Page 16 - Finac1 Test 1 slides - 5. Income Taxes (IAS 12)
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INCOME TAXES
IAS 12 Objectives
• IAS 12 requires an entity to account for the tax
consequences of transactions and other events in the same
way that it accounts for the transactions and other events
themselves.
• Thus for transactions and other events recognised in the
statement of profit or loss and other comprehensive
income,
• any related tax effects are also recognised in the statement of profit
or loss and other comprehensive income, except for transactions
and other events recognised directly in equity.
• The tax effect relating to those transactions must be recognised directly in
equity.
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