IFRS 12 sets out accounting procedures. Recognition of deferred tax liabilities and deferred tax assets. Purpose and scope of International Financial Reporting Standard. Determining the tax base for specific types of assets

IFRS 12 “Income Taxes” provides accounting rules and a general procedure for reflecting financial statements income tax calculations. This standard applies to all domestic and foreign taxes based on income tax.

The main question in income tax accounting is: how to take into account not only current, but also future tax liabilities that will arise as a result of the recovery of the value of assets or the repayment of liabilities included in the balance sheet as of the reporting date? For this purpose, a deferred tax mechanism is used. Let's look at the main terms and definitions of IFRS 12.

Accounting profit means the net profit or loss for the period before deducting tax expenses.

Taxable profit (tax loss) represents profit (loss) for the period, determined in accordance with the rules established by the tax authorities, in respect of which income tax is paid (reimbursed).

Current taxes- this is the amount of income taxes payable (reimbursable) in relation to taxable profit (taxable loss) for the period.

Deferred tax liabilities consist of income taxes payable in future periods in connection with taxable temporary differences.

Deferred tax assets represent amounts of income taxes recoverable in future periods due to:

With deductible time differences;

Unaccepted tax losses carried forward;

Unused tax credits carried forward.

Temporary differences are the differences between the carrying amount of an asset or liability and their tax base. Please note that temporary differences can either increase or decrease your tax liability. Based on this, temporary differences are divided into differences that increase tax liabilities (taxable) and decrease tax liabilities (deductible).

Thus, temporary differences may be:

Taxable, i.e. giving rise to taxable amounts in determining taxable profit (tax loss) for future periods when the carrying amount of the asset or liability is recovered or settled;

Deductible, i.e. they result in deductions in determining the taxable profit (taxable loss) of future periods when the carrying amount of the relevant asset or liability is recovered or settled.

Tax base of the asset or liability represents the amount of that asset or liability accepted for tax purposes.

It should be noted that the tax base of an asset can be interpreted as an amount that reduces the amount of economic benefits that will be received by the enterprise as a result of settlement or receipt of the book value of the asset. If the economic benefits are not subject to taxation, then the tax base of the asset will coincide with its carrying amount.

Example. For purposes accounting an item of fixed assets worth $300 thousand has a useful life of five years, and for tax purposes - three years. Residual value of the object according to data balance sheet by the end of the second year is equal to 180 thousand dollars, and the tax base is 100 thousand dollars. The deferred tax liability at an income tax rate of 30% at the end of the second year will be 24 thousand dollars (180,000 - 100,000) x 30%. The income statement will show the amount of 12 thousand dollars (the difference between the amount of the tax liability at the end of the second period and the amount of the accumulated liability for the period).

last period: 24,000 - 12,000 =12,000).

The taxable base of a liability is determined as its carrying amount minus the amount that reduces the taxable base for income taxes in future periods. In the event of deferred income, the tax base of the liability is calculated by subtracting from the book value amounts that will not be subject to taxation in future periods.

IFRS 12 requires that tax liabilities be recognized when it is probable that profits will be available against which they can be realized.

Example. Company C, carrying out a reorganization, plans to dismiss 20 employees with payment of the corresponding dismissal benefits in the amount of 100 thousand dollars. The arrears in payment of benefits will be repaid by the company in the period following the reporting period. The specified amounts are attributed entirely to expenses, which are deducted when determining the taxable profit of the company.

Tax expense (tax refund) consists of current tax expense (current tax refund) and deferred tax expense (deferred tax refund).

Recognition of current tax liabilities and assets does not pose any particular difficulties. Tax liabilities or claims are accounted for in accordance with normal liability and asset accounting principles. Current tax for the current and previous periods should be recognized as a liability equal to the amount unpaid. If the amount paid for a given period and a previous period already exceeds the amount payable for those periods, the excess should be recognized as an asset. A tax loss benefit that can be carried forward to offset current tax for the prior period should be recognized as an asset.

Recognition of deferred taxes. A deferred tax liability should be recognized for all taxable temporary differences unless they arise:

1) from goodwill, the depreciation of which is not subject to inclusion in gross expenses for tax purposes;

2) the initial recognition of an asset or liability in connection with a transaction that:

Is not a combination of companies;

At the time of occurrence, it does not affect either accounting or taxable profit.

When an economic benefit is not subject to tax, the tax base of the asset is equal to its carrying amount.

If the amortization of goodwill can be expensed, a deferred tax liability is recognized. It should be noted that special rules apply to business combinations.

Regarding taxable temporary differences, IFRS 12 suggests the following.

Allows assets to be recognized at fair value or revalued value in cases where:

Revaluation of an asset results in an equivalent adjustment to the tax base (no temporary difference arises);

The revaluation of the asset does not result in an equivalent adjustment to the tax base (a temporary difference arises and deferred tax must be recognised).

Taxable temporary differences arise and the cost of acquiring the company is allocated to the acquired assets and liabilities based on their fair values, without making an equivalent adjustment for tax purposes.

A deferred tax asset (requirement) shall be recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available to which the deductible temporary difference can be utilised, unless the deferred tax asset arises:

From negative business reputation (goodwill) accounted for in accordance with IFRS 3 “Business Combinations”;

The initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting nor taxable profit (tax loss).

The carrying amount of the deferred tax asset at each reporting date should be reviewed. The company must reduce it to the extent that it is no longer probable that sufficient taxable profit will be available on which the tax requirement can be applied.

Thus, the rules of IFRS 12 regarding the recognition of deferred tax assets differ from the rules for the recognition of tax liabilities: liabilities are always recognized in full (subject to existing exceptions to the rules), assets in some cases are subject to only partial recognition or are not subject to recognition at all. This approach is applied in accordance with the concept of prudence. An asset is recognized only when the entity expects to receive economic benefit from its existence. Availability of deferred tax liabilities (in relation to the same tax authorities) is conclusive evidence of the asset's recoverability.

Deferred tax is recognized as income or expense and included in net profit or loss for the period. The exception is those tax amounts that arise:

From a transaction or event recognized in the same or a different period by allocation to equity;

Business combinations in the form of acquisition.

Deferred tax shall be debited or credited directly to equity when the tax relates to items that are debited or credited in the same or a different period directly to equity.

Valuation of deferred taxes. When assessing deferred tax assets and liabilities, the income tax rate expected to exist at the time the claim (asset) is realized or the liability is settled should be applied. The tax rate assumption is made based on future rates existing or announced at the reporting date and tax laws. As a rule, the tax rate in effect at the reporting date is used for the assessment, since it is impossible to foresee its change in the future.

Sometimes the tax consequences of recovering the carrying amount of an asset depend on the method of recovery, so deferred tax assets are measured based on the expected method of recovering assets or settling liabilities at the reporting date.

Example. Company A owns an asset with a book value of $10,000 and a tax basis of $7,000. If the asset is sold, the income tax rate will be 24% and the tax rate on other income will be 30%.

If the asset is sold without further use, Company A recognizes a deferred tax liability of $1,680 (7,000 x 24%). If the asset is expected to be retained for the purpose of recovering its value through future use, the deferred tax liability will be $900 (3,000 x 30%).

An entity is required to disclose in a note to the financial statements the deferred component of tax expense, indicating the amounts resulting from changes in the tax rate.

Since deferred tax assets and liabilities are relatively long-term objects, the question arises about the possibility of reflecting the discounted amount of deferred taxes in the financial statements. However, IFRS 12 prohibits discounting of deferred taxes.

Temporary differences. As already mentioned, the difference between the residual value of an asset and its value from the point of view of the tax authorities is called temporary and becomes a source of deferred tax assets or liabilities. IFRS 12 uses the so-called balance sheet approach to determining deferred taxes, i.e. For each item of assets or liabilities, the difference between the balance sheet valuation and the tax base is determined.

Let's look at the circumstances that give rise to temporary differences.

1. Inclusion of income or expenses in accounting profit in one period, and in taxable profit in another. For example:

Items taxed on a cash basis and shown in financial statements on an accrual basis;

Example. Company A's financial statements show interest income of $20,000, but cash have not yet been received regarding him. In this case, interest income is taxed on a cash basis. Therefore, the tax base of such a percentage tax will be zero. A deferred tax liability will be recognized for the temporary difference of $20 thousand.

If accounting depreciation differs from depreciation charged to gross expenses for tax purposes;

Example. The initial cost of fixed assets of company A as of December 31, 2006 is $2 million, and depreciation (according to financial statements) is equal to $300 thousand. In tax accounting, depreciation charges in the amount of $500 thousand are written off as gross expenses . The tax base of the property, plant and equipment is $1.5 million. A deferred tax liability will be created in respect of a taxable temporary difference equal to $200 thousand.

Leases that are accounted for as finance leases under IFRS 17 but are considered operating leases under applicable tax laws.

2. Revaluation of fixed assets when the tax authorities do not revise their tax base.

It should be noted that the definition of temporary differences also applies to items that do not give rise to deferred taxes (for example, accruals on items that are not taxable or are not subject to write-off to gross expenses for tax purposes). Therefore, the standard contains a provision that allows non-taxable items to be excluded from the calculation of deferred taxes.

Example. Company A loaned $400,000 to Company B. Company A's financial statements at December 31, 2006 show a loan receivable of $300,000 and there will be no repayment of the loan. tax consequences. Hence, the tax base of the loan receivable is equal to $300 thousand. There is no temporary difference.

You should pay attention to the occurrence of temporary differences when merging companies:

When calculating goodwill. The cost of an acquisition is allocated to the identifiable assets and liabilities acquired based on their measurement at fair value at the acquisition date, which may result in a restatement of their carrying amounts without affecting the tax basis. Temporary differences arise when a business combination has no or different effect on the tax bases of the identifiable assets and liabilities acquired. Deferred tax is recognized in respect of temporary differences. Such recognition will affect the share of net assets, including the value of goodwill (deferred tax liabilities are identifiable liabilities of the subsidiary). In connection with business reputation (goodwill), a temporary difference also arises, but IFRS 12 prohibits the recognition of the deferred tax arising in this way; due to differences between the carrying amount of investments in subsidiaries (branches, associates or interests in joint ventures) and their tax basis (which is often equal to the cost of acquisition). Book value is the parent company's or investor's share of net assets plus the book value of goodwill.

Example. Company A paid $800 for 100% of the shares of Company B on January 1, 2006. In Company A's consolidated accounts as of that date, the carrying amount of its investment in Company B consisted of the following, in thousands of dollars:

Fair value of Company B's identifiable net assets (including deferred taxes) 620

Goodwill 180

Book value 800

At the acquisition date, the carrying amount is equal to the acquisition cost, since the latter is allocated to net assets, and the remainder is goodwill.

Example (continued). In the country where Company A operates, the tax base is equal to the cost of the investment. Therefore, no temporary difference arises at the acquisition date.

Company B's profit for 2006 amounted to $150 thousand, which was reflected in the value of its net assets and equity capital.

Company A amortizes goodwill over six years. For 2006, accrued depreciation amounted to $30 thousand. As of December 31, 2006, in the consolidated financial statements of Company A, the carrying amount of its investment in Company B consisted of the following, thousand dollars:

Fair value of Company B's identifiable net assets (620 + 150) 770

Goodwill (180 - 30) 150

Book value 920

Thus, a temporary difference arises in the amount of 120 thousand dollars (920 - 800).

The Company must recognize a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, branches and interests in joint ventures, except to the extent that both meet the following criteria:

The parent company, investor or joint venturer can control the timing of the repayment of the temporary difference;

It is possible that the temporary difference will not be reversed in the foreseeable future.

The parent company, by controlling the dividend policies of its subsidiaries (and affiliates), can determine the timing of the repayment of temporary differences associated with the underlying investments. Therefore, if a parent decides that no dividends will be paid in the foreseeable future, it does not recognize a deferred tax liability.

Example (continued). If Company A decides not to sell its interest in Company B's shares for the foreseeable future and requires Company B not to distribute its profits, then the deferred tax liability in connection with Company A's investment in Company B's shares will not be recognized (Company A will have to disclose the amount of the temporary difference in the amount of $120 thousand, for which deferred tax was not recognized).

If Company A plans to sell its interest in Company B or Company B expects to distribute profits, Company A recognizes a deferred tax liability to the extent that the temporary difference is expected to be settled. The tax rate reflects the manner in which Company A recovers the carrying amount of its investment.

An investor who invests in an associated company does not control it and, as a rule, does not have the opportunity to determine its dividend policy. Therefore, in the absence of an agreement that requires it not to distribute the earnings of the associate for the foreseeable future, the investor recognizes a deferred tax liability arising from taxable temporary differences associated with its investment in the associate.

Example (end). If Company B is an associate of Company A, then, absent an agreement that Company A will not receive its share of Company B's profits in the foreseeable future, Company A must recognize deferred tax on the $120,000. The tax rate should reflect the method of recovery by Company A the carrying amount of its investment.

Retained earnings of subsidiaries, associates, branches, and joint ventures are included in consolidated retained earnings, but income taxes are payable when the earnings are transferred to the reporting holding company.

According to IFRS 27, consolidation excludes unrealized gains (losses) on intragroup transactions, which can lead to temporary differences. As a rule, the subjects of taxation are individual legal entities included in the group. The tax base of an asset (from the tax authorities' point of view) acquired from another group company is equal to the purchase price paid by the purchasing company. In addition, the selling company will have to pay tax on profits from the sale of the asset, regardless of the fact that the group still owns the asset.

In this case, deferred tax is recognized using the acquiring company's income tax rate.

Presentation and Disclosure. In the balance sheet, tax assets and liabilities must be presented separately from other assets. Deferred tax assets and liabilities must be separated from current tax assets and liabilities.

If a company distinguishes between current and non-current assets and liabilities in its financial statements, it should not classify deferred tax assets (liabilities) as current assets (liabilities).

A company must offset current tax liabilities when it:

a) has a legally enforceable right to set off recognized amounts;

b) intends to set off or realize the asset and repay

obligations at the same time.

An entity must offset deferred tax liabilities when it:

a) has a legally enforceable right to offset current tax assets and current tax liabilities;

b) deferred tax assets and deferred tax liabilities relate to income taxes that are collected by the same tax authority:

From the same subject of taxation;

From various taxable entities that intend to offset current tax liabilities and assets or to realize assets and settle liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities and claims are expected to be settled or offset.

The income statement must present the tax expense (tax refund) that is associated with profit or loss from ordinary activities. IFRS 12 requires not only to reflect the amount of income tax in the income statement, but also to disclose its main components.

Thus, deferred tax requires the disclosure of the following information, namely:

1) elements of tax costs (tax reimbursement), which may include:

Current tax costs (tax refund);

Adjustments to prior periods;

Deferred tax costs (tax refund) in connection with the formation and settlement of temporary differences;

Deferred tax costs (tax refunds) due to changes in the income tax rate;

Tax costs (tax refund) due to changes in accounting policy and correcting a fundamental error;

2) total current and deferred taxes related to items that are debited or credited to equity;

3) tax expenses (tax refunds) that relate to the results of extraordinary circumstances recognized during the period;

4) explanations of the relationship between tax costs (tax refunds) and accounting profit in the form of a numerical reconciliation between:

Tax costs (tax reimbursement) and the product of accounting profit and the applicable income tax rate(s), indicating the method for calculating the applicable rate(s);

Or the average effective tax rate, disclosing the method for calculating the applicable tax rate;

5) explanations of changes in the applicable tax rate(s) compared to the previous period;

6) the amount (and, if any, expiration dates) of deductible temporary differences, unused tax losses and credits for which a deferred tax asset was not recognized in the balance sheet.

The international standardization system is used to facilitate the exchange of data between countries. IFRS is used by Russian companies that are participants in foreign enterprises - banks, insurance companies and when conducting trading or investment activities. Among domestic organizations, the formation of accounting and reporting according to IFRS is prerequisite activities of commercial banks. In this article we will talk about income tax according to IFRS 12, and consider the accounting procedure.

IFRS represents a certain procedure for assessing accounting objects, a list mandatory documents and the grounds for entering information into the reporting. The fundamental principles of international standardization are the accessibility of the format for presenting information, the absence of distortion of indicators, and the interconnectedness between reporting periods. The information should not reflect the interests of a group of persons and should not have significance for making economic decisions.

Objectives implemented by the provisions of IAS 12

The main elements of international reporting standardization are assets, costs, liabilities, profits, and equity. The standard providing for the disclosure of information about profits is IFRS 12. To account for profits when using the standard, the terms used in the global document flow are used. The need for unification of operations and terms arose in connection with the development of interrelations in the economy and the creation of companies conducting joint activities.

Differences in application of the provisions of the standards

When developing PBU 18/02, the provisions of the international standard were used to bring together domestic and international reporting. The difference in the provisions of the two types of standards is the intended use. The domestic standard is aimed at the correct formation of financial results, the international standard is aimed at detailed disclosure of the information received and satisfying the interests of external users.

The standards have a number of detailed differences.

The purpose of creating the domestic standard PBU 18/02 is to create a relationship between the two types of accounting in terms of forming the profit tax base.

Accounting for income tax expenses

The main purpose of the international standard IFRS (IAS) 12 is to reflect income tax expenses, current (RTN) and deferred for payment or reimbursement for future periods (RON).

Presentation of financial information in IFRS 12

The standard specifies accounting treatment related to current and deferred income taxation. When generating financial information, a number of rules are taken into account.

Accounting for temporary differences within the framework of standardization

The standard introduced the concept of temporary differences between profits calculated from balance sheet and tax data. The essence of the concept is that income and expenses calculated using different data are recognized at different times. The indicator is defined as the difference between the carrying amount of an asset or liability and its tax base.

Temporary differences are divided into deductible amounts, which subsequently lead to a reduction in liabilities (IT) and taxable ones, which further increase income tax (IT). An example of a temporary difference is when accounting for depreciation charges in the case of using bonuses in taxation. Part of the cost of a fixed asset in tax accounting is written off at a time, which determines the occurrence of temporary differences.

Using the amounts ONA and ONO

If differences in assessment occur in accounting, the indicators of deferred tax asset (DTA) and liability (DTA) are used. The possibility of creating data is preceded by an analysis confirming the subject’s right to use preferences. Features of data generation:

• IT is taken into account for tax reimbursement in subsequent periods in the presence of deductible temporary differences or in the presence of losses carried forward to a future reporting period.
• IT is applied if there are taxable differences in accounting, on the basis of which tax is subsequently paid.

The possibility of creating ONA is available if there is evidence of future profit, the amount of which will allow losses to be offset or the required benefits to be applied.

To present reliable information, an enterprise must determine for each asset and liability the amount calculated at the reporting date according to the balance sheet and tax value, then determine the differences and determine IT or ONA taking into account the predicted rate.

Evaluation of ONA or ONO indicators and features of reporting

In reporting, deferred indicators are taken into account at different rates applied depending on the conduct of business. To create an SHE or IT, you must have information about the rates used in the rollover period. A change in the rate entails a recalculation of amounts and adjustments based on current data. When taking into account SHE and IT:

• No discounting is carried out.
• At the reporting date, it is necessary to re-recognize SHE or ONO due to changed conditions.
• Based on the results of the assessment, it is necessary to reduce the amount of OTA, taking into account the likelihood of a decrease in profit necessary to reimburse the tax.
• In subsequent periods, increase IT upon receipt of a forecast of sufficient profitability.

An example of changing the value of SHE

The company received a loss of 20 thousand USD. The shareholders decided to carry forward the loss to a subsequent period at a tax rate of 20% in the amount of the deferred asset of 4,000 USD. e. Next year, the company's costs increased by 10 thousand cu, which did not allow it to reduce losses in full. Accordingly, IT needed to be reduced by 2,000 USD. (20,000 – 10,000) x 20%. If profit arises in the subsequent period, the amount of IT is restored.

Features of grouping information in reporting

The articles separately indicate the constituent elements of profit, grouped by degree of disclosure:

• Detailed, detailing information established by the standard and internal company policy.
• Explanatory, decoding indicators in relation to periods or among themselves.
• Other, representing information that the organization considered necessary to convey to users.

The standard indicates the need to record rolled-up indicators that can be offset against each other with an indication of the total balance. The opportunity to carry out an offset operation is available for indicators relating to the same period or contributed to one recipient. If the asset is expected to be reimbursed in a year, and the liability is expected to be repaid after two reporting periods, offset is not performed.

The right to set-off arises after a number of steps have been taken, including an analysis to confirm that the entity's liabilities will not decrease. When conducting offsets, companies use only significant data that influences economic decision-making.

Data Submission Requirements

The procedure for data generation has been approved general requirements required by the standards:

• The reporting contains information confirming the assessment of the subject’s condition and the result of its activities.
• When entering data, the continuity and consistency of accounting is taken into account.
• The assessment of indicators is accepted only if there is reliable evidence.
• Variants of business models, recognition of units, and individual parameters established by the organization are allowed.
• The statements confirm the concept of capital and provision of the required level.

Category “Questions and Answers”

Question No. 1. When does it become necessary to voluntarily report according to international standards?

Entities use international standardization to make information more accessible to foreign users. Reporting is generated by organizations wishing to attract foreign partners. When determining the need, feasibility is taken into account, since servicing operations requires professional knowledge.

Question No. 2. Does the regulation address the procedure for providing government subsidies?

The standard reflects information in the form of temporary differences that arise when a deduction or subsidy is provided.

Question No. 3. Is it allowed to indicate collapsed data on amounts paid to different budgets?

Balanced data is indicated when it is possible to offset, which is only possible with a single recipient.

Question No. 4. How many periods are taken into account when presenting the first financial statements under IFRS?

The reporting, presented for the first time according to international standards, covers 2 calendar annual periods - the current and the previous one.

Question No. 5. Which entities apply the Russian standard?

The provision is used by all organizations that apply the generally established taxation system and maintain full accounting records. The standard is mandatory for entities paying income tax. They do not use the standards for small business organizations, which are enshrined in internal regulations.

Updated 01/17/2019 at 17:35 10,811 views

Any enterprise, regardless of its size, industry, geography, business specifics and model management accounting- pays taxes. The tax burden exists in all countries and all types of economies, being one of the most important sections of the financial statements of companies.

Among different types taxes calculated depending on the characteristics of a particular company, corporate income tax is not only one of the main types of tax deductions paid from a business, but also a certain metric performance indicator, working with which companies can significantly influence their operating financial position. Income tax arises at the moment when the financial and economic model of the company is effective, and its business can be considered sufficiently effective.

This topic is extremely broad, and the issue of generating correct tax reporting for the financial profit section is a complex multi-stage process, which involves both the financial and senior management of the company. Depending on the talent of financial management and the strategic goals set for the company, work on this issue can be carried out using various and not always “pure” methods.

To ensure that financial statements for the income tax section reflect real data and are standardized as much as possible in accordance with modern international practice, the IFRS Board developed a special standard, IAS 12, the purpose of which was to streamline companies’ approaches to accounting operations for this group of information. Today we will look at the main provisions, practice of application and problems that the special IFRS standard IAS 12 contains.

IFRS Income Taxes - General Information

The IFRS 12 standard is applied regardless of the managerial and factor differences of a business that uses international reporting standards in its work. It applies to all commercial companies in all markets in relation to all local/national and foreign taxes that are calculated by the company in relation to the size of its financial profit. The group under consideration of the company’s aggregate tax burden also includes all taxes on the division of profits associated with the relationship between parent and subsidiary companies, in cooperation with joint ventures and associated enterprises for amounts due in favor of the enterprise considered in the reporting.

In the company's accounting policy, on the basis of the regulations of the standard in question, the concepts are deciphered and established according to which management analytics of the tax section of the company's profit takes place and the subsequent use of generalized data to generate this section of the reporting:

• Each asset and liability of a company acquires a tax base characteristic in the form of the amount that is assigned to the asset/liability for tax purposes.
• Buh. profit is treated as the amount of profit or loss before applying the amount of tax expense in the period.
• Current taxes are the total tax burden calculated in relation to the taxable profit of the company in the current reporting period.
• Deferred taxes are projected amounts of tax payments for future periods, taking into account temporary differences.
• The amount of cash tax expense is an aggregated amount taken into account in the period for profit/loss, consisting of the amount of current and deferred taxes.

IFRS IAS 12 - application features

The regulation of the standard establishes the logic and practice of accounting for all recognized assets and liabilities of the reporting enterprise, including current and forecast. Therefore, the tax base for assets will be the amount by which the aggregate of taxable economic benefits that the enterprise would receive if the carrying amount of the asset is reimbursed is reduced. Moreover, if such benefits are not subject to payments, then the size of the base and the size of the book value will be equal.

When accounting for a liability, the tax base is calculated as the sum of the book value reduced by any amounts by which it is necessary for tax purposes to reduce the liability in question in periods in the future. If, for example, revenue advanced to the company is considered, then the tax base of the liability will be equal to its carrying amount, excluding the amount of revenue not subject to tax in future periods.

When an entity recognizes an asset, it simultaneously accepts that the carrying amount of the asset will be received through future economic benefits. When the amount of the book value is higher than the size of the total base, then the amount of taxable economic benefits exceeds the upper value of the amount deductible for tax purposes. This amount represents the temporary difference, which is taxable, and the liability to pay income taxes is the deferred liability itself.

During the period of time during which the carrying amount of the asset is gradually recovered, the taxable temporary difference is restored and, as a result, taxable profit is formed. This results in a subsequent reduction in economic benefits by tax payments, and IAS 12 governs the initial recognition of all tax liabilities.

A number of items in the accounting of an enterprise have an emerging and changing tax basis, but are not actually assets/liabilities according to the consolidated statement of financial position. Material costs actually incurred for such items are recognized in the amount of accounting profit in the period of their occurrence, but when determining taxable profit, their use is possible only in future periods. If such a non-obvious situation arises, or when the real basis of the asset/liability is not obvious, companies are recommended to recognize a deferred tax liability, taking into account management exceptions.

In the event of an unpaid portion of the tax for the current or expired periods (debt amount, penalty, fine), such amount is recognized as a liability in the amount of the outstanding amount. On the contrary, an overpayment of income tax (excess amount), which has already been paid in the current or previous periods in excess of the amount actually generated, taking into account the decrease in the base under consideration, is recognized as an asset of the enterprise. Any tax loss benefits arising to the entity are recognized as an asset in the period in which the loss occurs.

The standard does not define a specific algorithm for the work of financial management and reporting preparers. It would be appropriate to say that the regulations of the standard establish the rules and logic with which it is necessary to approach accounting for taxes on a company’s profits. Such a methodological basis for the formation of a system of financial and economic accounting, based on the same principles for different companies, ultimately contributes to the improvement of the entire financial system global economy by increasing the overall level financial literacy and introduction at the private business level of the most productive methods of working with corporate financial reporting.

Tax liabilities and assets are always assessed using tax laws, methodologies and rates that are relevant to the market and in force at the end of the reporting period. In this sense, the standard does not establish any basic values ​​and requires focusing on actual current financial legislation. If there is a difference between the levels of taxable income in the amount of tax rates, then projected average tax rates are used in the assessment. The amount of the carrying amount of the deferred asset is reviewed by the financial team of the enterprise in each reporting period upon its completion. At the same time, deferred assets and liabilities are not subject to discounting in accordance with the requirements of the IFRS 12 Income Taxes standard.

According to the requirements of IFRS IAS 12 Income Taxes, an enterprise must separate additional information in the context of income and expenses for income tax, disclosing these issues separately. Consolidated information, which together provides greater analytical and management effect, can be summarized into groups of indicators in order to provide reporting users with an easier-to-use tool. For example, in the detail group, preparers might include data on adjustments between tax periods and information that explains the firm's established tax data metrics.

The second group may be information that reveals the features of the data reflected in the reporting, demonstrating, for example, the relationship between income (expense) for income tax and the amount of accounting profit as a whole. In order to most fully reflect all the metrics, data and conditions that the company considers appropriate to reflect in order to achieve the goal of reliable disclosure of its current and projected tax liabilities, the company supplements the reporting with any material information at its discretion.

Conclusions and conclusion on IFRS IAS 12 Income taxes

Income tax is one of the key and at the same time complex financial indicators of the company and the economic state of the business in question. The IAS 12 Income Taxes standard helps companies operating in accordance with international financial reporting standards to develop, based on these recommendations, their own income tax accounting system, regardless of the accounting periods and the overall complex composition of this multi-level indicator.

The application of a set of recommendations set out in the standard allows for a correct assessment and reasonable recognition of all components related to the topic of income tax in the current and future periods and the company’s activities. This approach contributes to the improvement of the financial system of the enterprise and the formation of a tax policy that meets modern realities, which in turn increases financial stability and competitiveness.

Introduction

Basic elements of current tax

Deferred taxes

Confession

Reflection in reporting

Disclosure

List of used literature

Introduction

IFRS 12 is devoted to the reflection of income taxes in accounting and reporting. In accordance with the standard, accounting for income tax calculations involves reflecting the tax consequences arising in the reporting and subsequent periods of such facts of economic life as:

Future recovery of the carrying amount of assets;

Business transactions and other events recognized in the financial statements.

The procedure for reflecting income taxes in accounting and reporting Russian companies defined in the Accounting Regulations “Accounting for income tax calculations”, approved by Order of the Ministry of Finance of Russia dated November 19, 2002 No. 114n.

According to IFRS 12, income taxes are taxes calculated on the basis of profits, established in accordance with both national legislation and legislation foreign countries including withholding taxes paid by subsidiaries, associates and joint ventures on distributions of profits to the reporting entity. PBU 18/02 considers exclusively income tax paid in the Russian Federation.

The profit (loss) indicator determined for tax calculation purposes, as a rule, does not coincide with the profit (loss) indicator reflected in financial statements. In this regard, it is necessary to distinguish between accounting and taxable profit.

Accounting profit is the profit (loss) for the reporting period before deducting income tax expenses. The indicator of accounting profit (profit before tax) is reflected as a separate line in the income statement.

Taxable profit (loss) is the amount of profit (Loss) for the period, determined in accordance with the tax rules, on the basis of which the profit tax payable (reimbursement) is calculated. This indicator is reflected in the income tax return.

When calculating income taxes, taxable income is multiplied by the applicable income tax rate, which is the tax rate established in accordance with tax laws and in effect for the relevant accounting period. The applicable income tax rate is also reflected in the return.

Basic elements of current tax

Current tax is the amount of taxes on profits subject to payment (reimbursement) based on taxable profit ( tax loss) for the period. It can be calculated as follows:

TN = C * NP

where C is the applicable income tax rate;

NP – taxable profit (loss).

The current tax is reflected in tax return as the amount payable (reimbursement) for the reporting period and can be either positive or negative. The current tax should be noted from the current debt to the budget for income tax reflected in the accounting accounts. In particular, according to the legislation of a number of countries, including Russia, if a company receives a loss during a tax period, it does not have the right to a refund from the budget of the tax calculated on the basis of such a loss. In this case, the current tax will be a negative value, while in accounting the budget debt to the company will not be accrued.

According to IFRS 12, current tax consists of current tax expense and deferred income tax expense:

TN = RTN + RON

where RTN is the expense (income) for the current tax;

RON – deferred tax expense (income).

PBU 18/02 identifies a larger number of components of the current tax. In accordance with paragraph 21 of PBU 18/02, current income tax is the amount of actual tax determined based on the amount of conditional income (expense), adjusted for the amount of permanent tax liabilities, deferred tax assets and liabilities of the reporting period:

TN = UR + PNO + IOAN – IUN

where UR is the conditional income tax expense (income);

PNO – permanent tax liability;

IAON – change in deferred tax assets for the reporting period;

Let's consider the components of the current tax provided for by PBU 18/02.

Conditional income tax expense (income) is the amount of tax determined on the basis of accounting profit (loss) and reflected in accounting regardless of the amount of taxable profit.

Conditional expense (income) is calculated using the formula:

UR = C * BP

BP – accounting profit (loss) for the reporting period.

According to clause 20 of PBU 18/02, the conditional expense is taken into account in accounting in a separate sub-account to the profit and loss account. IFRS 12 does not require separately reflecting this indicator in the accounting accounts. However, in accordance with IFRS 12, in the explanatory note, the conditional expense indicator can be reflected in a numerical reconciliation between actual consumption for income tax and accounting profit.

A permanent tax liability is an amount that leads to an increase in income tax payments in a given reporting period.

PNO is calculated using the formula

PNO = C * PR

where C is the applicable income tax rate;

PR - permanent differences representing income (expenses) that form accounting profit (loss), but are never taken into account when calculating taxable profit.

IFRS 12 does not introduce the concepts of PR and PNO, considering PNO as part of the current income tax expense (RTN)

RTN = UR + PNO

where UR is a conditional expense (conditional income) for income tax;

PNO is a permanent tax liability.

Deferred tax expense can be presented as the change in deferred tax assets and liabilities for the period as follows:

RON = IOAN – IOON

where IOAN is the change in deferred tax assets for the reporting period;

UNI – change in deferred tax liabilities for the reporting period.

Comparing the expressions for calculating the current tax provided for by IFRS 12 and PBU 18/02, you can see that by substituting the above expressions for calculating RTN and RON into formula 3, we get formula 2. Thus, IFRS 12 and PBU 18/02 interpret “current tax” indicator.

Deferred taxes

When an entity recognizes an asset or liability, it expects to recover its cost in the current or subsequent reporting periods. If such recovery would result in future increases or decreases in income tax payments, the entity must recognize a deferred tax liability or asset in the manner and on the terms specified in IFRS 12.

At the same time, for each asset recognized as of the reporting date, the tax base indicator is determined. The tax base is an amount characterizing the tax consequences of repayment (reimbursement) of a certain asset (liability).

The tax base of an asset is the amount that, upon reimbursement of the asset's book value, will be recognized as an expense for tax purposes, that is, will reduce taxable profit. The tax base of a liability is its carrying amount less any amounts that would be recognized as an expense for tax purposes when the liability is settled.

The tax base of an asset (liability) may be equal to its carrying amount, in particular when:

The accrued expense was taken to reduce the taxable profit of the organization in the current or previous tax periods;

Accrued expenses will never be accepted for tax purposes;

Accrued income will never be subject to income tax.

The accounts payable on the loan is CU5,000. Repayment of the loan will have no tax consequences. The tax base of the loan liability is CU 5,000.

Individual items have a tax base, but are not recognized as assets or liabilities on the balance sheet. For example, research and development expenses are recognized as an expense when determining accounting profit for the period in which they are incurred, but may be taken as a tax expense when determining tax profit in subsequent accounting periods.

If difficulties arise when determining the tax base of an asset (liability), you can be guided by the following: general principle on which IFRS 12 is based: an entity must, with certain exceptions, recognize a deferred tax liability (asset) if the recovery (settlement) of the carrying amount of the asset (liability) will result in an increase (decrease) in tax payments compared to what they would be if such reimbursement (repayment) had no tax consequences.

PBU 18/02 does not contain a definition of the tax base, since when calculating deferred taxes it is based on the income statement approach, which involves an analysis of profits that form accounting profit in one and taxable profit in another reporting period.

Under IFRS 12, differences between the carrying amount of an asset or liability as reported on the balance sheet and its tax base are called temporary differences.

PBU 18/02 defines temporary differences as income (expenses) that form accounting profit in one reporting period.

Temporary differences are taxable and deductible.

Taxable temporary differences are temporary differences that give rise to taxable amounts in future periods when the carrying amount of the asset or liability is recovered.

Accounting for income tax liabilities

In international financial reporting standards, accounting for an enterprise's income tax obligations is regulated by IFRS 12 "Income Taxes". In Russian practice, accounting of transactions related to the taxation of profits is regulated by PBU 18/02 “Accounting for income tax calculations.”

According to IFRS 12, it is necessary to take into account not only the current, but also the company's deferred income tax liability.

Current taxes constitute the amount of accrued income tax payable or refundable, which is calculated for the period according to indicators adopted in accordance with national tax legislation.

Deferred tax liabilities are additional amounts of income tax that are accrued according to certain rules in the event of a discrepancy between taxable and accounting profits.

The calculation of deferred tax is preceded by the formation of:

The tax base, expressed as the amount at which taxable assets or liabilities are taken into account for tax purposes financial results;

Temporary differences representing differences between the carrying amounts of assets or liabilities and their tax bases.

Temporary differences are divided into taxable and deductible. Taxable temporary differences constitute taxable amounts in determining the taxable financial results of future periods in which the carrying amount of the assets or liabilities is recovered or settled. Deductible temporary differences determine the amounts that are deductible in computing future taxable financial results in which the carrying amount of assets or liabilities is recovered or settled.

For example, an object of fixed assets has an initial cost of 150,000 rubles, the amount of depreciation accepted for accounting is 50,000 rubles, and accrued according to tax legislation- 90,000 rub. The book value of the object is 100,000 rubles. (150,000 - 50,000), and the tax base is 60,000 rubles. (150,000 - 90,000). The book value of the object is 40,000 rubles higher than its value according to the tax base. (100,000 - 60,000), this amount forms a temporary difference equal to 40,000 rubles. Since the amount of depreciation accrued under tax law is greater than that accepted for accounting, the taxable profit of the reporting period is less than the balance sheet. However, in future periods, the repayment of the book value of the fixed asset will lead to an increase in taxable amounts, therefore the temporary difference equal to RUB 40,000 is taxable. If depreciation for taxation of financial results is calculated at lower rates than in accounting, then the resulting difference is the amount of the deductible temporary difference.

According to IFRS 12, temporary differences arise in the following cases:

When revenue from the sale of goods is included in accounting profit in one period (accrual method), and in taxable profit in another (cash method);

When interest income is included in accounting profit in one period (accrual method), and in taxable profit in another (cash method);

When there are differences in the methods of calculating depreciation in accounting and taxation of financial results;

If there is a difference in the period of reflection of research and development costs in accounting and taxation of financial results;

When revaluing assets without an equivalent adjustment for tax purposes;

If the tax basis of an asset or liability differs from its original cost.

Depending on the type of temporary differences, deferred tax liabilities or deferred tax assets are created. Deferred tax liabilities are accounted for as income tax amounts calculated on the amounts of taxable temporary differences and payable in future periods. Deferred tax assets represent the amounts of income taxes calculated on the amounts of deductible temporary differences and subject to reimbursement in future periods.

IFRS 12 regulates the rules for measuring deferred tax liabilities and assets. Deferred tax liabilities and claims should be measured at the income tax rates expected to be in effect in the tax (reporting) period in which the claim is to be realized and the liability is settled. IFRS 12 notes that short-term tax liabilities and claims are most often assessed at tax rates in effect in the tax (reporting) period, but taxpayers have the right to use rates established by the government of a given country and coming into force in the future. Deferred tax liabilities and assets are not discounted.

In accordance with IFRS 12, financial statements account for both current and deferred income taxes.

Current income tax is recognized as a liability equal to the outstanding debt to the budget, or as a claim due to an overpayment of the amount of tax due. A deferred tax liability must be recognized for all taxable temporary differences that give rise to an obligation to pay income taxes in future periods. Deferred tax assets are recognized for all deductible temporary differences for which the asset is recovered in future periods.

Tax liabilities and claims are treated separately in the balance sheet from other assets and liabilities. Deferred tax liabilities and liabilities are separated from current tax liabilities and liabilities. If the balance sheet items are divided into short-term and long-term, deferred tax liabilities and claims should not be included in current liabilities or assets.

Current tax liabilities and requirements can be offset provided that the business entity has legal right for this offset and repays the obligation on a balanced basis. The right to set off a current tax claim against a current tax liability usually arises when payments are collected by a single tax authority.

Deferred tax liabilities and assets must be offset if the entity has a legally enforceable right to offset current tax assets and current tax liabilities and provided that the deferred tax liabilities and assets relate to taxes levied by the same tax authority.

Under IFRS 12, both current and deferred taxes (tax refunds) on profits must be recognized as expenses or income and included in net profit or loss for the period. The exception is tax amounts (tax refunds) arising on items recorded directly in capital accounts that relate to an increase or decrease in capital. An example of such amounts can be tax amounts arising in connection with a change in the book value of fixed assets as a result of their revaluation.

According to IFRS 12, financial statements must disclose separately:

Current tax expense (current tax refund);

Deferred tax expense (deferred tax reimbursement) associated with the formation of temporary differences;

Deferred tax expense associated with changes in tax rates;

Amounts of benefits arising from receiving a tax credit;

Amounts of tax expense due to changes in accounting policies.