they are recognized as expense
this tax is levied on income, a notion that financial reporting is trying to determine from an accounting perspective
the period in which the income is generated that led to the income tax.
the period in which revenues and expenses are recognized for accounting purposes is different from the period in which such revenues and expenses are treated as taxable income and allowable deductions for tax purposes.
amounts recognized as part of accounting profit are not recognized as part of taxable profit
differences between the carrying amount of an asset or liability and its tax base so balance sheet orientation.
the amount that will be deductible for tax purpose against taxable economic benefits that will flow to an entity when it recovers the carrying amount of the asset.
the tax base of the asset is equal to its carrying amount.
all taxable temporary differences.
all deductible temporary differences
(a) The initial recognition of goodwill;
(b) The initial recognition of an asset or liability in a transaction which: (i) Is not a BC; and (ii) At the time of the transaction, affects neither accounting profit nor taxable profit
Undistributed reserves of subsidiaries, joint ventures and associates; FX translation differences.
allowable deductions exceed taxable income.
1) Carried back, 2) Carried forward , 3) Lost.
tax expense (income) as percentage of pre-tax profit (loss).
Non-temporary differences; Differences between tax rates in different countries; Tax loss carry forward which the company doesnt expect to recover