Briefly explain the recognition criteria of deferred tax assets and deferred tax liability and the concepts of temporary difference and permanent difference.
Briefly explain the recognition criteria of deferred tax assets and deferred tax liability and the concepts of temporary difference and permanent difference.
Briefly explain the recognition criteria of deferred tax assets and deferred tax liability and the concepts of temporary difference and permanent difference.
Briefly explain the recognition criteria of deferred tax assets and deferred tax liability and the concepts of temporary difference and permanent difference.
Definition Definition Estimated future tax made while preparing accounts. Deferred tax is estimated based on past and present transactions from financial statements. It is not the actual tax that needs to be paid or is refundable from the revenue authority; it is an accounting entry. It is necessary to account for deferred tax due to difference between accounting profits and taxable profits.
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