AC2101 S1 2014 Seminar 13 & 14 Deferred Tax (Anil).pptx

5 tax expense current tax expense deferred tax expense

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Unformatted text preview: CA (FRS12:7) *  Apply to Machinery in Illustration 1 •  TB of a liability = CA less any amount that will deductible for tax purposes wrt that liability in future period (FRS12:8) –  Apply to Accrued expenses and Provision for warranty in Illustration 1 –  For revenue received in advance = CA less any amount of revenue that will not be taxable in future period (FRS12:8) 13 Illustration 1 - Terminology In summary, 1.  Asset: §༊  CA > TB à༎ Taxable TD (TTD) à༎ Deferred tax liability (DTL) §༊  CA < TB à༎ Deductible TD (DTD) à༎ Deferred tax asset (DTA) 2.  Liability: §༊  CA > TB à༎ Deductible TD (DTD) à༎ Deferred tax asset (DTA) §༊  CA < TB à༎ Taxable TD (TTD) à༎ Deferred tax liability (DTL)** ** unlikely...
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This document was uploaded on 02/10/2014.

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