The objective of IAS 12 (1996) is to recommend the accounting treatment for income taxes. Temporary difference: a difference between the transporting amount of an asset or liability and its tax bottom. Taxable temporary difference: a short-term difference that will lead to taxable amounts in the future when the carrying amount of the asset is recovered or the liability is resolved.
Deductible temporary difference: a temporary difference that will result in quantities that are tax deductible in the foreseeable future when the carrying amount of the asset is recovered or the responsibility is settled. Current taxes for the current and prior periods is recognized as a liability to the extent that it have not yet been resolved, so that as a secured asset to the degree that the amounts already paid exceed the amount credited. The benefit of a tax loss which may be carried back again to recover current tax of a prior period is recognized as a secured asset.
Current tax assets and liabilities are measured at the total amount expected to be paid to (recovered from) taxation government bodies, using the rates/laws which have been enacted or enacted by the balance sheet date substantively. The overall principle in IAS 12 is that deferred tax liabilities should be recognized for any taxable temporary differences.
The measurement should reflect the entity’s expectations, at the total amount sheet date, as to the manner in which the carrying amount of its liabilities and resources will be retrieved or settled. Deferred tax assets and liabilities shouldn’t be discounted. If the tax pertains to items which are charged or credited directly to equity, the taxes should be charged or acknowledged right to equity as well.
If the tax arises from a company combination that is an acquisition, it ought to be recognized as an identifiable asset or responsibility at the day of acquisition relative to IFRS 3 Business Combinations (thus affecting goodwill). In some jurisdictions, taxes are payable at an increased or lower rate if part or all of the net income or retained cash flow is paid as a dividend.
In other jurisdictions, taxes may be refundable if part or every one of the net revenue or retained profits is paid out as a dividend. Possible future dividend distributions or taxes refunds should not be expected in measuring deferred taxes resources and liabilities. IAS 10 Events following the Reporting Period, requires disclosure and prohibits the accrual, of a dividend that is proposed, or declared after the end of the reporting period but prior to the financial statements were authorized for issue.
- 16 January 2017 at 14:14
- Prepare a time-bound task implementation plan with broad political possession
- Direct Ocean Access – Miami Real Estate FL Houses
- Merrill Edge: Best for in-person help
- Decreased CUSTOMER SUPPORT and Technical Support Call Times – Because of Increased access to
- March 7
- 15 Year bottom term with four 5 year options
- Plan for property transfer after death
IAS 12 requires the disclosure of the taxes outcomes of such dividends as well as disclosure of the nature and amounts of the potential tax implications of dividends. Current taxes resources and current taxes liabilities should be offset on the balance sheet only if the entity has the right and the purpose to settle on the net basis. IAS 12 requires that if a declaration is presented by an entity of income, and a statement of extensive income, tax expense (income) from regular activities should be offered in the statement of income.
I still remember after I first started trading, Noble Group was one of those stocks that some “Guru” suggested a screaming BUY online back in 2017 given its glorious history despite its red flags. The argument was that the Oil and gas sector was due to a rebound from a bottom level and an increasing tide would lift all vessels (that hardly ever really materialized). Meanwhile, Noble continuing to bleed. To resolve Noble’s outstanding obligations, a “do-or-die” deal was pressured upon traders who hadn’t many other options than to bend over that could see a proposed debt for equity deal being cut. This meant a dilution of stocks while Noble’s debt is cut.