Question

I don't understand how to solve this or what the thought process behind this is. We...

I don't understand how to solve this or what the thought process behind this is.

We need to answer it on this answer-sheet format as well. But I don't understand how to calculate or why to calculate said things.
Could you give me a step-by-step process?

This is from the book "International Financial Reporting 6th edition by Alan Merville
ISBN: 978-1-292-20074-3 (Print)

74368458_2416224788638769_87812875226143

75481775_438153716893068_240960300669888

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Answer #1

Accounting profit. Amt in £000

2015 2016 2017 2018 2019
Profit 270 280 290 not given not given
Tax @ 20% 54 56 58

Profit as per Tax laws.

2015 2016 2017 2018 2019
Profit 230 300 310
Tax @20 % 46 60 62
Deferred tax 8 -4 -4 0 0

They where asking to calculate deferred tax liability or asset.

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