Scribd
Upload
151 views3 pages

Pas 12 Income Taxes

This document discusses accounting for income taxes under PAS 12. It defines deferred tax assets and liabilities as amounts of income taxes recoverable or payable in future periods arising from temporary differences and tax losses. Deferred tax assets are recognized when it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The document also covers measurement of current and deferred tax assets/liabilities, presentation, revaluation of assets, and disclosure requirements.

Uploaded by

Kristalen Armando
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
151 views3 pages

Pas 12 Income Taxes

This document discusses accounting for income taxes under PAS 12. It defines deferred tax assets and liabilities as amounts of income taxes recoverable or payable in future periods arising from temporary differences and tax losses. Deferred tax assets are recognized when it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The document also covers measurement of current and deferred tax assets/liabilities, presentation, revaluation of assets, and disclosure requirements.

Uploaded by

Kristalen Armando
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

PAS 12 INCOME TAXES

NATURE:
DTA is applicable to all entity (public or not))
Accounting Income Taxable Income

Financial income Income for the period determined under


Net income for period before income tax taxation authorities
expense Appears in ITR

DEFINITION AND RECOGNITION:


Deferred Tax Asset:
- Amount of income tax recoverable in future period
- A deferred tax consequence attributable to future deductible amount or deductible
temporary differences and operating loss carry forward.
- Recognize for all deductible temporary differences and operating loss carryforward
when probable that taxable income will be available against which deferred tax asset
can be used.
Permanent Difference

1. Nontaxable revenue (-)


2. Nondeductible Expense (+)

Temporary Difference
PAS 12 INCOME TAXES
1. Future Taxable Amount (-)

Future Taxable Amount * Income Tax Rate = Deferred Tax Liability

Income statement approach – net income Balance Sheet Approach – capital is


is overstated overstated

Income- Accounting > Tax Asset – accounting > tax


Expense Accounting < Tax Liability – accounting < Tax

2. Future deductible amount (+)

Future Deductible Amount * Income Tax Rate = Deferred Tax Asset

Income statement approach - net income Balance Sheet Approach capital is


is understated understated

Income- Accounting <Tax Asset – accounting < Tax


Expense Accounting > Tax Liability – accounting > Tax

Taxable Temporary Differences

INCOME TAX EXPENSE

MEASUREMENT of current tax liability and current tax asset:


- Tax rate that has been enacted and effective at the end of the reporting period
Deferred Tax Asset/Liability measurement “future enacted tax rate”
o Tax rate enacted by end of reporting period and expected to apply to the
period when asset is realized, and liability is settled.
PAS 12 INCOME TAXES
TRANSACTION *on activity next page

PRESENTATION
DTL – noncurrent liability They are not discounted
DTA – noncurrent asset
Offsetting is applicable when
a. They relate to income taxes levied by the same taxing authority
b. Has legal enforceable right to set off a current tax asset against current tax liability

REVALUATION OF ASSET
- Not a taxable event but would lead to taxable amount
- Its difference from depreciation base on cost (CA) to base on revalued amount will
be temporary difference
- Upward revaluation – DTL
- Revaluation surplus and Deferred Tax Consequence = component of OCI
INTRAPERIOD TAX ALLOCATION INTERPERIOD TAX ALLOCATION
- Recognition of a deferred tax asset
- Allocation of income tax expense to or deferred tax liability
various revenues that brough about
the tax
- Associates tax expense with the
items in the income statement

DISCLOSURE

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy