Accounting
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Tax loss accounting treatment, how tax loss is accounted for?|
Tax losses are created when allowable deductions exceed taxable income. The accounting standard envisages that there are three possible treatments…
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Recognition Of Deferred Tax Asset And Deferred Tax Liability
Criteria for Recognition of deferred tax asset and deferred tax liability is set under IAS 12. Deferred tax liabilities must…
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How accounting profit and taxable profit differ in accounting for income taxes.
Accounting profit and taxable profit differ in accounting for income taxes in the following ways: Accounting profit is defined in…
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What is a temporary difference in deferred tax calculation?
Deferred tax calculation Temporary differences between accounting profit and taxable profit arise when revenues and expenses are recognized in different…
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The Main Principle Of Tax Effect Accounting As Per IAS 12
Main principle of tax effect accounting as per IAS 12: As the objective paragraph of IAS 12 points out the…
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Recognition And Measurement Of Net Defined Benefit Liability
Measurement of net defined benefit liability : The economic substance of the entity’s exposure may be considered as the net…
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When Would Contingent Liabilities Become Provisions
Meaning of Contingent Liability : Contingent liabilities are such type of liabilities or a potential losses that may occur in…
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What Is A Constructive Obligation And A Present Obligation?
Constructive obligation One of the essential characteristics of a liability is that there must be a present obligation arising from…
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What Are The Characteristics Of A Provision
Characteristics of a provision? The characteristics of a provision are that it is a liability where there is uncertainty as…
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What is contingency and contingent liability?
Contingency and contingent liability : A contingency is not defined in IAS 37. In plain English a contingency is an…
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