dece2011

I don't want to copy paste due to copyrights and stuff but essentially the answer states that:

DTL = (tax rate) * (difference between value for accounting and value for taxes), so we get: 0.25*(1800-1280)=130.

Thats all it says. It doesn't even mention the previous year. The question word for word is "The deferred tax liability as at 31 December 2005 is _____" . I don't understand what the clue is for us to know that we are only supposed to calculate the change in DTL from that year ... especially considering one of the "wrong" answers given was the DTL from 2004 + 2005's DTL.