Page 98 - Finac1 Test 1 slides
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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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