Financial Accounting: Deferred Income Tax summary

Income Statement Approach

Accounting Income (PAS) xx
Permanent Differences:
Non-taxable Revenue (xx)
Non-deductible Expense xx
Accounting Income Subject to Tax xx Total Income Tax Expense
Temporary Differences:
Future Taxable Amount (xx) Current or Future = (Deferred Tax Expense)
X
Future Deductible Amount xx Enacted Tax Rate = Deferred Tax Benefit
Taxable Income xx X Current Tax Rate = Current Income Tax Expense


*Future Taxable Amount = Taxable Temporary Difference
*Future Deductible Amount = Deductible Temporary Difference
*Accounting Income PAS = Pretax Financial Income

Statement of Financial Position Approach
- CV vs Tax Base
- Direct Computation: DTL and DTA