ke toan cong cu tai chinh gn vi tt tài chính: 12/27/2022

tt von, tt tien te
Yeu cau viet luan:
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IAS 12, IAS 32/IFRS 9,IFRS 2,ISA 33

- Tieu Luan nhóm (20%)

IAS 12 - Chuyen can (LMS) (10%)
Income Tax - Kiem tra TN (70%) (trên lp)
Nguyễn Thị Thu Hiền

1 thuhien-ueh

1. Vì sao the gioi noi en nguon nang luong phai noi

den dau, co nhung quoc gia giau co nho giau

Objective of IAS 12
2. , ban khong - ban thu minh chua co
1. Understand the concept of temporary differences, and tax base of an
2021: nhom cong dong reddit ket hop voi nhau keo
asset and tax base of a liability;
duoc 6tr nha dau tu nho le
2. Understand the concept of deferred tax as a liability and an asset;

3. Apply the balance sheet approach in determining the balances of a

deferred tax liability and a deferred tax asset;
3. Cho vay cao, anh huong den Viet Nam: Viet
4. Check the tax expense analytically; kieu khong gui lai o Viet Nam nua, ma sang My
5. Apply appropriate principles to situations of tax losses; gui, Lai suat tang anh huong thi truong nhu
6. Present appropriately the tax effects of other comprehensive income nao????? ==> IAS 32
(OCI) or items taken directly to equity;
2 thuhien-ueh
Nop truoc buoi hoc thu 8

Content
Contents

1. Accounting for current income tax

2. Differences
3. Accounting for deferred income tax
4. Tax base
5. Tax Expense Reconciliation
6. Accounting for income tax – some cases

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Current tax
Amount of income taxes payable (recoverable) in respect of
the taxable profit (tax loss) for a period

Taxable
Tax rate
profit/loss

Debit: Expenses in the net P/L/or

Tax asset Credit: Tax liability/ or
Income in the net P/L
Exception: Equity/OCI

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+ CP ma KT da ghi nhan, nhung Luat thue khong cho khau tru

Accounting profit/loss
5
Profit or loss for the period before deducting tax expense
Expenses recognized, but non-deductible for tax purposes
Income not recognized, but included tax law
Expenses not recognized, but deductible for tax purposes
Income recognized, but not under tax law
Taxable profit/loss
Profit or loss for the period determined in accordance with
applicable tax rules
thuhien-ueh
vao TNCT cua ky bao cao
VD: DN bi phat do vi pham hop dong
CPKHTSCDHH
+ DT khong duoc ke toan ghi nhan trong ki, Luat thue tinh vao
TNCT cua ky bao cao
- Theo chuan muc so 15: ve truong hop dong ban hang co
dieu kien hop dong ban hang duoc tra lai vo dieu kien ==>
chua du dieu kien ghi nhan; theo thue => Du dieu kien ghi
nhan
- Co so ghi nhan doanh thu cua ke toan khac co so ghi nhan
doanh thu cua thue; co so ghi nhan DT cua KT là don tich con
CS cua thue la tien (TH DN thu tien truoc tra tien sau)

- Chi phi ma ke toan chua/ khong ghi nhan nhung LT cho

phep khau tru TNCT cua ky bao cao
VD: CP KHTSCD -----> IAS 16: 20tr
-----> TAX: 30tr
Co so ghi nhan CP KT khac Thue
- DT ke toan da ghi nhan nhung khong dua vao luat thue
Example 1 trong ki

Ví d: - Khoan doanh thu duoc mien thue TNDN

 Accounting profit before tax: $486million
 The firm receives a tax- free $4million grant to employ more
- CS ghi nhan doanh thu cua ke toan khac co so ghi
staff. nhan doanh thu cua thue
 It is later also fined $1m for environmental misuse, after
illegally discharging chemicals into a river. The fine cannot be TH ung truoc: Theo don dat hang
deducted for tax. Ghi nhan doanh thu: cho thuê bds
 Tax rate: 20%
DT nhan truoc => ke toan: SDDK +- X
==> TNCT: SDCK +- X
dental = SDCK - SDDK
Dental > 0 => Dieu chinh (-)
Dantal < 0 => dieu chinh (+)
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No CP Thuê TNDN hien hanh

Co Thue thu nhap doanh nghiep hien hanh phai
nop

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Example 1: Solution

$m
Accounting Profit 486
Less grant -4
Plus fine +1
=Taxable profit 483
Tax charge = 483 * 20% = 96,600

I/B DR CR
Tax expense I 96,600
Accrual for income tax B 96,600
Tax expense for the period

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Illustration 11.1 Deferred Tax and

Illustration 11.1
Analytical Check on Tax Expense
 The following information pertains to Company XYZ (Year 1 -
20x1):
 Non-deductible tax items:
 Capital transactions of $15,000
 Repairs and renovations of $20,000
 Disallowed expenses relating to entertainment, motor vehicle
expenses and fines amounted to $14,000
 Dividends of $10,000 were tax-exempt
 Expenses in respect of general provisions of $180,000 were disallowed
for tax purposes. However, actual claims and utilizations of $129,500
were deductible
 Depreciation for the year was $80,000,capital allowances claimed
amounted to $708,355. Cost of fixed assets was $1,500,000
 Net profit before tax was $4,000,000 and tax rate was 22%
 20x1 was the first year of operations
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8

Illustration11.1
Illustration 11.1 Deferred Tax and Analytical
Check on Tax Expense
(a) Prepare a tax computation to determine the tax payable
Company XYZ
Tax computation for year ended 31 Dec 20x1

Accounting income 4,000,000

Add / (less):
Expenses relating to general provisions 180,000
Utilization of general provisions (129,500)
50,500
Depreciation 80,000
Capital allowances (708,355)
(628,355)
Expenses relating to deemed capital transactions 15,000
Repairs and renovations 20,000
Disallowed expenses 14,000
Tax-exempt dividends (10,000)
Taxable income 3,461,145
Tax payable at 22% 761,452
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Content
Contents

1. Accounting for current income tax

2. Differences
3. Accounting for deferred income tax
4. Tax base
5. Tax Expense Reconciliation
6. Accounting for income tax – some cases

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10

Differences
Accounting profit/loss
11
Profit or loss for the period before deducting tax expense
Expenses recognized, but non-deductible for tax purposes
Income not recognized, but included tax law
Expenses not recognized, but deductible for tax purposes
Income recognized, but not under tax law

Taxable profit/loss

Profit or loss for the period determined in accordance with

applicable tax rules

Differences thuhien-ueh

Diferences
12

 Accounting profit: Net profit or loss

for the reporting period before Permanent
deducting income tax expense. differences

Differences

Temporary
 Tax profit (loss)- Tax income: The differences
profit (loss) for taxable period,
determined in accordance with the
rules established by the taxation
authorities, upon which income
taxes or payable (recoverable)

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Diferences Differences

13
Permanent differences Temporary differences
Permanent differences between the 2012 2013 2014
accounting profit and taxable profit
arise when income is not taxable or Timing differences
expenses are not allowed for tax.
Different bases
Ex
Unused Tax Losses
-Non taxable income: Government
bonds often provide tax-free
interest income Deferred tax
-Non deductible expense

Not deferred tax

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Temporary differences
 Temporary Differences
Temporary differences arise from:
 Timing differences
 Income or expense is included in accounting profit in one period but is included in taxable
profit in a different period
 Different bases of revenue recognition in accounting and tax
 For example, accrual accounting versus cash basis

Type of temporary Directions Examples

differences
Taxable revenue < Accounting Completed contracts < Percentage of
Taxable temporary revenue completion
difference
Tax deduction > Accounting Capital allowances > Depreciation
expense
Taxable revenue > Accounting Unearned revenue, taxed at the point of
Deductible temporary revenue collection
difference
Tax deduction < Accounting Accrued expenses, deductible only when paid
expense

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Permanent differences
Permanent

Differences
Permanent differences arises from:
 Differences in definition of what revenue or expense is in the realm of tax and accounting

Type of permanent Examples Effect on tax

differences expense
Non-deductible accounting Fines and penalties, disallowed donations Increase
expense and entertainment expenses
Non-taxable accounting Tax-exempt interest Decrease
revenue
Tax-deductible item that has Double- or further-deduction of expenses, Decrease
no accounting expense investment tax credit (*)
equivalent
Taxable revenue that has no Imputed revenue on non-arm’s length Increase
accounting revenue transactions
equivalent

(*) Investment tax credits were introduced in 1962, to protect American

business from emerging foreign competition
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Illustration 11.1 Deferred Tax and

Illustration 11.1
Analytical Check on Tax Expense
 The following information pertains to Company XYZ (Year 1 -
20x1):
 Non-deductible tax items:
Capital transactions of $15,000

 Repairs and renovations of $20,000
Permannent chenh lech vonh vien
 Disallowed expenses relating to entertainment, motor vehicle differences
expenses and fines amounted to $14,000
 Dividends of $10,000 were tax-exempt
 Expenses in respect of general provisions of $180,000 were disallowed
for tax purposes. However, actual claims and utilizations of $129,500 Temporary
were deductible chenh lech tam thoi
differences
 Depreciation for the year was $80,000,capital allowances claimed
amounted to $708,355. Cost of fixed assets was $1,500,000
 Net profit before tax was $4,000,000 and tax rate was 22%
 20x1 was the first year of operations
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16

Content
Contents

1. Accounting for current income tax

2. Differences
3. Accounting for deferred income tax
4. Tax base
5. Tax Expense Reconciliation
6. Accounting for income tax – some cases

thuhien-ueh
17

Thí dụ 1 Thí dụ 1
18

Ngày 1/1/X0 Doanh nghiệp (theo CMKT) mua công cụ, dụng cụ đưa vào sử
dụng, trị giá 200 triệu và DN đã phân bổ 100% vào chi phí kinh doanh trong kỳ
(p/l). Theo luật thuế DN phải tính vào chi phí của 2 năm (tức là phân bổ cho 2
năm)
P/L:
Tổng doanh thu: 1.000
Tổng chi phí (chưa bao gồm chi phí CCDC): 600
Lợi nhuận trước thuế và CP CCDC: 400
Thuế suất 25%

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Không ghi nhận ảnh hưởng của thuế

Thí dụ 1- Không xét ảnh hưởng của thuế
19 20X0 20X1 Chenh lech anh huong den nha dau tu ==> phai
Lợi nhuận trước thuế và CP CCDC (1) 400 400 co thue hoan lai de co the can bang thue suat
Chi phí CC,DC theo kế toán (2) -200 0
Lợi nhuận kế toán trước thuế (3=1-2) -IAS 200 400
a, phuong phap tiep can BCKDKD (P/L)

Chi phí CCDC theo mục đích tính thuế (4) -100 -100 Tong CP thue thu nhap DN = LN x TS (khong co
Thu nhập chịu thuế (5=1-4) (tax law) 300 300 chenh lech vinh vien)
Thuế TNDN hiện hành phải nộp (6=5 * 25%) 75 75

Chi phí/thu nhập thuế TNDN (hiện hành) -75 -75

- CP thue hoan lai
Lợi nhuận sau thuế 125 325 1, dieu chinh giam CP: Goi la thu nhap thue hoan
Tax expense/profit before tax (%) 37,5% 18,75% lai (Deferred tax income) = TS thue hl (tren BCDKT)
2, Dieu chinh tang CP: CP thue hoan lai (Deferred
thuhien-ueh
tax Exp) = NPT thue hoan lai (tren BCDKT)

Hoan nhap thue

Phan bo thue

Thí dụ 1- Xét ảnh hưởng của thuế

Xét ảnh hưởng của thuế Phuong phap tiep can bang CDKT (B/S)
20 20X0 20X1
- Tinh so du cuoi ki
Lợi nhuận trước thuế và CP CCDC (1) 400 400
Chi phí CC,DC theo kế toán (2) -200 0
Lợi nhuận kế toán trước thuế (3=1-2) 200 400 "Bí kíp" Nguyen tac "giau-ngheo" trong thue
Chi phí CCDC theo mục đích tính thuế (4) -100 -100
Thu nhập chịu thuế (5=1-4) 300 300 Nguoi giau nop thue nhieu, DN giau hon thue => phai chiu thue-
Thuế TNDN hiện hành phải nộp (6=5 * 25%) 75 75 chenh lech tam thoi chiu thue
DN ngheo hon thue => duoc khau tru => chenh lech tam thoi
Chi phí/thu nhập thuế TNDN (p/l) -50 -100 duoc khau tru
Chi phí/thu nhập thuế TNDN (hiện hành) -75 -75
Chi phí/thu nhập thuế TNDN (hoãn lại) 25 -25
Lợi nhuận sau thuế 150 330
Tax expense/profit before tax (%) 25% 25%
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X0: 31/12 – phát sinh thuế HL X1: 31/12: hoàn nhập thuế HL BTVN
TK- NP trả thuế HH
(b/S) TK- CP thuế HH (P/l
The following... 20x1
TK- NP trả thuế HH TK- CP thuế HH

SD:75
Example 2
75 (1) (1)75 cash:75 (3)75
75(3)
SD: 75
SD:75
TK- TS thuế HL
(b/S) TK- CP thuế HL (P/l)
TK- TS thuế HL
25(2) 25 (2) (b/S) TK- CP thuế HL (P/l) Chenh lech tam thoi chiu thue
SD: 25
SD: 25 25 (4) (4)25 => Thue HL phai tra (DTL) - Deferred tax liability
SD: 0 Chenh lech tam thoi duoc khau tru (DTD)
=> TS thue hoan lai (DTA)
Tổng CP thuế: -50

Tổng CP thuế: -100 CP thue hoan lai (DTE) - deferred income tax
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Example 2 Phuong phap tiep can P/s: Cuoi ki xac dinh CA, TB
cua tung khoan muc TS/NPT
On 1 January 20X1, Jonquil Co buys equipment for $600,000 and
depreciates it on a straight line basis over its expected useful life of three
years.
X1 X2
20X1 20X2 20X3
Profit before depretiation & tax 800 800 800
CA TB DTD TTD CA TB DTD TTD
Acounting depreciation expense 200 200 200
Tax depreciation expese 400 150 50 1. HTK 18 20 2 25 25
❖ Tax rate 25%
2. TSCD

22 thuhien-ueh

CA - gia tri ghi so

TB- gia theo co so thue
Thue hoan lai cho phep bu tru
No tax affect
20X1 20X2 20X3
Profit before depretiation & tax (1) 800 800 800 uu dai ve thue => DTD => DTA
Acounting depreciation expense (2) -200 -200 -200
Profit before tax (3=1-2) 600 600 600

Tax depreciation expense (4) -400 -150 -50

Taxable income (5=1-4) 400 650 750
Current tax liability (6=5 * 25%) 100 162,5 187,5

Tax expese -100 -162,5 -187,5

Current tax expense -100 -162,5 -187,5

Profit after tax 500 437,5 412,5

Tax rate/profit
23 before tax (%) 23
17%
thuhien-ueh 27% 31%

20X1 20X2 20X3

Profit beforetax 600 600 600
Taxable income 400 650 750

24
B/s
PPE (CA: carying amount)
PPE (tax base)- TB
Temporary Difference (CA-TB)
Current tax asset/liability
Deferred tax asset/liability

Profit/loss statement
Profit before depretiation & tax
Taxe expense/income
- Current tax expense/income
- Deferred tax expense/income
Profit after tax

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20X1 20X2 20X3

Profit before tax 600 600 600
Taxable income 400 650 750

25

PPE (CA: carying amount) (1/1) 600 400 200

PPE (tax base)- TB 400 250 200
TeemporarydDifference (CA-TB) 200 150 0
Current tax asset/liability -100 -162,5 -187,5
Deferred tax asset/liability -50 -37,5 0

Profit/loss statement
Profit before tax 600 600 600
Taxe expense/income -150 -150 -150
- Current tax expense/income -100 -162,5 -187,5
- Deferred tax expense/income -50 12,5 37,5
Profit after tax 450 450 450

4600 – 600*25% = Accounting profit BT – (Accounting Profit BT*25%)

thuhien-ueh 25
25

20X1 20X2 20X3

Curr. Tax Curr. Tax

Payable Expense Curr. Tax P Curr. Tax E Curr. Tax P Curr. Tax E

26 100(1) 100 162,5 162,5 187,5 187,5

Def. Tax Def Tax Def Tax

Liability Expense Def. Tax L Income Def. Tax L Def Tax I
B: 50 B: 37,5
50 (2) 50 12,5 12,5 37,5 37,5
B: 50 B: 37,5 B: 0

Total Tax
Expense Total Tax E Total Tax E

150 150 150

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Example 2
On 1 January 20X1, Jonquil Co buys equipment for $600,000 and
depreciates it on a straight line basis over its expected useful life of three
years. Tax rate 25%

20X1 20X2 20X3

Profit before depretiation & tax 800 800 800
Acounting depreciation expense 200 200 200
Tax depreciation expese 400 150 50
CA (BV) (31/12) 400 200 0
Tax base (31/12) 200 50 0
Taxable temporary diffrences (31/12) 200 150 0
Deffered tax liability(31/12) 50 37,5 0
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Acconting for deferred tax

 Principle:  Temporary differences
 Matching  Taxable temporary
 Financial position difference
approach  Deductible temporary
 Tax base difference
 TB of an asset  Deferred tax:
 TB of a liability  Deferred tax asset

 Deferred tax liability

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Temporary differences & deferred tax

-It results in payment of tax when carrying amount of asset or

liability is settled
- Thus, deferred tax liability will arise when:
(1) Carrying amount of asset > its tax base, or
(2) Carrying amount of liability < its tax base.

Deferred tax liability

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Temporary differences & deferred tax

- There are the differences that:

(1) Result in amounts being deductible in determining taxable
profit/loss in future periods,
(2) When the carrying amount of asset or liability in recovered
or settled
- Thus, deferred tax asset will arise when:
(1) Carrying amount of asset < its tax base, or
(2) Carrying amount of liability > its tax base.

30 Deferred
thuhien-ueh tax asset

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Temporary differences & deferred tax

CA TB TD DT
Asset CA> TB + Taxable Liability
CA< TB - Deductible Asset
Liability CA> TB Deductible Asset
CA< TB Taxable Liability
Income received in CA> TB Deductible Asset
advance CA< TB Taxable Liability

31 thuhien-ueh

Content
Contents

1. Accounting for current income tax

2. Differences
3. Accounting for deferred income tax
4. Tax base
5. Tax Expense Reconciliation
6. Accounting for income tax – some cases

thuhien-ueh
32

4. Tax Base
4. Co so thue
Deferred income tax: Tax base
33
1. Co so thue cua tai san
Amount attributed to asset/liability for tax purposes
nguyen tac chung

Assets Liabilities B1: Xac dinh loi ich kinh te tuong lai cua tung tai san vao ngay cuoi
ky ke toan ( TS mang lai dong tien vao nhu the)
Carrying amount
hang ton kho: DT tu ban HH, DV
Amount deductible against
any taxable benefits
Amount deductible for tax
TSCD: san xuat san pham, DT tu ban hang hoa thanh pham dich
purposes in the future periods vu co dong gop cua TSCD;
Some items are not recognized as assets/liabilities, but do have a tax base
thuhien-ueh
Thu nhap tu thanh ly, nhuong ban TS

PTKH : Thu duoc tien do khach hang tra

NPT lai cho vay

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Tax Base of an Asset Buoc 2: LIKTTL trong ky tuong lai doanh nghiep co phai tinh vao
 Tax statement of financial position is drawn up using tax rules as bases of thu nhap chiu thue khong
measurement for assets and liabilities
Khong chiu thue NPT khach hang khi ta da ban hang hoa, thanh
 Taxable or deductible temporary differences:
pham, dich vu khach hang
 Difference between the amounts of assets and liabilities recognized on the
accounting and tax statement of financial position => Thue va KT deu cung mot co so DT
 Examples of assets on statement of financial position:

Tax rules
Cost of asset is deductible over tax
useful lives or tax amortization
periods
Asset is not deductible for tax
purposes
Cost of asset is fully deductible
when sold or consumed or realized
Tax statement of financial
position
Balance is the unexpired cost
or written down value, after
applying tax depreciation
Balance is zero (non-existent
asset)
Balance is the cost
Taxable temporary TTTC: Don tich, Tien, Mien thue
difference (TTD)
TTD = Net book value –
Tax written down value Thu nhap lai cho vay: Don tich, tien, mien thue
TTD = Carrying amount –
Zero tax base
TTD = Carrying value –
TB =CA khong chiu thue
Cost

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-Chiu thue: HTK, TSCD, Lai cho vay Ke toan:

don tich, co so tien: thue
TB = gia tri cua tai san duoc phep tru vao TNCT
(Ky tuong lai) => Loi ich kinh te cua TS
Tax base definition of an asset
35
The tax base of an asset is the amount that will be deductible Vi du: HTK: CA = 18.000 ---gg:20.000
for tax purposes against the taxable economic benefits that
will flow to the entity when it recovers the carrying amount of ---DP: (2.000)
the asset. Khi ban lo hang duoc tru gg = 20.000
If these economic benefits will not be taxable, then the tax
TNCT cua ky tuong lai = DT - gia goc
base of an asset is equal to its carrying amount, so that no
deferred tax arises.
LIKT CS thue

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TSCD:

gia tri ghi so khac co so thue thi co thue hoan lai

Doi voi no phai thu khach hang 31/12 co khoan
Tax base definition of an asset No goc 100, du phong NPT 10 => CA- gia tri ghi
36
Identify the future Inventory:
Cost: 100
so va TB - co so thue la bao nhieu
economic benefits (FEB) NRV (net Realizable value): 90
-> CA: 90
Va No phai thu lai cho vay EX1
Is the FEB taxable when FEB: Revenue of inventory
realized? Revenue: taxable

(CGOS: cost of good sold)

Taxable income= revenue – CGOS
No phai tra (khong bao gom doanh thu nhan
Yes No
Tax base
-> TB: CGOS
TB: 100
truoc)
=
Tax base
=
B1: Xac dinh nghia vu (dong tien ra trong tuong
future tax deductible DTD: (-) 100
Carrying amount
DTA: 25 lai) de thuc hien nghia vu

thuhien-ueh Thi du: No nha cung cap => dong tien ra: so tien
chi tra no nha cung cap, du phong no phai tra ve
bao hanh san pham: So tien (Nguon luc) ma DN
chi thuc hien bao hanh san pham

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B2: Khoan chi thuc hien ng/vu (TLai) => co duoc

Tax base definition of an asset
khau tru vao TNCT tuong lai khong ?
37
Identify the future Trade receivable:
economic benefits (FEB) Cost: 100 Khong neu gan lien voi cs don tich => CS thue
RV (recoverable value): 90
Impairmenet: 10 = GTri ghi so
Is the FEB taxable when -> CA: 90
Co => Co: duoc tinh vao chi phi hop ly (giam
realized?
FEB: Cash: 100
Non - taxable thu nhap chiu thue cua ky tuong lai)
Yes No TB= CA=90 tien Du phong chi phi
Tax base
Tax base Non – deffered tax
=
=
future tax deductible
Carrying amount

thuhien-ueh ky ke toan nam bao cao

=> khi chi tien thi thue moi tinh vao CP hop ly

TB = CA - Chi thuc hien ng/vu (tuong lai) duoc

tinh vao CP hop ly (Tru khoi TNCT ky tuong lai)
Example1- Interest receivable
= CA -CA =0
Example: Interest receivable carried on statement of financial position
at $100,000
 Scenario 1: Interest income is taxed during the period when it is earned
 Carrying amount 100,000 The proceeds from the realization is
Co so thue cua dthu nhan truoc
Tax base 100,000 not taxed. Thus, tax base is equal to
TTD 0 carrying value
 Tax treatment and accounting recognition are synchronous TB (DTNT - NPT) = CA - Doanh thu khong chiu
Now Future thue cua ky tuong lai
Interest income earned Interest income received
Interest income taxed No tax consequence Thi du: Nam X0, DN nhan truoc 300.000 USD
 Current taxable payable
No deferred tax liability cua KH ve DT hh/dvu ma DN se cung cap cho
38
thuhien-ueh
KH 3 nam X0, X1, X2
Nam X0 No TK Tien: 300.000
Co TK Doanh thu 100.000
Co NPT DTNT: 200.00

Tinh huong 1: ca ke toan va thue ghi nhan doanh

Example1- Interest receivable
 Scenario 2: Interest income is taxed during the period when it is received
thu tren cs don tich
Carrying amount 100,000

Tax base 0
The interest income is to be taxed in a
future period. Thus, tax base is equal
DT Kt = TNCT (cung ky)
TTD 100,000 to zero DT Ke toan (TLai: X1+X2) =200
 There is a misalignment between tax and accounting recognition - DT chiu thue: 200.000
Now Future - DT khong chiu thue: 0
Interest income earned
 Current taxable payable
Interest income received
 Future tax payable
TB = 200 - 0 => khong co chenh lech
 Deferred tax liability

39
thuhien-ueh Tinh huong 2: Ke toan ghi nhan DT: Don tich/
Thue: CS tien

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Xo X1 X2
Example1- Interest receivable
Scenario 3: Interest income is tax-exempt

 Carrying amount 100,000 The future receipt of interest income
DT ke toan 100 100 100
Tax base 100,000 is “tax-exempt”. Thus, tax base is
equal to carrying value
TNCT 300 0 0
TTD 0

Now Future
TB = 200 - 200 = 0 => Chenh lech tam thoi chiu
Interest income earned Interest income received thue 200
No tax consequence No tax consequence
No change to current or deferred tax liability DTA = 200 x20% =40
Permanent difference
Tinh huong 3: Doanh thu mien thue

thuhien-ueh
TB = 200 - 200 = 0 => Chenh lech vinh vien,
40

khong co thue hoan lai

co so thue DP NPT
Example2 - Fixed Assets
Example 2: Fixed Assets
 Equipment costing $30,000 was purchased on 1 Jan 20x0.
 Capital allowances were fully claimed in 20x0
 Accounting depreciation was computed on a straight line basis over 3 years
20x0 20x1 20x2
Cost $30,000 $30,000 $30,000
TB NPT = CA - Chi thuc hien nghia vu tuong lai
Accumulated depreciation (10,000) (20,000) (30,000) duoc khau tru
Carrying amount = NBV (1) (31/12) $20,000 $10,000 $0
Thi du: 31/12/Xo. Xac dinh DP NPT bao hanh
Cost $30,000 $30,000 $30,000 san pham cho cac nam sau
Capital allowances (30,000) (30,000) (30,000)
Tax base = tax written down value (2) (31/12) $0 $0 $0 Gia su uoc tinh 100 ngan => Cho ky tuong lai
Cumulative taxable temporary difference = (1) - (2)
Deffered tax liability (tax rate: 20%)
$20,000
$ 4.000
$10,000
$ 2.000
$0
$0
But toan Xo No TK CP bao 100
41
thuhien-ueh Co TK - NPT DPBHSP 100

=> Ke toan ghi vao chi phi nam Xo

CA (31/12/Xo) = 100.000
=> X1: Chi thuc hien bao hanh san pham chho
Example 3- Construction Work-in-Progress
Example 3: Construction Work-in-Progress
KH 100 => khong ghi vao CP nua
 Profit on a long-term project was earned over a three-year period
For tax purposes, profit was taxed only at the completion date at the end of 20x2

(i.e. using the completed contracts method) Tinh huong 1: Thue ghi nhan CP hop ly tren CS
20x0 20x1 20x2 (*) don tich 100 => duoc tinh vao CP hop ly => duoc
Construction WIP:
tru vao TNCT nam Xo
Cumulative costs $1,000,000 $1,500,000 $2,000,000
TB = 100 - 0 <= khoan chi 100 trong nam X1
Cumulative profits 250,000 375,000 500,000

Carrying amount (31/12) 1,250,000 1,875,000 2,500,000

khong duoc tru vao TNCT cua X1 = 100
Tax base (31/12) 1,000,000 1,500,000 2,500,000
CS thue = CA = 100 => khong chenh lech
Cumulative taxable temporary difference $250,000 $375,000 $0
Tinh huong 2: Thue ghi nhan CP hl tren CS tien
khi doanh nghiep bh cho khach hang, con ke
42
thuhien-ueh
toan ghi nhan chi phi tren cs don tich

TB = 100 - 100 = 0 => chenh lech tam thoi duoc

khau tru 100 => TS thue hoan lai la

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5 doi chieu thue => tu

Example4- Investments at Fair Value
Scenario 1 : Investments at Fair Value, Profit from Sale of Investments
is Subject to Tax
 Entity classifies bonds as AFS investments and measures them at fair value at end of
each year
 Assume that the proceeds from the sale of bonds are subject to tax

20x0 20x1 20x2

Investment at cost (AFS) $1,000,000 $1,000,000 $1,000,000
Fair value adjustment 200,000 (50,000) 300,000
Carrying amount: investment at fair value 1,200,000 950,000 1,300,000
Tax base (1,000,000) (1,000,000) (1,000,000)
Cumulative taxable (deductible) temporary $200,000 $(50,000) $300,000
difference

AFS: available for sale

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Example 4- Investments at Fair Value

Scenario 2 : Investments at Fair Value, Profit from Sale of Investments
is NOT Subject to Tax
 Entity classifies bonds as AFS investments and measures them at fair value at end of
each year
 Assume that the proceeds from the sale of bonds are subject to tax

20x0 20x1 20x2

Investment at cost (AFS) $1,000,000 $1,000,000 $1,000,000
Fair value adjustment 200,000 (50,000) 300,000
Carrying amount: investment at fair value 1,200,000 950,000 1,300,000
Tax base (1,200,000) (950,000) (1,300,000)
Cumulative taxable (deductible) temporary $0 $0 $0
difference

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Example 4- HTM- Investments

Scenario 3 : Investments at HTM, Proceeds from repayment at maturity
are NOT Subject to Tax
Thanh toan khi dao han => khong co chenh lech
 Entity classifies bonds as HTM and carries them at cost
 The proceeds from the principle repayment at maturity are not subject to tax

20x0 20x1 20x2

Investment at cost (HTM) $1,000,000 $1,000,000 $1,000,000
Tax base (1,000,000) (1,000,000) (1,000,000)
Cumulative taxable (deductible) temporary $0 $0 $0
difference

HTM: held to maturity

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Example5- Inventory
Example 5: Inventory is Carried at the Lower of Cost and Net Realizable Value;
Profit from the Sale of Inventory is Taxable
 Profit from the sale of inventory is subject to tax

20x0 20x1 20x2

Inventory at Cost $1,200,000 $2,000,000 $2,600,000
Inventory at NRV 1,250,000 1,800,000 2,800,000
Carrying amount 1,200,000 1,800,000 2,600,000
Tax base (1,200,000) (2,000,000) (2,600,000)
Cumulative taxable temporary difference $0 $(200,000) $0

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Tax Base of a Liability

Types of Liabilities Tax Base

Future payable Tax base = carrying amount of the liability –

future deduction arising when the liability is
settled
Unearned revenue Tax base = carrying amount of unearned
revenue – revenue that will not be taxable in
future periods

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47

Tax base definition of a liability

48 Identify the future outflow Trade liability: CA: 100
FOF: 100 ( cash)
of resource (FOF)
Is the FOF tax Deductible? -> NOT
deductible in the future?
TB= CA= 100
TTD = 0
No deffered tax
Yes No

Tax base =
Tax base =
Carrying amount -
Carrying amount
future tax deductible

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Tax base definition of a liability

49 Identify the future outflow Warranty provision (Liability): CA: 100
of resource (FOF) FOF: 100 ( cash/ inventory)

Is the FOF tax Deductible? -> Yes: 100

deductible in the future? TB= 100-100= 0

DTD= 100-0= 100

Yes No
DTA= 100 * tax rate
Tax base =
Tax base =
Carrying amount -
Carrying amount
future tax deductible

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Tax base definition of income received in advance

50

Unearned revenue Tax base = carrying amount of unearned revenue

– revenue that will not be taxable in future periods

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Example 1- Unearned revenue

Example 1: Unearned revenue carried on the statement of financial

position at $100,000
 Scenario 1: Revenue is taxed during the period when it is earned
 Carrying amount 100,000
Revenue is taxed in the future. Thus,
Tax base 100,000 tax base = 100,000 – 0
DTD 0
 No DTD as tax recognition is the same as accounting recognition
Now Future

Revenue received Revenue earned

Revenue not taxed Revenue taxed
No deferred tax asset

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Example 1- Unearned revenue

 Scenario 2: Revenue is taxed during the period when it is received
 Carrying amount 100,000
Revenue is not taxable in the future.
Tax base 0 Thus, tax base = 100,000 – 100,000
DTD 100,000

 Tax and accounting treatment are asynchronous

Now Future

Revenue received Revenue earned

Revenue taxed Revenue not taxed
 Current tax payable
 Deferred tax asset

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Example1- Unearned revenue

 Scenario 3: Revenue is tax-exempt

 Carrying amount 100,000 Revenue will not be taxable in future

Tax base 0 period. Thus tax base = $100,000 –
$100,000 = 0
DTD 100,000
 However, IAS 12 Para 24 prohibits the recognition of this deductible temporary
differences because it arises on initial recognition of the liability
 DTD = 0
Now Future

Revenue received Revenue earned

Revenue not taxed Revenue not taxed
 Deferred tax asset (not recognized)

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53

Example 2 - Provision for Warranties

Example 2: Provision for Warranties; Deductible on the Basis of Claims

Made in the Year of Payment
 As at end of 20x0, provision for warranties was $1,000
 Amount represents future claims for rectification works

20x0
Carrying amount $1,000
Tax base $0
Cumulative deductible temporary difference $1,000

Provision of warranties not recognized for tax purposes in 20x0

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Example 3- Provision for Loss

Example 3: Provision for Loss; Not Deductible in Any Period

 Provision for litigation loss is $200,000
 Loss is not deductible for tax purposes in the current or future periods

20x0
Carrying amount $200,000
Tax base $200,000
Cumulative deductible temporary difference Nil

Settlement of the provision will not lead to a decrease in future taxable income. No
tax benefits arise when the provision is settled

Permanent difference

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Example 4- Accrued Expense

Example 4: Accrued Expense; Deductible in the Year of Expensing

 Reporting entity accrues expenses of $100,000 in 20x0 which was paid off in 20x1
 Expenses are deductible for tax when the expense is recognized

20x0
Carrying amount $100,000
Tax base $100,000
Cumulative deductible temporary difference Nil
Accounting and tax recognition of the expense are synchronous

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Content
Contents

1. Accounting for current income tax

2. Differences
3. Accounting for deferred income tax
4. Tax base
5. Tax Expense Reconciliation
6. Accounting for income tax – some cases

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Total tax
Tax % income
Accounting profit/loss expense
Profit or loss for the period before deducting tax expense
58
Expenses recognized, but non-deductible for tax purposes
Income not recognized, but included tax law
Expenses not recognized, but deductible for tax purposes
Income recognized, but not under tax law
Current
tax
Taxable profit/loss Tax % income
expense

Profit or loss for the period determined in

accordance with applicable tax rules
deffered
tax
Temporary income
differences Tax %
Differences expense

Permanent
????
differences

Assume:
- That the only differences between accounting income and taxable income are
timing differences
- No changes in tax rates
- Only taxable temporary differences exist
Change in
Tax Current Taxable Current
= tax rate x + x temporary
expense income tax rate differences
Change in
Tax Current Taxable temporary
= tax rate x +
expense income differences

Tax Current Taxable Accounting Taxable

= tax rate x + -
expense income income income

Tax Current Accounting

= tax rate x
expense income
59 thuhien-ueh
Match between tax expense & accounting income

No match between tax expense & accounting income

Some differences between taxable & accounting income are not

“timing”
-> differences in the definition:
(i) Tax – exempt income (Government bond interest income)
(ii) disallowed items (entertainment expense, fines, donations
-> Permanent differences
-> No effect on future taxes
-> Effect on tax expense

Tax Current Permanently Permanently

= x Accounting + - exempt
expense tax rate income Disallowed
items items

60 thuhien-ueh

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Tax Reconciliation
 Tax expense = Profit before tax (*) Current tax rate
 Effective tax rate = tax expense/profit before tax = current tax rate
 The above relationship does not hold if there are:
 Permanently disallowed items or tax-exempt income; or
 Changes in tax rates:

Changes in Impact on deferred tax liability Impact on deferred tax asset at

tax rates at the beginning of the year
Increase • Liability at the beginning of the
year will be adjusted upwards
• Tax expense increases
Decrease • Liability at the beginning of the
year will be adjusted downwards
• Tax expense decreases
the beginning of the year
• Asset at the beginning of
the year will be adjusted upwards
• Tax expense decreases
• Asset at the beginning of
the year will be adjusted
downwards
• Tax expense increases

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Tax Expense Reconciliation

 In the analytical check, the following additional items have to be included as
reconciliation items:
 Utilization of previously unrecognized deferred tax assets
 Unutilized tax losses are not recognized in the year of the loss if they are deemed less than
probable
 In a subsequent year when a profit is made, the unrecognized tax losses are utilized to reduce
taxable income
 This causes a mismatch in the relationship between tax expense and accounting income (loss)

 Use of different tax rates

 May cause the average effective tax rate of the group to be different from the statutory
tax rate of the parent company

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Tax Expense Reconciliation

Tax expense in the income statement (without tax loss)
= Tax rate x (Profit before tax +/– Permanently disallowed items (tax-exempt
income))
+/– (Increase (decrease) in tax rate x Cumulative taxable (deductible)
temporary differences at the beginning of the reporting period)

Tax expense in the income statement (with tax loss utilization)

= Tax rate x (Profit (loss) before tax +/– Permanently disallowed items (tax-
exempt income))
+/– (Increase (decrease) in tax rate x Cumulative taxable (deductible)
temporary differences at the beginning of the reporting period)
+/– Tax rate x Unrecognized loss in the year of origination / tax rate x
recognized loss

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Illustration 11.1 Deferred Tax and Analytical Check Cac khoan khong duoc khu tru
on Tax Expense
Tom tat:
 The following information pertains to Company XYZ (Year 1 - 20x1): - Giao dich von : 15.000
 Non-deductible tax items:
 Capital transactions of $15,000
 Repairs and renovations of $20,000 - sua chua va tan trang : 20.000
 Disallowed expenses relating to entertainment, motor vehicle expenses and fines
amounted to $14,000
 Dividends of $10,000 were tax-exempt - Tien phat: 14.000
 Expenses in respect of general provisions of $180,000 were disallowed for tax
purposes. However, actual claims and utilizations of $129,500 were deductible
Depreciation for the year was $80,000,capital allowances claimed amounted to

$708,355. Cost of fixed assets was $1,500,000
- Co tuc duoc mien thue 10.000
 Net profit before tax was $4,000,000 and tax rate was 22%
20x1 was the first year of operations

- CP da duoc ghi nhan lap DP chung nhan khoan
chung =180.000 khong duoc khau tru thue
thuhien-ueh
64 - yeu cau va su dung thuc te duoc khau tru 129.500

- Khau hao = 80.000, phu cap von = 708.355.

Nguyen gia = 1.500.000

Illustration 11.1 Deferred Tax and Analytical Check

- Loi nhuan rong = 4.000.000 va thue suat 22%
on Tax Expense
(a) Prepare a tax computation to determine the tax payable

Company XYZ
Tax computation for year ended 31 Dec 20x1

Accounting income 4,000,000

Add / (less):
Expenses relating to general provisions 180,000
Utilization of general provisions (129,500)
50,500
Depreciation 80,000
Capital allowances (708,355)
(628,355) TNCT = LNKT truoc thue + Cac khoan dieu chinh
Expenses relating to deemed capital transactions 15,000
Repairs and renovations 20,000
tang thu nhap chiu thue - Cac khoan dieu chinh
Disallowed expenses
Tax-exempt dividends
14,000
(10,000)
giam
Taxable income
thuhien-ueh
3,461,145 = 4.000.000 + 15.000 + 20.000 + 14.000 - 10.000 +
Tax payable at 22% 761,452
65
180.000 -129.500 + 80.000 - 708.355 = 3.461.145

Illustration 11.1 Deferred Tax and Analytical Check on Tax

Expense

(b) Determine the difference between carrying amount and the tax base
(b) Determine the deferred tax liability using the balance sheet approachCumulative taxable
Carrying amount Tax base (deductible) temporary
difference

Balance Balance
= Cost – Accumulated = Cost – Capital
Property,
depreciation allowances to date $628,355
plant and
equipment = $1,500,000 – $80,000 = $1,500,000 – $708,355
= $1,420,000 = $791,645

Balance Balance
= Provision – Claims Nil ($50,500)
Provisions
= $180,000 – $129,500
= (50,500)

Net taxable temporary differences thuhien-ueh $577,855

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Illustration 11.1 Deferred Tax and Analytical Check

on Tax Expense

(c) Movement in deferred tax liability

Balance, 1 Jan Increase / (decrease) Balance, 31 Dec
= 22% x $577,855
Deferred tax liability Nil $127,128 = $127,128

31 Dec 20x1
Dr Tax expense 888,580
Cr Tax payable 761,452
Cr Deferred tax liability 127,128

(d) Perform an analytical check on tax expense

Tax expense = 22% x ($4,000,000 + $39,000 Permanent differences)

= $888,580

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67

Illustration 11.1 Deferred Tax and Analytical Check

on Tax Expense (cont- 20X2)
 The following information pertains to Company XYZ (Year 2 - 20x2):
 Disallowed items included entertainment expenses of $ 10.000, repairs &
renovation of $ 12,500 and amortization expenses of $14,000
 Interest income on government bonds of $ 80.000 was tax- exempt
 Depreciation for the year was $80,000,capital allowances claimed amounted to
$15,455.
 Expenses relating general provisions of $120,000 were disallowed for tax purposes.
However, actual claims and utilizations of $ 160,500 were deductible
 Net profit before tax ( the year ended 31/12/X2) was $2,500,000 and tax rate was
20% in X2 ( The tax rate change was announced and enacted only during the year
ended 31/12/X2)

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Illustration 11.1 Deferred Tax and Analytical Check

on Tax Expense
(a) Prepare a tax computation to determine the tax payable

Company XYZ
Tax computation for year ended 31 Dec 20x2

Accounting income 2,500,000

Add / (less):
Expenses relating to general provisions 120,000
Utilization of general provisions (160,000)
(40,000)
Depreciation 80,000
Capital allowances (15,455)
64,545
entertainment expenses 10,000 (43,500:
Repairs and renovations 12,500 permanently
amortization expenses 14,000 disallowed or
Interest income on government bonds (18,000) exempted
Taxable income 2,481.045 items
Tax payable at 20% 496,209
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Illustration 11.1 Deferred Tax and Analytical Check on Tax

Expense

(b) Determine the difference between carrying amount and the tax base
(b) Determine the deferred tax liability using the balance sheet approachCumulative taxable
Carrying amount Tax base (deductible)
temporary difference

Balance Balance
= Cost – Accumulated = Cost – Capital
Property, depreciation allowances to date $ 563,810
plant and
= $1,500,000 – $80,000 - $ = $1,500,000 – $708,355-
equipment
80,000 $15,455
= $1,340,000 = $776,190

Balance Balance
Nil ($10,500)
Provisions
= 50,500 + 120,000 –160.000
= 10,500

thuhien-ueh
Net taxable temporary differences 70 $553,310

Illustration 11.1 Deferred Tax and Analytical Check

on Tax Expense

(c) Movement in deferred tax liability

Balance, 1 Jan Increase / (decrease) Balance, 31 Dec
= 20% x $553,310
Deferred tax liability $127,128 ($ 16,466) = $110,662

31 Dec 20x2
Dr Tax expense 479,743
Dr Deferred tax liability 16,466
Cr Tax payble 496,209

(d) Perform an analytical check on tax expense

Tax expense = 20% x ($2,500,000- 43,500) -2% * 577,855

= 491,300 – 11,557
= 479,743
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Content
Contents CP nghien cuu khong duoc von
1. Accounting for current income tax loi the thuong mai khong co thue hoan lai
2. Differences
3. Accounting for deferred income tax
4. Tax base
5. Tax Expense Reconciliation
6. Accounting for income tax – some cases

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7. Accounting for deffered tax- Some cases

7.1. Temporary Differences Arising from Initial Recognition of
Assets and Liabilities
7.2. Assets Carried at Fair Value
7.3.Accounting for Unused Tax Losses and Unused Tax Credits

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6.1. Temporary Differences Arising from Initial

Recognition of Assets and Liabilities
 When part or all of the cost of an asset is not deductible for tax purposes:
 A temporary difference will arise on the first day an asset or liability is
recognized

 The initial recognition of a deferred tax liability is prohibited under IAS 12

Para 15
 A deferred tax liability or asset is never recognized from:
(a) The initial recognition of goodwill;
(b) The initial recognition of an asset or liability that is
(i) Not a business combination; and
(ii) At the time of the transaction, affects neither accounting profit nor
taxable profit (or tax loss)

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Non-deductible Expenditures on an Intangible Asset

Example:
 Development expenditures of $300,000 were capitalized on 1 Jan 20x0:
 Amortized over a 3-year period commencing 1 Jan 20x0; and
 Was not deductible for tax purpose
 Assumed tax rate of 20%

Balance sheet liability approach 1 Jan 20x0 31 Dec 20x0

Intangible asset $300,000 $300,000
Accumulated amortization 0 (100,000)
Carrying amount $300,000 $200,000
Tax base 0 0
Cumulative taxable temporary difference $300,000 $200,000
Deferred tax liability 60,000 40,000

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Example 11.8 Non-deductible Expenditures on an Intangible

Asset

• Without the prohibition in IAS 12, the deferred tax liability had to be
recognized on Jan 20x0 as follows:
Dr Intangible asset 60,000
Cr Deferred tax liability 60,000
• This adjustment will makes the financial statements “less transparent”
− capitalization of tax expense in asset cost on initial recognition implies
that the initial outlay on the asset goes beyond actual expenditures
− Tax burden arising from the non-deductibility of the actual expenditures
is included in the cost of the asset
• Thus under IAS 12, the deferred tax liability is ignored

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6.2.Assets Carried at Fair Value

 Taxable or deductible temporary differences may arise from assets carried
at fair value if:
 The tax base of the revalued assets remain at cost

 IAS 12 requires the recognition of deferred tax liability/asset even if:

 The entity does not intend to dispose off the asset
 The fair value adjustments will be realized through use rather than disposal

 The entity does not have to pay capital gains tax on disposal
 If the proceeds will be reinvested in similar assets which will generate taxable profit
from use or ultimate sale, the deferred tax liability on the fair value change is
recognized

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6.2.Assets Carried at Fair Value

 IAS 12 sets the basis of recovery for two types of assets:
 Non-depreciable asset measured using the revaluation model
 Deemed to be recovered through sale
 Reporting entity should use the tax rate and the tax base that are consistent with the
expected manner of recovery or settlement

 Investment property measured using the fair value model of IAS 40

 Deemed to be recovered through sale unless business model for holding the
investment property is to consume substantially all the benefits of the property
through time than through sale

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6.3. Accounting for Unused Tax Losses

Does the company have a No

history of recent losses? Recognize deferred tax asset in full
Yes
Does the company have Yes Recognize deferred tax asset to the extent of losses
other convincing evidence to that may be used to offset the probable future profits
support that future profit
exists? that are projected
No

Does the company have
cumulative net taxable
temporary differences?
No
No deferred tax asset is
recognized
Yes Recognize deferred tax asset in full if: Cumulative
taxable temporary differences > Tax loss carry-
forward
Recognize partially to the extent of cumulative
taxable temporary differences on hand if: cumulative
taxable differences < tax loss carry-forward

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6.3. Accounting for Unused Tax Losses

Example:
• Company has tax losses of $1,000,000
• Cumulative net taxable temporary differences (CTD) of $600,000
• Tax rate is 20%

Now Future

CTD $600,000 Reversal, taxable income  $600,000

Tax losses $1,000,000 Utilization of loss, taxable income  $600,000
In view of future effects,
recognize DTA = DTL = $120,000
Tax loss of up to $600,000 can be used to offset the future taxable income
of $600,000 arising from the cumulative net taxable temporary differences.

thuhien-ueh
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Illustration 11.3-Accounting for tax loss

 The tax computation of XYZ is provided below ($). The amount of cumulative
taxable differences as 1/1/X1 is 100,000$
20X1 20X2
Net profit/loss before tax (200,000) 620,000
Add depreciation 120,000 120,000
Less capital allowances (300,000) (50,000)
Taxable income/loss (380,000) 690,000
Loss and unused capital allowances, 1 Jan 0 (380,000)
Net taxable income/loss and unused capital allowances 31/12 (380,000) 310,000
Tax payable at 25% 0 77,500

Determine the DTA and DTL under 2 assumptions:

1. Future profitability is probable to fully absorb the tax loss
2. Future profitability is less than the probable

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Illustration 11.3-Accounting for tax loss

Movement in net taxable temporary differences and DTL:

20X1 20X2
TTD DTL TTD DTL
Balance, 1 Jan (given) 100,000 25,000 280,000 70,000
Change 180,000 45,000 (70,000) (17,500)
Balance, 31 Dec 280,000 70,000 210,000 52,500

82 thuhien-ueh

Illustration 11.3-Accounting for tax loss- solution

1. Future profitability is probable to fully absorb the tax loss:

20X1: DTA= 380,000*25% = 95.000

20X1 20X2
TTD DTL DTA TTD DTL DTA
Balance, 1 Jan 100,000 25,000 0 280,000 70,000 (95,000)
Change 180,000 45,000 (95,000) (70,000) (17,500) 95,000
Balance, 31 Dec 280,000 70,000 (95,000) 210,000 52,500 0
31/12/X1 31/12/X2
Dr- DTE: 45,000 Dr- Curr Tax Exp:77,500
Cr- DTL: 45,000 Cr- Tax payable : 77,500
Dr-DTA: 95.000 Dr- DTL: 17,500
Cr- DTE: 95,000
Dr- DTE: 77,500
Cr- DTA: 95,000
83

Illustration 11.3-Accounting for tax loss- solution

2. Future profitability is less than the probable

20X1: DTA= DTL = 70.000

20X1 20X2
TTD DTL DTA TTD DTL DTA
Balance, 1 Jan 100,000 25,000 0 280,000 70,000 (70,000)
Change 180,000 45,000 (70,000) (70,000) (17,500) 70,000
Balance, 31 Dec 280,000 70,000 (70,000) 210,000 52,500 0
31/12/X1 31/12/X2 Dr- Curr Tax Exp:77,500
Cr- Tax payable : 77,500
Dr- DTA: 70,000
Cr- DTE: 25,000 Dr- DTL: 17,500
Cr- DTL: 45,000 Dr- DTE: 52,500
Cr- DTA: 70,000
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Illustration 11.3-Accounting for tax loss- solution

Future profitability is probable to Future profitability is less than

fully absorb the tax loss: the probable
(tax expense/income) (tax expense/income)
20X1 (50,000) (25,000)
20X2 155,000 130,000
Total 105,000 105,000

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Summary

➢ IAS/IFRS: Accounting profit (before tax) Vs Tax law: Taxable profit (Tax
income)
➢ Differences: Permanent differences Vs Temporary differences
➢ Taxable temporary differences Vs deductible Temporary differences
➢ Current Income tax vs Deferred tax:
➢ B/s: Deferred tax asset - deferred tax liability Vs tax payable
(current income tax liability)
➢ P/L: income tax expense: current tax expense/income Vs
deferred tax expense/income

Summary

➢ accounting models for income taxes: Income approach Vs Balance sheet liability
approach
➢ Income approach (the timing difference approach: deferred tax is recognised for timing
differences ): (Deferral method vs Liability method)
➢ Timing differences are differences between taxable profit and accounting profit that
originate in one period and reverse in one or more subsequent periods.
➢ Balance sheet liability approach (also known as the ‘temporary difference approach’):
deferred tax liabilities and deferred tax assets are recognized for temporary differences
➢ All timing differences are temporary differences but some temporary differences are not
timing differences
➢ temporary difference: Carrying amount – Tax base

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Chenh lech tam thoi = KH Thue - KH ke toan =

60.000

TNCT < LNKT => chenh lech tam thoi chiu thue

Thue hoan lai = 60.000 x 20% = 12.000

No CP thue thu nhap hoan lai

88 thuhien-ueh Co thue hoan lai phai tra

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