Deferred Taxes Flashcards
1
Q
What is the calculation for Temporary Differences?
A
Carrying value (Net Book Value) - Tax base (future capital allowances / TWVD)
2
Q
Example of liabilities which do not result in deferred tax
A
Environmental liabilities, anything illegal or anything unethical
3
Q
How are intercompany sales dealt with
A
They are taxed now, but we don’t recognise internally, so this is a deferred tax asset
