Page 51 - Financial Accounting 1 ITC Preparation June 2018

ITC EXAM PREP – JUNE 2018

Income Tax Exam Application

• Income tax questions are pervasive as all accounting transactions have a tax
effect

• The key issue is to be able to apply income tax techniques (SARS perspective)

vs IFRS and be able to identify:
• Temporary differences being

• Taxable temporary differences and

• Deductible temporary differences
• Exempt (permanent) differences

• You should be able to disclose in the AFS the following

• Income tax expense note

• Deferred tax note
• In most cases the bulk of marks are allocated to calculation of carrying

amounts (CA) in line with IFRS requirements but not forgetting calculating tax

base (TB) using tax rules

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