IAS 12 · Case studies (Step 3 of 5)
Practical case
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IAS 12 as amended by IFRS 18
Applies to annual periods beginning on or after January 1, 2027. Early application permitted. Only together with early application of IFRS 18, which is permitted and must be disclosed in the notes (IAS 12, para. 98N; IFRS 18, para. C1).
Dravenne SA, a fictitious manufacturer of refrigeration equipment (520 employees), with a branch in Canada, IFRS financial statements, year end 31 December, amounts in euros. It applies IFRS 18 for the first time to the period beginning on 1 January 2027 (case data).
L1 · Guided · 2027
Version applicable to annual reporting periods beginning on or after 1 January 2027; early application permitted only together with IFRS 18 (IFRS 18, para. C1). You present the 2027 tax. Level 1: where each tax amount goes. Level 2: subtotals and tax note. Amounts are case data; no operation is discontinued.
Standard concerned: IAS 12, version amended by IFRS 18. The questions are guided.
Fundamental level: the method, help and references are shown.
Method
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Context · Dated fact of the file
Dravenne SA, a fictitious manufacturer of refrigeration equipment (520 employees), with a branch in Canada, IFRS financial statements, year end 31 December, amounts in euros. It applies IFRS 18 for the first time to the period beginning on 1 January 2027 (case data).
Initial event · L1·2027 · Current stage
Standard concerned: IAS 12, version amended by IFRS 18. The questions are guided.
Pieces added
New period · L2·2027 accounts · Upcoming: unlocks after the current stage
Conclusion · Upcoming: unlocks after the current stage
1 document to work from at this level.
Document 1Supporting document
| Item | Amount |
|---|---|
| Current tax for the year | 880,000 |
| Deferred tax in profit or loss | 70,000 |
| Exchange loss in profit or loss on the branch's deferred tax liability | 11,000 |
| Deferred tax on a land revaluation (other comprehensive income) | 40,000 |
First level: all the data is in the brief and the pieces of this level.
2 parts to answer, marked when you submit the level.
Find the useful facts in the pieces before concluding.
Part 1 · Classification · Recognition
Classify each amount.
Drag each item into its category, or tap the category under the item.
Current tax 880,000
Deferred tax in profit or loss 70,000
Exchange loss 11,000
Deferred tax on revaluation 40,000
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Answer every part to submit the level and see the conclusion.
Normative references