Deferred tax: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add link.) |
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== See also == | == See also == | ||
* [[Provision]] | |||
* [[Tax written down value]] | * [[Tax written down value]] | ||
* [[Timing differences]] | * [[Timing differences]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Revision as of 22:08, 17 January 2022
Accounting.
Deferred tax relates to the timing differences between accounts and tax.
Deferred tax reflects the future tax effects of transactions and events that have already been entered into at the balance sheet date.
A simple example of a deferred tax asset is a tax loss eligible for carry forward to shelter expected future taxable profits.
In this case, the expected future tax savings would be an asset/benefit recognised in the current balance sheet.
