Listen to the recording and complete the answers.

How does the accountant calculate the profit before tax figure?

The profit minus expenses

Why is the taxation amount only an estimate?

because they don't know until much later how much they will have to pay

Do they file the interim tax return?

-

Complete the notes based on the recording.

Taxation expense is calculating by subtracting   expenses from operating .  This gives us an estimate, which we use to prepare an tax return. We need it to justify the taxation expense we include in the P&L.

If there is any difference between the profit before tax and the taxable income, we record it as a net tax asset or liability on the balance sheet.