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…

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

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter12: Tax Administration And Tax Planning

Section: Chapter Questions

Problem 12P

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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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Question 1: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with a suitable example. Question 2: Will the existence of unused tax losses always lead to the recognition of deferred tax assets? Explain your answer with suitable example. Question 3: Do the liabilities and assets that are generated by using the 'balance sheet method' of accounting for tax appear to be consistent with the definition and recognition criteria of assets and liabilities promulgated within the Conceptual Framework? Question 4: Under what conditions can deferred tax assets be offset against deferred tax liabilities? Question 5: Critically examine the disclosures made by an Australian Securities Exchange (ASX) listed company in its latest financial statements and associated notes regarding income tax issues. While every company will have unique tax matters and position, your discussion should highlight the following: Identify the income tax expense (income) shown in…
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