Introduction to IAS 12 and deferred tax
In this 12-minute session, you'll learn how IAS 12 handles taxation accounting and why deferred tax matters for your financial statements. We'll cover the two main elements of tax—current tax (what you owe now) and deferred tax (what you'll owe later)—and explore why accounting profit and taxable profit rarely match.
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In this lesson
- 0:00 Section 11: Taxation and IAS 12 overview
- 0:28 Current tax: Recognition and measurement
- 2:19 Under and over provisions explained
- 5:05 Current tax worked example
- 8:18 Introduction to deferred tax
- 9:02 Accounting profit versus taxable profit
- 10:08 Temporary differences and timing gaps
- 12:08 Why deferred tax matters
About this lesson
You'll understand temporary differences, see how over and under provisions work, and discover why deferred tax adjustments prevent profits from being misstated and protect shareholder decisions. This is essential knowledge for FR, SBR, and advanced reporting papers where tax accounting directly affects how you present financial performance.
Duration: 13m
Transcript
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