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

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Unformatted text preview: in year of realization (Illustration 7) 3.  Sufficient taxable temporary differences *  Recognized to the extent of TTD (Illustrations 8 & 9) 34 17 Clicker When can an entity recognise DTA for the carry forward of unused tax losses? 1.  When future taxable profit is probable 2.  When future taxable profit is not probable 3.  When future taxable profit is not probable but there is sufficient taxable temporary differences and DTA is recognised to the extent of TTD 35 Unused Tax Losses Carry Back *  In Singapore, unused tax losses of up to $100k can be carried back to offset against immediately preceding year’s taxable profit, provided that no substantial change in shareholders, wef YA 2006. Enhanced carryback relief in YA 2009 and YA 2010. *  Journal entry: Dr Current tax receivable (SoFP – B/S) Cr Current tax expense (P/L) *  Illustration 10 *  For further examples, refe...
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