Document ID: chunk:federal_register_of_legislation:F2023C00930:reg:5:p43
Version: federal_register_of_legislation:F2023C00930
Segment Type: reg
Provision Reference: reg 5 (pt 43/61)
Character Range: 138042–147008

2,000        –
Product development costs                                 500                 –            500
Investments                                               33,000              33,000       –
Property, plant & equipment                               36,000              15,000       21,000
TOTAL ASSETS                                              72,000              50,500       21,500

Current income taxes payable                              3,000               3,000        –
Accounts payable                                          500                 500          –
Fines payable                                             –                   –            –
Liability for healthcare benefits                         –                   –            –
Long-term debt                                            20,000              20,000       –
Deferred income taxes                                     8,600               8,600        –
TOTAL LIABILITIES                                         32,100              32,100

Share capital                                             5,000               5,000        –
Revaluation surplus                                       –                   –            –
Retained earnings                                         34,900              13,400
TOTAL LIABILITIES/EQUITY                                  72,000              50,500

TEMPORARY DIFFERENCES                                                                      21,500

Deferred tax liability                                    21,500 at 40%                    8,600
Deferred tax asset                                        –                                –
Net deferred tax liability                                                                 8,600

Deferred tax assets, liabilities and expense at 31/12/X5
                                                                                                Carrying amount     Tax base     Temporary differences

Accounts receivable                                                                             500                 500          –
Inventory                                                                                       2,000               2,000        –
Product development costs                                                                       250                 –            250
Investments                                                                                     33,000              33,000       –
Property, plant & equipment                                                                     37,200              12,900       24,300
TOTAL ASSETS                                                                                    72,950              48,400       24,550

Current income taxes payable                                                                    3,570               3,570        –
Accounts payable                                                                                500                 500          –
Fines payable                                                                                   700                 700          –
Liability for healthcare benefits                                                               2,000               –            (2,000)
Long-term debt                                                                                  12,475              12,475       –
Deferred income taxes                                                                           9,020               9,020
TOTAL LIABILITIES                                                                               28,265              26,265       (2,000)

Share capital                                                                                   5,000               5,000        –
Revaluation surplus                                                                             –                   –            –
Retained earnings                                                                               39,685              17,135
TOTAL LIABILITIES/EQUITY                                                                        72,950              48,400

TEMPORARY DIFFERENCES                                                                                                            22,550
Deferred tax liability                                                                          24,550 at 40%                    9,820
Deferred tax asset                                                                              2,000 at 40%                     (800)
Net deferred tax liability                                                                                                       9,020
Less: Opening deferred tax liability                                                                                             (8,600)
Deferred tax expense (income) related to the origination and reversal of temporary differences                                   420

Deferred tax assets, liabilities and expense at 31/12/X6
                                                                                                Carrying amount     Tax base     Temporary differences

Accounts receivable                                                                             500                 500          –
Inventory                                                                                       2,000               2,000        –
Product development costs                                                                       –                   –            –
Investments                                                                                     33,000              33,000       –
Property, plant & equipment                                                                     75,750              16,050       59,700
TOTAL ASSETS                                                                                    111,250             51,550       59,700

Current income taxes payable                                                                    2,359               2,359        –
Accounts payable                                                                                500                 500          –
Fines payable                                                                                   700                 700
Liability for healthcare benefits                                                               3,000               –            (3,000)
Long-term debt                                                                                  12,805              12,805       –
Deferred income taxes                                                                           19,845              19,845       –
TOTAL LIABILITIES                                                                               39,209              36,209       (3,000)

Share capital                                                                                   5,000               5,000        –
Revaluation surplus                                                                             19,637              –            –
Retained earnings                                                                               47,404              10,341
TOTAL LIABILITIES/EQUITY                                                                        111,250             51,550

TEMPORARY DIFFERENCES                                                                                                            56,700
Deferred tax liability                                                                          59,700 at 35%                    20,895
Deferred tax asset                                                                              3,000 at 35%                     (1,050)
Net deferred tax liability                                                                                                       19,845
Less: Opening deferred tax liability                                                                                             (9,020)
Adjustment to opening deferred tax liability resulting from reduction in tax rate               22,550 at 5%                     1,127
Deferred tax attributable to revaluation surplus                                                31,800 at 35%                    (11,130)
Deferred tax expense (income) related to the origination and reversal of temporary differences                                   822

Illustrative disclosure
The amounts to be disclosed in accordance with the Standard are as follows:
Major components of tax expense (income) (paragraph 79)
                                                                                         X5        X6

Current tax expense                                                                      3,570     2,359
Deferred tax expense relating to