This course is a financial reporting course, which means that income tax treatment and tax computations are out of scope.
IAS 12 prescribes the accounting treatment for income taxes. This includes current tax and deferred tax. Whilst current tax refers to the amount of taxes payable or recoverable in respect of the taxable profit or tax loss for the period, and is the result of an income tax computation, deferred tax, on the other hand, refers to the amount of income tax payable or recoverable in future periods. It is an accounting adjustment that fulfils the matching concept.
The session will include a brief overview of the concept of deferred taxation.
This will be followed by the application of the principles of deferred tax to a number of various, complex situations. Each complex situation presented will be preceded by a simpler illustration relating to the same topic.