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What is a provision for income tax and how do you calculate it?

ThomsonReuters

A company’s tax provision has two parts: current income tax expense and deferred income tax expense. To make things more complicated, most accounting departments use Generally Accepted Accounting Principles (GAAP) to calculate their financial position. Current income tax expense.

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Top accounting issues in 2023

ThomsonReuters

Misapplication of GAAP standards For today’s accounting professionals, and all of those involved in financial reporting, p reparing financial statements that are in compliance with generally accepted accounting principles (GAAP) is essential. GAAP violations, such as errors or omissions, can be costly and can hurt credibility.

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