For the third scenario (questions 26 to 30) the three revenue questions were generally well answered, but the two income tax questions caused difficulties.

The first tax question asked about the impact of two property revaluations on the income tax expense.

For a downward property revaluation (there had been no previous upward revaluation) the decrease is charged directly to profit or loss so the income tax expense will decrease by the tax share of the decrease.

For the upward property valuation, a deferred tax charge arises and both are reported separately through other comprehensive income.