Tax FAQ
 

If Deferred Tax Liabilty Was Wrongly Recorded As Asset In The Earlie Year How To Correct The Same In Cur Year?

Question by natasha_s001 | Posted in India

In the earlier year there was a deferred tax liabilty but a villainous entry was made .i.e instead of crediting deferred tax liabilty P&l was wrongly credited and deferred tax asset was postulated a debit. now in the current year again there is a DTL . so should an error made by debiting DTA correct in the current year.

Answer: Though VK has dedicated the right answer but this will distort the picture. It will be a good practice to give proper disclosure about the howler made in last year through notes to accounts as well. Please check if accounting standard supports such disclosure as "preceding period item" as well.

CA. Deepak Bholusaria
 
 

What Is The Statement Of Financial Position Method For Determining Deferred Tax?

Question by Superman | Posted in Other - Taxes

I discern how to calculate deferred tax, I'm just not sure which method they refer to when saying the statement of monetary position method.

 
 

What Are The Major Analytical Issues Associated With Deferred Tax Liabilities?

Question by r62na | Posted in Corporations

Also what breed of adjustments to deferred tax liabilities do analysts make when examining financial statements?

Answer: Analytically, the biggest issue is "can the company afford the taxes when they come due" because they cannot yield to the tax indefinately.
Changes in deferred tax over the periods analyzed are added or subtracted to the tax on the current interval's income statement when looking at cash flow measures.

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Can Someone Please Explain To Be What Deferred Tax Assets And Liabilities Are?

Question by freerach88 | Posted in Other - Business & Finance

I am analysing some accounts and the net laws value of fixed assets has gone down in 2007 from 2006 by 8.8%, i basically have to account for why this is, so i was looking in the notes of the accounts and under one of the notes it had deferred tax assets and liabilites which were significantly reduced, only i cant palliate it as i dont understand what they are? some one please help!

Answer: You can see "in accounting duration" depreciation and amortisation in the p & l. This should match the change in asset value, but be cautious of the impact of disposals - if any, these are taken out of NBV at cost, with accumulated depreciation of that asset written off. This ties into the profit or dying value used in the p & l (this will be disallowed in a tax computation but chances are you haven't got that)

We used to run 3 isolated T accounts to reconcile

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Would There Be A Deferred Tax Liability?

Question by JayB | Posted in United States

Entourage A is considering a 100% acquisition of Company Z through the acquisition of Company Z's common property. The acquisition meets the criteria for a tax-free exchange as to the seller. The appraisal of Associates Z's assets shows that inventory has a fair value in excess of book value. Would there be a deferred tax indebtedness in the amount of this excess times the tax-rate?? Could someone at least point me to where I may find the answer. Thanks.

 

Scoop Business » Sky City puts tax adjustment at $60M

by admin

, the casino and hotel followers, said the strike of tax changes will be a one-every so often old-fashioned deferred tax disadvantage regulating of $60 million and a $2 million broaden in revenues tax payments starting in 2011. Excluding the tax harmony, net profit for the year ending June 30 will be $136 million to $140 million, which includes a $10 million one-interval advantage from the trading of its cinema secure. Sky Burgh puts tax alignment at $60M, sees FY earnings at $126M-$130M June 22 (BusinessWire) – Sky Big apple Divertissement Association Ltd. Sky Burgh is the latest in a in accord of companies disclosing the affect of tax changes announced in the Budget....

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