IAS 12Chapter 3Lesson 1
Current tax: liability, instalments and loss carry-back
Step 1 of 9Learning objectives
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Current tax for current and prior periods is a liability to the extent unpaid; if the entity has paid too much, the excess is an asset. It is measured at the amount expected, using the rates and laws enacted or substantively enacted at the reporting date. A tax loss that can be carried back to recover current tax of a prior period gives an asset from the period of the loss.
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Learning objectives
- Calculate current tax from accounting profit and the tax adjustments of the case.
- Account for current tax, instalments and the balance, as a liability or an asset.
- Determine and account for the asset arising from the carry-back of a tax loss.