Question

For interim financial reporting, a company's income tax provision for the second quarter of 20X4 should be determined using the:

Answer 1

The corporation tax of company for interim financial reporting must be determined using previous quarter corporation tax amount minus previous quarter tax surplus or plus previous quarter tax deficit.

Step-by-step explanation:

This is one of the way we estimate the corporation tax which helps in the better estimation. This way of estimating the corporation tax is recommended methods by the International Accounting Standard IAS 12 Taxes, for estimating taxes for interim and yearly financial reporting.