IND AS 12 : INCOME TAXES :

CURRENT TAX Temporary Difference

* Recognised as a liability to the extent
unpaid.
* Recognised as an asset to the extent
the mat already paid exceeds the mat
due.
* The benefit relating to a tax loss that
can be carried back to recover current
tax of a previous period shall be
recognised as asset.
* Temporary difference - Difference betn the carrying amt of an asset/labilty and
its tax base.
* Taxable temporary differences will result in taxable amts in future when the
carrying amt of an asset is recovered or liablity is settled.
* Deductible temporary differences will result in deductible amts in future when
the carrying amt of an asset is recovered or liability is settled.

CURRET TAX - MEASUREMENT TAX BASE

Measure the asset/liability using tha tax
rate that are enacted or substantially
enacted at the reporting date.
Tax base of asset
* Is the amt that will be
deductible for tax purposes
against any taxable economic
benefits that will flow to the
entity when it recovers the
carrying amt of the asset.
* If those eonomic benefits
will not be taxable,the tax
base of the asset is equal to its
Tax base of liability
* Is the carrying amt less any any amt
that will be deductible for tax
purposees in respect of the liability in
future periods.
* In the case of revenue which is
received in advance,the tax base of the
resultying liability is its carrying
amt,less an amt of the revenue that
will not be taxable in future periods.

Deferred Tax liabilities
Recognized for all taxable temporary
differences except to the extent that
the deferred tax liability arises from:
* Initial recognition of goodwill,or
* the initial recognition of an asset or
liability in a transaction which :
1.Is not a business combination &
2.At the time of the transaction,affects
neither accounting profit nor taxable
profit(tax loss).
DEFERRED TAX
Deferred tax assets
A deferred tax asset shall be recognised for all deductible temporary differences
to the extent that it is probable that the taxable profit will be available against
which the deductible temporary difference can be utilised,unless the deferred
tax asset or liability in a transaction that:
(a) Is not a business combination &
(b) At the time of the transaction,affects neither accounting profit nor taxable
profit(tax loss)

DEFERRED TAX - MEASUREMENT

* Measure the balance at the tax rates that have been enacted or substantively enacted by the end of the reporting period.
* They shud be measured at the tax rates that are expected to apply in the period when the asset is realised or liability settled.
* Deferred tax assets & liabilities are not discounted.
* average rates is used when diferrent tax asset is reduced when it is no longer propbable that suffient taxable profit will be
available for utilisation.
* Reduction shall be reversed to the extent that it becomes probable that sufficint taxable profit will be available.

Recognition of current tax & deferred tax

To be recognised as income or expense and included in profit & loss for the year except
Items related to OCI:
Ind AS require following items to be
recognised in OCI:
1.c change from the revaluation PPE(Ind
AS 16).
2.Exc differences arising on the
translation of foreign entity(Ind As 21)
Items related to equity:
Ind AS require following items to
be credited or charged directly to
equity:
(a) an adjustment to the opening
balance of retained earnings from
either a retrospective change in
accounting policy or the
correction of an error ; &
(b) amounts arising on initial
recognition of the equity
component of a compound
Business Combination:
* An enity recognises any resulting
deferred tax assets/liabilities as
identifiable assets & liabilities at the
acquisition date.
* Consequently, thoose deferred tax
assets/liabilities affect the amt of
goodwill or the bargain purchase gain
the entity recognises.
* However, an entity doesn not
recognises deferred tax liabilities
arising from the initial recognition of
recognised in OCI:
1.c change from the revaluation PPE(Ind
AS 16).
2.Exc differences arising on the
translation of foreign entity(Ind As 21)
be credited or charged directly to
equity:
(a) an adjustment to the opening
balance of retained earnings from
either a retrospective change in
accounting policy or the
correction of an error ; &
(b) amounts arising on initial
recognition of the equity
component of a compound
financial instruement.
deferred tax assets/liabilities as
identifiable assets & liabilities at the
acquisition date.
* Consequently, thoose deferred tax
assets/liabilities affect the amt of
goodwill or the bargain purchase gain
the entity recognises.
* However, an entity doesn not
recognises deferred tax liabilities
arising from the initial recognition of
goodwill.

OffSet
Current Tax asset / Liability
An entity shall offset current tax assets & current tax liabilities if
it has :
(a) a legally enforceable right to set off: &
(b) intends either to settle on a net basis or to realise the asset
& settle the liability simultaneously.
Deferred Tax Asset/ Liability
An entity shall offset deferred tax assets & deferred tax
liabilities if it has :
(a) a legally enforceable right to set off current tax assets
against current tax liabilities; &
(b) the deferred tax assets & the deferred tax liabilities
relate to income taxes levied by the same taxation
authority.

Disclosure
* The major components of tax expense(income) shall be disclosed separately
> current & deferred tax
> Adjustments for current tax of prior periods
> amount of deferred tax expense(income) relating to the origination & reversal of temporary differences
> amount of deferred tax expense(income) relating to changes in tax rates
> amount of benefit arising from a previously unrecognised tax loss, tax credit or temporary difference of a prior
period that is used to reduce current tax expense
> deferred tax expense arising from the write-down, or reversal of a previous write down
> amount of tax expense(income) relating to those changes in accounting policies & errors
* the aggregate current & deferred tax that are charged or credited directly or equity
* income tax relating to each component of other comprehensive income
* An explanation of changes in the applicable tax rates compared to the previous accounting period;
* An explanation of the relationship betwn tax expense(income) & accounting profit by numeric reconciliation as per the
standard.
* The amount of deductible temporary differences, unused tax losses, & unused tax credits for which no deferred tax asset is
recognised.
* The aggreagte amount of temporary differences associated with investments in subsidiaries, branches & associates and
interests in joint arrangements, for which deferred tax liabilities have not been recognised.
* income tax consequences of dividends that were proposed or declared before the financial statements were
approved for issue, but are not recognised as liability.