TMS 12 INCOME TAX STANDARD SCOPE DEFERRED TAX AND ACCOUNTING

Abstract

If there is difference between time for revenue and expenditure to emerge and the accepted valid time given by tax legislation, it can be temporary difference between accounting profit and financial profit. Tax effect of temporary difference is reported as deferred tax or delayed tax obligation in balance sheet whereas in the income statement delayed tax expenditure or delayed tax income. In this study, occurrence of the delayed tax assets and the delayed tax obligations is explained with sample practices and how these taxes can be reflected in income statement is discussed in different case studies. In addition to these, how can be offset of the delayed tax assets and obligations is shown by case studies.