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Deferred tax

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Deferred tax

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • September 2, 2021 at 5:19 pm #634024
    carmenl26
    Member
    • Topics: 12
    • Replies: 4
    • ☆

    Sir,

    1. If DTL overstated, NA will understated and EBITDA will understated? Am I correct?

    2. How will DT affect on EBITDA? Could you simply discuss in layman term.

    Thanks in advance.

    September 3, 2021 at 7:27 am #634063
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3408
    • ☆☆☆☆☆

    By definition anything that happens to deferred tax will not affect EBITDA – because EBITDA is BEFORE tax.

    September 3, 2021 at 7:32 am #634069
    carmenl26
    Member
    • Topics: 12
    • Replies: 4
    • ☆

    Noted sir.

    If DTL is overstated, Earning will be understated and EBITDA will be understated? Pls correct me if I am wrong.

    Thank you sir

    September 5, 2021 at 8:15 am #634374
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3408
    • ☆☆☆☆☆

    Any adjustment to DT will affect EPS but not EBITDA – see previous post.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Deferred tax’ is closed to new replies.

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