• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

deferred tax

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › deferred tax

  • This topic has 7 replies, 2 voices, and was last updated 5 years ago by P2-D2.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • October 24, 2019 at 2:17 pm #550672
    arunotes
    Member
    • Topics: 65
    • Replies: 39
    • ☆☆

    may i knw what is the reason behind when the carrying amt of liabilities more than tax base, it will be deferred tax assets?

    thankss

    October 24, 2019 at 4:34 pm #550705
    arunotes
    Member
    • Topics: 65
    • Replies: 39
    • ☆☆

    Also, sir, deferred tax assets and deferred tax liabilities usually will be Non current or current?

    October 26, 2019 at 9:20 am #550838
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    @arunotes said:
    may i knw what is the reason behind when the carrying amt of liabilities more than tax base, it will be deferred tax assets?

    thankss

    Hi,

    If the carrying amount is greater than the tax base then we have a deferred tax liability and not a deferred tax asset, as you say. It will be a deferred tax liability as the tax base is lower due to the company claiming more capital allowances than depreciation charged. There will therefore be less capital allowances available in the future if we have claimed this amount of capital allowances already, and so we would therefore pay more tax in future as we get less of a deduction against taxable profits.

    Thanks

    October 26, 2019 at 9:20 am #550839
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    @arunotes said:
    Also, sir, deferred tax assets and deferred tax liabilities usually will be Non current or current?

    Yes, they usually will be.

    Thanks

    October 27, 2019 at 3:19 am #550924
    arunotes
    Member
    • Topics: 65
    • Replies: 39
    • ☆☆

    I am referring to liabilitiy item rather than asset item such as warranty expense

    October 27, 2019 at 3:20 am #550925
    arunotes
    Member
    • Topics: 65
    • Replies: 39
    • ☆☆

    usually will be Non-current OR current??? how to identify the deferred tax asset/liability is current OR non-current?
    Thanks

    November 2, 2019 at 10:31 am #551428
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    @arunotes said:
    usually will be Non-current OR current??? how to identify the deferred tax asset/liability is current OR non-current?
    Thanks

    It would depend on when it is settled.

    November 2, 2019 at 10:32 am #551429
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    @arunotes said:
    I am referring to liabilitiy item rather than asset item such as warranty expense

    You would be saving tax in the future when the deduction is allowed, hence the deferred tax asset.

  • Author
    Posts
Viewing 8 posts - 1 through 8 (of 8 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • NirajNathani99 on PPE – revaluation upwards – ACCA Financial Reporting (FR)
  • AKN1989 on Linear Programming – Maximum contribution – ACCA Performance Management (PM)
  • Motsotase910 on Contingent Assets and Liabilities – ACCA Audit and Assurance (AA)
  • Kim Smith on ACCA F2 Key to success
  • Barlow1989 on CIMA BA2 – The Management Accountant’s Profit Statement – Marginal Costing

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in