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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.
Fund accounting and preparation of financial statements) The scenario: At the start of the year beginning January 1, 2013, Coco City's General Fund had a cash balance of $40,000, v
Illustration of double entry The balances on the current accounts of a head office and branch were Ksh 698,000, before the transactions listed below: Normal 0
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EXAMPLES OF HOW VAT SYSTEM WORKS
ABC Corportation purchased $15,000 of office furniture by putting down $7000 soqn in cash and the rest on accout
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Statement of surplus capital v\:* {behavior:url(#default#VML);} o\:* {behavior:url(#default#VML);} w\:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML
Investment of accumulated income The income accumulations must be invested from time to time and the investments earmarked as being on Accumulations Account. The income aris
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