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egin{tabular}{|l|r|r|r|r|} hline & egin{tabular}{r} Carrying amount \ (R) end{tabular} & egin{tabular}{r} Tax base \ (R) end{tabular} & egin{tabular}{r} Temporary difference \ (R) end{tabular} & egin{tabular}{r} Deferred tax at 28% \ (R) end{tabular} \ hline Dividends receivable & 25 000 & 0 & 25 000 & 7 000 cr \ hline Dismantling provision & (50 417) & 50 417 & (50 417) & (14 117) dr \ hline Research costs & 0 & 179 800 & (179 800) & (50 344) dr \ hline Land & 550 000 & 0 & 550 000 & 154 000 cr \ hline Retained earnings & (545 000) & 0 & (545 000) & (152 600) dr \ hline end{tabular} The South African corporate tax rate decreased from 28% to 27%, in 2024. The inclusion rate for capital gains remained at 80%. Dividend income is not taxable. The EISHKOM Limited plant is situated in a conservation area and in terms of current environmental legislation, the plant must be demolished (dismantled) at the end of its useful life. The demolition/dismantling costs incurred will be allowed as a tax deduction when incurred. EISHKOM Limited incurred research costs of R359 600. A tax allowance of 150% of the cost incurred is allowed in the year in which the research expenditure is incurred. The tax base was calculated as R359 600 x 50/150) No tax allowances are available on the land. Required: Using the deferred tax calculation, together with the additional information provided for EISHKOM Limited for the year ended 31 December 2024: 1. Identify five errors that have been made in the calculation 2. For each error identified, provide a brief explanation with reference to International Financial Reporting Standards (IFRS) as to why you believe it is an error and 3. Explain what the appropriate correction should be. Note: Limit your discussion to those items included in the accountant's calculation (i.e. do not

          egin{tabular}{|l|r|r|r|r|}
hline & egin{tabular}{r} 
Carrying amount \
(R)
end{tabular} & egin{tabular}{r} 
Tax base \
(R)
end{tabular} & egin{tabular}{r} 
Temporary difference \
(R)
end{tabular} & egin{tabular}{r} 
Deferred tax at 28% \
(R)
end{tabular} \
hline Dividends receivable & 25 000 & 0 & 25 000 & 7 000 cr \
hline Dismantling provision & (50 417) & 50 417 & (50 417) & (14 117) dr \
hline Research costs & 0 & 179 800 & (179 800) & (50 344) dr \
hline Land & 550 000 & 0 & 550 000 & 154 000 cr \
hline Retained earnings & (545 000) & 0 & (545 000) & (152 600) dr \
hline
end{tabular}

The South African corporate tax rate decreased from 28% to 27%, in 2024. The inclusion rate for capital gains remained at 80%.
Dividend income is not taxable.

The EISHKOM Limited plant is situated in a conservation area and in terms of current environmental legislation, the plant must be demolished (dismantled) at the end of its useful life. The demolition/dismantling costs incurred will be allowed as a tax deduction when incurred.

EISHKOM Limited incurred research costs of R359 600. A tax allowance of 150% of the cost incurred is allowed in the year in which the research expenditure is incurred. The tax base was calculated as R359 600 x 50/150)

No tax allowances are available on the land.

Required:
Using the deferred tax calculation, together with the additional information provided for EISHKOM Limited for the year ended 31 December 2024:
1. Identify five errors that have been made in the calculation
2. For each error identified, provide a brief explanation with reference to International Financial Reporting Standards (IFRS) as to why you believe it is an error and
3. Explain what the appropriate correction should be.

Note:
Limit your discussion to those items included in the accountant's calculation (i.e. do not

$egintabular|l|r|r|r|r| hline egintabularr Carrying amount (R) endtabular egintabularr Tax base (R) endtabular egintabularr Temporary difference (R) endtabular egintabularr Deferred tax at 28% \ (R) endtabular hline Dividends receivable 25 000 0 25 000 7 000 cr hline Dismantling provision (50 417) 50 417 (50 417) (14 117) dr hline Research costs 0 179 800 (179 800) (50 344) dr hline Land 550 000 0 550 000 154 000 cr hline Retained earnings (545 000) 0 (545 000) (152 600) dr hline endtabular The South African corporate tax rate decreased from 28% to 27%, in 2024. The inclusion rate for capital gains remained at 80%. Dividend income is not taxable. The EISHKOM Limited plant is situated in a conservation area and in terms of current environmental legislation, the plant must be demolished (dismantled) at the end of its useful life. The demolition/dismantling costs incurred will be allowed as a tax deduction when incurred. EISHKOM Limited incurred research costs of R359 600. A tax allowance of 150% of the cost incurred is allowed in the year in which the research expenditure is incurred. The tax base was calculated as R359 600 x 50/150) No tax allowances are available on the land. Required: Using the deferred tax calculation, together with the additional information provided for EISHKOM Limited for the year ended 31 December 2024: 1. Identify five errors that have been made in the calculation 2. For each error identified, provide a brief explanation with reference to International Financial Reporting Standards (IFRS) as to why you believe it is an error and 3. Explain what the appropriate correction should be. Note: Limit your discussion to those items included in the accountant's calculation (i.e. do not$

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