18 Carpati

18 Carpati

The following information relates to Carpati:

• The carrying amount of plant and equipment at 30 September 20X6 is $1,185,000.
• The tax written down value of plant and equipment at 1 October 20X5 was $405,000.
• During the year ended 30 September 20X6, the company bought plant and equipment of $290,000, which is eligible for tax depreciation.
• Carpati bought its freehold property in 20W5 for $600,000. It was revalued in the 20X6 accounts to $1,500,000. Ignore depreciation on buildings. No tax allowances were available to Carpati on the buildings.

• 18 Carpati

Required

Draft the note to the statement of financial position at 30 September 20X6 omitting comparatives, in respect of deferred tax. Work to the nearest $’000. Assume a current income tax rate of 30%. Tax depreciation is at 25% on a reducing balance basis. The income tax rate enacted for 20X7 is 28%.

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