IAS 7Chapter 6Lesson 3
Taxes on income
Step 1 of 9Learning objectives
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Cash flows from taxes on income are disclosed separately and classified as operating activities unless they can be tied specifically to an investing or financing transaction. When tax cash flows are spread across several activities, the total taxes paid are disclosed. The amount paid is calculated from current tax and balances, never from the total expense, which includes deferred tax.
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Learning objectives
- Identify the default classification of taxes paid and the cases of specific identification.
- Calculate tax paid from current tax and balances.
- Link the tax payment entry to the cash flow presented.