Depreciation and Deferred Taxes
Tax Depreciation Accelerated depreciation No judgment in determining depreciation expense Tax Reporting ≠ Financial Reporting ==> timing differences in measurement of income Why would a firm prefer accelerated depreciation for tax purposes? Why does government allow this? Why not use the tax method for financial reporting? Different depreciation for tax and financial reporting gives rise to Deferred Taxes
Written for
- Institution
-
123 University
- Course
-
FINANCIAL ACCOUNTING
Document information
- Uploaded on
- November 3, 2021
- Number of pages
- 4
- Written in
- 2021/2022
- Type
- Class notes
- Professor(s)
- Md sarfaraz
- Contains
- All classes
Subjects
- depreciation and taxes
- taxes
- corporate accounting
- accounting
-
depreciation and deferred taxes
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