- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi.
“accrued expenses which have already been deducted for tax purposes.”
-Could you explain why the above statement will not give rise to a temporary difference.
Thanks.
Hi,
If the expense has been accrued then it will have been recognised/expensed through profit or loss, and if it has been deducted for tax purposes then it will have been deducted in calculating PCTCT.
As the expense has gone through both at the same time, i.e. accounting profits and tax profits, then there is no temporary difference. An example would be an accrual for rent or gas/electricity. They will be expensed in the period to which they relate and they will be allowable for tax in that same period too.
Thanks
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.