Deferred Tax (IAS 12) | Explained with Examples

In this accounting lesson, we explain what deferred tax is, and go through examples of calculating deferred tax. We explain and go through an example of permanent difference, temporary difference, deferred tax asset, and deferred tax liability.
Deferred tax definition: 00:00
Accounting profit vs Taxable profit: 02:56
Tax expense explained: 04:24
Current tax explained: 04:59
Permanent difference deferred tax Explained with Example: 05:42
Temporary difference deferred tax Explained with Example: 12:18
Deferred tax liability (Taxable temporary difference) explained: 15:52
Deferred tax asset explained (Deductible temporary difference): 17:38
Deferred tax calculation examples: 19:35
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you are the most articulate accounting teacher ever. You deserve an award sir. You are rare a teacher most students wish for

[@sinovee]

God bless you since high school you've been helping me I'm in my 3rd year of accounting now and still here!

[@yebogogaz]

Happy to see a South African video out there! Made my heart beat proud! Great Video! Thanks for saving me for my ACCA exam

[@justingray8919]

An absolutely phenomenal video! As a student who works full time, you are a lifesaver. I often find my prescribed textbook throws a lot of information at once but you are provided such amazing guidance on this!

[@zandilecharlottemthethwa5637]

I have never thought I will understand deferred tax like this, you just nailed it for me 🙌 The way explains this is 👌

[@drrestoran3186]

agree...

[@noncedohope5111]

Never had someone explaining deferred tax like this. Thank yo so much.

[@xbhalohoop]

I am writing my CPA exams this September and IAS 12 was always a very difficult standard for me to understand. I can now say I know how to tackle IAS 12 in Accounting cases! Thank you

[@ghislainemonga866]

Thank you so much this was so clear, I am currently doing 3rd year financial accounting (advanced accounting) and this is the first time I understand deferred tax 😂

[@jackiecharlie8798]

Is this an online course?

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Like Aat?

[@phumelelepana814]

You and I same whatsapp group. He just uncomplicated my life.

[@zanelenonjabulo5117]

I always find it hard to understand accounting KZbin videos but this is just perfect and clear ! Thank you !! 🤝

[@wandatym5184]

I just had to stop the video and write this. You are the best accounting teacher. The way everything is just clear when explain it. I've been struggling with deferred tax for a long time now.

[@billywang3829]

South Africans are always the best at accounting

[@nontokozosiphesihle5055]

Made the topic easier to understand, thank you!

[@zukisanisitela3535]

The way you explain it, is so good !!! thank you so much

[@rmusic8969]

This is a difficult topic, but you explained it very clearly.

[@charitymothapo9096]

you are a God sent sir....i thought deferred tax was a monster. Thank you so much, with you i will surely complete this degree

[@warurumurugi2698]

This is what ave been looking for for Soo long. Thanks I got the information. Simple and clear.

[@motunrayogbebemiolayioye5182]

Your explanation is superb. I understand DT clearly now. You're a great teacher

[@sparaxsparax8557]

Great explanation and you made it easy to understand deferred tax. It was easy to attempt the examples on my textbook after I have watch this video. Thanks man!!

[@anirudhj571]

oh my god!!! this made my taxation chapter very easy!!! thanks a ton.

[@washeemkalideen1669]

Best one .. simply explained with such clarity 👌

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Yoh... Sir , you're legit ❤️💯👏👏👏I wish you'd be my for all time financial and management accounting lecturer

[@sannah1224]

Thank u i am 12 i am really curious and i aspire to become CA i asked papa since he is CA i understood only 75% but now i understood 100% thank you😀

[@violatshali7314]

Outstanding teaching skills Sir 🔥🙏🏽

[@hildenhawala5153]

I love this explanation👏👏👏

[@roguenjgaming5189]

Brilliant video. Explained very well. Thank you!

[@JROTGC]

I have a better understanding of this IAS 12, now onto the complex stuff, i hope the same guy explains them as well kkk, he is good.

[@juliuskconsult]

DEFERRED TAX MADE EASY

[@CelestedeVries]

Thank you very much! Best deferred tax explanation I have ever listened to.

[@BradleyMapa-dk8xb]

Really helpful to my question. Thank you so much sir for your well explanation on deferred tax.

[@cnaasirshire353]

You're So much thanks for clarfications and Simply undersanding

[@douglasmukuma7393]

Very articulate indeed. you have cleared all questions on the standard. I would like to follow you on other topics.

[@danielzivavose49]

MARVELLOUS.... THANK YOU SO MUCH. I ENJOYED THIS SESSION. IT MADE EVERY CHALLENGE DISAPPEAR

[@vincychan6174]

Thank you for your video! You make deferred tax much easier to understand :-)

[@danielhambadja1217]

great explanation.

[@phumelelepana814]

Thanks a lot sir. Very happy with this session, i benefited a lot.

[@JPTheron88]

When I pass this year, I must send you a bottle of wine, Thank you for your videos.

[@thabisilembokazi1706]

Wow, You have made this so easy for me to understand. I am writing my PE in June this will help

[@Counttuts]

Best of luck!

[@warurumurugi2698]

You promised to do another video on deferred tax when there are opening balances. We are still waiting

[@maridevskey]

Great vid. Thank you sir! I loved the examples. Very helpful. Watching from Germany for my accounting exam

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You never disappoint!

[@victorsanya5324]

Simple and clear ❤

[@MeMe-ef3bq]

Thank you so much sir… really appreciate… from Nigeria 🇳🇬 💪🏾💪🏾

[@financefuturewellshoes2536]

Very good teaching with easy understandable examples

[@amandazondi1496]

Great explanation... Follow up videos

[@shareyourtestimony6605]

In the permanent example, if there is a temporary expense do we add or substrate and the deferred as well?

[@sheilahtshekoeng9703]

Hello Bright plc's balance showed a debit balance of $2450 on he current tax account and a credit balance of $3210 on the deferred tax account.The tax liability for the current year has been estimated at $8470 and Bright plc's net asset have a carrying value if $7000 greater than their tax base The statement rate of corporate income tax is 3%.what amount will be shown as the tax charge in Bright plc's statement of profit or loss account?

[@aahargroups3348]

Thank you so much for making this video.

[@gumaportiadineo9087]

Thank you, i now understand deffered Tax

[@audreyrebu2999]

Thank you the tutorial was simple and clear.

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you're the best.

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[@chrisburton4128]

If a company generates 100k ordinary business income and has no deductions but uses 50k of company income to purchase an indefinite intangible asset in the same calendar year, will the company pay taxes on 100k or 50k for the calendar year?

[@Ctizen_sK]

Sir Thank you very much. You saved me.

[@clementinemashigo9708]

very helpful

[@narcaware3651]

thank you. this helped alot I now understand

[@joramkemboi4790]

Beautiful presentation and very clear

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Well explained, thank you sir. You make them look easier ❤❤

[@zinhleskosana2847]

I'm so grateful for this video, thank you so much 🥺

[@joramlinus4138]

best tutorial indeed. but I have a question. why do we calculate deferred tax or what is the importance of deferred tax? thank you in advance.

[@pambaboniface1199]

Thanks very much

[@rahulbathwal4658]

Your explanation is very clear

[@paulmukoki6156]

Good and clear explanation. I am impressed.

[@mmalapile3022]

this topic is the cause for my severe depression

[@Counttuts]

Keep at it, you'll crack it :)

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very profound..found this a few hours before exam and am good to og

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Great explanation

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Brilliantly explained. Kudos!

[@user-ve5tm7xc7e]

Thank you so much i understood better

[@thusozakhele7583]

Well explained you are a very good lecturer

[@BradleyMapa-dk8xb]

We want more from you Sir

[@sinayewillie3345]

Hi Sir. I've been trying to find other videos relating to Deferred tax on your channel and I cant seem to find them. You mentioned a lecture on accruals in this video. Any assistance on how to navigate my way to related deferred tax videos? Thank you in advance.

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Thank you so much ! This video was well explained and very helpful 👏

[@Abramfares]

very good explaination,thank you

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Much appreciation .you are great tutor.

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Thank you so much your explanation really helped me understand

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Amazing explanation sir, thank you so much.

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Well understood. Thank you very much

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Wow!! Well explained

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Thank you

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Awesome video

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Great lecture. Very helpful.

[@elizabethyeboah1733]

Wow thank you Sir

[@justusjohannes]

Thank alot

[@danieloyeleye3459]

I have question here the PBT (under the Permanent Differences example) already includes the non-deductible traffic fines. Ref: "included in the profit are fines paid of R2000" Why are we adding it again?

[@bulelwazangwa422]

Hi, the fine is simply added back because initially it was deducted from the PBT as it is an expense(for accounting profit purposes) but now for taxable profit we adding it back because for tax purposes it is not allowed as an expense

[@gideonihuarulam8990]

i have a question. so, when our accounting profit is greater than our taxable profit as a reason of our depreciation rate being lesser than the tax authority rate, it becomes a deffered tax liability? is it not supposed to be a deffered tax assest, as we will be recouping it in the subsequent year? thank you.

[@TRICKS932]

Hi, You are 100% correct there, it is supposed to be like that, it is the other way round, he did not get it right there

[@kearailo]

Thank you for this detailed and informative video #new_subbie

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Well explained

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Great explanation 👌 thanks

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Thank you for the video

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Best of the best

[@user-iy7zs9go8t]

thank you Mr!! helped a lot

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this is perfect 🤗💥

[@thula14]

Thank you somuch it so clear

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You are the best🥰🥰