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Understanding Deferred Tax Liabilities and Assets

Practice for IAS 12

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38 views1 page

Understanding Deferred Tax Liabilities and Assets

Practice for IAS 12

Uploaded by

Ansary Labib
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

IAS - 12

Income Taxes

Current Tax Deferred Tax

Tax payable on Taxable income in


Arise Due to Temporary Differences between
correct year

dy
the Tax Base (Cash Base) of an asset or
Liability and its carrying amount in
-Tax Expense (P/L) - Dr
the Financial statment [Account Base]
-Tax Payable (CL) - Cr

ud
B
Taxable Temporary Deductible Temp.
How to calculate Tax charge in SOPL? Difference Difference

Current Year estimated Tax (CL)

Add/(Less) : Under / (Over)


Provision (From TB)
**

**/(**)
u
• Tax Expense - Dr
dy
• Deferred Tax Liability [DTL]

Deferred Tax Liability - Cr


• Deferred Tax Asset [DTA]

• Deferred Tax Asset - Dr


Tax Expense - Cr
St
Add/(Less) : Increase / (Decrease)
in DTL/DTA **/(**)

Tax Expense Charge in SOPL


FR

How to calculate Deferred Tax?

Difference X Tax Rate.


&

CV of Asset CV of Liability
FA

• Tax Base > Account Base - DTA Tax Base > AB - DTL•
• Account Base > Tax Base - DTL A/C Base > Tax Base - DTA•
A
C
C
A

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