Management and Organizational Studies 3361A/B Chapter Notes - Chapter 18: Leaseback, Financial Statement, Deferred Tax
22 Jan 2018
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Income taxes from a business perspective: corporations file income tax returns that are administered by the canada revenue. Current income taxes: revenue is taxable, expenses can be deducted, tax is then paid on the balance of revenue less expenses = accounting income. In limited situations, (e. g. revenue under percentage of completion method) is not recorded for tax purposes until cash is collected. Company q has a 25% tax rate, and uses aspe. ** remember that because it is aspe, you must use future . Cr future tax liability 7,500: half-year rule, all companies in the first year can only claim 50% of the cca rate, this acknowledges the timing difference. If the ucc is greater than the carrying amount it is a deferred tax asset. The company has an accrual of ,000 in its estimated lawsuit. Notice there is not tax base because it is an estimate. Income tax accounting objectives and analyses of temporary deductible differences.
