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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Analyzing Nestlé’s Income Tax Disclosures Obtain Nestlé’s 2017 annual report using the “Investor Relations” portion of its website (do a web search for Nestle investor relations).

Required:

  1. 1. What was the total income tax expense relating to profit before taxes, associates and joint ventures for 2017? How much of this was current? How much was deterred?
  2. 2. What is the amount of Nestlé’s 2017 permanent differences? How does Nestle refer to permanent differences in its reconciliation of taxes?
  3. 3. What is the net amount of Nestlé’s deferred tax assets and liabilities at December 31, 2017? What are the three largest causes of temporary differences for Nestlé?

1.

To determine

Determine the total income tax related to profit before taxes, associates and joint ventures for 2017. Identify the income tax that was current and deferred.

Explanation

Income Tax Expenses: The expenses which are related to the taxable income of the individuals and business entities for an accounting period, and are recognized by them for the purpose of federal government and state government tax are called as income tax expenses...

2.

To determine

Determine the amount of Company N’s permanent difference in 2017 and identify the manner of reporting the permanent differences in the reconciliation of taxes.

3.

To determine

Identify the net amount of deferred tax assets and liabilities of Company N as on December 31 and the three largest causes of temporary difference.

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