FAR 10.4

Income tax expense or benefit.

This is the sum of the current tax expense or benefit and deferred tax expense or benefit.

Current tax liability.

This is equal to taxable income times the applicable tax rate.

Future deductible amount.

This results when an expense or loss is deductible for tax purposes subsequent to being recognized in financial income. It also results when a revenue or gain is included in taxable income before it is recognized in financial income.

Deferred tax liability.

This records the deferred tax consequences attributable to taxable temporary differences. It is measured using the applicable enacted tax rate and provisions of the enacted tax law.

Temporary differences.

These include differences between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset is recovered or a liability is settled.

Deferred tax asset.

This records the deferred tax consequences attributable to deductible temporary differences and carryforwards. It is measured using the applicable enacted tax rate and provisions of the enacted tax law.

Future taxable amount.

This results when a revenue or gain is taxable subsequent to being recognized in financial income. It also results when an expense or loss is deductible for tax purposes before recognition in financial income.

Deferred tax expense or benefit.

This is the net change during the year in an entity’s deferred tax liabilities and assets.

Current tax expense or benefit.

This is the amount of taxes paid or payable (or refundable) for the year as determined by applying the enacted tax law to the taxable income or excess of deductions over revenues for that year.