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if i make provision for Gratuity payment then how could i calculate the deferred tax on that gratuity provision amount?
in IAS 19 - Employee Benefits by

1 Answer

0 votes
Just apply the income tax rate to the gratuity provision recognized which is recognized as a deductible temporary difference.

http://www.ifrsanswer.com/316/gratuity-in-deferred-tax-provision
by Level 5 Member (25.6k points)
Thanks for answering the question. But still i am not clear. could you please explain little bit more.
lets say your gratuity provision is $1000 & your effective income tax rate is 25%, then the temporary difference identified is 1000x25=250


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