Depreciation and Amortisation of Property, Plant and Equipment and Intangible Assets (IAS 16 and IAS 38)

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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

Cost of Property, Plant and Equipment (IAS 16)

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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

Grant date

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The date at which the entity and another party (including an employee) agree to a share-based payment arrangement, being when the entity and the counterparty have a shared understanding of the terms and conditions of the arrangement. At grant date the entity confers on the counterparty the right to cash, other assets, or equity instruments … Read more

IFRS 2 Equity-settled share-based payments

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Last update 07/02/2020 Overview 10 For equity-settled share-based payment transactions, the entity shall measure the goods or services received, and the corresponding increase in equity, directly, at the fair value of the goods or services received, unless that fair value cannot be estimated reliably. If the entity cannot estimate reliably the fair value of the … Read more

Current Income Tax (IAS 12)

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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

Deferred Tax (IAS 12)

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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

Scope of IAS 12 Income Taxes

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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