Income Taxes Archives - Play Accounting

Interperiod tax allocation

January 31, 2020January 31, 2020 by rashidjaved

Introduction The liability, income taxes payable is based on taxable income. This is the amount a firm will have to pay the federal government as the result of its operations, as defined by the IRC. The question is, if the firm’s pretax accounting income is different from its taxable income because of timing differences, what …

Differences between accounting and taxable income

January 31, 2020 by rashidjaved

As we know there are various differences between generally accepted accounting principles (GAAP) and the provisions of the Internal Revenue Code (IRC). These differences result from the varying objectives of GAAP and the IRC. The objectives of GAAP are aimed at providing investors and other users of financial statements with reliable and relevant financial information. …