Please provide me detail of deferred tax assets & liablities with journal entries. Closing balance of one year will be carried forward as opening balance in case of deferred tax assets.
22 October 2010
Deffered tax assets is recognised for temporary difference that will result in deductible amount in future years and for carry forward.For example- a temporary diff. is created between the reported amount and the tax basis of liability for estimated exp. as for tax purpose, those estimated exp are not deductioble untill a future year.
Same way deffered tax liabilty is reverse of deffred tax assets. i.i. temporary diff that will result in taxable amount in future years.
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