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

Same in a taxnancial period as tax rules closely

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Unformatted text preview: only in terms of when the depreciation is recognised, i.e. it is in effect a timing difference (FRS 12 para 17). *  Hence, to the extent that the accounting and tax treatment of an item is similar in the current period, then there is no TD. 7 Permanent and Temporary Differences AY 1 AY 2 AY 3 Total Tax Year 1 Tax Year 2 Tax Year 3 Total ?? Item A 100 0 0 100 0 0 0 0 PD Item B 100 150 200 450 200 180 70 450 TD Item C 0 0 (50) (50) 0 0 0 0 PD Item D (30) 0 0 (30) 0 (60) 0 (60) PD&TD Item E (80) (40) 0 (120) 0 0 (120) (120) TD Item F (70) 20 0 (50) 0 0 (50) (50) TD Profit 20 130 150 300 200 120 (100) 220 8 Discuss Seminar Question 1 4 Clicker Question: A Singapore- based entity’s taxable profit & accounting profit are usually 1.  Same in a tax/financial period as tax rules closely follow accounting rules 2.  Same over an entity’s...
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This document was uploaded on 02/10/2014.

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