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International Accounting Standards (IAS)
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Accounting Standard (IAS) 12
Income Taxes
International Financial
Reporting Standards (IFRS) |
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International Accounting
Standards (IAS) |
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U.S. GAAP by Topic |
| International Accounting Standard (IAS) 12 |
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IAS 12 Income
Taxes Issued in
October 1996: replaced July 1979 version
of IAS 12 Revised in
October 2000 Recent amendment:
by IFRS 3 revised in January 2008 |
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For all
taxable temporary differences --> a deferred tax liability is recognised. |
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Exceptions: (1) deferred tax liability from --> the initial recognition of goodwill (2) deferred tax liability from --> the initial recognition of an asset and a liability --> in a transaction that satisfies (2a) and (2b) (2a) it is not a business combination (2b) it does not affect accounting profit and it does not affect taxable profit (at the time of transaction) |
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For all
deductible temporary differences --> a deferred tax asset is recognised. |
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Exceptions: (1) deferred tax asset from --> the initial recognition of an asset and a liability --> in a transaction that satisfies (1a) and (1b) (1a) it is not a business combination (1b) it does not affect accounting profit and it does not affect taxable profit (at the time of transaction) |
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Current
tax liabilities are measured --> at the amount expected to be paid to tax authorities |
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Current
tax assets are measured --> at the amount expected to be received from tax authorities |
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Deferred
tax liabilities are measured --> at the tax rates --> that are expected to apply --> to the period when the liability is settled. |
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Deferred
tax assets are measured --> at the tax rates --> that are expected to apply --> to the period when the asset is realised. |
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Current
and deferred tax are recognized in profit or loss |
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Exceptions: (1) tax from a business combination (2) tax from a transaction that is recognised outside profit or loss |
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IAS
12 Technical Notes |
