Financial statement disclosure of the components of income tax expense:

Question

Quizplus · Accepted Answer

The disclosure of the components of income tax expense is typically included in the disclosure notes rather than on the face of the income statement. This disclosure would include information such as the amount of current and deferred taxes, as well as any tax credits or changes in tax rates affecting the period. While the amount of cash paid for taxes may be included in the disclosure, it is not a necessary component of the tax expense disclosure. Additionally, the existence of only permanent differences would not eliminate the need for disclosure of income tax expense components.

Financial Statement Disclosure of the Components of Income Tax Expense