IAS 12Chapter 2Lesson 2
The tax base of assets and liabilities
Step 1 of 8Learning objectives
Go deeper+2 deeper insights · +1 point of attention
The tax base is the value of an item 'in the eyes of the tax authority'. For an asset: what will be deductible when the entity recovers its carrying amount (or the carrying amount itself if those benefits are not taxable). For a liability: the carrying amount less what will be deductible later; for revenue received in advance: the carrying amount less what will not be taxable later. Some items have a tax base without being in the statement of financial position; on consolidation, the base is read from the relevant tax return.
25 minNot started
Learning objectives
- Calculate the tax base of an asset, including when the benefits it provides are not taxable.
- Calculate the tax base of a liability, including revenue received in advance.
- Identify an item with no carrying amount but with a tax base.
- Determine the relevant base on consolidation and return to the fundamental principle when the base is not apparent.