What You Need to Know about IFRS and Taxes (IAS 12)

The principal issue in accounting for income taxes is how to account for the current and future tax consequences of:

(a) the future recovery (settlement) of the carrying amount of assets (liabilities) that are recognized in an entity’s statement of financial position; and

(b) transactions and other events of the current period that are recognized in an entity’s financial statements.

We all know that domestic and foreign taxes are based on taxable profits. But how exactly do you account for the current and future tax consequences of transactions and other events in IFRS? When can you defer taxes and when do you have to record a tax expense? What about taxes on revaluation of assets allowed in IFRS? How do you account for taxes on share-based payments (options)? Can you offset tax assets and tax liabilities in IFRS?

This session will answer these and many other questions so you can understand the advanced tax implications of IFRS.

Course Key Concepts: IFRS, IASS 12, Taxes, Asset revaluation, Revenue recognition