Monthly Archives: February 2024

Provision for Income Tax Journal Entry

This is because previous year’s leftover provision will also be flushed to income statement WITH current year’s provision causing the total to increase. The tax provision lends transparency to your operations, offering a clear picture of potential tax obligations to shareholders and investors. You’re complying with tax laws and conveying a sense of financial responsibility.…

Provision for Income Tax Definition, Example, and How to account for over under-provision?

A corporation may also elect to capitalize and amortize mining exploration costs over a 10-year period. If you capitalize your IDCs, you have another option if the well is nonproductive. For this, you will need the corporation’s average annual AFSI from the past three years. As it relates to the repatriation issue, here’s how they…