Page 105 - Finac1 Test 1 slides

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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