11 May 2009
It should be Accouting income less taxable income. Assuming the diffrence is temporary diffrence, positive will create deferred liability. Negative will create deferred asset.
11 May 2009
I am just replying on the basis of logic. According to me it is the Accounting income minus taxable income as the deferred tax assets of liability is recognised in the accounting books, the accouting profits needed to be compared with tax profits. Hope this logic works.
CAclubindia
