Please refer to the sample and paraphrase the deferred income tax. Please write a close word count to the sample. Deferred Income Tax- Deferred income tax asset or liability is established for the expected futureconsequences of temporary differences in the financial reporting and tax bases of assets andliabilities. Patagonia Gold considers future taxable income and ongoing, tax planning strategiesin assessing the value of its deferred tax assets. If the company determines it is more likely thannot that the assets will not be realized, the company will reduce the value of the assets to theirexpected realizable value, thereby decreasing net income.sample

Deferred Income Tax The meaning of deferred Income tax which was incurred in both the ways like…

Answered: Please refer to the sample and…

Business

Accounting

Please refer to the sample and paraphrase the deferred income tax. Please write a close word count to the sample.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please refer to the sample and paraphrase the deferred income tax. Please write a close word count to the sample.

Deferred Income Tax- Deferred income tax asset or liability is established for the expected future
consequences of temporary differences in the financial reporting and tax bases of assets and
liabilities. Patagonia Gold considers future taxable income and ongoing, tax planning strategies
in assessing the value of its deferred tax assets. If the company determines it is more likely than
not that the assets will not be realized, the company will reduce the value of the assets to their
expected realizable value, thereby decreasing net income.
sample

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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