Under both U.S. GAAP and IAS, the amount of tax expense reflected in the financial statements is made up of both current and deferred components.

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Both U.S. GAAP and IAS require that the tax expense in the financial statements be broken down into current and deferred components. Current taxes are taxes payable for the current year, while deferred taxes are the result of timing differences between when certain transactions are recognized for tax purposes and when they are recognized for financial statement purposes.

Under Both U