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Deferred Tax (2)

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Deferred Tax (2)

  • This topic has 2 replies, 2 voices, and was last updated 10 years ago by kayfabuacca.
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  • August 7, 2015 at 10:16 am #266016
    kayfabuacca
    Participant
    • Topics: 9
    • Replies: 39
    • ☆

    How could deferred tax losses give rise to deferred tax asset?

    August 7, 2015 at 11:30 am #266030
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23335
    • ☆☆☆☆☆

    How can a debit balance in Retained Earnings be shown as a negative in the Equity section? Effectively an asset, since it reduces the liabilities represented by the other components of shareholders’ funds

    How can a debit balance be either an expense or an asset? Surely an expense is bad news and an asset is good news! But they’re both debit balances in their respective accounts for the purposes of trial balance?

    August 7, 2015 at 2:08 pm #266077
    kayfabuacca
    Participant
    • Topics: 9
    • Replies: 39
    • ☆

    Thanks Mike for the clarification.

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