The going concern assumption is the basis for the rule that: Group of answer choices the cost of installing a machine should not be included in the recorded cost of the machine, but rather expensed immediately. the cost of operating assets should be allocated to expense systematically over their useful lives. treasury shares should not be reported in the statement of financial position as an asset. the income statement should not include material gains and losses that are both unusual and infrequent.

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.