WebA company reports an accrued liability for warranty costs of $72,000, which is its carrying value. This amount will not be deductible for tax purposes until the costs are actually incurred. The tax base is the carrying value less the amount deductible in future periods (), or $0. Thus, there is a deductible temporary difference of $72,000. WebMar 7, 2024 · An asset’s tax base is the amount that will be deductible for tax purposes in future periods once the economic benefits of the asset have been realized and a company …
STATEMENT 2.112A - Hong Kong Institute of Certified Public …
WebSep 16, 2009 · The difference between the carrying amount of 100 and the tax base of 60 is a taxable temporary difference of 40. Therefore, the entity recognises a deferred tax liability of 10 (40 at 25%) representing the income taxes that it will pay when it recovers the carrying amount of the asset. WebIAS 12 implements a so-called 'comprehensive balance sheet method' of accounting for income taxes, which recognises both the current tax consequences of transactions and tour and the future tax consequences of the future recovery or settle from the transporting amount of an entity's assets and liabilities. Distinguishing between the carrying amount … browning light 12 history
AP12B: Deferred tax—tax base of assets and liabilities ... - IFRS
Webliability and no tax deduction will be available for the asset. c. The tax base of the lease liability is zero because it is determined as the carrying amount of 450 less the future tax deduction of 450. On commencement of the lease, C records the following entry for the temporary differences. Debit Credit Income tax expense 4 Deferred tax ... Webentity when it recovers the carrying amount of the asset. If those economic benefits will not be taxable, the tax base of the asset is equal to its carrying amount’ (IAS 12.7). What is the tax base of a liability? The tax base of a liability is defined as: ‘…its carrying amount, less any amount that will be deductible for tax purposes in ... Webtax base of an asset or liability and its carrying amount in the statement of financial position. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes. IN3 HKAS 12 requires an entity to recognise a deferred tax liability or (subject to certain conditions) everyday i have the blues tab