Page 201 - SBR Integrated Workbook STUDENT S18-J19
P. 201
Tax
2.2 Calculating temporary differences
Deferred tax is calculated by comparing the carrying amount of an asset or liability to
its tax base.
The tax base of an asset or liability is its value for tax purposes.
It is important to consider whether the carrying amount exceeds the tax base, or vice-
versa:
Carrying amount > Carrying amount <
Tax base Tax base
(a taxable difference) (a deductible difference)
Deferred tax liability Deferred tax asset
195
