Temporary-timing differences-financial statement , Financial Accounting

Assignment Help:

Temporary or Timing differences

Temporary/timing differences relate to those items that are adjusted in the current period and are again adjusted in subsequent financial periods for tax purposes. E.g. investment income accrued in profits before tax will be deducted in the current period for tax purpose but will be added back in subsequent financial periods when investment income is received.

All temporary differences therefore result to deferred tax. However, currently the computation of deferred tax is based on the balance sheet approach whereby temporary differences are given as the difference between the carrying amount of an asset or liability (book value) and its tax base.

The carrying amount is the accounting value or book value of an asset or liability. The tax base is the value attributable to asset or liability for tax purpose.


Related Discussions:- Temporary-timing differences-financial statement

Illustration for company conversion-partnership, Illustration for company c...

Illustration for company conversion Kamau Maneno and Rotino have carried on partnership for several years, sharing profits and losses equally after allowing for annual salaries

Effect of disclaimer-bankruptcy and liquidation, Effect of disclaimer T...

Effect of disclaimer The trustee may disclaim onerous property consisting of: Land burdened with onerous covenants; Stocks and shares; Unprofitable contracts, or

Show the capitalized cost, Q. Show the Capitalized Cost? Capitalized Co...

Q. Show the Capitalized Cost? Capitalized Cost - Expenditure identified with services or goods acquired and measured by theamount of cash paid or market value of other property

Prior period adjustments, Q. Prior period adjustments a. may only increase ...

Q. Prior period adjustments a. may only increase retained earnings. b. may only decrease retained earnings. c. may either increase or decrease retained earnings. d. do not affect r

.branch accounting., speciman of accounts preparation in stock and debtor...

speciman of accounts preparation in stock and debtor system.

What do you mean by franchise, Q. What do you mean by Franchise? Franch...

Q. What do you mean by Franchise? Franchise - Legal arrangement whereby owner of a franchisor, trade name, contracts with a party who wants to use the name on a non-exclusive b

Comment on financial position and performance, BFD Co has occurrence rapid ...

BFD Co has occurrence rapid growth in turnover since its formation three years ago but it has been unable to maintain net profit margin which has fallen from 19% in 2002 to 12% in

Calculate break-even point and qualitative factors, Evaluating a Company's ...

Evaluating a Company's Budget Procedures Springfield Corporation operates on a calendar-year basis.  It begins the annual budgeting process in late August, when the president

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd