With respect to transaction and translation gains and losses:   a. transaction gains and losses are taxable but have no immediate cash flow impact.   b. transaction gains and losses have immediate cash flow and tax consequences, translation gains and losses have neither.   c. transaction gains and losses have an immediate cash flow impact, but taxation is deferred until the related assets are sold.   d. transaction and translation gains are taxable, but only transaction losses are tax deductible

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Q: What is the logic behind allowing tax loss carrybacks/carryforwards?

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A:

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A:

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A:

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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.