chuẩn mực kế toán quốc tế ias 12

IAS 12.Case Study 1 Facts An entity has the following assets and liabilities recorded in its balance sheet at December 31, 20X5: Carrying value $ million Plant and equipment 5 Trade

IAS 12.

Case Study 1

Facts

An entity has the following assets and liabilities recorded in its balance sheet at December 31, 20X5:

Carrying value ($ million )

Plant and equipment 5 Trade receivables 3

The value for tax purposes of property and for plant and equipment are $7 million and $4 million re-spectively The entity has made a provision for inventory obsolescence of $2 million, which is not allowable for tax purposes until the inventory is sold Further, an impairment charge against trade receivables of $1 million has been made This charge does not relate to any specific trade receivable but

to the entity’s assessment of the overall collectibility of the amount This charge will not be allowed in the current year for tax purposes but will be allowed in the future Income tax paid is at 30%

Required

Calculate the deferred tax provision at December 31, 20X5

Case Study 2

Facts

An entity acquired plant and equipment for $1 million on January 1, 20X4 The asset is depreciated at 25% a year on the straight-line basis, and local tax legislation permits the management to depreciate the asset at 30% a year for tax purposes

Required

Calculate any deferred tax liability that might arise on the plant and equipment at December 31, 20X4, assuming a tax rate of 30%

Case Study 3

Facts

An entity has revalued its property and has recognized the increase in the revaluation in its financial statements The carrying value of the property was $8 million and the revalued amount was $10 million Tax base of the property was $6 million In this country, the tax rate applicable to profits is 35% and the tax rate applicable to profits made on the sale of property is 30% If the revaluation took place at the entity’s year end of December 31, 20X4, calculate the deferred tax liability on the property as of that date

Case Study 4

Facts

An entity has spent $600,000 in developing a new product These costs meet the definition of an intangi-ble asset under IAS 38 and have been recognized in the balance sheet Local tax legislation allows these costs to be deducted for tax purposes when they are incurred Therefore, they have been recognized as an expense for tax purposes At the year-end the intangible asset is deemed to be impaired by $50,000

Required

Calculate the tax base of the intangible asset at the accounting year-end

MULTIPLE-CHOICE QUESTIONS

1 A subsidiary has sold goods costing $1.2 million to its parent for $1.4 million All of the inventory is held by the parent at year-end The subsidiary is 80% owned, and the parent and subsidiary operate in different tax jurisdictions The parent pays taxation at 30%, and the subsidiary pays taxation at 30%

1

Calculate any deferred tax asset that arises on the sale of the inventory from the subsidiary entity to the parent

(a) $ 60,000 (b) $200,000 (c) $ 48,000 (d) $ 80,000

2 An entity issued a convertible bond on January 1, 20X4, that matures in five years The bond can be converted into ordinary shares at any time The entity has calculated that the liability and equity components of the bond are $3 million for the liability component and $1 million for the equity component, giving a total amount of the bond of $4 million The interest rate on the bond is 6%, and local tax legislation allows a tax deduction for the interest paid in cash Calculate the deferred tax liability arising on the bond as at the year ending December 31, 20X4 The local

tax rate is 30%

(a) $1.2 million

(b) $900,000

(c) $300,000

(d) $4 million

3 An entity is undertaking a reorganization Under the plan, part of the entity’s business will be

demerged and will be transferred to a separate entity, Entity Z This also will involve a transfer of part of the pension obligation to Entity Z Because of this, Entity Z will have a deductible temporary difference

at its year-end of December 31, 20X4 It is anticipated that Entity Z will be loss-making for the first four years of its existence, but thereafter it will become a profitable entity The future forecasted profit is based on estimates of sales to intergroup companies Should Entity Z recognize the deductible temporary differ-ence as a deferred tax asset?

(a) The entity should recognize a deferred tax asset

(b) Management should not recognize a de-ferred tax asset as future profitability is not certain

(c) The entity should recognize a deferred tax asset if the authenticity of the budgeted

profits can be verified

(d) The entity should recognize a deferred tax asset if the intergroup profit in the budgeted

profit is eliminated

4 An entity has revalued its property and has recognized the increase in the revaluation reserve in its financial statements The carrying value of the property was $8 million, and the revalued amount was

$10 million Tax base of the property was $6 million In the country, the tax rate applicable to profits is 35% and the tax rate applicable to profits made on the sale of property is 30% Where will the tax liability be recognized and at what amount?

(a) In the income statement at $600,000

(b) In equity at $1.2 million

(c) In statement of recognized income and ex-pense at $1.4 million

(d) In retained earnings at $700,000

5 The current liabilities of an entity include fines and penalties for environmental damage The fines and penalties are stated at $10 million The fines and penalties are not deductible for tax purposes What

is the tax base of the fines and penalties?

(a) $10 million

(b) $3 million

(c) $13 million

(d) Zero

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