AASB 112 Income Taxes, introduces a conceptual change in the manner in which reporting entities account for income taxes. The conceptual change means that the old '4 column' approach to derive tax balances is no longer appropriate. Also, the financial statements of affected entities may be adversely affected. For instance, the new standard may require entities to recognise the tax impact of any unrealised gains booked in the financial statements. This is generally not required under the current standard. The new rules are applicable to financial reporting periods commencing on or after 1 January 2005.
These seminar materials will assist you in understanding:
- what the change in the conceptual approach means
- how to calculate tax balances under the new standard
- how to transition into the new standard
- what the key issues, traps and solutions are.