Income Tax

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[pic] | | |IAS 12 INCOME TAXES | |HISTORY OF IAS 12 | |April 1978 |Exposure Draft E13 Accounting for Taxes on Income | |July 1979 |IAS 12 Accounting for Taxes on Income | |January 1989 |Exposure Draft E33 Accounting for Taxes on Income…show more content…
[IAS 12.12] The benefit of a tax| | |loss which can be carried back to recover current tax of a prior period should be recognised as an asset. [IAS 12.13] | | |Current tax assets and liabilities should be measured at the amount expected to be paid to (recovered from) taxation | | |authorities, using the rates/laws that have been enacted or substantively enacted by the balance sheet date. [IAS 12.46] | | |Recognition of Deferred Tax Liabilities | | |The general principle in IAS 12 is that deferred tax liabilities should be recognised for all taxable temporary differences.| | |There are three exceptions to the requirement to recognise a deferred tax liability, as follows: [IAS 12.15] | | |liabilities arising from initial recognition of goodwill for which amortisation is not deductible for tax purposes; | | |liabilities arising from the initial recognition of an asset/liability other than in a business combination which, at the | | |time of the transaction, does not affect either the accounting or the taxable profit; and | | |liabilities arising from undistributed

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