Skye Boat Song - Scottish Traditional || Bagpipe Music || Queen's State Funeral from sarah39s song bagpipe sheet music Watch Video

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Deferred taxes, also known as deferred tax liabilities or deferred tax assets, arise from temporary differences between the accounting treatment of certain items and their tax treatment. These differences can result in taxes being payable or recoverable in future periods. Deferred taxes reflect the concept that taxable income and accounting income may differ for the same transaction or event in a given period.<br/><br/>Here's how deferred taxes work:<br/><br/>Temporary Differences: Temporary differences occur when the way an item is treated for tax purposes differs from its treatment in the financial statements. For example, depreciation methods used for tax reporting may differ from those used for financial reporting, resulting in temporary differences in the timing of recognizing expenses.<br/>Deferred Tax Liabilities: If taxable income is expected to be greater than accounting income in future periods due to temporary differences, a deferred tax liability is recognized. This represents the amount of income tax that will be payable in future periods when these temporary differences reverse.<br/>Deferred Tax Assets: Conversely, if taxable income is expected to be less than accounting income in future periods due to temporary differences, a deferred tax asset is recognized. This represents the amount of income tax that will be recoverable in future periods when these temporary differences reverse.<br/>Recognition and Measurement: Deferred tax liabilities and assets are recognized and measured using enacted tax rates expected to apply when the temporary differences reverse. They are adjusted for changes in tax rates or tax laws.<br/>Presentation: Deferred tax liabilities and assets are reported on the balance sheet and classified as non-current assets or liabilities because they represent future tax consequences.<br/>Reversal of Temporary Differences: When temporary differences reverse, deferred tax liabilities or assets are adjusted accordingly, leading to changes in income tax expense or income tax recovery in the period of reversal.<br/>Deferred taxes play a significant role in financial reporting because they reflect the timing differences between when transactions affect taxable income and when they affect accounting income. Understanding and appropriately accounting for deferred taxes are essential for accurately presenting a company's financial position and performance.
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Working with leases involves several steps, whether you're a lessor (the owner of the asset being leased out) or a lessee (the party leasing the asset). Here's a general guide:<br/><br/>For Lessors:<br/><br/>Identify Lease Arrangements: Determine which contracts in your business involve leases. A lease is defined as a contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration.<br/>Classify Leases: Classify each lease as either a finance lease or an operating lease. This classification depends on factors such as whether the lease transfers ownership of the asset to the lessee by the end of the lease term, whether the lease term is for a major part of the asset's economic life, and whether the present value of the lease payments equals or exceeds substantially all of the fair value of the asset.<br/>Recognize Lease Income: For operating leases, lessors recognize lease income over the lease term, typically on a straight-line basis unless another systematic basis is more representative of the pattern of benefits to be derived from the leased asset.<br/>Accounting for Finance Leases: If a lease is classified as a finance lease, the lessor recognizes a lease receivable representing its right to receive lease payments, and the underlying asset is derecognized from the lessor's balance sheet. The lessor recognizes interest income over the lease term and any residual asset or residual value.<br/>Disclosure: Disclose relevant information about lease arrangements in the financial statements, including the nature and timing of lease payments and any significant leasing arrangements.<br/>For Lessees:<br/><br/>Identify Lease Arrangements: Determine which contracts in your business involve leases, similar to lessors.<br/>Classify Leases: Classify each lease as either a finance lease or an operating lease. This classification follows similar criteria as for lessors.<br/>Recognize Lease Liability and Right-of-Use Asset: For finance leases, lessees recognize a lease liability representing their obligation to make lease payments and a right-of-use asset representing their right to use the leased asset.<br/>Accounting for Operating Leases: For operating leases, lessees recognize lease payments as lease expense on a straight-line basis over the lease term unless another systematic basis is more representative of the pattern in which the lessee consumes the benefit derived from the leased asset.<br/>Disclosures: Disclose relevant information about lease arrangements in the financial statements, including the nature and timing of lease payments, significant leasing arrangements, and the maturity analysis of lease liabilities.<br/>Throughout the process, it's important to adhere to relevant accounting standards, such as the International Financial Reporting Standards (IFRS 16) or the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, depending on the jurisdiction and regulatory requirements. Additionally, it's advisable to con
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