Differences between the carrying amounts of an entity's net assets determined under accounting standards and accrual accounting, and the tax bases of those net assets determined under the Income Tax Assessment Act, are known as:

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The differences between the carrying amounts of an entity's net assets determined under accounting standards and accrual accounting, and the tax bases of those net assets determined under the Income Tax Assessment Act, are known as temporary differences. These differences can result in future taxable or deductible amounts, which will impact the calculation of future income tax liabilities or assets. Tax losses (A) are losses that can be applied to reduce future tax liabilities. Permanent differences (C) are differences between accounting and tax treatment that will never reverse, such as non-deductible expenses or tax-exempt income. The current income tax liability (D) is the actual amount of tax owed for the current period, based on the taxable income and tax rates applicable.

Differences Between the Carrying Amounts of an Entity's Net Assets