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.