Depreciation differences, the provision for severance pay, the allowance for doubtful receivables and unused tax losses are typical sources of deferred tax. A deferred tax asset is recognised if it is probable that sufficient taxable profit will be available in the future.
In inflation adjustment, differences between financial statement and tax values have a significant effect on deferred tax.
Source: TAS 12
Related terms
Corporate income taxThe tax levied on the earnings of capital companies, cooperatives and other corporate entities.Property, plant and equipmentPhysical assets used in the production of goods and services, for rental or for administrative purposes, and expected to be used for more than one period.TAS 29 (Financial reporting in hyperinflationary economies)The standard requiring entities whose functional currency is the currency of a hyperinflationary economy to state their financial statements in terms of the purchasing power at the end of the reporting period.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.AssociateAn entity over which the investor has significant influence but not control or joint control.
Last updated: October 22, 2026 · This definition is for general information only.