IAS 12

IAS 12: Income Taxes is part of the International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). IAS 12 sets the accounting treatment of all taxable profits and losses, both national and foreign.[1]

History

Timeline of IAS 12:[2]

Date Development
April 1978 Exposure Draft E13 Accounting for Taxes on Income published
Juli 1979 IAS 12 Accounting for Taxes on Income issued
January 1989 Exposure Draft E33 Accounting for Taxes on Income published
January 1994 IAS 12 (1979) was reformatted
Oktober 1994 Exposure Draft E49 Income Taxes published
Oktober 1996 IAS 12 Income Taxes issued
Oktober 2000 Limited Revisions to IAS 12 published (tax consequences of dividends)
March 2009 Exposure Draft ED/2009/2 Income Tax published
September 2010 Exposure Draft ED/2010/11 Deferred Tax: Recovery of Underlying Assets (Proposed amendments to IAS 12) published
December 2010 Amended by Deferred Tax: Recovery of Underlying Assets
January 2016 Amended by Recognition of Deferred Tax Assets for Unrealised Losses

Content

The taxable amount a company is liable for is composed of its tax base multiplied with the relevant tax rate in its country of settlement. The tax base for a company will in general be the final amount reported in the statement of profit or loss plus or minus any comprehensive income or loss. There are however situations where the accounting profit may differ from the taxable profit. This difference that arises most likely needs to be settled in a future period. Therefor the difference needs to be recognised on the balance sheet as a tax asset or liability. Note that a tax asset is only recognisable to the extent that is likely to be recovered in the future, where a tax liability always needs to be recognised in full.[3]

References

  1. ↑ "IAS 12 Technical Summary" (PDF). ifrs.org. IFRS Foundation. Retrieved 2016-10-26.
  2. ↑ "IAS 12 - Income Taxes". iasplus.com. Deloitte. Retrieved 2016-10-26.
  3. ↑ "International Accounting Standard 12 - Income Taxes" (PDF). Europa.eu. European Union. Retrieved 2016-10-26.
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