erat principles of current and deferred t=? 2. What are the g' 3112, companies must account for ¢ A Current events and jiability settiements recognised as current of deferred tax assets or Ha 2 rules of the tax act is based on the taxable rent tax lability oF ass! sc settlement of sequences are based on t ( DTA’s and cred t tax expense Is c ‘sand DTL's STA’s and DTL's and in other rehensive if ed according to the Australian ting profit ; 3, Describe how taxable profit is generally determ income tax legislation and explain how it differs from account ed through the formula below Tax deductions = Taxable profit Taxable Income ssiness operations and al day to day b income from the es such as capital 9 she tax deductions are general logses of expenses thal ore necessary 19 COTY S7 the such as R&D costs susiness and permitted specific deduction Taxable income vs Accounting Profit cording to different. guidelines { AASB and Tax act) 1ng whereas the taxabh coun fe income relied «Prepared acc The accounting profit relied an accrual. 3 a the cash basis and some. accrual concepts «The AASB standard allows different measurements methods ond e aluations of based and only recognises cash ‘ax Act is cos assets of liabilities whereas t based valuations.