Page 5 - Finac1 Test 1 slides - 5. Income Taxes (IAS 12)

INCOME TAXES

Overview

• Taxation represents an unavoidable expense for

most entities.

• Apart from various income taxes that include all

domestic and foreign taxes, it is also necessary to

account for deferred taxation.

• Deferred tax represents tax that will be paid/saved

in future periods when the carrying amounts of the

assets/liabilities are recovered/settled.

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