IAS 12 Income Taxes replaced parts of IAS 12 Accounting for Income Taxes (issued in July 1979). In December 2010 the Board amended IAS 12 to address an issue that arises when entities apply the measurement principle in IAS 12 to temporary differences relating to investment properties that are measured at fair value.

IAS 12 prescribes the accounting treatment for income taxes. Income taxes include all domestic and foreign taxes that are based on taxable profits. Current tax for current and prior periods is, to the extent that it is unpaid, recognised as a liability.

IAS 12 outlines the accounting treatment for income taxes, including the recognition and measurement of deferred tax assets and liabilities.

IAS 12: Income Taxes is part of the International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). IAS 12 sets the accounting treatment of all taxable profits and losses, both national and foreign.

This course helps you understand what exactly deferred taxes are, when they arise, how current and future income taxes are recognised and measured, how taxes are presented and which disclosures are required related to income taxes, according to IAS 12 standard.

IAS 12 prescribes the accounting treatment for income taxes, including how to account for the current and future tax consequences of assets, liabilities and transactions recognised in the financial statements. This page provides information on the standard, alongside ICAEW factsheets and guides.

Here we look at specific requirements in IAS 12 Income Taxes – i.e. taxes based on taxable profits. These materials contain both general and topic-specific guidance, providing insights into how to apply IAS 12 as well as keeping you up to date with the latest developments.

For purposes of IAS 12 income taxes include: • All domestic and foreign taxes based on taxable profits, and • Taxes such as withholding taxes payable by a subsidiary/associate/joint arrangement on distributions to the reporting entity. IAS 12 NOT deal with. accounting for . government grants or investment tax credits,

International Accounting Standard 12 Income Taxes (IAS 12) is set out in paragraphs 1⁠–⁠99. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB.

IAS 12 applies the principle that the measurement of deferred tax liabilities and deferred tax assets should reflect the tax consequences that would follow from the manner in which the entity expects to recover or settle the carrying amount of its assets and liabilities.