International Financial Reporting Standards_guide.pdf

Chapter 15 Income Taxes (IAS 12) 173
Item Carrying amount Tax base
Temporary
difference
Deferred tax
Assessed losses
carried forward and
unused tax credits
Amount unused at
current reporting date
Nil Deductible Asset (provided future
taxable profit)
Retirement benefit
liability
Carrying amount at
reporting date
Nil (deductible as
actually paid)
Deductible
Asset
Investments in
subsidiaries, branches,
associates, and joint
ventures
Carrying amount at
reporting date
Usually cost
Taxable/
Deductible
Liability/
Asset (limited)
Current and Deferred Tax Expenses or Income
15.4.8 Current and deferred taxation expense or income must be recognized in the same
manner in which the underlying item is recognized, that is:
■ If the tax relates to an item that affects profit or loss (such as a depreciable asset)
then the related taxation is recognized in profit or loss except if the tax arises from a
business combination.
■ If the tax relates to an item that affects other comprehensive income (such as an
available-for-sale asset) or directly in equity (such as the equity component of a compound
financial instrument), then the related taxation is recognized in other comprehensive
income or equity.
15.4.9 The income tax consequences of dividends are recognized when a liability to pay the
dividend is recognized.
15.5 PRESENTATION AND DISCLOSURE
15.5.1 Taxation balances should be presented as follows:
■
■ The balances are shown separately from other assets and liabilities in the Statement of
Financial Position.
■ Deferred tax balances are distinguished from current tax balances.
■ Deferred tax balances are noncurrent.
■ Taxation expense (income) should be shown for ordinary activities on the face of the
Statement of Comprehensive Income.
■ Current tax balances can be offset when:
– there is a legal enforceable right to offset; and
– there is an intention to settle on a net basis.
Deferred tax balances can be offset when:
– there is a legal enforceable right to offset; and
– deferred tax assets and liabilities relate to the same tax authority on either:
• the same taxable entity; or
• different taxable entities that intend to settle on a net basis.
■ The tax expense or income related to profit or loss from ordinary activities shall be
presented in the statement of comprehensive income.