A request was recently received for a mind map on IAS 12 Income Taxes, so here you go! I hope it’s useful to you.
Throughout your working career and in your studies, you may have noticed instances where the tax treatment and the accounting treatment of an item vary.
We’ve studied how current tax is the amount of tax payable to the taxation authorities in the current financial period.
Deferred Tax Liabilities
When deferred tax is being provided for, a full provision method is used under IAS 12.
The first thing to do in an exam is look at the carrying amount of the asset or liability which is its net book value, in the financial statements.