Which one of the following statements relating to dividends tax is correct? The current dividends tax rate in South Africa is 20%. Dividends tax must be disclosed separately as a line item in the tax

Here are the solutions to the questions: Question 1: Which one of the following statements relating to dividends tax is correct? 1. The current dividends tax rate in South Africa is 20%. This statement is correct. The dividends tax rate in South Africa is 20%. 2. Dividends tax must be disclosed separately as a line item in the tax rate reconciliation. Dividends tax is a tax on shareholders, not the company's income tax, so it is not part of the company's tax rate reconciliation. 3. Dividends tax is a refundable tax for the company. Dividends tax is withheld by the company and paid over to the South African Revenue Service (SARS); it is not a refundable tax for the company. 4. Dividends tax due to the South African Revenue Service must be disclosed in the statement of financial position under current assets. Dividends tax due to SARS is a current liability, not a current asset. 5. Dividends tax is disclosed in the statement of changes in equity as a liability. Dividends tax is disclosed in the statement of financial position as a current liability. The correct statement is 1. 1. Question 2: How will the abovementioned be disclosed in the notes to the financial statements of Ben Ltd? The erroneous inclusion of Value Added Tax (VAT) in revenue is a prior period error under IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The disclosure in the notes to the financial statements of Ben Ltd will include: • A description of the nature of the prior period error: the erroneous inclusion of R200 000 VAT in revenue for the financial year ended 28 February 2025. • An explanation that the financial statements for the prior period (28 February 2025) will be retrospectively restated to correct this error. • The amount of the correction for each financial statement line item affected for the prior period presented (e.g., revenue, VAT payable, and retained earnings). • The amount of the correction to the opening balance of retained earnings for the earliest prior period presented. • A note that the South African Revenue Service (SARS) has indicated they will reopen the prior year's tax assessment, which may lead to further adjustments related to the error.