deferred tax


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Related to deferred tax: Deferred Income Tax, Deferred tax expense

Deferred Income Tax

On a balance sheet, a tax that a company will owe on its income, but that has not yet been assessed. Because of differences between tax regulations and the Generally Accepted Accounting Principles, income may be recognized on a balance sheet for accounting purposes, but not for tax purposes. However, that income will eventually be recognized for tax purposes and income tax will then be assessed. This tax is called deferred income tax, and is recorded as a liability on the balance sheet.

deferred tax

a PROVISION which a company may make to reflect the difference between CORPORATION TAX actually payable (based on CAPITAL ALLOWANCES), and the tax which would have been payable if the charge had been based solely on accounting profits (reflecting DEPRECIATION rates applied).
References in periodicals archive ?
At the time of the acquisition, a company must recognize deferred tax assets and liabilities related to the acquired assets and liabilities and also recognize any related valuation allowance (see ASC paragraph 805-740-25-2).
The interest charge is calculated on the applicable percentage of the deferred tax liability at the end of each year.
In this respect in 2008 resulted a taxable temporary difference that will lead to the recording of a debt concerning the deferred tax of 3,200 lei.
Five banks will be affected most by the tax cut, due to their large amount of deferred tax assets deriving from their loss in previous years.
The amount of the net operating loss must be multiplied by the tax rate in order to determine the amount of the deferred tax asset.
109, Accounting for Income Taxes, requires a reduction to the deferred tax asset by a valuation allowance if it is more likely than not that the deferred tax asset will not be realized.
One exception to this occurs when firms are required by SFAS 109 to disclose the valuation allowance for deferred tax assets on their balance sheets from 1992 onwards.
Consequently, the ratio of the deferred tax assets to combined shareholders' equity at the 16 plummeted by 9.
For the fiscal year ended January 3, 2004, the Company calculated the valuation allowance (mark-down) based upon the gross value of deferred tax assets which was $980,000.
On July 27, TEI filed comments with the International Accounting Standards Board on IAS 12, Deferred Tax Accounting for Intercompany Profits in Inventory.
3 billion last year to comply with a new accounting standard - FRS19: Deferred Tax.