This Standard deals with the recognition of current and deferred tax assets arising from unused tax losses or unused tax credits, the presentation of income taxes in the financial statements and the disclosure of information relating to income taxes.
The objective of this Standard is to prescribe the accounting treatment for income taxes. The principal issue in accounting for income taxes is how to account for the current and future tax consequences of:
7 The tax base of an asset is the amount that will be deductible for tax purposes against any taxable economic benefits that will flow to an entity when it recovers the carrying amount of the asset. If those economic benefits will not be taxable, the tax base of the asset is equal to its carrying amount.
12 Current tax for current and prior periods shall, to the extent unpaid, be recognised as a liability. If the amount already paid in respect of current and prior periods exceeds the amount due for those periods, the excess shall be recognised as an asset.
13 The benefit relating to a …Read More
15 A deferred tax liability shall be recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from:
46 Current tax liabilities (assets) for the current and prior periods shall be measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
47 Deferred tax assets and liabilities shall be measured at the tax …Read More
57 Accounting for the current and deferred tax effects of a transaction or other event is consistent with the accounting for the transaction or event itself. Paragraphs 58 to 68C implement this principle.Read More
Tax assets and tax liabilities
71 An entity shall offset current tax assets and current tax liabilities if, and only if, the entity:
72 Although current tax …Read More
79 The major components of tax expense (income) shall be disclosed separately.
80 Components of tax expense (income) may include:
These illustrative examples accompany, but are not part of, IFRS 12.
Examples of temporary differences
A. Examples of circumstances that give rise to taxable temporary differences
All taxable temporary differences give rise to a deferred tax liability.
Transactions that affect profit or lossRead More
Illustrative computations and presentation
Extracts from statements of financial position and statements of comprehensive income are provided to show the effects on these financial statements of the transactions described below. These extracts do not necessarily conform with all the disclosure and presentation requirements of other Standards.
All the examples below assume that the entities concerned have no transaction other than …Read More