Page 21 - Finac1 Test 1 slides - 5. Income Taxes (IAS 12)
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INCOME TAXES
Exempt Differences - example
• The reason for the difference is that no tax is provided for on the exempt
differences.
• IAS 12 requires a reconciliation of the relationship between the tax expense and
the profit before tax (accounting profit). The reconciliation can be done in
percentages or rand, as follows:
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