IFRSC Knowledge Base

Last updated: 14 May 2020 Recognition and disclosure of government grants and other forms of government assistance is covered in IAS 20. Government assistance is as action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria. SIC Interpretation 10 Government Assistance—No Specific Relation to … Read more

Last updated: 16 May 2020 Employee benefits comprise all forms of consideration given by a reporting entity for service rendered by employees or for the termination of employment. Employee benefits may be provided under agreements between an entity and an employee, under requirements of local law (e.g. state pension plans) or result from a constructive … Read more

Last updated: 15 March 2020 Depreciation and amortisation are systematic allocation of the depreciable amount of an asset over its useful life. Depreciation and amortisation are usually recognised as an expense in P/L, but they can also be included in the carrying amount of another asset. This happens when the future economic benefits embodied in … Read more

Last updated: 27 May 2020 Cost of property, plant and equipment (‘PP&E’) comprises (IAS 16.16): purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates. any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended … Read more

Last updated: 15 March 2020 Definition of PP&E Property, plant and equipment (‘PP&E’) are tangible items that (IAS 16.6): are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and are expected to be used during more than one period. Accounting treatment for PP&E … Read more

Last updated: 3 April 2020 Recognition of current tax liabilities and current tax assets Current income tax is the amount of income taxes payable to (or recoverable from) tax authorities in respect of the taxable profit (tax loss) for a period (IAS 12.5). Current income tax and deferred income tax comprise total tax expense in … Read more

Last updated: 3 April 2020 Deferred income tax is recognised under IAS 12 to account for differences between tax base of an asset or a liability and its carrying amount. Deferred income tax and current income tax comprise total tax expense in the income statement. Temporary differences Definition of temporary differences The notion of temporary differences … Read more

Last updated: 3 April 2020 Scope of IAS 12 – overview IAS 12 prescribes accounting for income taxes (current and deferred). Income taxes include all domestic and foreign taxes which are based on taxable profits (IAS 12.2). Taxes other than income taxes are accounted for under other IFRS, e.g. IAS 37 or IAS 19 (payroll … Read more