Deferred tax: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add links.) |
||
| Line 1: | Line 1: | ||
''Accounting.'' | ''Accounting - tax.'' | ||
Deferred tax relates to the timing differences between accounts and tax. | Deferred tax relates to the timing differences between accounts and tax. | ||
| Line 19: | Line 19: | ||
* [[Tax depreciation]] | * [[Tax depreciation]] | ||
* [[Tax written down value]] | * [[Tax written down value]] | ||
* [[Taxable profits]] | |||
* [[Timing differences]] | * [[Timing differences]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Latest revision as of 15:40, 15 April 2023
Accounting - tax.
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.
