In Vaughn Ltd which follows IFRS, reported accounting income of $ and the tax rate was Vaughn had two timing differences for tax purposes:
CCA on the company's tax return was $ Depreciation expense on the financial statements was $
Accrued warranty expense for financial statement purposes was $accrued expenses are not deductible for tax purposes This is the first year Vaughn offers warranties.
Both of these timing differences are expected to fully reverse over the next four years, as follows:
tableYeartableDepreciationDifferencetableWarrantyExpenseRate$$
