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Ias 12

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In April 2001 the International Accounting Standards Board adopted IAS 12. IAS 12 has to do with the accounting treatment for Income Taxes. There have been many amendments and changes over the years with the last one being in 2010.
The objective of International Accounting Standard 12 is to advise on the accounting treatment for income taxes. The main issue in accounting for income taxes is how to account for the current and future tax consequences of certain items. One item it advises on is the future recovery or settlement of the carrying amount of assets or liabilities that are recognized in an entity’s statement of financial position. The second main item the standard covers is transactions and other events of the current period that are recognized in an entity’s financial statements. It is essential in the recognition of an asset or liability that the reporting entity expects to recover or settle the carrying amount of that asset or liability. If it is probable that the recovery or settlement of that carrying amount will make future tax payments increase or decrease, this standard requires an entity to recognize a deferred tax asset or deferred tax liability with certain limited exceptions.
Tax consequences of transactions and events are accounted for in the same way they transactions and events are accounted for. This means that if an event or transaction affects profit or loss then the tax consequence will also affect profit or loss. If an event or transaction affects equity then the tax consequence of that transaction or event will also affect equity. International Accounting Standard 12 also deals with presentation of income taxes in the financial statements, disclosure of information relating to income taxes, and the recognition of deferred tax assets arising from unused tax losses or unused tax credits.
For the scope of IAS 12, this standard

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