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

E a deferred tax liabilityasset exists if recovery of

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Unformatted text preview: scenario due to the definition of TB of a Liability 14 7 Illustration 1 - Terminology *  Hence, FRS 12 provides that *  A deferred tax liability should be recognised for all taxable temporary differences (TTD), which increases future taxable profit when the CA of the asset/liability is recovered/settled (FRS12:5a) *  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 taxable profit will be available for utilization of the DTD Dr Deferred Tax Expense Cr Deferred Tax Liability 15 Dr Deferred Tax Asset Cr Deferred Tax income Illustration 1 *  CASE OF ENTITY BB: *  Step 3: Tax expense (Tax income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax (FRS 12.5). *  Tax expense = Current Tax Ex...
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This document was uploaded on 02/10/2014.

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