Page 17 - Finac1 Test 1 slides - 5. Income Taxes (IAS 12)

INCOME TAXES

IAS 12 Objectives

• IAS 12 refers to the statement of financial position

approach.

• This method requires that deferred tax be measured on the

difference between:

• the carrying amount of the entity's assets and liabilities;

and

• the tax base of each of the entity’s assets and liabilities.

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