Page 8 - Finac1 Test 1 slides - 5. Income Taxes (IAS 12)
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INCOME TAXES
Definitions
• Accounting profit
• is the net profit or loss for a period before deducting tax
expense.
• Taxable profit/(tax loss)
• is the profit or loss for a period upon which income tax is
payable to the SA Revenue Service.
• This figure is calculated by adjusting the accounting profit
according to the rules established by the tax authorities.
• Tax expense/tax income
• is the aggregate amount disclosed in the statement of profit
or loss and other comprehensive income (P/L) as income tax
expense/income.
• This includes both current tax and deferred tax.
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