Yes, things might have changed, but the concepts are still the same. In terms of what are doing, how are we doing it and why is it being done, then study the latest version to grasp the changes
Exactly as you say,@@bhekaphakathi3509! IAS12 has not changed in the last decade. The principles are still exactly the same. The tax rates have changed.
Hi Moe, yes we are from South Africa. Thanks for the kind words, we are glad you like the video. We are working hard to put out more videos. We have not based our accounting videos on any specific tax legislation. The tax legislation changes regularly and is different around the world so in our illustrations we tell you what the scenario is for that example only. Thanks
I reside in Cape Town and I'm in 3rd year BCompt. I'm currently on the chapter dealing with deferred tax in my studies and I must say your video has been a huge help to me in clarifying some particular issues that were confusing me. Thank you so much!
Thank you Predgit for the encouraging comment ! We are always adding new courses on our website www.tabaldi.org for the IFRS standards. Best of luck with your studies.
Thanks for the question. The accounting depreciation is added back before deducting the tax depreciation (capital allowance). That is to say, we reverse the accounting depreciation (2,500 year 1; 2500 year 2) and then deduct the tax depreciation (5000 year 1; zero in year two). Please note that this example is not built on actual tax law enacted in any country, but is uses the example that for this specific asset the tax authority allowed a 100% depreciation (capital) allowance in year 1. Thanks
I wish you were a certified ACCA tuition provider...the work you do is striking! You are actually aiming to help to understand global principles through local and methodical approach, that many universities fail to provide. Thanks a lot for making IAS's and IFRS's step into life out of their published boring definitions!
Thank you so much for your comment, at Tabaldi we aim to simplify the most complex accounting definitions and concepts. Stay subscribed to our channel for more.
Hi Lutho, in 2011 we increased the tax expense and therefore debited tax expense and credited liability. It can sometimes be a bit confusing, just remember that in this example we increase taxable income in 2011 (decreased in 2010), and therefore increase tax expense in 2011 (decrease in 2010). Hope this helps?
Wow... let me say that this video was so helpful. English is not my first language, so watching these have saved me a lot reading time. Thank you so much.
Ooh my God i have not covered this section yet, but i can recorgnize some of the accounts names what they stands for. I love your teaching. You sound so brave with your explanation God blessed RU-vidrs for some of this video.
Hello, I am studying ACCA as well, only started this week but I'm writing sbr,sbl in june, then my electives(afm, still deciding on the 2nd one) in sept. Do you by any chance know a community of RSA students, that I can be part of, or start one ourselves?
Hi Christine, we are looking at doing more of these and then possibly doing DVD's.... keep following (sorry we are a bit slow in getting more up at the moment)
Thank you so much for sharing!! I really like the presentation format and how you could add a video of yourself. Are these all done in Power Point or you use different application ?
Yhooo great and easy to understand.Please add more video - i'll pay money to tabaldiaccountying when doing CTA in UNISA.So potential custormers.Please keep on adding.
You guys are so helpful, I love this page... Thank you! Also, can there be lessons on Group Statements (Consolidation). It's quite complex and it would really help if it is simplified and explained like these ones.
can we adopt this SOFP approach in case the profit before taxes are different in two financial years? Since you have illustrated with constant profits at two years, how will you reconcile tax in case profit is different since it is complex in real life situation to have the same amount of profits.
Hello, If a company has tax exemption from 2005-2011, and has brought forward tax losses, & in 2011 recognizes a deferred tax asset, then why is the same amount of deferred tax asset in the SOFP an income tax addition to profit before tax in Income statement?? What will be the future effects on profits??? Thanx.
Thank you very much just one question... Why do you add the depreciation to the taxable income? Isn't it the role of depreciation to lower the taxable income? I could understand if you've added the remaining value of the asset after depreciation which is 2500 but in this case it would be zero in 2011 and not 2500... Could you explain? Thanks!
hi..thanx for the video it's really helpful,i have a question regarding the 2011 journals for current tax,why debit tax expense and not liability? We decreased the expense by 700(28700-28000)?
Dinuka Malith Hi Dinuka, witholding tax will not usually effect deferred tax (unless it is a group situation and there is withholding tax on a foreign associate company). The tax legislation is way out of our skill set though and will be country specific. sorry, we are more IFRS guys than tax guys
Dear sir , thanks for your valuable videos ,can you give a video on temporary difference but no deferred tax impact, eg, on government grant or intangible asset, it would be a great help for me, regards, Nimay Ram, From Bangladesh.
Hi Nimay, thank you for finding our videos valuable. Our RU-vid channel is more for general deferred tax understanding, we do not record videos for specific areas that may not be of interest to all subscribers. Our paid platform does however have a forum where we address specific queries, visit www.tabaldi.org for more information. Good luck with your studies!
My question may be beyond the scope of this video. I have "Future Income Tax Asset (current)", "Future Inc. Tax Recovery," and "Future Inc. Tax Liability (non-current)" accounts in the journal entry.
