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Income taxes

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Income taxes

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Avatarmrjonbain.
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  • July 9, 2019 at 11:05 pm #522342
    Avatarcbennett
    Member
    • Topics: 7
    • Replies: 8
    • ☆

    Just wondering why the standard is called income tax, when for companies it would be corporation tax? Also, why is the expense to P&L called income tax expense

    July 10, 2019 at 9:55 am #522367
    Avatarmrjonbain
    Moderator
    • Topics: 6
    • Replies: 2607
    • ☆☆☆☆☆

    The standard applies to accounts for entities preparing accounts and not just companies.So it applies to entities such as partnerships and limited liability partnerships as well as corporations.Also since it is an international standard it applies to countries that may not necessarily categorise tax on companies as corporation tax.Hope this is helpful.

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