(Intermediate Accounting 2)

LECTURE AID

2023

ZEUS VERNON B. MILLAN

Chapter 9 Income Taxes
Related standard: PAS 12 Income Taxes

Learning Competencies

• Explain why the profit presented in the financial

statements may be different from the taxable profit.
• Determine the tax base of assets and liabilities.
• Compute for income tax expense and current tax
expense.
• Compute for deferred tax assets and deferred tax
liabilities.

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Deferred tax expense (benefit)

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Interperiod and intraperiod tax allocation
• Interperiod tax allocation relates to the recognition of deferred tax assets
and deferred tax liabilities. It is concerned with the accounting for
temporary differences.

• Intraperiod tax allocation relates to the allocation of income tax expense

during the period to various items of income or other sources that
brought about the tax. This is based on the notion – “the tax follows the
income.” Income tax is allocated to the following:
a. Profit or loss from continuing operations
b. Profit or loss from discontinued operations
c. Components of other comprehensive income
d. Items recognized directly in retained earnings
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 APPLICATION OF CONCEPTS

PROBLEM 6: FOR CLASSROOM DISCUSSION

INTERMEDIATE ACCTG 2 (by: MILLAN)

 OPEN FORUM
QUESTIONS????
REACTIONS!!!!!

INTERMEDIATE ACCTG 2 (by: MILLAN)

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INTERMEDIATE ACCTG 2 (by: MILLAN)