IAS 12 - Income Taxes Flashcards Preview

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Flashcards in IAS 12 - Income Taxes Deck (3)
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1
Q

underprovision

A
  • An underestimate of the tax expense in the previous year.

- This must be added to the current year tax charge

2
Q

overprovision

A
  • An overestimate of the tax expense in the previous year

- This must be deducted from the current year tax charge

3
Q

accounting for income taxes

A
  • Recognized as an expense in the SOPL and other comprehensive income and as a current liability in the SOFP
  • Tax in the SOFP is always the estimate of the current year’s tax bill
  • Tax in the SOPL and other comprehensive income = (current year estimate) - (prior year over-estimate) + (prior year underestimate)