Accounting for Income Taxes Flashcards
General formula =
Taxes (owe now) + differences (owe later) = income statement tax expense
Permanent differences do not affect the;
deferred tax computation
Temporary differences affected the:
deferred tax computation
Method required by GAAP for comprehensive allocation
asset and liability (balance sheet approach)
future tax accounting income > future financial accounting income
deferred tax liability
future tax accounting income < future financial accounting income
deferred tax asset
Arise when the amount of taxes paid in the current period exceeds the amount of income tax expense in the current period
deferred tax assets
Deferred tax assets can be thought of as:
gift certificates
If it is more likely than not that part or all of the deferred tax asset will not be realized, a _____ ______ is recognized
valuation allowance
Valuation allowances are not permitted under:
IFRS
The enacted tax rate (a change) is used for:
deferred taxes
Change in tax laws or rates are recognized in the period of:
change
A change in tax law is a component of:
income from continuing operations
Deferred tax items should be classified based on the classification of the: : for financial reporting
related asset or liability
Deferred tax items not related to an asset or liability should be classified base don the expected _____ ______ of the temporary difference
reversal date
