WHAT IS THE MEANING OF "difference is capable of reversal in subsequent periods", "Permanent Difference", "Temporary difference", "virtual certainty" & "real certainty" IN ACCOUNTING STANDARD 22.
25 March 2008
Timing differences are the differences between taxable income and accounting income for a period that originate in one period and are capable of reversal in one or more subsequent periods.
Permanent differences are the differences between taxable income and accounting income for a period that originate in one period and do not reverse subsequently.
Virtual Certainity means if the enterprise is near to certain that the event will occur; and real certainity means if the enterprise is totally certain that event will occur.
25 March 2008
permanent difference means the one thing is allowable under one act which shall never be allowable under other act whereas timing differences means that one thing is allowable under one act in one year and such thing shall be allowable under the another act in subsequent years
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