Page 110 - Finac1 Test 1 slides
P. 110

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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