Class 12 Accounts Notes: Depreciation and Deferred Taxes Notes PDF
Depreciation and Deferred Taxes
Tax Depreciation
Accelerated depreciation
No judgment in determining depreciation expense
Tax Reporting
≠ Financial Reporting ==> timing
differences in measurement of income
Why would a firm prefer accelerated depreciation for tax
purposes?
Why does government allow this?
Why not use the tax method for financial reporting?
Different depreciation for tax and financial reporting
gives rise to Deferred Taxes
Total Pages – 4
PDF Size – 135 KB
Reviews
There are no reviews yet.