1.The tax base of revenue received in advance equal to
1.The tax base of revenue received in advance is equal to zero where the revenue received is taxed in the reporting period that the revenue is received.
2.Deferred tax assets are the amounts of income taxes recoverable in future periods that arise from assessable temporary differences.
3.Deferred tax assets may arise from amounts of income taxes recoverable in future periods that arise from carry forward of unused tax losses.
4.The balance sheet approach compares the carrying value with the tax base of the assets and liabilities.
5.Non-deductible expenses in the current or subsequent periods results in a deferred tax asset.
6.The tax-effect of the temporary difference that arises from revaluation of non-current assets is recognised in profit and loss.
7.It is possible for a firm to legally make a large accounting profit but pay little or no tax based on its taxable income.
8.Profit for taxation purposes is determined in accordance with AASB 112.
9.The difference between the carrying amount of an asset or liability in the balance sheet and its tax base is a temporary difference.
10.There are two types of temporary differences between the carrying value of assets and liabilities and the tax base—assessable temporary differences and neutral temporary differences.