accounting notes
FINANCIAL
REPORTING STANDARD
FRS 12
Income Taxes
This version of the Financial Reporting Standard does not include amendments that are effective for annual periods beginning after 1 January 2013.
FRS 12
CONTENTS
Paragraphs
INTRODUCTION
IN1
OBJECTIVE
SCOPE
1
DEFINITIONS
5
Tax base
7
RECOGNITION OF CURRENT TAX LIABILITIES AND CURRENT TAX ASSETS
12
RECOGNITION OF DEFERRED TAX LIABILITIES AND DEFERRED TAX ASSETS
15
Taxable temporary differences
15
Business combinations
19
Assets carried at fair value
20
Goodwill
21
Initial recognition of an asset or liability
22
Deductible temporary differences
24
Goodwill
32A
Initial recognition of an asset or liability
33
Unused tax losses and unused tax credits
34
Reassessment of unrecognised deferred tax assets
37
Investments in subsidiaries, branches and associates and interests in joint ventures
38
MEASUREMENT
46
RECOGNITION OF CURRENT AND DEFERRED TAX
57
Items recognised in profit or loss
58
Items recognised outside profit or loss
61A
Deferred tax arising from a business combination
Current and deferred tax arising from share-based payment transactions
66
68A
PRESENTATION
71
Tax assets and tax liabilities
71
Offset
71
2
FRS 12
Tax expense
77
Tax expense (income) related to profit or loss from ordinary activities
77
Exchange differences on deferred foreign tax liabilities or assets
78
DISCLOSURE
79
EFFECTIVE DATE
89
WITHDRAWAL OF INT FRS 21
99
ILLUSTRATIVE EXAMPLES (See separate document)
Examples of temporary differences
Illustrative computations and presentation
3
FRS 12
Financial Reporting Standard 12 Income Taxes (FRS 12) is set out in paragraphs 1–99. All the paragraphs have equal authority. FRS 12 should be read in the context of its objective, the Preface to
Financial Reporting Standards and the
REPORTING STANDARD
FRS 12
Income Taxes
This version of the Financial Reporting Standard does not include amendments that are effective for annual periods beginning after 1 January 2013.
FRS 12
CONTENTS
Paragraphs
INTRODUCTION
IN1
OBJECTIVE
SCOPE
1
DEFINITIONS
5
Tax base
7
RECOGNITION OF CURRENT TAX LIABILITIES AND CURRENT TAX ASSETS
12
RECOGNITION OF DEFERRED TAX LIABILITIES AND DEFERRED TAX ASSETS
15
Taxable temporary differences
15
Business combinations
19
Assets carried at fair value
20
Goodwill
21
Initial recognition of an asset or liability
22
Deductible temporary differences
24
Goodwill
32A
Initial recognition of an asset or liability
33
Unused tax losses and unused tax credits
34
Reassessment of unrecognised deferred tax assets
37
Investments in subsidiaries, branches and associates and interests in joint ventures
38
MEASUREMENT
46
RECOGNITION OF CURRENT AND DEFERRED TAX
57
Items recognised in profit or loss
58
Items recognised outside profit or loss
61A
Deferred tax arising from a business combination
Current and deferred tax arising from share-based payment transactions
66
68A
PRESENTATION
71
Tax assets and tax liabilities
71
Offset
71
2
FRS 12
Tax expense
77
Tax expense (income) related to profit or loss from ordinary activities
77
Exchange differences on deferred foreign tax liabilities or assets
78
DISCLOSURE
79
EFFECTIVE DATE
89
WITHDRAWAL OF INT FRS 21
99
ILLUSTRATIVE EXAMPLES (See separate document)
Examples of temporary differences
Illustrative computations and presentation
3
FRS 12
Financial Reporting Standard 12 Income Taxes (FRS 12) is set out in paragraphs 1–99. All the paragraphs have equal authority. FRS 12 should be read in the context of its objective, the Preface to
Financial Reporting Standards and the