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

Debtor management, what is the process to complete my debtor management pro...

what is the process to complete my debtor management project.

Accounting and finance, I want you guys to make my assignment of 2500 words...

I want you guys to make my assignment of 2500 words please let me know the price and I din''t have time I want it by tomorrow

Off balance sheet financing, Q. Off balance sheet financing? A finance ...

Q. Off balance sheet financing? A finance charter exists when the substance of the lease is that the lessee enjoys substantially all of the risks and rewards of ownership even

Explain the negative assurance, Q. Explain the Negative Assurance? Nega...

Q. Explain the Negative Assurance? Negative Assurance - Report issued by an ACCOUNTANT based on limited procedures which states that nothing has come to accountant's attention

The company computes income using cash-basis accounting, A lawn care compan...

A lawn care company started business on January 1, 2012. The company billed clients $105,000 for lawn care services completed in 2012. By December 31, the company had received $84,

Factoring and invoice discounting, The cash flow as well as other benefits ...

The cash flow as well as other benefits of factoring was discussed earlier. Invoice discounting as well offers cash flow advantages. Here selected invoices of superior quality are

Advantages and disadvantages of curve , You would like to start investing i...

You would like to start investing in the bond markets and your investment horizon is two years.  In view of the current extremely low interest rate environment, you expect the U.S.

Defunct companies-liquidation of companies, Defunct Companies A company...

Defunct Companies A company may be dissolved under s.338 without winding up if the registrar has reasonable cause to believe it is defunct: The procedure is: a. Registrar writ

Calculate free cash flow to equity, (a)  In order to obtain free cash flow...

(a)  In order to obtain free cash flow to equity (FCFE), the two adjustments that Shaar must make to cash flow from operations (CFO) are  i.   CFO does not consider the inves

Stock valuation, D1=$0.65, D2=$0.74, D3=$0.79, D4=$0.84.Dividen grow contin...

D1=$0.65, D2=$0.74, D3=$0.79, D4=$0.84.Dividen grow continually at rate of 3% per year stating from year 5 onward.assuming the required rate of return to this stock is 12%.what wil

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