ACIS 3115 Chapter Notes - Chapter 16: Deferred Tax
16 Oct 2016
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Document Summary
Temporary difference: when tax rules & acting rules recognize income in diff periods. Deferred tax liabilities: temporary diff originates (on is) in 1 pd & reverses in 1 or more subsequent pds (on tax return ) How to determine income tax expense: 1) calc income tax payable currently 2) calc what ending balance in deferred tax liability/asset should be. 3)determine change in deferred tax liability/asset necessary to reach that ending bal 4) combine that change with tax payable to get income tax exp. Tax basis: original value any amount to date on tax returns deferred tax asset/l= temporary box tax diff x tax rate. Installment sales of prop; unrealized gain from recording invests at fv (dtl) Rent collected in advance; subscripts collected in advance; other revenue collected in advance (dta) Estimated exps & losses; unrealized loss from recording invests at fv ot inventory at lcm (dta)
