Explain the key difference between the Taxes payable method and the Interperiod tax allocation method, and why NZ IAS 12 adopts the Interperiod tax allocation method.
Explain what “temporary differences” are and why do they arise? There are two methods to account for income tax expense: (i) the Taxes payable method, and (ii) the Interperiod tax allocation method. Explain the key difference between the Taxes payable method and the Interperiod tax allocation method, and why NZ IAS 12 adopts the Interperiod […]