IAS 12 Income Taxes

Country-by-Country tax reporting IAS 12 Risk or Profit

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Topics hide Country-by-Country tax reporting Consistency and information exchange agreements Public disclosure and transparency CbC Reporting Technology and implementation CbC Reporting Focus on balance Country-by-Country tax reporting Country-by-Country tax reporting has become a fact of life for multinational enterprises (MNEs) with worldwide revenue above EUR 750 million. While most MNEs have developed processes to gather … Read more

Uncertain tax treatments in IAS 12 and IFRIC 23

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Topics hide Uncertain tax treatments Uncertain tax treatments – In short Background Definitions in IAS 12 of current tax and deferred tax liabilities or assets Presentation of uncertain tax liabilities (or assets) Tax presentation in the statement of profit or loss What to consider Uncertain tax treatments Uncertain tax treatments – In short Neither IAS … Read more

Interest free loans in IFRS 9 and IAS 20

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Interest free loans As prescribed in IFRS 9.B5.1.1, a loan payable or receivable that carries no interest should be recognised at fair value measured as the present value of all future cash receipts discounted using the prevailing market rate(s) of interest for a similar instrument (currency, term, etc.) with a similar credit rating. An incremental … Read more

Deferred tax and business combinations in IAS 12

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Topics hide Deferred tax and business combinations Deferred tax and consolidated accounts Intangible assets arising on a business combination Whose tax rate should be applied to fair value adjustments arising in a business combination? Can the recognition of deferred tax on intangibles create goodwill which is immediately impaired? Was a fair price paid? Is the … Read more

Allocating deferred tax charge

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Topics hide Allocating deferred tax charge or credit Step 1 – Recognition of deferred tax in OCI or equity Examples of items recognised in OCI Case – Purchase of an equity investment Examples of items recognised directly in equity Deferred tax on equity-settled share-based payments Measurement of deferred tax Component in which to recognise deferred … Read more

The manner of tax recovery properly using IAS 12

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Topics hide The manner of tax recovery and the blended tax rate Method of recovery of an asset Dual intention assets Methodology for calculating deferred tax on dual intention assets Integrating initial recognition exemptions into the calculation Case – Building – Blended measurement method Case – Asset intention changes – Blended measurement method The manner … Read more

Deferred taxes and Share-based payments IAS 12 accurate accounted for

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Topics hide Deferred taxes and Share-based payments Calculating the credit to equity Simple case – Tax credit in profit or loss Case – Tax in other comprehensive income / equity and profit or loss Deferred tax on share options not caught by the measurement provisions of IFRS 2 Deferred taxes and Share-based payments This narrative … Read more

IAS 12 Income tax definition

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Topics hide IAS 12 Income tax definition IAS 12 Income tax definition Accounting for initial temporary differences after day one Case – Non-deductible cost of a building Changes in an asset’s tax base due to a revaluation or indexation Gains and losses relating to an available-for-sale financial asset reclassified to profit or loss Deferred tax … Read more

Deferred tax calculations using IAS 12

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Topics hide Deferred tax calculations Step 1 – Establish the accounting base and the tax base of the asset or liability Establishing the accounting base of the asset or liability Determine the tax base of the asset or liability Example accounting and tax base/Example calculation deferred tax Step 2 – Establish the difference between accounting … Read more