Final answer:
Disclosures for income tax expense typically include a list of permanent differences, the deferred portion, and the current portion of income tax expense. A copy of the tax return is not normally included in the financial statements. option B
Step-by-step explanation:
When it comes to the disclosures for income tax expense in the notes to the financial statements, certain items are typically included to provide a clearer picture of a company's tax situation. These are usually:
A. List of Permanent Differences
C. Deferred Portion of Income Tax Expense
D. Current Portion of Income Tax Expense
Permanent differences are items that will not reverse in the future and therefore affect either the taxable income or the accounting profit, but not both.
This could include things like non-deductible expenses or income that is exempt from taxes. Both the current and deferred portions of income tax are crucial for understanding the tax expense recorded in the financial period and the amounts expected to be paid in the future.
A copy of the tax return is typically not included in the financial statements. The tax return is filed with the government and contains detailed information that is not necessary for the notes to the financial statements, which are designed to provide summarized and relevant tax-related information to stakeholders. Option B