13 Taxation Flashcards
How is current tax made up?
Tax payable to authorities in relation to current year activities, together with any under/over provision from the previous year
What is the expense in SPL?
=current tax + movement in deferred tax
What is deferred tax?
An application of the accruals concept
How is a temporary treatment of an item treated?
Deferred tax to be provided
How is a permanent treatment of an item treated?
No deferred tax impact
How is deferred tax calculated?
Comparing carrying amount of an asset or a liability to its tax base
What is the tax on an asset or liability?
Value for tax purposes
How is deferred tax balance calculated?
The temporary difference is multiplied by the tax rate in face when the asset is realised or the liability is settled.
When an asset is revalued, how is this treated for deferred tax?
Should be recognised on asset revaluations, even if there is no intention to sell the asset
