IFRS Notes

Investments in subsidiaries and associates

For (1), (2), (3),
if carrying amount ≠ tax base,
temporary differences occur

(1) investments in subsidiaries
(2) investments in associates
(3) interests in joint ventures

An example:
undistributed profits of subsidiaries, associates, joint ventures
can create differences between carrying amount and tax base of investments

IAS 12-pr39
Deferred tax liabilities
For taxable temporary differences from the above investments,
deferred tax liabilities are recognised

Exceptions
deferred tax liabilities are not recognised if both (1) and (2) are met

(1) timing of the reversal of temporary differences
can be controlled by the parent, investor, or venturer

(2) the reversal of temporary differences
is not probable in the foreseeable future

In summary,
if the parent can control the timing of profit distribution
and decided not to distribute in the foreseeable future,

deferred tax liabilities are not recognised.

IAS 12-pr44
Deferred tax assets
For deductible temporary differences from the above investments,
deferred tax assets are recognised

Exceptions
deferred tax assets are not recognised if it is probable
that the temporary difference will reverse
and taxable profit will be available, so that temporary difference can be used