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How do you identify deductible temporary difference?
in IAS 12 - Income Taxes by Level 1 Member (1.4k points)
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2 Answers

+1 vote
There is no method as such to identify such differences. you have to go by the definition: a temporary difference that will result in amounts that are tax deductible in the future when the carrying amount of the asset is recovered or the liability is settled. For instance the gratuity provision for employees is such a difference.
by
0 votes
When the carriying amount of an asset/liability is less than the tax base of the asset/liability and gives rise to deferred tax asset.

Tax base is an amount attributable to asset/liability for tax purposes.

Just bear in mind that there are some items that are not recognized as assets/liabilities but have a tax base because they were recognized in the profit or loss when they were incurred but the Tax law did not permit them as deductions until later period.
by Level 3 Member (5.7k points)


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