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Justification for deferred tax accounting?

Open uri20170510 32134 7ezpi6?1494421819 jaggu asked over 2 years ago

Hi Can you please Justification for deferred tax accounting?

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5 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Deferred tax is recognized as a result of the Matching principle. Deferred tax liabilities are provided in order that investors may understand the future tax liabilities that may arise as a result of accelerated tax relief taken to date, or income that has not yet been taxed.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 HIMANSHU answered over 2 years ago

Hello Deferred tax is recognized as a result of the Matching principle. Deferred tax liabilities are provided in order that investors may understand the future tax liabilities that may arise as a result of accelerated tax relief taken to date, or income that has not yet been taxed. Where accelerated tax relief is obtained for expenditure relative to the timing of an expense recognized in a company's profit and loss account, a deferred tax charge should be recognized in the profit and loss account for the movement in the company's deferred tax liability, which will increase the company's total tax charge

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

Dear Friend, **Justification for deferred tax accounting** -Deferred tax is recognized as a result of the Matching principle. Deferred tax liabilities are provided in order that investors may understand the future tax liabilities that may arise as a result of accelerated tax relief taken to date, or income that has not yet been taxed. -Where accelerated tax relief is obtained for expenditure relative to the timing of an expense recognized in a company's profit and loss account, a deferred tax charge should be recognized in the profit and loss account for the movement in the company's deferred tax liability, which will increase the company's total tax charge

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Picsjoin 2017224123730582 Archana answered over 2 years ago

Hie Jaggu, Justification for deferred tax accounting ----------------------------------------- - Deferred tax is recognized as a result of the Matching principle. Deferred tax liabilities are provided in order that investors may understand the future tax liabilities that may arise as a result of accelerated tax relief taken to date, or income that has not yet been taxed. - Where accelerated tax relief is obtained for expenditure relative to the timing of an expense recognized in a company's profit and loss account, a deferred tax charge should be recognized in the profit and loss account for the movement in the company's deferred tax liability, which will increase the company's total tax charge

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Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered over 2 years ago

Deferred tax is recognized as a result of the Matching principle. Deferred tax liabilities are provided in order that investors may understand the future tax liabilities that may arise as a result of accelerated tax relief taken to date, or income that has not yet been taxed. Where accelerated tax relief is obtained for expenditure relative to the timing of an expense recognized in a company's profit and loss account, a deferred tax charge should be recognized in the profit and loss account for the movement in the company's deferred tax liability, which will increase the company's total tax charge

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