24.1-24.2 Income Taxes Flashcards
- Income tax payable is the income tax …
Owed by the company on the basis of taxable income.
*Tax expense - an aggregate of an entity’s …
Income tax payable (or recoverable in the case of a tax benefit) and any changes in deferred tax assets and liabilities.
- Tax base - …
- Carrying amount - …
The amount at which an asset or liability is valued for tax purposes.
The amount at which an asset or liability is valued according to accounting principles.
Tax loss carry forward is a …
Taxable loss in the current period that may be used to reduce future taxable income.
The statutory tax rate is the rate …
The effective tax rate is …
Imposed by law on taxable income that falls within a given tax bracket.
The percentage of income actually paid by an individual or a company after taking into account tax breaks
Permanent differences are the differences between …
Tax and financial reporting of revenue (expenses) that will not be reversed at some future date.
The formula for the reported effective tax rate is thus equal to:
Reported effective tax rate = Income tax expense ÷ Pretax income (accounting profit)
Temporary differences are further divided into two categories:
- Taxable temporary differences
- Deductible temporary differences
- Taxable temporary differences are temporary differences that …
- Deductible temporary differences are temporary differences that …
Result in a reduction of or deduction from taxable income in a future period when the balance sheet item is recovered or settled.
Result in a taxable amount in a future period when determining the taxable profit as the balance sheet item is recovered or settled.
Asset:
Carrying amount > tax base =
Carrying amount < tax base =
Deferred tax liability
Deferred tax asset
Liabilities:
Carrying amount > tax base =
Carrying amount < tax base =
Deferred tax asset
Deferred tax liability
