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Tax figure in Kohinoor Sugar Mills
12-16-2010, 03:32 PM,
#1
Tax figure in Kohinoor Sugar Mills
Hello Assalam o Alaikum!

This being my first post. happy to be here.

The other day I was reading the financial statement of Kohinoor Sugar Mills. What they had done is they had put the deferred tax figure in income statement (profit before tax - current tax + deferred tax = net income)

Whereas as per IFRS or my financial reporting subject in ACCA, they (normally) tax the deferred tax in non-current liabilities.

Why the treatment is different in Pakistan ?

Thank you
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12-16-2010, 07:57 PM,
#2
 
Dear deferred taxation basicaly arise due to temprary differences in financial statements n statements prepared for taxation purposes now these temprary differences give rise to two types of differences 1 is called taxable temprary difference which eventualy leads 2 deferred tax liability n creates a liability to pay tax in future such type of tax is deductd in the income statements n the other type of difference is known as deductable temprary difference n which leads to deferred tax asset n which make us save tax in the future such type of tax is added in the income side of income statements .
I hope ur concepts might have got cleared abit as deferred taxation is a vast chapter one can not make the whole concept cleared in one go.

Regards.
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12-17-2010, 12:51 AM,
#3
 

As per IAS 12 , tax expense includes both current tax and deffered tax.
That is why both taxes are deducted while calculating profit after tax.
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12-23-2010, 04:38 PM,
#4
 
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