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.

Posted Date: 12/12/2012 12:34:37 AM | Location : United States

Ask an Expert

Related Discussions:- Temporary-timing differences-financial statement , Assignment Help, Ask Question on Temporary-timing differences-financial statement , Get Answer, Expert's Help, Temporary-timing differences-financial statement Discussions

Write discussion on Temporary-timing differences-financial statement
Your posts are moderated

Write your message here..

Related Questions

Leverage, Evaluate the importance of leverage in financial management of a ... Evaluate the importance of leverage in financial management of a small scale company

Extract the term structure of interest rates, Extract the term structure of... Extract the term structure of interest rates out to 3 years given the following bond data: Maturity (yrs)    Coupon rate (%)   Yield to maturity (%) 0. 5

Prepare the company''s closing entries for its revenues, Following are Nint... Following are Nintendo's revenue and expense accounts for a recent calendar year. Net sales ¥2,008,622 Cost of sales 1,864,981 Advertising expense 118,908 Other expense, net 397

What is the turnover needed to earn, a company recorded for the past year a... a company recorded for the past year a sales of 500,000 and an operating incme of 40,000. What is the turnover needed to earn in order to achieve an ROI of 20%

Default risk premium , A Treasury bond that matures in 10 years has a yield... A Treasury bond that matures in 10 years has a yield of 3%. A 10-year corporate bond has a yield of 9%. Suppose that the liquidity premium on the corporate bond is 0.8%. What is th

What do you mean by inflation, Q. What do you mean by Inflation? Predic... Q. What do you mean by Inflation? Predicts of future inflation of sales prices and variable costs should be prepared Therefore that a nominal NPV evaluation is able to be under

#title.Current Issue in financial Accounting, 2 Individual Research Assignm... 2 Individual Research Assignment This assignment is an individual assessment. The research and written submission should therefore be your own work. You will need to submit this as

Failing to adjust entries, what are the effects of failure to adjust entrie... what are the effects of failure to adjust entries

Periodic inventory system, Under this system all stock levels are reviewed ... Under this system all stock levels are reviewed after fixed time duration, depending upon the significance of the item. Imported items may need a shorter review cycle, while slow m

Construction contract account, tutorials on sample qustion tutorials on sample qustion