Regarding tax expense, what must be included when determining PBT?

When determining profit before tax (PBT), it is crucial to include tax expenses from both continuing and discontinuing operations to reflect the total tax impact on the entity’s earnings. Profit before tax is a measure of a company's profitability that considers gross revenue, operational costs, expenses, and other income, but it showcases the profitability before accounting for taxes.

Including tax expenses from both types of operations ensures that the PBT presents a comprehensive view of the financial performance, which recognizes all relevant tax implications. This approach aligns with accounting standards, which require the full spectrum of operational activities, including those that may have been discontinued, to be considered when calculating PBT.

Excluding tax from any segment would not provide a true representation of the company's earnings before taxes, which is essential for stakeholders, investors, and management for making informed decisions about the entity's financial health. Thus, accurately reporting tax expenses from both continuing and discontinuing operations offers a complete understanding of the impact of taxation on overall profitability before tax.