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Flashcards in Deffered tax Deck (10):
1

A taxable temporary difference?

A taxable temporary difference: is one that is expected to lead to the payment of tax in the future

2

A deductile temporary difference?

A deductile temporary difference: is one that is expected to lead to the payment of less tax in the future.

3

Note that calculated DTLs and DTAs are __________________that need to be established in the DTL and DTA general ledger accounts

Note that calculated DTLs and DTAs are TARGET BALANCES that need to be established in the DTL and DTA general ledger accounts

4

The rules for temporary differences

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5

Formula: Tax base of an asset

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6

Formulae: tax base of a liability

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7

Future taxable amount?

Future taxable amount is the total amount of revenue that an asset or liability is expected to generate in the future, and that will be assessed as income in the Tax World

8

Future deductible amount ?

Future deductible amount is the total amount that will be allowed as a tax deduction in the Tax World once an asset has been fully consumed (that is, used up) or once a liability has been completely settled (that is paid, or discharged)

9

THE QUESTION TO ASK ABOUT EACH INDIVIDUAL ITEM

For individual ASSETS..

?

THE QUESTION TO ASK ABOUT EACH INDIVIDUAL ITEM

For individual ASSETS

"What will happen when the asset is recovered or consumed?"

Note: "Recovered" means receiving future cash to cover the amount orginally paid to acquire the asset. " Consumed" meanse used up"

10

THE QUESTION TO ASK ABOUT EACH INDIVIDUAL ITEM:

For individual LIABILITIES

?

THE QUESTION TO ASK ABOUT EACH INDIVIDUAL ITEM:

For individual LIABILITIES

"What will happen when the liability is settled or discharged?"

Note: "Settled" means paid. "Discharged" means reduced to zero