90 + 40 = 130) + charge 150 - closing balances (110 + 55 = 165) = tax paid of $115k.
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