- This topic has 1 reply, 2 voices, and was last updated 6 hours ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Good morning, Sir
Sir, May I know the reasons why an income tax (IAS12) considered to be an accounting estimate (IAS 8)? Is it because the current tax and deferred tax involves a measurement uncertainty? Can I have a clarification on this?
Income tax = measurement uncertainty – because tax legislation is sometimes unclear and subject to interpretation
Deferred tax = less uncertainty – it’s an objective calculation – but I suppose you could argue that changes in future tax rates make measurement uncertainI would hope that your question is too theoretical for what is now a practical exam 🙂 🙂
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.