Back to the trackZakat and Corporate Tax Specialist

Book-tax differences: permanent, temporary, current and deferred

A permanent difference never reverses and affects the effective rate without deferred tax. A temporary difference arises between carrying amount and tax base and is measured cumulatively at the reversal rate. Deferred assets from liabilities or losses require future deduction and probable taxable profit. Current tax follows the return; deferred tax follows asset and liability amounts; balance movement rather than full closing enters the journal. The file closes when registers, journal, disclosure and effective rate reconcile.

Lecture preview

What this lecture contains

  1. Accounting learning outcomes
  2. Accounting case and facts
  3. Accounting treatment
  4. Supporting documents
  5. Worked cases and entries
  6. Posting and controls
  7. Required workpaper
  8. Work files and downloads
  9. Test the treatment with other figures
  10. Staged accounting case
  11. Treatment and review errors
  12. Error log
  13. Treatment and control summary
  14. Professional question
  15. Check your understanding
  16. On video

What an ORIX account adds

  • The full explanation, worked examples and drawn documents.
  • The workpaper, decision card and lab in the platform tool.
  • A marked check, then a resume point and readiness derived from your work.
  • A record and portfolio that follow your account to another device.

Create an account to open the remaining lectures and keep your work, then move among tracks, tools and your record from the same place.

Create an account and continueExplore every track