Author(s)

Caihong Chen

Corresponding Author

Caihong Chen

ABSTRACT

The correctness of the temporary difference calculation not only affects the current income tax payable, but also affects the correct treatment of income tax accounting. Whether the temporary difference is correct or not is a key step in determining the tax basis of each asset and liability. The basis of tax calculation is to consider from the perspective of tax law, and the book value is inconsistent with the accounting perspective, that is, the caliber is inconsistent, which causes temporary differences. Therefore, grasping the basic method of calculating the tax base of each asset and liability, and comparing it with its book value to determine whether there are temporary differences, is important for how to recognize deferred income tax assets and deferred income tax liabilities, and to correctly calculate income tax accounting.

KEYWORDS

Tax calculation, basis book value, income tax accounting