Page 9 - Finac1 Test 1 slides - 5. Income Taxes (IAS 12)
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INCOME TAXES
Definitions
• Current tax
• is the amount of income taxes payable/(recoverable) in
respect of the taxable profit/(tax loss) for the year.
• This is the tax calculated according to the rules and
regulations of the SA Revenue Service
• Deferred tax liabilities
• are the taxes provided in the statement of financial position
(SFP) for the amount of income taxes payable in future
periods in respect of taxable temporary differences.
• Deferred tax assets
• are the amounts of income taxes recoverable in future
periods in respect of
• deductible temporary differences;
• the carry forward of unused tax losses; and
• the carry forward of unused tax credits.
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