Answer Posted / ruba. g.
‘Deferred Tax’ requires full provision to be made for
deferred tax assets and liabilities arising from timing
differences between the recognition of gains and losses in
the financial statements and their recognition in a tax
computation.
The general principle underlying the requirements is that
deferred tax should be recognised as a liability or asset
if the transactions or events that give the entity an
obligation to pay more tax in future or a right to pay less
tax in future have occurred by the balance sheet date
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