IAS 12 Income Taxes
IAS 12 Income Taxes prescribes the accounting treatment for income taxes, including how to account for the current and future tax consequences of assets, liabilities and transactions recognised in the financial statements.
Published October 1996. Effective 1 January 1998.
Contents
Free to view
- Synopsis (including link to unaccompanied version of IAS 12)
-
Related IFRICs
Financial Reporting Faculty members only
Synopsis
- Current tax for the current and prior periods is recognised as a liability to the extent that it remains outstanding, or an asset, to the extent that amounts paid are in excess of that due. It should be recognised using the tax rates that have been enacted or substantively enacted by the reporting date.
- Deferred tax liabilities are recognised for taxable temporary differences
- Deferred tax assets are recognised for deductible temporary differences and unused tax losses and credits to the extent that a taxable profit will be available against which they can be utilised.
- Deferred tax assets and liabilities should be measured at the tax rates expected to apply to the date when the liability is settled or asset realised.
The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.
This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.
Which version of the standard?
'Which version of the standard?' is only available to members of the Financial Reporting Faculty. Please note that to access electronic versions of IFRS through the links in these standard trackers you need to have first logged into eIFRS.
Recent amendments
Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.
*Not UK endorsed as at 4 February 2022. Read more on UK endorsement of IFRS standards. Not EU endorsed as at 4 February 2022. Read more on EU endorsement of IFRS standards.
The following interpretations refer to IAS 12
- IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
Provides guidance on the restatement of financial statements when hyperinflation is initially identified. -
IFRIC 21 Levies
Provides guidance on when to recognise a liability for a levy imposed by a government. -
IFRIC 23 Uncertainty over Income Tax Treatments
Clarifies how to apply the recognition and measurement requirements of IAS 12 when there is uncertainty over income tax treatments. -
SIC 25 Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders
Addresses the deferred tax consequences of changes in tax status of an enterprise or its shareholders.
Other resources
Factsheets:
- 2017 IFRS Accounts, 2019 IFRS accounts and 2021 IFRS Accounts
Provide more information on amendment 3.
This page was last updated 4 February 2022.
How standards trackers work
Financial Reporting Faculty members get full access. Login to get the version of the standard relevant to specific time periods via eIFRS.
ICAEW members and non-members can view a brief synopsis, amendments and details of current proposals.