IAS12IncomeTaxes(revised2000).pdfVIP

International Accounting Standards IAS 12 Income Taxes (revised 2000) In October 1996, the Board approved a revised Standard, IAS 12 (revised 1996), Income Taxes which superseded IAS 12 (reformatted 1994), Accounting for Taxes on Income. The revised Standard became effective for financial statements covering periods beginning on or after 1 January 1998. In May 1999, IAS 10 (revised 1999), Events After the Balance Sheet Date, amended paragraph 88. The amended text became effective for annual financial statements covering periods beginning on or after 1 January 2000. In April 2000, paragraphs 20, 62(a), 64 and Appendix A, paragraphs A10, A11 and B8 were amended to revise cross-references and terminology as a result of the issuance of IAS 40, Investment Property. In October 2000, the Board approved amendments to IAS 12 which added paragraphs 52A, 52B, 65A, 81(i), 82A, 87A, 87B, 87C and 91 and deleted paragraphs 3 and 50. The limited revisions specify the accounting treatment for income tax consequences of dividends. The revised text was effective for annual financial statements covering periods beginning on or after 1 January 2001. The following SIC Interpretations relate to IAS 12: SIC-21, Income Taxes - Recovery of Revalued Non-Depreciable Assets; and SIC-25, Income Taxes - Changes in the Tax Status of an Enterprise or its Shareholders. Introduction This Standard (IAS 12 (revised)) replaces IAS 12, Accounting for Taxes on Income (the original IAS 12). IAS 12 (revised) is effective for accounting periods beginning on or after 1 January 1998. The major changes from the original IAS 12 are as follows. 1. The original IAS 12 required an enterprise to account for deferred tax using either the deferral method or a liability method which is sometimes known as the income statement liability method. IAS 12 (revised) prohibits the deferral method and requires another liability method which is sometimes known as the balance sheet liability method.