What is postponed accounting?

Delayed accounting is an accounting mechanism used to allocate current costs or income to a future date. In this context, the costs could also be a tax liability. The purpose of postponing costs or income is usually to assign it with the expected future event, such as the potential future flow of income or the expected future costs. Companies can use postponed accounting for various reasons, including tax benefits. One examples where postponed accounts are often used for reception is the "undeserved" rental income. This may happen when the lessee pay the lessor an annual rate. If the lessee pays the entire annual rent in January, the landlord is obliged to provide the property throughout the year. In other words, the rent of WBUD earned for one year, and if for some reason the landlord could not be available at some point during the year, then the lessee would be entitled to a refund.

Delayed tax accounting is most often used in two main situations. First, there may be a temporary difference between the value of the asset used in the balance sheet of the company and the value -attributed asset for tax purposes. Secondly, there may be a difference between timing of income or expenditure recorded in the Company's accounts and timing of tax payments or reimbursement related to the same income or expenditure.

Accounting Delayed compensation is usually used to indicate an agreement where part of the income obtained by the employee is paid later than immediately after the work. Examples of deferred compensation include retiring planning, pensions and stock benefits such as stocks. The usual advantage for employees when delaying the payment of some of its income comes in the form of delayed tax obligations.

When billing the deferred tax, the specific tax laws of the country in which the company or corporation operates. TaxKona surrounding deferred accounts are often complex. Usually, it is advisable to maintain a qualified accounting specialist in deferred accounting when one of these mechanisms is used.