If a company has not yet paid their existing tax payable they will recognise a in the statement of financial position.

Question

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If a company has not yet paid their existing tax payable, it means they owe money to the government in the current financial period. Therefore, the amount should be recognized as a current tax liability on the statement of financial position. Option A is incorrect because it refers to an asset, which represents a future economic benefit, while tax payable is a current obligation. Option B and D would also be incorrect because tax payable is a current obligation, not a non-current asset or liability.

If a Company Has Not Yet Paid Their Existing Tax