Chapter 23 - Income taxes: IAS 12. The main contents of the chapter consist of mains parts: Related standards, IAS 12, current GAAP comparisons, IFRS financial statement disclosures, looking ahead, end-of-chapter practice. | Wiecek and Young IFRS Primer Chapter 23 Income Taxes: IAS 12 Income Taxes Related standards IAS 12 Current GAAP comparisons IFRS financial statement disclosures Looking ahead End-of-chapter practice Related Standards FAS 109 Accounting for income taxes Related Standards IAS 1 Presentation of financial statements IAS 8 Accounting policies, changes in accounting estimates and errors IAS 37 Provisions, contingent liabilities and contingent assets IFRS 3 Business combinations IAS 12 – Overview Objective and scope Recognition of current tax liabilities and assets Recognition of deferred tax liabilities and assets Measurement Recognition of current and deferred tax Presentation Disclosures IAS 12 – Objective and Scope IAS 12 addresses the accounting issues related to tax effects of Current period transactions and events Unused tax losses or credits Tax consequences when carrying amounts and tax amounts differ IAS 12 – Recognition of Current Tax Liabilities and Assets Current tax = amount of income taxes payable or recoverable on the taxable profit or loss for the period If current taxes payable > taxes paid, then Income taxes payable If current income taxes payable IAS 12 – Recognition of Deferred Tax Liabilities and Assets Underlying assumption of accounting model: Assets will be recovered for at least their carrying amount Liabilities will be settled for their carrying amount If there are tax consequences when the asset is recovered or liability settled, this effect should be reported on the statement of financial position now Future tax effect = deferred tax liability or deferred tax asset IAS 12 – Recognition of Deferred Tax Liabilities and Assets Q. Why a tax consequence? A. Because carrying amount of A & L may differ from their tax amount or tax base = a temporary difference Taxable temporary difference: Taxable income is increased in future when asset . | Wiecek and Young IFRS Primer Chapter 23 Income Taxes: IAS 12 Income Taxes Related standards IAS 12 Current GAAP comparisons IFRS financial statement disclosures Looking ahead End-of-chapter practice Related Standards FAS 109 Accounting for income taxes Related Standards IAS 1 Presentation of financial statements IAS 8 Accounting policies, changes in accounting estimates and errors IAS 37 Provisions, contingent liabilities and contingent assets IFRS 3 Business combinations IAS 12 – Overview Objective and scope Recognition of current tax liabilities and assets Recognition of deferred tax liabilities and assets Measurement Recognition of current and deferred tax Presentation Disclosures IAS 12 – Objective and Scope IAS 12 addresses the accounting issues related to tax effects of Current period transactions and events Unused tax losses or credits Tax consequences when carrying amounts and tax amounts differ IAS 12 – Recognition of Current Tax Liabilities and .
