Resume
Summary IAS 12 Deferred Tax
- Cours
- Établissement
Summary of IAS 12 for third year BAcc course
[Montrer plus]
Vendeur
S'abonner
stelliesaccounting
Avis reçus
Aperçu du contenu
IAS 12: INCOME TAXESSCI:
Profit before tax XXX
Income tax expense (X) Current Tax (Normal SA tax)
- SARS
- Based on transactions/Taxable income (PBT & adjust)
- Current period
Deferred tax (movement of DT as per SFP)
- Accounting principle
- Based on balances
- Future period
Profit for the year XX
Other comprehensive income X
Total Comprehensive income for the year XXX
SFP:
Non-current assets/liabilities (>12 months)
Deferred tax XX Balance @ y/e
Tax consequences of future periods (SFP)
Income tax recoverable or payable in the near future
Current assets/liabilities (<12 months)
SARS XX Current tax receivable/payable
Tax consequences of current and prior periods (SCI)
CURRENT TAX
− On year end company calculate current tax payable on taxable income
o Taxable income = profit for period, determined in accordance with rules of taxation authorities, upon
which taxes are payable
o Accounting profit is adjusted to calculate taxable income. (Add back acc items and adjust with tax
items)
− General differences:
o Non-deductible interest and non-taxable income
o Depreciation (acc) vs wear and tear (SARS)
o Profit/loss with sale of asset (acc) vs recoupment (SARS)
o Movement on provision for bad debts (acc) vs % deduction based on bad debts on y/e (SARS)
Provision for tax/SARS (SFP) → Current Asset/Liability
Bank (1st Provision) [1] Income tax expense [3]
Profit budgeted for year x tax rate /2 (Taxable income x tax rate @ y/e)
Bank (2nd Provision) [2] Income tax expense [4]
Income tax expense [4]
Bank (3rd) [5]
Pay if insufficient provisional payments
Company provision (Income tax expense) VS SARS assessment (Actual tax payable)
- Over provision – company provided too much
- Under provision – company provided too little
DEFERRED TAX:
ASSETS/LIABILITIES
Carrying value (SFP): Tax Base:
- Accounting - Tax
- IFRS - Income tax legislation
Temporary differences
[1] Taxable → will have to pay more tax in future
[2] Deductible → paying too much now, will receive benefit later
x tax rate = RESULT IN: Deferred tax
Asset: Dt (Deductible)
Liability: Ct (Taxable)
1
, − Objective & Scope (.01-.04)
− Definitions (.05-.06)
→ DT = liability/asset of IT payable/recoverable in future
o DT-liability: income tax payable in future in respect of taxable temp. differences
o DT-asset: amounts of income taxes recoverable in future in respect of deductible temporary
differences
Carrying amount of Less Tax base of the = Temporary difference
asset/liability asset/liability
Asset: Amount
deductible in future
(CA – already allowed)
Liability: Already
deducted/Not
deductible in future
Temporary difference Multiplied by Tax rate (expected in = D/T balance (asset or
future) liability) in SFP
D/T balance of Year 2 Less D/T balance of Year 1 = Movement in D/T in
SCI
[1] TAXABLE TEMPORARY DIFFERENCES
- Recognise a D/T liability (income tax payable in the future)
- ASSETS: CA > TB
- LIABILITIES: CA < TB
[2] DEDUCTIBLE TEMPORARY DIFFERENCES
- Recognise a D/T asset (income recoverable in future)
- ASSETS: CA < TB
- LIABILITIES: CA > TB
→ Unlimited taxable profit → recognise entire amount
→ Limited to taxable income in the future (require efficient evidence of future taxable income)
Accept income and expenses being taxed/deductible → earliest of receipt or accrual
Item: CA TB TD D/T Dt or Ct
DEBITS CA > TB T Ct
(Assets/EPA) CA < TB D Dt
CREDITS CA > TB D Dt
(Lia/IRA) CA < TB T Ct
− Tax Base (.07-.11)
− Recognition of current tax liabilities and current tax assets (.12-.14)
− Recognition of deferred tax liabilities and deferred tax assets
o Taxable temporary differences (.15-.23)
▪ Except: (b)(ii): E.g. office building – however, if that revalued – D/T implications
o Deductible temporary differences (.24-.45)
− Measurement (.46-.56)
o .51: through sale or use → assume assets carrying amount is recovered through use.
Example:
Asset: CP = R2000
Depr: 10 years → CA
W&t: 20 years → TB
SCI
Sales Xxx
Min Cost of sales (xxx)
Plus income Xx
2
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur stelliesaccounting. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €2,46. Vous n'êtes lié à rien après votre achat.
Peut-on faire confiance à Stuvia ?
4.6 étoiles sur Google & Trustpilot (+1000 avis)
73514 résumés ont été vendus ces 30 derniers jours
Fondée en 2010, la référence pour acheter des résumés depuis déjà 15 ans