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plzz can anybody tell the explanition of the following sentence
“liabilities arising from goodwill for which amortization is not deductable for tax purposes”
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In other words it means..IAS 12 prohibits the recognition of DTL arising from goodwill itself..dats the rule
IT means that when you are calculating your taxable income for tax purpose, you cannot claim the amount of goodwilll amortised as laid off or compensated by taxation authority.
Taxation timing differences can be permanent or temporary. Temporary difference will give rise to either Deductable or taxable tempoorary difference. Deductable items will be, as the name suggest, not included in the calculation of current year while taxable will be included.
The reason of why this rule exist is also mentioned in IAS 12.
Hope this helps
When calculating Goodwill, We look at the Purchase Consideration less the Fairvalue of the Net Assets Acquired. The Difference is the Goodwil..
Those Liabilities arising out of the Amortsation of goodwill is a permanent Difference where we cant calcualate Deferred Tax.
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assalamoalaikum, somebody please send me the p2 mock exam on secretfriendfaraway.com
id be grateful, thanks
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assalamoalaikum, somebody please send me the p2 mock exam on secretfriendfaraway.com
id be grateful, thanks
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