Deferred Taxation, 3rd Edition aims to keep practitioners and students up to date with the current developments in accounting for income taxes. It provides a comprehensive guide to the principles and practices of tax effect accounting.

Learning objectives are available at the beginning of each chapter to highlight the coverage and expectation of readers upon completion of the chapter. These are then followed by discussion notes and illustration of principles or concepts. Wherever applicable, illustrative examples are provided to demonstrate the computational technique. Some selected practice questions and answers are provided at the end of each chapter.

Key Features & Benefits

• Amendments to MFRS 112 Income Taxes (all amendments after 2013) are included for updates.
• Changes in the tax laws and tax rates (income tax rate and real property gain tax) are included for updates.
• Additions and improvements to questions and answers for clearer illustrations.
• Detailed explanations of the amendments and changes to the principles, such as unrealised losses on investments recognised in profit or loss and other comprehensive income.
• Incorporating the requirements in Section 29 Income Tax of the MPERS Framework used by private entities;
• Specific guidance on the tax effects of construction contracts, property development and plantation operations.
• Explanation on the tax implications of financial instruments, and tax effects of banking and insurance businesses.
• Explanation on the tax effects of assets measured at fair value, including biological assets measured at fair value and biological assets measured on the cost model.
• Tax effects of share-based payment transactions.
• Detailed guidance on tax effects of items recognised outside profit or loss.
• Detailed guidance on the tax effects arising in a business combination.
• Detailed guidance on the reconciliation of effective tax rate at a reporting group level.
• Includes Section 29 Income Tax of MPERS used by private entities (for comparison with the MFRS Framework)

Topics Covered

• Basic Principles of Tax Effect Accounting
• The Comprehensive Allocation
• MFRS 112, Income Taxes
• Advanced Principles of Tax Effect Accounting – I
• Advanced Principles of Tax Effect Accounting – II