Presentation: offsetting tax balances and presenting tax expense

Current tax assets and liabilities are offset only if the entity has a legally enforceable right to set off and intends to settle net or simultaneously; in a group, between two entities, the same conditions are assessed for a single net payment. Deferred tax assets and liabilities are offset if that right exists and they relate to the same taxation authority and the same taxable entity (or entities that will settle net). Tax expense relating to profit from ordinary activities is presented in profit or loss.

In this lesson

1. 2Understand
2. 3The IFRS rule
3. 4Why?
4. 5How to apply it
5. 6Numerical example
6. 7Key points
7. 8Exercises