IAS - 12

Income Taxes

Current Tax Deferred Tax

Tax payable on Taxable income in

Arise Due to Temporary Differences between
correct year

dy
the Tax Base (Cash Base) of an asset or
Liability and its carrying amount in
-Tax Expense (P/L) - Dr
the Financial statment [Account Base]
-Tax Payable (CL) - Cr

ud
B
Taxable Temporary Deductible Temp.
How to calculate Tax charge in SOPL? Difference Difference

Current Year estimated Tax (CL)

Add/(Less) : Under / (Over)

Provision (From TB)
**

**/(**)
u
• Tax Expense - Dr
dy
• Deferred Tax Liability [DTL]

Deferred Tax Liability - Cr

• Deferred Tax Asset [DTA]

• Deferred Tax Asset - Dr

Tax Expense - Cr
St
Add/(Less) : Increase / (Decrease)
in DTL/DTA **/(**)

Tax Expense Charge in SOPL

FR

How to calculate Deferred Tax?

Difference X Tax Rate.

&

CV of Asset CV of Liability
FA

• Tax Base > Account Base - DTA Tax Base > AB - DTL•
• Account Base > Tax Base - DTL A/C Base > Tax Base - DTA•
A
C
C
A

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