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Chapter 12
Deferred tax
2.1 What is deferred tax?
Deferred tax is an application of the accruals concept. It ensures that the tax impact
of a transaction is recorded in the same period as the transaction itself.
There is a difference
between the
accounting and tax
treatment.
Is the
difference
temporary or
permanent?
Permanent
Temporary
Deferred tax No deferred
tax
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