Complete the conversation with the following words:

depends, so, clarify, mean, basically, exactly

Kathy: Hi, Javier, how is it going?

Javier: It's not easy, all this in English. We didn't do any of this on my course.

Kathy: Can I help?

Javier: Well, maybe you could a couple of things. Let's see. Ah, here we are. Provision for income tax. What does that

Kathy: Ok. Provision means putting money aside so that we have something to pay with later. So provision for income taxes is talking about the current year's expense which will have to be paid in the future.

Javier: Like provisional?

Kathy: Not . Provisional just means temporary, you know, not final. Like a provisional budget. It's not a final version.

Javier: I see. And what about deferred income tax balances. What does deferred mean?

Kathy: put off to another day. The income has been recognized in the accounts, but the tax owing on that income will only be realized in the future.

Javier: OK. How does that affect associated companies?

Kathy: Well, it . Associated companies and affiliates are a special case. Deferred taxes are not normally recognized on distributed earnings, but only if the plan is to re-invest the profits.

Javier: if we don't invest the profits, we pay tax.

Kathy: Exactly.

Then listen and check