Here’s an excerpt from one of Air France’s notes to its financial statements: Deferred taxes (in part) The Group records...
Here’s an excerpt from one of Air France’s notes to its financial statements:
Deferred taxes (in part)
The Group records deferred taxes using the balance sheet liability method, providing for any temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes...
The tax rates used are those enacted or substantively enacted at the balance sheet date. Is this policy consistent with U.S. GAAP? Explain
Homework Answers
Answer: This policy is not consistent with U.S. GAAP because using substantively enacted at the balance sheet date is not permissible. It requires measurement should be based on tax rates and laws that are enacted at the balance sheet rate.
In IFRS- Enacted or substantively enacted tax rates are used but in US GAAP only enacted tax rates are used.
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Here’s an excerpt from one of Air France’s notes to its financial statements: Deferred taxes (in part) The Group records...
Here’s an excerpt from one AF’s notes to its financial statements: Deferred taxes (in part) Deferred tax assets related...
Here’s an excerpt from one AF’s notes to its financial statements: Deferred taxes (in part) Deferred tax assets related to temporary differences and carryforwards are recognized only to the extent it is probable that a future taxable profit will be available against which the asset can be utilized at the tax entity level. Is this policy consistent with U.S. GAAP? Explain.
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Dexter Company appropriately uses the asset-liability method to record deferred income taxes. Dexter reports depreciation expense...
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The financial reporting carrying value of Boze Muses only depreciable asset exceeded its tax basis by...
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Question No. 1 Deferred Taxes Eagle River Inc. reports income before taxes for its first 3...
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Please check my answers. 1. Prepare Journal Entry to record income tax expense, deferred taxes, and...
Please check my answers.
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The financial reporting carrying value of Boze Muses only depreciable asset exceeded its tax basis by $152.000 December 31, 2018. This was a result of differences between straight line depreciation for financial reporting purposes and MACRS for tax purposes. The asset was acquired earlier in the year Bote has no other temporary differences. The enacted tax rate is 25 for 2018 and 32 thereafter Bone should report the deferred to effect of this erence in its December 31, 2018, balance...
Question No. 1 Deferred Taxes Eagle River Inc. reports income before taxes for its first 3 years of operations as follows: Account 2018 2019 2020 Pretax financial income $ 950,000 $ 800,000 1,000,000 The income tax rate is 40%. There were no temporary tax differences with respect to financial reporting and tax returns prior to 2018. For income tax purposes the following differences exist between accounting income and taxable income: 1. For financial reporting Eagle River uses the straight-line depreciation...
Problem - 3 (Five Differences, Compute Taxable income and Deferred Taxes, Draft Income Statement) Wise Company began operations at the beginning of 2015. The following information pertains to this company. 1. Pretax financial income for 2015 is $100,000. 2. The tax rate enacted for 2015 and future years is 40%. 3. Differences between the 2015 income statement and tax return are listed below: (a) Warranty expense accrued for financial reporting purposes amounts to $7,000. Warranty deduc- tions per the tax...
Please check my answers.
1. Prepare Journal Entry to record income tax expense, deferred taxes, and income taxes payable for 2018 2. Draft the income tax expense section of the Income Statement, beginning with Income before income taxes". . Write an analysis directed toward the team at Good Company describing what the numbers mean and how they relate to the business. Information: Good Company began operations in 2018 and has provided the following information: 1. Pretax financial income for 2018...
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