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The difference between tax rules and accounting rules contributes to the difference in taxable income. Tax rules is governed by the fiscal policy that affect the computation on certain income and expense. Meanwhile, accounting method uses accounting standards and generally accepted accounting principles that provides its own measurement on income and expense in measuring its accounting profits.
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Problem 1: Briefly explain the effect of accrued interest expense towards the determination of accounting profit and taxable income in relation to MFRS112 Income Taxes that leads to temporary difference.
Financial Statement Analysis and Preparation
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