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IAS 12Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5

IAS 12 Income Taxes — wording before IFRS 18Applicable today

Applies to annual periods beginning before January 1, 2027.

Mission · workpaperWorkpaper · IAS 12L1 · Fundamental

Documents

20X1 tax reconciliation

Schedule

20X1 tax reconciliation

Draft 20X1 tax reconciliation prepared by the tax department. Accounting profit before tax: 1,180,000. Add-backs required by the tax law: fines and penalties, 22,000; non-deductible entertainment costs, 18,000; charge to the provision for an employment dispute, not deductible until paid, 60,000. Deduction provided by the tax law: exempt dividends received from an investment, 40,000.

Current tax computation: 20X2 tax loss carried back

From accounting profit to current tax: add-backs, instalments and carryback of a loss

6 documents9 sections to document
0 / 6 sections completed
Guided mode

Section 1 of 9

Objective

In progress
Section brief
What to document
The engagement, its scope and the working mode chosen.
Why
A workpaper answers one precise question: framing it avoids off-topic work.
How
Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
Expected result
You know which question the workpaper must settle, and for which reporting date.
Your role
Preparer of the IAS 12 workpaper
Level
Foundation
Estimated time
≈ 35 min
Progress
0 / 5 steps done (review excluded)

Context

Brumeval Outillage SA (a fictitious entity) manufactures hand tools and is subject to a single taxation authority. You are preparing the tax charge for the year ended 31 December 20X1, then for the year ended 31 December 20X2, in which the company incurs a tax loss.

Assignment

Current tax computation workpaper (20X1; 20X2 carryback).

Purpose of the workpaper

For one taxable entity and one period, check that the levy is within IAS 12, move from accounting profit to taxable profit using the tax adjustments given by the case, apply the rate enacted or substantively enacted at the reporting date (or the graduated scale), determine the current tax balance after instalments and, where relevant, the asset arising from carrying a tax loss back, then post the entries.

Questions of the file covered by this workpaper

  • Reconcile accounting profit to taxable profit for 20X1.
  • Calculate current tax for 20X1.
  • Determine the current tax balance at 31 December 20X1 after deducting the instalments.
  • Record the 20X1 entries (instalments, tax for the year, application of the instalments).
  • Calculate the 20X2 tax loss and the asset arising from its carryback.
  • Determine the current tax position at 31 December 20X2.
  • Record the 20X2 entries (payment of the 20X1 balance, instalments, carryback).

Documents in the file

Open the documents to pick out the relevant information.

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View the workpaper template