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

Balance sheet items illustrations 1 3 2 items that

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Unformatted text preview: t Principle of DT Accounting Note that the concept of temporary differences and the balance sheet liability approach of accounting for deferred taxes in Illustration 1 is consistent with the first principle, i.e. A deferred tax liability/asset exists if recovery of an asset or settlement of a liability in the future period will make future tax payments larger/smaller than they would if the recovery or settlement were to have no tax consequences 19 2nd Principle of DT Accounting Effects of deferred taxes are dealt with according to the underlying transactions/events (i.e., for items credited/ charged directly to equity, their DT effects are also posted directly to equity) Dr Underlying account Dr Deferred tax liability/asset Cr Deferred tax liability/asset...
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This document was uploaded on 02/10/2014.

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