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CHAPTER 15 - INCOME TAXES, MENGER SIMON PINO - Coggle Diagram
CHAPTER 15 - INCOME TAXES
Current Tax:
Definition
: The amount of income tax expense or income tax benefit relating to the taxable profit or loss for the current and prior periods.
Recognition
: Recognized as an expense or income in the income statement.
Measurement
: Measured using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred Tax:
Definition
: The future tax effect of timing differences between the recognition of income and expenses in the financial statements and their recognition for tax purposes.
Recognition
: Recognized as an asset or liability, except when it arises from the initial recognition of an asset or liability that is not a business combination and affects neither accounting profit nor taxable profit or loss.
Measurement
: Measured using the tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred Tax Assets:
Recognition
: Recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary difference can be utilized.
Impairment
: Assessed at each reporting period and reduced to its recoverable amount if necessary.
Deferred Tax Liabilities:
Recognition
: Recognized for all taxable temporary differences.
Timing Differences:
Temporary
Differences
: Differences between the carrying amount of an asset or liability in the financial statements and its tax base.
Permanent
Differences
: Differences between accounting profit and taxable profit that do not reverse in future periods.
Tax Expense:
Components
: Current tax expense or benefit and deferred tax expense or income.
Presentation
: Presented separately in the income statement.
MENGER SIMON PINO
GROUP 7
9:00 - 10:30
BSA 1