Understanding the key components of taxation is very important for tax professionals. Accounting profit is the profit reported on financial statements. Tax profit is the profit calculated for tax purposes, which can differ from accounting profit due to tax laws. The objective of GAAP are aimed at providing investors and other users of financial statements with reliable and relevant financial information and the objective of the tax law contained in the IRC include social equity, ease of administration, political considerations, and ensuring that individuals and corporations are taxed when they have the ability to pay. Current tax expense is the tax payable for the current year while deferred tax asset/liability represents future tax consequences.These components help tax professionals accurately calculate taxes owed and ensure compliance with tax regulations. It's important to grasp them to provide accurate tax advice and minimize tax liabilities. Deferred tax asset could be when a company has incurred expenses or losses that can be used to reduce their taxable income in the future. If a company has accumulated tax credits or unused tax deductions, those can be carried forward as deferred tax assets to offset future tax liabilities. This can help the company reduce their tax burden in the coming years. deferred tax assets play a significant role for accountants because it helps them to accurately estimate future tax liabilities and ensure proper tax planning. By recognizing a