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

Frs1251 in some jurisdictions the manner in which an

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Unformatted text preview: $400 (see JE2) Recall at this point that a deferred tax asset should be recognised for all deductible temporary differences (DTD), which decreases future taxable profit when the CA of the asset/liability is recovered/settled (FRS12:5b), provided that it is probable that future taxable profit will be available for utilization of the DTD . 30 15 Main Sources of TD 1.  Balance sheet items (Illustrations 1- 3) 2.  From items that does not appear on balance sheet (Illustration 4) 3.  Change in policy / correction of error (Illustration 5) 4.  Loss carry forward (Illustrations 6- 9) 31 TD Arising from Carry Forward of Unused Tax Losses & Credits *  A DTA to be recognized for unused tax losses & credits (includes unused capital allowances) carry forward to the extent that it is probable that future taxable profit will be available for utilizing the carry- forwards (FRS12:34) – see illu 6 & 7 *  Any unrecognized DTA to be...
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This document was uploaded on 02/10/2014.

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