ACC 440 Flashcards
Temporary difference
Arises when a revenue item is reported for tax purposes in a period before or after it is reported in financial income
Deferred tax assets
Result in deductible amounts in the future
Deferred tax liabilities
Result in taxable amounts in the future
A revenue is deferred for tax purposes but not financial reporting purposes.
Deferred tax liability
An expense is deferred for financial reporting purposes but not for tax purposes
Deferred tax liability
Revenues or gains are reported on the income statement now but on the tax return later
Deferred tax liability
Expenses are reported on the income statement now but on the tax return later
Deferred tax asset
Revenues are reported on the tax return now but on the income statement later
Deferred tax asset
Expenses are reported on the tax return now but on the income statement later
Deferred tax liability
Operating loss carryback
When a company uses a NOL to offset previous taxable income
Operating loss carry forward
When a company uses a NOL to offset future taxable income
When a company sells property and leases it back, any gain on the sale should be ___________
Deferred and recognised as income over term of the lease
Amortisation of Pension gain/loss
(Beg. Bal. AOCI Gain/Loss -
Expected return)/
Remaining service life for all employees
Amortisation of prior service cost
AOCI prior service cost/
Remaining service life for prior service amortization
Service cost/ Interest cost JE
Dr Annual Pension Expense
Cr PBO