Deferred Tax Treatment – F7 vs. Pakistan’s companies treatment

@mikelittle

Hello !

The other day I was reading a sugar mill annual report. What they had done in respect of deferred tax was, they had done this: Profit before tax – current tax + deferred tax = net profit in 2009. In 2008, it incurred losses and hence they had deferred tax asset in the balance sheet.

The question is: Why they have added deferred tax in the income statement ?

Thanks