{"entries":[{"key":"LX.IAS12.000001","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"OBJECTIVE_CURRENT_AND_FUTURE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"objective"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"An intern says: \"IAS 12 is only concerned with the tax the company must pay for the year.\"","es":""},"explanation":{"fr":"","en":"False. The central question of IAS 12 concerns current and future tax consequences: those of the transactions of the period and those of the future recovery or settlement of the carrying amounts recognised in the balance sheet (IAS 12, objective). The tax for the year is only part of the subject.","es":""},"common_error":{"fr":"","en":"Reducing IAS 12 to current tax and forgetting deferred tax.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000002","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.OBJECTIVE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"OBJECTIVE_CURRENT_AND_FUTURE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"objective"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Orbanel, a fictitious pump maker, owns a machine whose carrying amount (900,000) exceeds the amount the tax authority will still allow it to deduct (600,000). Why does this situation concern IAS 12 already today?","es":""},"explanation":{"fr":"","en":"IAS 12 recognises the future tax consequences of recovering carrying amounts: if that recovery will probably make future tax payments larger than they would be with no tax consequence, a deferred tax liability is recognised, with limited exceptions (IAS 12, objective).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because recovering this carrying amount will probably increase future tax: it is a future tax consequence to be recognised","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It does not concern it as long as the machine is not sold","es":""},"correct":false,"feedback":{"fr":"","en":"Recovery also occurs through use: an intention to sell is not a condition.","es":""}},{"id":"C","text":{"fr":"","en":"Because the 300,000 difference must be paid to the tax authority immediately","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing is payable today on this difference: it will weigh on the taxes of future periods.","es":""}},{"id":"D","text":{"fr":"","en":"Because IAS 12 requires the carrying amount to be reduced to 600,000","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 does not change the carrying amount of assets; it recognises their tax consequences.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000003","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"OBJECTIVE_PRINCIPLE_DIRECTION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"objective"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Complete the summary of the IAS 12 principle.","es":""},"explanation":{"fr":"","en":"Higher future taxes: deferred tax liability; lower: deferred tax asset, with limited exceptions (IAS 12, objective). This is not an option: the standard requires it.","es":""},"common_error":{"fr":"","en":"Choosing “expense” or “income”, or “if the entity chooses”: higher future tax gives a liability, lower future tax an asset, and the standard requires it with limited exceptions.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"If recovering a carrying amount will probably make future taxes higher than with no tax consequence, the entity recognises a deferred tax {{higher}}; if it will make them lower, a deferred tax {{lower}}, {{exceptions}}.","es":""},"blanks":[{"id":"higher","mode":"CHOICE","choices":[{"id":"LIAB","text":{"fr":"","en":"liability","es":""}},{"id":"ASSET","text":{"fr":"","en":"asset","es":""}},{"id":"EXP","text":{"fr":"","en":"expense","es":""}}],"answer":"LIAB"},{"id":"lower","mode":"CHOICE","choices":[{"id":"LIAB","text":{"fr":"","en":"liability","es":""}},{"id":"ASSET","text":{"fr":"","en":"asset","es":""}},{"id":"INC","text":{"fr":"","en":"income","es":""}}],"answer":"ASSET"},{"id":"exceptions","mode":"CHOICE","choices":[{"id":"LIMITED","text":{"fr":"","en":"with limited exceptions","es":""}},{"id":"NONE","text":{"fr":"","en":"without any exception","es":""}},{"id":"OPTION","text":{"fr":"","en":"if the entity so chooses","es":""}}],"answer":"LIMITED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000004","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"INCOME_TAX_DEFINITION_SORT","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"Velsande, a fictitious chain of garden centres, lists its levies. Classify them.","es":""},"explanation":{"fr":"","en":"Income taxes are domestic and foreign taxes based on taxable profits, as well as withholding taxes payable by a subsidiary, associate or joint arrangement on distributions to the entity (IAS 12, para. 2). A tax calculated on floor area, revenue or property value is not based on taxable profit.","es":""},"common_error":{"fr":"","en":"Treating every government levy under IAS 12, whatever its base.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IN","text":{"fr":"","en":"Income tax (IAS 12)","es":""}},{"id":"OUT","text":{"fr":"","en":"Outside IAS 12: levy not based on taxable profit","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"National tax on the profits for the year","es":""},"category":"IN"},{"id":"I2","text":{"fr":"","en":"Tax paid abroad on the taxable profit of a branch","es":""},"category":"IN"},{"id":"I3","text":{"fr":"","en":"Withholding tax payable by a subsidiary on the dividend it pays to Velsande","es":""},"category":"IN"},{"id":"I4","text":{"fr":"","en":"Tax calculated on the retail floor area of the shops","es":""},"category":"OUT"},{"id":"I5","text":{"fr":"","en":"Sales tax collected from customers","es":""},"category":"OUT"},{"id":"I6","text":{"fr":"","en":"Property tax on the warehouses","es":""},"category":"OUT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000005","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"TELECOM","tested_point":"INCOME_TAX_DEFINITION_SORT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"Which of these amounts are income taxes of a fictitious telecom operator that holds subsidiaries and an associate?","es":""},"explanation":{"fr":"","en":"The scope covers domestic and foreign taxes based on taxable profits and withholding taxes payable by a subsidiary, associate or joint arrangement on their distributions to the entity (IAS 12, para. 2).","es":""},"common_error":{"fr":"","en":"Omitting withholding taxes payable by a subsidiary or associate on its distributions.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Tax on the taxable profit of its foreign subsidiaries","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Withholding tax payable by the associate on a dividend paid to the operator","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The spectrum usage fee, calculated on the number of subscribers","es":""},"correct":false,"feedback":{"fr":"","en":"A fee based on the number of subscribers is not based on taxable profit.","es":""}},{"id":"D","text":{"fr":"","en":"Employer's social security contributions","es":""},"correct":false,"feedback":{"fr":"","en":"Contributions are calculated on salaries, not on taxable profit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000006","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"AGRICULTURE","tested_point":"GRANTS_OUTSIDE_IAS12","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"grants-and-credits"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"A fictitious farming cooperative receives a government grant to finance a silo: IAS 12 is the standard that says how to account for this grant.","es":""},"explanation":{"fr":"","en":"False. IAS 12 does not deal with the methods of accounting for government grants, which fall under IAS 20; it does deal with the temporary differences that such grants may give rise to (IAS 12, para. 4).","es":""},"common_error":{"fr":"","en":"Applying IAS 12 to the accounting for a government grant instead of IAS 20.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000007","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"GRANTS_OUTSIDE_IAS12","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"grants-and-credits"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"A fictitious solar energy producer receives an investment tax credit on its panels. What is the role of IAS 12?","es":""},"explanation":{"fr":"","en":"IAS 12 deals neither with the methods of accounting for government grants nor with those for investment tax credits, but it deals with the temporary differences they may give rise to (IAS 12, para. 4).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To deal with the temporary differences the credit may give rise to, without setting the method of accounting for the credit itself","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"To set the method of accounting for both the credit and the temporary differences","es":""},"correct":false,"feedback":{"fr":"","en":"The standard expressly leaves out the methods of accounting for investment tax credits.","es":""}},{"id":"C","text":{"fr":"","en":"None: a tax credit can never create a temporary difference","es":""},"correct":false,"feedback":{"fr":"","en":"The temporary differences arising from such credits remain within the scope of IAS 12.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS12.000008","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"PILLAR_TWO_SCOPE_EXCEPTION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"pillar-two-scope"},"references":["IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"A fictitious group is subject to legislation enacted to implement the Pillar Two rules. What does IAS 12 provide for the resulting top-up tax?","es":""},"explanation":{"fr":"","en":"The standard applies to income taxes arising from legislation enacted or substantively enacted to implement Pillar Two, including qualified domestic minimum top-up taxes; by exception, the entity neither recognises deferred tax assets and liabilities related to those taxes nor discloses information about them (IAS 12, para. 4A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is an income tax; by exception, no deferred tax is recognised for it or disclosed about it","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is not an income tax: IAS 12 does not apply","es":""},"correct":false,"feedback":{"fr":"","en":"The standard applies to taxes arising from such legislation, including qualified domestic minimum top-up taxes.","es":""}},{"id":"C","text":{"fr":"","en":"It is an income tax, with current and deferred tax as for any other tax","es":""},"correct":false,"feedback":{"fr":"","en":"The exception prohibits recognising deferred tax assets and liabilities related to Pillar Two.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000009","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"PHARMA","tested_point":"SCOPE_POSITION_PAPER_REVIEW","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"pitfalls"},"references":["IAS 12 §2","IAS 12","IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"Review the scoping memo drafted by the tax department of a fictitious pharmaceutical laboratory and spot the incorrect statements.","es":""},"explanation":{"fr":"","en":"Statements 1 and 5 are correct (IAS 12, para. 2). Statements 2, 3 and 4 confuse the base of a levy, the treatment of grants (IAS 12, para. 4) and the Pillar Two exception (IAS 12, para. 4A). A scoping memo documents, for each levy, its base and the applicable standard.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. The tax payable by our German subsidiary on its taxable profit falls under IAS 12.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"2. The levy on sales of reimbursed medicines, calculated on revenue, is an income tax.","es":""},"erroneous":true,"correction":{"fr":"","en":"Calculated on revenue, it is not based on taxable profit: outside IAS 12 (para. 2).","es":""}},{"id":"S3","text":{"fr":"","en":"3. IAS 12 tells us how to account for the research grant received from the region.","es":""},"erroneous":true,"correction":{"fr":"","en":"The method falls under IAS 20; IAS 12 only deals with the temporary differences it gives rise to (para. 4).","es":""}},{"id":"S4","text":{"fr":"","en":"4. We will recognise deferred tax on the expected Pillar Two top-up tax.","es":""},"erroneous":true,"correction":{"fr":"","en":"Mandatory exception: no deferred tax related to Pillar Two, and no disclosure about it (para. 4A).","es":""}},{"id":"S5","text":{"fr":"","en":"5. The withholding tax payable by our associate on its dividends to us falls under IAS 12.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000010","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"MINING","tested_point":"LEVY_QUALIFICATION_JUDGMENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"judgment"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"Qualify Corvignac's two mining levies under IAS 12.","es":""},"explanation":{"fr":"","en":"The qualification of a levy depends on its base under the legislation: taxable profit (income tax) or another base (outside IAS 12) (IAS 12, para. 2). Rates and bases are case data.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Corvignac, a fictitious mining operator, is subject in its host country to two specific levies in addition to corporate income tax.","es":""},"parts":[{"prompt":{"fr":"","en":"Levy A: 8% of mining profit, equal to mine revenue less extraction costs, depreciation and financing costs allowed by the mining law. Qualification?","es":""},"explanation":{"fr":"","en":"Income taxes include all taxes based on taxable profits (IAS 12, para. 2): a levy calculated on revenue less expenses allowed by law is one of them, whatever its name.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Income tax: it is based on a taxable profit determined under tax rules","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Outside IAS 12, because it is not corporate income tax","es":""},"correct":false,"feedback":{"fr":"","en":"The name or the separate legislation does not matter: only the base, a taxable profit, is decisive.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Levy B: 3% of the value of the ore extracted, whatever the result. Qualification?","es":""},"explanation":{"fr":"","en":"A levy on the value extracted, payable even when there is a loss, is not based on taxable profit: it does not meet the definition of income taxes (IAS 12, para. 2).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Outside IAS 12: it is not based on taxable profit","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Income tax, since it is paid to the State","es":""},"correct":false,"feedback":{"fr":"","en":"Being paid to the State is not enough: the base is the value extracted, not a profit.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The qualification adopted must be documented by analysing the base set by the case legislation, not just the name of the levy.","es":""},"explanation":{"fr":"","en":"True. The criterion is the base, a taxable profit (IAS 12, para. 2); documenting the analysis of the legislation is good practice for professional judgement.","es":""},"common_error":{"fr":"","en":"Classifying the levy by its name alone: it is the base, a taxable profit, that makes it an income tax.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000011","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.OBJECTIVE","IAS12.SCOPE.GENERAL"],"dimension":"ANALYSIS","format":"MATCHING","context":"LOGISTICS","tested_point":"SCOPE_WHAT_IAS12_DOES","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"how"},"references":["IAS 12","IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"Match each question from a fictitious haulier with the IAS 12 answer.","es":""},"explanation":{"fr":"","en":"IAS 12 recognises current and future tax consequences (IAS 12, objective); it leaves the method for grants to IAS 20 (IAS 12, para. 4) and excludes deferred tax related to Pillar Two (IAS 12, para. 4A). None of these answers is an option.","es":""},"common_error":{"fr":"","en":"Bringing the grant accounting method into IAS 12 or recognising Pillar Two deferred tax: the former belongs to IAS 20, the latter is excluded.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Tax payable on the taxable profit for the year","es":""}},{"id":"L2","text":{"fr":"","en":"Lorries depreciated faster for tax than in the accounts","es":""}},{"id":"L3","text":{"fr":"","en":"Method of accounting for a grant for clean lorries","es":""}},{"id":"L4","text":{"fr":"","en":"Deferred tax related to the Pillar Two top-up tax","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Current tax consequence, dealt with by IAS 12","es":""}},{"id":"R2","text":{"fr":"","en":"Future tax consequence of recovering a carrying amount, dealt with by IAS 12","es":""}},{"id":"R3","text":{"fr":"","en":"Outside IAS 12 (IAS 20); IAS 12 only deals with the resulting temporary differences","es":""}},{"id":"R4","text":{"fr":"","en":"Exception: neither recognition nor disclosure","es":""}},{"id":"R5","text":{"fr":"","en":"Option left to the entity's choice","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000012","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"SCOPE_DECISION_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"how"},"references":["IAS 12 §2","IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"Put the steps for analysing a new levy in order.","es":""},"explanation":{"fr":"","en":"The levy is first qualified by its base (IAS 12, para. 2), then the Pillar Two exception is checked (IAS 12, para. 4A) before applying the current and deferred tax rules.","es":""},"common_error":{"fr":"","en":"Applying the tax rules before classifying the levy and checking the Pillar Two exception.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Read the case legislation to identify the base of the levy","es":""}},{"id":"S2","text":{"fr":"","en":"Conclude: base = taxable profit (or withholding on distributions of a subsidiary, associate or joint arrangement) → income tax","es":""}},{"id":"S3","text":{"fr":"","en":"Check whether it is a Pillar Two tax, for which no deferred tax is recognised","es":""}},{"id":"S4","text":{"fr":"","en":"Apply the current tax rules and, outside the exception, the deferred tax rules","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000013","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"KEY_TERMS_DEFINITIONS","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Match each term with its meaning.","es":""},"explanation":{"fr":"","en":"These definitions are those of the standard, reworded (IAS 12, para. 5). Tax paid is not an IAS 12 term: it may differ from current tax (instalments, balances) and from tax expense.","es":""},"common_error":{"fr":"","en":"Mixing up accounting profit and taxable profit, or current tax and tax expense: tax expense combines current and deferred tax.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Accounting profit","es":""}},{"id":"L2","text":{"fr":"","en":"Taxable profit","es":""}},{"id":"L3","text":{"fr":"","en":"Current tax","es":""}},{"id":"L4","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"L5","text":{"fr":"","en":"Tax expense","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Profit for the period before deducting tax expense","es":""}},{"id":"R2","text":{"fr":"","en":"Profit determined under tax rules, on which tax is calculated","es":""}},{"id":"R3","text":{"fr":"","en":"Tax payable (or recoverable) on the taxable profit (tax loss) for the period","es":""}},{"id":"R4","text":{"fr":"","en":"Taxes payable in future periods in respect of taxable temporary differences","es":""}},{"id":"R5","text":{"fr":"","en":"Total included in profit or loss for current tax and deferred tax","es":""}},{"id":"R6","text":{"fr":"","en":"Tax actually paid during the year","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"},{"left":"L5","right":"R5"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000014","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"TAX_EXPENSE_NOT_TAX_PAID","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"current-and-deferred"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"A fictitious distributor's tax expense is, by definition, equal to the tax paid to the tax authority during the year.","es":""},"explanation":{"fr":"","en":"False. Tax expense (income) is the total included in profit or loss for current tax and deferred tax (IAS 12, paras. 5 and 6). Payments depend on instalments and balances, and deferred tax is not paid in the period.","es":""},"common_error":{"fr":"","en":"Confusing the period's tax expense with the tax paid.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000015","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"TAX_EXPENSE_TOTAL","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"numeric-example"},"references":["IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Mistrelle, a fictitious biscuit maker, has calculated its current tax and the movement in deferred tax recognised in profit or loss. Calculate the tax expense.","es":""},"explanation":{"fr":"","en":"Tax expense = current tax + deferred tax = 380,000 + 45,000 = 425,000 (IAS 12, para. 6).","es":""},"common_error":{"fr":"","en":"Taking current tax alone (380,000): tax expense adds the deferred tax expense in profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Current tax for N","es":""},"value":"380000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax expense in profit or loss (increase in the liability)","es":""},"value":"45000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tax expense for N","es":""},"answer":425000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Tax expense for N","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax for N","es":""},"value":380000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax expense in profit or loss (increase in the liability)","es":""},"value":45000,"unit":"EUR"}],"result":425000,"unit":"EUR","rationale":{"fr":"","en":"Tax expense = current tax + deferred tax = 380,000 + 45,000 = 425,000 (IAS 12, para. 6).","es":""}}],"references":["REF.IAS12.6"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000016","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"TAX_EXPENSE_TOTAL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"numeric-example"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"For Ardoline, a fictitious magazine publisher, calculate the tax expense for N from the data below.","es":""},"explanation":{"fr":"","en":"Tax expense is the amount included in profit or loss (IAS 12, paras. 5 and 6): 610,000 − 35,000 = 575,000. The 20,000 recognised in other comprehensive income are not part of the tax expense in profit or loss.","es":""},"common_error":{"fr":"","en":"Adding deferred tax recognised in other comprehensive income to the tax expense in profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Current tax for N","es":""},"value":"610000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax income recognised in profit or loss","es":""},"value":"35000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax recognised in other comprehensive income (revaluation)","es":""},"value":"20000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tax expense for N in profit or loss","es":""},"answer":575000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Tax expense for N in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax for N","es":""},"value":610000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax income recognised in profit or loss","es":""},"value":35000,"unit":"EUR"}],"result":575000,"unit":"EUR","rationale":{"fr":"","en":"Tax expense is the amount included in profit or loss (IAS 12, paras. 5 and 6): 610,000 − 35,000 = 575,000.","es":""}}],"references":["REF.IAS12.5","REF.IAS12.6"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000017","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"HOSPITALITY","tested_point":"PERMANENT_VS_TEMPORARY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"permanent-vs-temporary"},"references":["IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Hôtellerie Saubrac, a fictitious company, lists the differences between its accounting profit and its taxable profit (tax treatments: case data). Classify them.","es":""},"explanation":{"fr":"","en":"A temporary difference is a difference between the carrying amount of an asset or liability and its tax base (IAS 12, para. 5): interest taxed on receipt, accelerated depreciation and a provision deductible when paid create one. An item never deducted or never taxed creates no such difference; \"permanent difference\" is a teaching term, not defined by the standard.","es":""},"common_error":{"fr":"","en":"Calling a permanently non-deductible expense a \"temporary difference\".","es":""},"format":"CLASSIFICATION","categories":[{"id":"TEMP","text":{"fr":"","en":"Temporary difference (will reverse)","es":""}},{"id":"PERM","text":{"fr":"","en":"Permanent difference (will never reverse)","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Entertainment costs never deductible","es":""},"category":"PERM"},{"id":"I2","text":{"fr":"","en":"Interest accrued in the accounts, taxed on receipt","es":""},"category":"TEMP"},{"id":"I3","text":{"fr":"","en":"Accelerated tax depreciation of the kitchens","es":""},"category":"TEMP"},{"id":"I4","text":{"fr":"","en":"Operating grant exempted by law","es":""},"category":"PERM"},{"id":"I5","text":{"fr":"","en":"Litigation provision deductible when paid","es":""},"category":"TEMP"},{"id":"I6","text":{"fr":"","en":"Criminal fine","es":""},"category":"PERM"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000018","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"DTA_COMPONENTS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"deferred-tax-terms"},"references":["IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"In respect of what can a deferred tax asset be recognised?","es":""},"explanation":{"fr":"","en":"Deferred tax assets are the taxes recoverable in future periods in respect of deductible temporary differences, the carryforward of unused tax losses and the carryforward of unused tax credits (IAS 12, para. 5).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deductible temporary differences","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The carryforward of unused tax losses","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The carryforward of unused tax credits","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The year's tax instalments in excess of the tax due","es":""},"correct":false,"feedback":{"fr":"","en":"An overpayment of tax for the period is a current tax asset, not a deferred one.","es":""}},{"id":"E","text":{"fr":"","en":"Permanently non-deductible expenses","es":""},"correct":false,"feedback":{"fr":"","en":"They will never give rise to a deduction: no tax is recoverable in respect of them.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000019","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"TAX_EXPENSE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"entry"},"references":["IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Ferzac, a fictitious automotive supplier, records at the year end current tax of 300,000 (no instalment paid) and an increase of 40,000 in its deferred tax liability, to be recognised in profit or loss. Record the entry.","es":""},"explanation":{"fr":"","en":"The tax expense of 340,000 comprises current tax expense (300,000) and deferred tax expense (40,000) (IAS 12, para. 6); the other side is a current tax liability and an increase in the deferred tax liability. Debits 340,000 = credits 340,000.","es":""},"common_error":{"fr":"","en":"Recording only current tax, or posting the deferred tax increase to the current tax liability: these are two separate expenses and two separate liabilities.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CURRENT_TAX_EXPENSE","text":{"fr":"","en":"Current tax expense","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"CURRENT_TAX_LIABILITY","text":{"fr":"","en":"Current tax liability","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"CURRENT_TAX_EXPENSE","side":"DEBIT","amount":300000},{"id":"L2","account":"DEFERRED_TAX_EXPENSE","side":"DEBIT","amount":40000},{"id":"L3","account":"CURRENT_TAX_LIABILITY","side":"CREDIT","amount":300000},{"id":"L4","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":40000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000020","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"SOFTWARE","tested_point":"KEY_TERMS_MISCONCEPTIONS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"pitfalls"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"An analyst comments on the accounts of a fictitious software publisher. Spot the errors.","es":""},"explanation":{"fr":"","en":"Statements 2 and 4 are faithful to the definitions (IAS 12, paras. 5 and 6). Statements 1 and 3 confuse accounting profit with taxable profit, and current tax with deferred tax.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. \"Taxable profit equals accounting profit, tax being just a percentage of reported profit.\"","es":""},"erroneous":true,"correction":{"fr":"","en":"Taxable profit is determined under tax rules and generally differs from accounting profit (IAS 12, para. 5).","es":""}},{"id":"S2","text":{"fr":"","en":"2. \"Tax expense comprises current tax and deferred tax.\"","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"3. \"The deferred tax liability is tax already payable at the reporting date.\"","es":""},"erroneous":true,"correction":{"fr":"","en":"It represents taxes payable in future periods in respect of taxable temporary differences (IAS 12, para. 5).","es":""}},{"id":"S4","text":{"fr":"","en":"4. \"A tax loss for the period means negative taxable profit; current tax may then be recoverable.\"","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000021","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"TEXTILE","tested_point":"TAXABLE_PROFIT_BRIDGE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Calculate the taxable profit and current tax of Tissages Morvanez, a fictitious company (adjustments: case data; rate 25%).","es":""},"explanation":{"fr":"","en":"Taxable profit = 1,000,000 + 20,000 − 60,000 − 100,000 = 860,000; current tax = 860,000 × 25% = 215,000. Taxable profit is determined under tax rules (IAS 12, para. 5); the adjustments are case data.","es":""},"common_error":{"fr":"","en":"Calculating current tax on accounting profit (250,000).","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Accounting profit 1,000,000; non-deductible expenses 20,000; exempt income 60,000; tax depreciation 100,000 above accounting depreciation. Taxable profit: {{tp}}; current tax: {{ct}}.","es":""},"blanks":[{"id":"tp","mode":"NUMBER","answer":860000,"tolerance":0},{"id":"ct","mode":"NUMBER","answer":215000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000022","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"CONSTRUCTION","tested_point":"WHY_DEFERRED_TAX","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"why"},"references":["IAS 12","IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Help Bastrel's finance director explain the tax expense to the board.","es":""},"explanation":{"fr":"","en":"Deferred tax brings into the year's expense the tax that tax timing differences postpone to future periods: the expense (500,000) reflects accounting profit, current tax (410,000) reflects taxable profit (IAS 12, objective, paras. 5 and 6).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Bastrel, a fictitious builder of modular buildings, reports accounting profit of 2,000,000. Its current tax is 410,000 (rate 25%, case data) because a new plant benefits from accelerated tax depreciation; its deferred tax liability increases by 90,000 in profit or loss. A director asks: \"Why recognise another 90,000 when we are not paying it this year?\"","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the tax expense for the year.","es":""},"explanation":{"fr":"","en":"410,000 + 90,000 = 500,000 (IAS 12, para. 6), i.e. 25% of accounting profit: deferred tax attaches to the year the tax that accelerated depreciation merely postpones.","es":""},"common_error":{"fr":"","en":"Forgetting deferred tax and taking 410,000: tax expense adds current and deferred tax.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Current tax","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax expense","es":""},"value":"90000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tax expense","es":""},"answer":500000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Tax expense","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax expense","es":""},"value":90000,"unit":"EUR"}],"result":500000,"unit":"EUR","rationale":{"fr":"","en":"410,000 + 90,000 = 500,000 (IAS 12, para. 6), i.e. 25% of accounting profit: deferred tax attaches to the year the tax that accelerated depreciation merely postpones.","es":""}}],"references":["REF.IAS12.6"]}},{"prompt":{"fr":"","en":"What answer should be given to the director?","es":""},"explanation":{"fr":"","en":"IAS 12 recognises the future tax consequences of recovering carrying amounts (IAS 12, objective); tax expense therefore includes deferred tax (IAS 12, para. 6).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recovering the plant's carrying amount will generate taxable profits with no corresponding deduction: this future tax is a consequence of transactions already recognised","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is a prudential provision, which IAS 12 allows to be set up freely","es":""},"correct":false,"feedback":{"fr":"","en":"It is neither a provision nor an option: the standard requires the future tax consequences of carrying amounts to be recognised.","es":""}},{"id":"C","text":{"fr":"","en":"The 90,000 are an error: only the year's tax should be recognised","es":""},"correct":false,"feedback":{"fr":"","en":"Tax expense includes deferred tax.","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Bastrel's deferred tax liability represents taxes payable in future periods.","es":""},"explanation":{"fr":"","en":"True: this is the definition of a deferred tax liability (IAS 12, para. 5).","es":""},"common_error":{"fr":"","en":"Seeing the deferred tax liability as tax already payable: it relates to taxes payable in future periods.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000023","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"TAX_BASE_NON_TAXABLE_RECOVERY","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §7"],"exercise":{"prompt":{"fr":"","en":"A fictitious company holds a dividend receivable of 50,000 from a subsidiary; under the case legislation, this dividend is not taxable. A colleague concludes that the tax base of the receivable is nil.","es":""},"explanation":{"fr":"","en":"False. When the economic benefits from recovering an asset are not taxable, its tax base equals its carrying amount (IAS 12, para. 7): 50,000. There is therefore no temporary difference.","es":""},"common_error":{"fr":"","en":"Giving a nil tax base to an asset whose recovery is not taxable.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000024","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","format":"CALCULATION","context":"LOGISTICS","tested_point":"TAX_BASE_ASSET_CALC","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §7"],"exercise":{"prompt":{"fr":"","en":"Ostalys, a fictitious logistics company, gives you two assets (tax treatment: case data). Calculate their tax base.","es":""},"explanation":{"fr":"","en":"Forklift trucks: amount still deductible against future taxable benefits = 800,000 − 320,000 = 480,000 (IAS 12, para. 7). Receivable: collecting it is not taxable (the revenue has already been taxed), so tax base = carrying amount = 150,000 (IAS 12, para. 7).","es":""},"common_error":{"fr":"","en":"Using a nil tax base for the receivable, or the 800,000 tax cost for the trucks: the base is the amount still deductible, and it equals the carrying amount when collection is not taxable.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Forklift trucks: tax cost","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Forklift trucks: tax depreciation already deducted","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"Trade receivable (revenue already included in taxable profit)","es":""},"value":"150000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tax base of the forklift trucks","es":""},"answer":480000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Tax base of the trade receivable","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Tax base of the forklift trucks","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Forklift trucks: tax cost","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Forklift trucks: tax depreciation already deducted","es":""},"value":320000,"unit":"EUR"}],"result":480000,"unit":"EUR","rationale":{"fr":"","en":"Forklift trucks: amount still deductible against future taxable benefits = 800,000 − 320,000 = 480,000 (IAS 12, para. 7).","es":""}}],"references":["REF.IAS12.7"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000025","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"TAX_BASE_LIABILITY_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-liability"},"references":["IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Brunelor, a fictitious foundry, has three liabilities (tax treatment: case data). Calculate their tax base.","es":""},"explanation":{"fr":"","en":"Tax base of a liability = carrying amount − amounts deductible in future periods (IAS 12, para. 8): accrued costs 60,000 − 60,000 = 0; loan 500,000 − 0 = 500,000; fine 30,000 − 0 = 30,000. Only the accrued costs create a temporary difference.","es":""},"common_error":{"fr":"","en":"Taking as the tax base of a liability the amount to be deducted instead of the carrying amount less that amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Accrued maintenance costs, deductible when paid","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Bank loan (repayment has no tax consequence)","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Fine payable, never deductible","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tax base of the accrued costs","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Tax base of the loan","es":""},"answer":500000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Tax base of the fine payable","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Tax base of the loan","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Bank loan (repayment has no tax consequence)","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the accrued costs","es":""},"value":0,"unit":"EUR"}],"result":500000,"unit":"EUR"},{"step":"S3","meaning":{"fr":"","en":"Tax base of the fine payable","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fine payable, never deductible","es":""},"value":30000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the accrued costs","es":""},"value":0,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"rationale":{"fr":"","en":"Tax base of a liability = carrying amount − amounts deductible in future periods (IAS 12, para. 8): accrued costs 60,000 − 60,000 = 0","es":""},"references":["REF.IAS12.8"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000026","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"TAX_BASE_REVENUE_IN_ADVANCE","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-liability"},"references":["IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Quarnelis, a fictitious software publisher, has received two subscriptions in advance, recognised as liabilities. Calculate the tax base of each (tax rules: case data).","es":""},"explanation":{"fr":"","en":"For revenue received in advance, tax base = carrying amount − revenue that will not be taxable in future periods (IAS 12, para. 8). A, already taxed, will not be taxed again: 90,000 − 90,000 = 0, a deductible difference of 90,000. B will be taxed later: 70,000 − 0 = 70,000, no difference.","es":""},"common_error":{"fr":"","en":"Applying the same tax base to both subscriptions without checking when they are taxed.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Subscription A, taxed on receipt","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Subscription B, taxed when recognised as revenue","es":""},"value":"70000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tax base of subscription A","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Tax base of subscription B","es":""},"answer":70000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Tax base of subscription B","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Subscription B, taxed when recognised as revenue","es":""},"value":70000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of subscription A","es":""},"value":0,"unit":"EUR"}],"result":70000,"unit":"EUR"}],"rationale":{"fr":"","en":"For revenue received in advance, tax base = carrying amount − revenue that will not be taxable in future periods (IAS 12, para. 8).","es":""},"references":["REF.IAS12.8"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000027","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"RESEARCH_TAX_BASE_NO_ASSET","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"no-carrying-amount"},"references":["IAS 12 §9","IAS 38 §54"],"exercise":{"prompt":{"fr":"","en":"Pelzine, a fictitious laboratory, incurred research costs of 180,000 in N, expensed under IAS 38. The case legislation deducts them in thirds over N, N+1 and N+2. What is the position at 31 December N?","es":""},"explanation":{"fr":"","en":"Research costs are expensed (IAS 38, para. 54); deductible later, they have a tax base equal to the amount still deductible, 180,000 − 60,000 = 120,000, against a nil carrying amount: a deductible temporary difference giving rise to a deferred tax asset (IAS 12, para. 9), subject to the recognition conditions.","es":""},"common_error":{"fr":"","en":"Omitting research costs deducted for tax over several years because there is no asset in the balance sheet.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nil carrying amount, tax base 120,000: deductible temporary difference of 120,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No difference: nothing is recognised in the balance sheet","es":""},"correct":false,"feedback":{"fr":"","en":"An item can have a tax base without being recognised in the balance sheet.","es":""}},{"id":"C","text":{"fr":"","en":"Tax base 180,000: deductible difference of 180,000","es":""},"correct":false,"feedback":{"fr":"","en":"One third (60,000) has already been deducted in N: 120,000 remain to be deducted.","es":""}},{"id":"D","text":{"fr":"","en":"Taxable difference of 120,000","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base exceeds a nil carrying amount: the difference is deductible.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000028","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"APPLICATION","format":"MATCHING","context":"RETAIL","tested_point":"TAX_BASE_MIXED_ITEMS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"how"},"references":["IAS 12 §7","IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Match each balance sheet item of Calvérine, a fictitious distributor, with its tax base (tax treatments: case data).","es":""},"explanation":{"fr":"","en":"Shelving: 400,000 − 150,000 = 250,000 (IAS 12, para. 7). Interest: collecting it will be taxed with no deduction: nil tax base (IAS 12, para. 7). Provision: 40,000 − 40,000 = 0 (IAS 12, para. 8). Loan: no deductible amount, tax base = 300,000 (IAS 12, para. 8).","es":""},"common_error":{"fr":"","en":"Giving the interest or the provision a tax base equal to its carrying amount: taxed or deductible later, their tax base is nil.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Shelving: cost 400,000, tax deductions already obtained 150,000","es":""}},{"id":"L2","text":{"fr":"","en":"Interest receivable 12,000, taxed on receipt","es":""}},{"id":"L3","text":{"fr":"","en":"Warranty provision 40,000, deductible when paid","es":""}},{"id":"L4","text":{"fr":"","en":"Loan 300,000","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"250,000","es":""}},{"id":"R2","text":{"fr":"","en":"0 (interest)","es":""}},{"id":"R3","text":{"fr":"","en":"0 (provision)","es":""}},{"id":"R4","text":{"fr":"","en":"300,000","es":""}},{"id":"R5","text":{"fr":"","en":"400,000","es":""}},{"id":"R6","text":{"fr":"","en":"40,000","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000029","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"TAX_BASE_LIABILITY_RULE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-liability"},"references":["IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Complete the rule.","es":""},"explanation":{"fr":"","en":"Tax base of a liability = carrying amount − amounts deductible for tax in respect of that liability in future periods (IAS 12, para. 8).","es":""},"common_error":{"fr":"","en":"Adding the deductible amounts, or reasoning on taxable amounts: for a liability, what will be deductible is subtracted from the carrying amount.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The tax base of a liability is its carrying amount {{op}} the amounts that will be {{nature}} in respect of that liability in future periods.","es":""},"blanks":[{"id":"op","mode":"CHOICE","choices":[{"id":"MINUS","text":{"fr":"","en":"less","es":""}},{"id":"PLUS","text":{"fr":"","en":"plus","es":""}},{"id":"TIMES","text":{"fr":"","en":"multiplied by","es":""}}],"answer":"MINUS"},{"id":"nature","mode":"CHOICE","choices":[{"id":"DED","text":{"fr":"","en":"deductible for tax","es":""}},{"id":"TAX","text":{"fr":"","en":"taxable","es":""}},{"id":"PAID","text":{"fr":"","en":"paid","es":""}}],"answer":"DED"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000030","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"TAX_BASE_WORKPAPER_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"pitfalls"},"references":["IAS 12 §7","IAS 12 §8","IAS 12 §9"],"exercise":{"prompt":{"fr":"","en":"Check the tax base schedule prepared by an assistant at a fictitious telecom operator (tax treatments: case data).","es":""},"explanation":{"fr":"","en":"Lines 1 and 5 are correct. Errors 2, 3 and 4 are typical: tax base of a liability built incorrectly (IAS 12, para. 8), nil base given to a non-taxable recovery (IAS 12, para. 7), item with no carrying amount but with a tax base forgotten (IAS 12, para. 9).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Antenna: cost 1,000,000, deductions obtained 400,000 → tax base 600,000.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"2. Litigation provision of 80,000, deductible when paid → tax base 80,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"80,000 − 80,000 deductible later = 0 (IAS 12, para. 8).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Non-taxable dividend receivable of 25,000 → nil tax base.","es":""},"erroneous":true,"correction":{"fr":"","en":"Non-taxable recovery: tax base = carrying amount, 25,000 (IAS 12, para. 7).","es":""}},{"id":"S4","text":{"fr":"","en":"4. Research costs expensed, 90,000 still to be deducted → no tax base, nothing in the balance sheet.","es":""},"erroneous":true,"correction":{"fr":"","en":"Tax base of 90,000 against a nil carrying amount: deductible difference (IAS 12, para. 9).","es":""}},{"id":"S5","text":{"fr":"","en":"5. Bond loan of 2,000,000 → tax base 2,000,000.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000031","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CONSOLIDATED_TAX_BASE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"consolidated"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"In the consolidated financial statements of a fictitious group, how are temporary differences determined?","es":""},"explanation":{"fr":"","en":"On consolidation, temporary differences are determined by comparing consolidated carrying amounts with tax bases, determined by reference to a consolidated tax return where one is filed, otherwise to the returns of each group entity (IAS 12, para. 11).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By comparing consolidated carrying amounts with tax bases taken from the consolidated tax return where there is one, otherwise from the returns of each entity","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"By comparing individual carrying amounts with the parent's tax bases","es":""},"correct":false,"feedback":{"fr":"","en":"Consolidated carrying amounts are what matter, and the tax base of the entity that is taxed.","es":""}},{"id":"C","text":{"fr":"","en":"They are not determined: deferred tax is only calculated at individual level","es":""},"correct":false,"feedback":{"fr":"","en":"The standard specifically sets out the method for consolidated statements.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000032","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"APPLICATION","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"CONSOLIDATED_TAX_BASE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"consolidated"},"references":["IAS 12","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Determine the deferred tax on the machine of Quiverne's subsidiary in the consolidated statements.","es":""},"explanation":{"fr":"","en":"On consolidation: consolidated carrying amount against the tax base of the entity taxed (IAS 12, para. 11), at the rate of its tax authority (IAS 12, para. 47). Quiverne's base is irrelevant data.","es":""},"common_error":{"fr":"","en":"Using the parent's tax base for an asset of a subsidiary taxed separately.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Quiverne, a fictitious automotive group, consolidates Valtorine, a subsidiary taxed separately in another country (no consolidated return). In the consolidated statements, a press owned by Valtorine has a carrying amount of 600,000. According to Valtorine's return, 450,000 remain deductible. For an identical press, Quiverne has a tax base of 500,000 in its own country. Enacted rate in Valtorine's country: 20%; in Quiverne's: 25% (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"Which tax base should be used for Valtorine's press?","es":""},"explanation":{"fr":"","en":"With no consolidated return, the tax base is determined by reference to the return of the entity concerned (IAS 12, para. 11).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"450,000, according to Valtorine's return","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"500,000, the base of Quiverne's press","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base is that of the entity taxed on the asset, here Valtorine.","es":""}},{"id":"C","text":{"fr":"","en":"600,000, the consolidated carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount is not the tax base: it is compared with it.","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Calculate the temporary difference and the deferred tax.","es":""},"explanation":{"fr":"","en":"600,000 − 450,000 = 150,000; at the rate of Valtorine's tax authority expected on reversal (IAS 12, para. 47): 150,000 × 20% = 30,000.","es":""},"common_error":{"fr":"","en":"Applying the parent's rate: the difference reverses in Valtorine's country, at the rate expected by that tax authority.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Consolidated carrying amount","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Tax base (Valtorine)","es":""},"value":"450000","unit":"EUR"},{"label":{"fr":"","en":"Rate in Valtorine's country","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consolidated carrying amount","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base (Valtorine)","es":""},"value":450000,"unit":"EUR"}],"result":150000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate in Valtorine's country","es":""},"value":20,"unit":"PERCENT"}],"result":30000,"unit":"EUR"}],"references":["REF.IAS12.47"]}},{"prompt":{"fr":"","en":"If the group filed a consolidated tax return, tax bases would be determined by reference to that return.","es":""},"explanation":{"fr":"","en":"True: in a group filing a consolidated tax return, tax bases are determined by reference to that return; otherwise, return by return (IAS 12, para. 11).","es":""},"common_error":{"fr":"","en":"Always reasoning entity by entity: with a consolidated tax return, the tax base is read from that return.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000033","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"FUNDAMENTAL_PRINCIPLE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"fundamental-principle"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The tax base of an item is not immediately apparent. What does the standard advise?","es":""},"explanation":{"fr":"","en":"When the tax base is not immediately apparent, it is helpful to return to the fundamental principle: with limited exceptions, a deferred tax liability (asset) is recognised whenever recovery or settlement of the carrying amount would make future tax payments larger (smaller) than with no tax consequence (IAS 12, para. 10).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Return to the fundamental principle: will recovery or settlement of the carrying amount make future taxes higher or lower than with no tax consequence?","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Use a tax base equal to the carrying amount, out of prudence","es":""},"correct":false,"feedback":{"fr":"","en":"This shortcut may hide a real temporary difference.","es":""}},{"id":"C","text":{"fr":"","en":"Recognise no deferred tax on this item","es":""},"correct":false,"feedback":{"fr":"","en":"Uncertainty over the base does not exempt the entity from analysing the tax consequences.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000034","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FOOD","tested_point":"TAX_BASE_EQUAL_OR_NOT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"how"},"references":["IAS 12 §7","IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"For Fromageries Ducelle, a fictitious company, classify each item according to whether its tax base equals its carrying amount (tax treatments: case data).","es":""},"explanation":{"fr":"","en":"With no future tax consequence (loan, non-taxable dividend, non-deductible fine), tax base and carrying amount are equal (IAS 12, paras. 7 and 8). Interest taxed on receipt, the provision deductible when paid and accelerated depreciation create a difference.","es":""},"common_error":{"fr":"","en":"Seeing a difference whenever an item is never taxable or deductible (exempt dividend, fine): with no future tax consequence, tax base and carrying amount are equal.","es":""},"format":"CLASSIFICATION","categories":[{"id":"EQUAL","text":{"fr":"","en":"Tax base = carrying amount","es":""}},{"id":"DIFF","text":{"fr":"","en":"Tax base ≠ carrying amount","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Bank loan","es":""},"category":"EQUAL"},{"id":"I2","text":{"fr":"","en":"Dividend receivable, not taxable","es":""},"category":"EQUAL"},{"id":"I3","text":{"fr":"","en":"Fine payable, never deductible","es":""},"category":"EQUAL"},{"id":"I4","text":{"fr":"","en":"Accrued interest receivable, taxed on receipt","es":""},"category":"DIFF"},{"id":"I5","text":{"fr":"","en":"Warranty provision, deductible when paid","es":""},"category":"DIFF"},{"id":"I6","text":{"fr":"","en":"Vats depreciated faster for tax than in the accounts","es":""},"category":"DIFF"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000035","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"TAX_BASE_ASSET_STEPS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"how"},"references":["IAS 12 §7"],"exercise":{"prompt":{"fr":"","en":"Put in order the steps to determine the tax base of an asset and its temporary difference.","es":""},"explanation":{"fr":"","en":"The tax base of an asset is the amount deductible against future taxable benefits, or the carrying amount if those benefits are not taxable (IAS 12, para. 7); the temporary difference is the difference between carrying amount and tax base (IAS 12, para. 5).","es":""},"common_error":{"fr":"","en":"Comparing carrying amount and base before knowing whether recovery is taxable: that question determines the tax base.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Identify the carrying amount of the asset","es":""}},{"id":"S2","text":{"fr":"","en":"Ask whether the benefits from its recovery will be taxable","es":""}},{"id":"S3","text":{"fr":"","en":"If so, use the amount that will remain deductible; if not, use the carrying amount","es":""}},{"id":"S4","text":{"fr":"","en":"Compare carrying amount and tax base to obtain the temporary difference","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000036","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"FUNDAMENTAL_PRINCIPLE","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"judgment"},"references":["IAS 12","IAS 12 §7"],"exercise":{"prompt":{"fr":"","en":"Determine the tax base of Lorvanne's receivable by going back to the fundamental principle.","es":""},"explanation":{"fr":"","en":"When the tax base is not obvious, the fundamental principle decides: recovering the receivable will increase future tax by 50,000, hence a deferred tax liability (IAS 12, paras. 7 and 10). The taxation rules are case data.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Lorvanne, a fictitious property company, sold at the end of N a piece of land acquired for 300,000 for 500,000 payable in N+2. In the accounts, the gain of 200,000 is recognised in N and a receivable of 500,000 is in the balance sheet. Under the case legislation, the gain is taxed only when the price is collected, the cost of the land then being deducted. Rate: 25%.","es":""},"parts":[{"prompt":{"fr":"","en":"What tax base should be used for the receivable?","es":""},"explanation":{"fr":"","en":"Base not apparent: go back to the fundamental principle (IAS 12, para. 10). Recovering 500,000 will produce taxable profit of 200,000: the amount deductible against the taxable benefits is 300,000 (IAS 12, para. 7).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"300,000: collecting 500,000 will be taxed, after deducting the cost of 300,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"500,000: a receivable always has a tax base equal to its carrying amount","es":""},"correct":false,"feedback":{"fr":"","en":"This is only true if its recovery is not taxable; here it is.","es":""}},{"id":"C","text":{"fr":"","en":"0: the land has left the balance sheet","es":""},"correct":false,"feedback":{"fr":"","en":"The cost of the land remains deductible on collection.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the temporary difference and the deferred tax.","es":""},"explanation":{"fr":"","en":"500,000 − 300,000 = 200,000; × 25% = 50,000: recovering the receivable will increase tax in N+2 (IAS 12, para. 10).","es":""},"common_error":{"fr":"","en":"Applying the rate to the carrying amount (500,000) instead of the temporary difference (200,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the receivable","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Rate","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the receivable","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base","es":""},"value":300000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"references":["REF.IAS12.10"]}},{"prompt":{"fr":"","en":"The closing file should explain how the tax base of 300,000 was determined from the case legislation.","es":""},"explanation":{"fr":"","en":"True: the base adopted results from an analysis of the legislation; documenting it is good practice for professional judgement (IAS 12, para. 10).","es":""},"common_error":{"fr":"","en":"Using a tax base without supporting it: it derives from the law of the case, which the file must analyse.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000037","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"LOGISTICS","tested_point":"CURRENT_TAX_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"numeric-example"},"references":["IAS 12 §5","IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"Grenalis, a fictitious haulier, is preparing its current tax for N (adjustments: case data). Calculate.","es":""},"explanation":{"fr":"","en":"3,200,000 + 30,000 + 120,000 − 250,000 − 100,000 = 3,000,000; current tax = 3,000,000 × 25% = 750,000, at the rate enacted at the reporting date (IAS 12, para. 46).","es":""},"common_error":{"fr":"","en":"Calculating current tax on accounting profit without tax adjustments.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Accounting profit before tax","es":""},"value":"3200000","unit":"EUR"},{"label":{"fr":"","en":"Non-deductible gifts","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Charge to a litigation provision, deductible when paid","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Excess of tax depreciation over accounting depreciation","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Exempt dividends","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Rate enacted at the reporting date","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Taxable profit","es":""},"answer":3000000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Current tax","es":""},"answer":750000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Taxable profit","es":""},"expression":"a + b + c - d - e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accounting profit before tax","es":""},"value":3200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Non-deductible gifts","es":""},"value":30000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Charge to a litigation provision, deductible when paid","es":""},"value":120000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Excess of tax depreciation over accounting depreciation","es":""},"value":250000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Exempt dividends","es":""},"value":100000,"unit":"EUR"}],"result":3000000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Current tax","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable profit","es":""},"value":3000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate enacted at the reporting date","es":""},"value":25,"unit":"PERCENT"}],"result":750000,"unit":"EUR"}],"references":["REF.IAS12.46"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000038","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"CURRENT_TAX_BALANCE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"Pomerzac, a fictitious chain of delicatessens, paid more instalments than the tax finally due. Calculate the balance at 31 December N.","es":""},"explanation":{"fr":"","en":"When the amounts already paid exceed the amount due, the excess is recognised as an asset: 470,000 − 420,000 = 50,000 (IAS 12, para. 12).","es":""},"common_error":{"fr":"","en":"Recognising a liability or expensing the excess: instalments above the tax due give a current tax asset.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Current tax for N","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Instalments paid in N","es":""},"value":"470000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Current tax asset at 31 December N","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Current tax asset at 31 December N","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Instalments paid in N","es":""},"value":470000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Current tax for N","es":""},"value":420000,"unit":"EUR"}],"result":50000,"unit":"EUR","rationale":{"fr":"","en":"When the amounts already paid exceed the amount due, the excess is recognised as an asset: 470,000 − 420,000 = 50,000 (IAS 12, para. 12).","es":""}}],"references":["REF.IAS12.12"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000039","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"CURRENT_TAX_ENTRY_OVERPAID","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"entry"},"references":["IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"Pomerzac recorded its instalments (470,000) as a debit to Current tax asset. Record the closing entry recognising current tax for N (420,000).","es":""},"explanation":{"fr":"","en":"Debit Current tax expense 420,000; credit Current tax asset 420,000. The remaining debit balance, 50,000, is the overpayment recognised as an asset (IAS 12, para. 12); no current tax liability is to be recognised.","es":""},"common_error":{"fr":"","en":"Crediting a 420,000 current tax liability: the instalments already recorded as an asset are cleared against the expense, leaving a 50,000 asset.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CURRENT_TAX_EXPENSE","text":{"fr":"","en":"Current tax expense","es":""}},{"id":"CURRENT_TAX_ASSET","text":{"fr":"","en":"Current tax asset","es":""}},{"id":"CURRENT_TAX_LIABILITY","text":{"fr":"","en":"Current tax liability","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"CURRENT_TAX_EXPENSE","side":"DEBIT","amount":420000},{"id":"L2","account":"CURRENT_TAX_ASSET","side":"CREDIT","amount":420000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000040","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"CONSTRUCTION","tested_point":"LOSS_CARRYBACK_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"loss-carry-back"},"references":["IAS 12 §13","IAS 12 §14"],"exercise":{"prompt":{"fr":"","en":"Sarvenne, a fictitious civil engineering company, makes a tax loss of 400,000 in N, which the case legislation allows it to set against taxable profit for N−1, taxed at 25%. Record the entry for N.","es":""},"explanation":{"fr":"","en":"The benefit of a tax loss carried back to recover current tax of a previous period is an asset (IAS 12, para. 13), recognised in the period of the loss (IAS 12, para. 14): 400,000 × 25% = 100,000. This is recoverable current tax, not deferred tax.","es":""},"common_error":{"fr":"","en":"Recognising a deferred tax asset: a loss carried back against year N−1's profit gives recoverable current tax, recognised in the period of the loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CURRENT_TAX_ASSET","text":{"fr":"","en":"Current tax asset","es":""}},{"id":"CURRENT_TAX_INCOME","text":{"fr":"","en":"Current tax income","es":""}},{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"CURRENT_TAX_ASSET","side":"DEBIT","amount":100000},{"id":"L2","account":"CURRENT_TAX_INCOME","side":"CREDIT","amount":100000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000041","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"LOSS_CARRYBACK_TIMING","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"loss-carry-back"},"references":["IAS 12 §13","IAS 12 §14"],"exercise":{"prompt":{"fr":"","en":"The asset arising from a tax loss carryback is recognised only when the tax authority has refunded the tax.","es":""},"explanation":{"fr":"","en":"False. The benefit is recognised as an asset in the period in which the loss occurs, as the benefit is then probable and can be reliably measured (IAS 12, paras. 13 and 14).","es":""},"common_error":{"fr":"","en":"Not recognising the carryback asset in the period of the loss.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000042","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TEXTILE","tested_point":"CURRENT_TAX_RATE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"measurement-rates"},"references":["IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"Filatures Orlvane, a fictitious company, is calculating its tax for N. In December N, the government announced a plan to cut the rate for N from 25% to 22%; in this country, an announcement has no effect until the law is passed, and the vote will take place only in March N+1 (case data). Which rate should be used?","es":""},"explanation":{"fr":"","en":"Current tax is measured using the rates enacted or substantively enacted at the reporting date (IAS 12, para. 46); according to the case data, the announcement has no effect before the vote: 25%.","es":""},"common_error":{"fr":"","en":"Using a rate merely proposed by the government.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"25%, the rate enacted at the reporting date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"22%, the announced rate","es":""},"correct":false,"feedback":{"fr":"","en":"Here, the announcement does not amount to enactment: the rate is neither enacted nor substantively enacted at the reporting date.","es":""}},{"id":"C","text":{"fr":"","en":"The average of the two, 23.5%","es":""},"correct":false,"feedback":{"fr":"","en":"No averaging is provided for between an enacted rate and a proposed one.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000043","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"CURRENT_TAX_RULES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §12","IAS 12 §13","IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"Which statements on current tax are correct?","es":""},"explanation":{"fr":"","en":"Liability for the unpaid part, asset for the excess paid (IAS 12, para. 12); asset for the carryback in the period of the loss (IAS 12, para. 13); measurement at the amount expected, at the rates enacted or substantively enacted at the reporting date (IAS 12, para. 46).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The unpaid part of current tax for the current and prior periods is a liability","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Instalments in excess of the tax due are an asset","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Current tax is measured at the rates enacted or substantively enacted at the reporting date","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Current tax is discounted when it is paid more than a year after the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is measured at the amount expected to be paid; no discounting is provided for in the summary of para. 46.","es":""}},{"id":"E","text":{"fr":"","en":"A loss carryback is recognised only on refund","es":""},"correct":false,"feedback":{"fr":"","en":"It is recognised in the period of the loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000044","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"LOSS_CARRYBACK_CAP","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"loss-carry-back"},"references":["IAS 12 §13","IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"Nivelor, a fictitious production studio, makes a tax loss in N. Under the case legislation, the loss can be set against taxable profit for N−1 (300,000, taxed at 28%), the balance being carried forward. Calculate.","es":""},"explanation":{"fr":"","en":"The loss that can be carried back is capped at the profit for N−1: 300,000; expected refund = 300,000 × 28% = 84,000, recognised as an asset in N (IAS 12, paras. 13 and 46). The remaining 200,000 relate to the carryforward (deferred tax asset subject to probability, another lesson).","es":""},"common_error":{"fr":"","en":"Applying the N−1 rate to the whole loss (140,000) without taking the cap into account.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Tax loss for N","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Taxable profit for N−1","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Rate for N−1","es":""},"value":"28","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Loss carried back","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Current tax asset (refund)","es":""},"answer":84000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Loss remaining to be carried forward","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Current tax asset (refund)","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable profit for N−1","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate for N−1","es":""},"value":28,"unit":"PERCENT"}],"result":84000,"unit":"EUR"}],"references":["REF.IAS12.13","REF.IAS12.46"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000045","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ENERGY","tested_point":"CURRENT_TAX_WORKPAPER_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"pitfalls"},"references":["IAS 12 §12","IAS 12 §13","IAS 12 §71"],"exercise":{"prompt":{"fr":"","en":"Review the \"current tax\" working paper of a fictitious energy group operating in two countries.","es":""},"explanation":{"fr":"","en":"Only line 4 is correct: unpaid current tax of prior periods is a liability (IAS 12, para. 12). Lines 1 to 3 combine three classic errors: calculation on accounting profit, offsetting between authorities, deferred recognition of the carryback.","es":""},"common_error":{"fr":"","en":"Offsetting excess instalments against tax of another jurisdiction.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Current tax = accounting profit × 25%, tax adjustments being immaterial by principle.","es":""},"erroneous":true,"correction":{"fr":"","en":"Current tax is calculated on taxable profit, after tax adjustments (IAS 12, paras. 5 and 12).","es":""}},{"id":"S2","text":{"fr":"","en":"2. The overpayment of 60,000 in country A is deducted from the liability of 90,000 payable in country B.","es":""},"erroneous":true,"correction":{"fr":"","en":"Without a legally enforceable right of set-off (different authorities), asset and liability are presented separately (IAS 12, para. 71).","es":""}},{"id":"S3","text":{"fr":"","en":"3. A subsidiary's loss, which can be carried back, will be recognised on refund in N+1.","es":""},"erroneous":true,"correction":{"fr":"","en":"Asset in the period of the loss (IAS 12, paras. 13 and 14).","es":""}},{"id":"S4","text":{"fr":"","en":"4. The additional N−1 tax discovered when filing the return (15,000) is recognised as a current tax liability.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000046","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"AGRICULTURE","tested_point":"CURRENT_TAX_BALANCE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"Complete for Vergers d'Calestrin, a fictitious farm.","es":""},"explanation":{"fr":"","en":"The unpaid part of current tax is a liability: 260,000 − 210,000 = 50,000 (IAS 12, para. 12).","es":""},"common_error":{"fr":"","en":"Calling it a current tax asset when instalments are below the tax due: the unpaid part is a liability.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Current tax for N: 260,000; instalments paid: 210,000. At 31 December N, the current tax {{side}} amounts to {{amount}}.","es":""},"blanks":[{"id":"side","mode":"CHOICE","choices":[{"id":"LIAB","text":{"fr":"","en":"liability","es":""}},{"id":"ASSET","text":{"fr":"","en":"asset","es":""}}],"answer":"LIAB"},{"id":"amount","mode":"NUMBER","answer":50000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000047","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"CURRENT_TAX_STEPS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"how"},"references":["IAS 12 §12","IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"Put the year-end current tax steps in order.","es":""},"explanation":{"fr":"","en":"Taxable profit results from tax rules; tax is measured at enacted or substantively enacted rates (IAS 12, para. 46); the balance is a liability or an asset (IAS 12, para. 12).","es":""},"common_error":{"fr":"","en":"Applying the rate to accounting profit without deriving taxable profit, or recognising tax without comparing it with the instalments.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Start from accounting profit before tax","es":""}},{"id":"S2","text":{"fr":"","en":"Apply the tax adjustments of the legislation to obtain taxable profit","es":""}},{"id":"S3","text":{"fr":"","en":"Apply the rate enacted or substantively enacted at the reporting date","es":""}},{"id":"S4","text":{"fr":"","en":"Compare with the instalments paid","es":""}},{"id":"S5","text":{"fr":"","en":"Recognise a liability (unpaid part) or an asset (excess paid)","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000048","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"APPLICATION","format":"MINI_CASE","context":"HOSPITALITY","tested_point":"PRIOR_PERIOD_CURRENT_TAX","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"numeric-example"},"references":["IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"Determine the current tax liability of Résidences Campoury at 31 December N.","es":""},"explanation":{"fr":"","en":"The current tax liability covers unpaid tax for the current period and prior periods (IAS 12, para. 12). Treating the N−1 difference as an expense of N is a teaching assumption (immaterial difference).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Résidences Campoury, a fictitious operator of holiday residences, had recognised current tax of 300,000 for N−1. When filing its N−1 return in May N, it corrected a calculation error: tax payable for N−1 is 318,000, the difference not yet paid. For N, current tax is 400,000 and the instalments paid 350,000 (recorded as a current tax asset).","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the current tax liability at 31 December N.","es":""},"explanation":{"fr":"","en":"Unpaid part for N: 400,000 − 350,000 = 50,000; N−1 top-up: 318,000 − 300,000 = 18,000; total liability 68,000 (IAS 12, para. 12: tax for the current and prior periods).","es":""},"common_error":{"fr":"","en":"Forgetting the N−1 top-up and taking 50,000: unpaid current tax for prior periods is also part of the liability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"N−1 top-up","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Tax for N","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Instalments for N","es":""},"value":"350000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Current tax liability","es":""},"answer":68000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Current tax liability","es":""},"expression":"(a - b) + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax for N","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Instalments for N","es":""},"value":350000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"N−1 top-up","es":""},"value":18000,"unit":"EUR"}],"result":68000,"unit":"EUR"}],"references":["REF.IAS12.12"]}},{"prompt":{"fr":"","en":"Record the closing entry for N (tax for N and N−1 top-up).","es":""},"explanation":{"fr":"","en":"Current tax expense 400,000 + 18,000 = 418,000; instalments applied 350,000; liability 68,000. The N−1 calculation difference, discovered in N, is treated here as an expense of N (teaching assumption: immaterial difference, no correction of an error under IAS 8).","es":""},"common_error":{"fr":"","en":"Recording only year N's tax (400,000) or not applying the instalments: the expense includes the N−1 top-up and the instalments clear the asset.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CURRENT_TAX_EXPENSE","text":{"fr":"","en":"Current tax expense","es":""}},{"id":"CURRENT_TAX_ASSET","text":{"fr":"","en":"Current tax asset","es":""}},{"id":"CURRENT_TAX_LIABILITY","text":{"fr":"","en":"Current tax liability","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"CURRENT_TAX_EXPENSE","side":"DEBIT","amount":418000},{"id":"L2","account":"CURRENT_TAX_ASSET","side":"CREDIT","amount":350000,"given":["account","side"]},{"id":"L3","account":"CURRENT_TAX_LIABILITY","side":"CREDIT","amount":68000}],"id":"P2","dimension":"JOURNAL_ENTRY"},{"prompt":{"fr":"","en":"The unpaid N−1 tax top-up must be shown as a liability at 31 December N.","es":""},"explanation":{"fr":"","en":"True: unpaid current tax of prior periods is a liability (IAS 12, para. 12).","es":""},"common_error":{"fr":"","en":"Limiting the liability to the current year's tax: tax still due for prior periods is also a liability.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000049","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"CURRENT_VS_DEFERRED_BALANCES","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §5","IAS 12 §12","IAS 12 §13"],"exercise":{"prompt":{"fr":"","en":"Classify the tax balances of Mekanis, a fictitious company.","es":""},"explanation":{"fr":"","en":"Current tax relates to taxable profit of the current and prior periods: a liability if unpaid, an asset if overpaid or recoverable by carryback (IAS 12, paras. 12 and 13). Future tax relating to a temporary difference is deferred tax (IAS 12, para. 5).","es":""},"common_error":{"fr":"","en":"Classifying future tax on accelerated depreciation as current tax: it arises from a temporary difference, so it is deferred tax.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CTL","text":{"fr":"","en":"Current tax liability","es":""}},{"id":"CTA","text":{"fr":"","en":"Current tax asset","es":""}},{"id":"DT","text":{"fr":"","en":"Deferred tax (not current tax)","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Unpaid balance of tax for N","es":""},"category":"CTL"},{"id":"I2","text":{"fr":"","en":"Instalments paid in excess of tax for N","es":""},"category":"CTA"},{"id":"I3","text":{"fr":"","en":"Expected refund from carrying back the N loss","es":""},"category":"CTA"},{"id":"I4","text":{"fr":"","en":"Future tax arising from accelerated tax depreciation","es":""},"category":"DT"},{"id":"I5","text":{"fr":"","en":"Unpaid N−1 tax top-up","es":""},"category":"CTL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000050","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"SOFTWARE","tested_point":"LOSS_CARRYBACK_ELECTION","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"judgment"},"references":["IAS 12 §13","IAS 12 §14","IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"Analyse Logivelle's tax election and its accounting consequences at 31 December N.","es":""},"explanation":{"fr":"","en":"The carryback gives a current tax asset of 90,000 in N (IAS 12, paras. 13, 14 and 46). The election and its timing are case data; assessing them at the reporting date is a documented judgement.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Logivelle, a fictitious publisher, makes a tax loss of 300,000 in N. The case legislation lets it choose, in the return filed in April N+1, between carrying the loss back against N−1 profit (taxed at 30%, more than the 300,000 loss) and carrying it forward. In December N, the board decided to opt for the carryback, to obtain cash quickly.","es":""},"parts":[{"prompt":{"fr":"","en":"When should the benefit of the carryback be recognised?","es":""},"explanation":{"fr":"","en":"The benefit of a carryback is recognised as an asset in the period in which the loss occurs (IAS 12, paras. 13 and 14). Whether the election provided by the case legislation has been made at the reporting date is a matter of judgement, documented here by the board decision.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In N, the period of the loss, the election having been decided and the benefit being probable and measurable","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In N+1, when the return is filed","es":""},"correct":false,"feedback":{"fr":"","en":"The asset relates to the period of the loss; the later filing merely implements an election already decided.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the asset to be recognised.","es":""},"explanation":{"fr":"","en":"300,000 × 30% = 90,000, the amount Logivelle expects to recover from the tax authority (IAS 12, para. 46).","es":""},"common_error":{"fr":"","en":"Applying year N's rate instead of N−1's: the asset is the amount expected to be recovered, computed at the rate of the period carried back to.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Tax loss for N","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Rate for N−1","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Current tax asset","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Current tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax loss for N","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate for N−1","es":""},"value":30,"unit":"PERCENT"}],"result":90000,"unit":"EUR","rationale":{"fr":"","en":"300,000 × 30% = 90,000, the amount Logivelle expects to recover from the tax authority (IAS 12, para. 46).","es":""}}],"references":["REF.IAS12.46"]}},{"prompt":{"fr":"","en":"The board's December N decision is useful evidence to keep in the closing file.","es":""},"explanation":{"fr":"","en":"True: it supports the judgement on the election made, on which the asset recognised in N depends (IAS 12, para. 14).","es":""},"common_error":{"fr":"","en":"Overlooking the board's decision: it supports the carry-back option on which the asset recognised in N depends.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000051","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DTL_ALL_TAXABLE_DIFFERENCES","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"A deferred tax liability is recognised for all taxable temporary differences, except for the exceptions set out in the standard.","es":""},"explanation":{"fr":"","en":"True. The rule is general; the exceptions concern the initial recognition of goodwill and that of an asset or liability in certain transactions that are not business combinations (IAS 12, para. 15).","es":""},"common_error":{"fr":"","en":"Believing the deferred tax liability depends on a choice or a probability test: it is recognised for every taxable difference, except the standard's exceptions.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000052","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"TAXABLE_DIFFERENCE_SOURCES","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"timing-differences"},"references":["IAS 12","IAS 12 §20","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"For Ébénisteries Rolvain, a fictitious company, classify each situation (tax treatments: case data).","es":""},"explanation":{"fr":"","en":"Income taxed on receipt, accelerated tax depreciation and development costs already deducted create taxable differences (IAS 12, para. 17); so does a revaluation without an equivalent tax adjustment (IAS 12, para. 20). A provision deductible when paid creates a deductible difference; a fine that is never deductible creates no difference between carrying amount and tax base (IAS 12, para. 5).","es":""},"common_error":{"fr":"","en":"Classifying the provision as a taxable difference or seeing a difference in the fine: the provision deductible on payment creates a deductible difference, the fine none.","es":""},"format":"CLASSIFICATION","categories":[{"id":"TAX","text":{"fr":"","en":"Taxable temporary difference","es":""}},{"id":"DED","text":{"fr":"","en":"Deductible temporary difference","es":""}},{"id":"NONE","text":{"fr":"","en":"No temporary difference","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Interest accrued on a loan, taxed on receipt","es":""},"category":"TAX"},{"id":"I2","text":{"fr":"","en":"Digital saws depreciated faster for tax than in the accounts","es":""},"category":"TAX"},{"id":"I3","text":{"fr":"","en":"Development costs capitalised, deducted for tax in the year incurred","es":""},"category":"TAX"},{"id":"I4","text":{"fr":"","en":"Workshop revalued in the accounts, tax base unchanged","es":""},"category":"TAX"},{"id":"I5","text":{"fr":"","en":"Warranty provision deductible when paid","es":""},"category":"DED"},{"id":"I6","text":{"fr":"","en":"Fine never deductible","es":""},"category":"NONE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000053","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MINING","tested_point":"DTL_CALC_BASIC","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"numeric-example"},"references":["IAS 12 §15","IAS 12 §16","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Carrières de Valbrisse, a fictitious company: calculate the temporary difference and the deferred tax liability on a crusher.","es":""},"explanation":{"fr":"","en":"The carrying amount exceeds the tax base: 1,800,000 − 1,350,000 = 450,000 taxable difference (IAS 12, para. 16); liability = 450,000 × 25% = 112,500 (IAS 12, paras. 15 and 47).","es":""},"common_error":{"fr":"","en":"Applying the rate to the carrying amount (450,000) instead of the temporary difference.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"1350000","unit":"EUR"},{"label":{"fr":"","en":"Rate expected on reversal","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":112500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":1800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base","es":""},"value":1350000,"unit":"EUR"}],"result":450000,"unit":"EUR","rationale":{"fr":"","en":"The carrying amount exceeds the tax base: 1,800,000 − 1,350,000 = 450,000 taxable difference (IAS 12, para. 16)","es":""}},{"step":"S2","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate expected on reversal","es":""},"value":25,"unit":"PERCENT"}],"result":112500,"unit":"EUR"}],"references":["REF.IAS12.15","REF.IAS12.16","REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000054","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"PRINTING","tested_point":"DTL_LIFECYCLE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"numeric-example"},"references":["IAS 12","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Imprimerie Castelbru, a fictitious company, buys a press for 600,000 on 1 January of year 1, depreciated over 3 years in the accounts and over 2 years for tax (case data; rate 25%). Follow the deferred tax liability.","es":""},"explanation":{"fr":"","en":"End of year 1: carrying amount 400,000, tax base 300,000, difference 100,000 → 25,000. End of year 2: 200,000 against 0 → 200,000 → 50,000 (expense of 25,000). End of year 3: 0 against 0 → the liability reverses, income of 50,000. Accelerated tax depreciation creates then unwinds the taxable difference (IAS 12, paras. 15 and 17).","es":""},"common_error":{"fr":"","en":"Computing the liability on the year's depreciation gap instead of the cumulative gap between carrying amount and tax base.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Annual accounting depreciation","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Annual tax depreciation (years 1 and 2)","es":""},"value":"300000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax liability at end of year 1","es":""},"answer":25000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax liability at end of year 2","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Deferred tax expense for year 2","es":""},"answer":25000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Deferred tax income for year 3","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000055","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PRINTING","tested_point":"DTL_ENTRY_CREATION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"entry"},"references":["IAS 12 §15","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Castelbru, end of year 1: record the entry creating the deferred tax liability of 25,000 (other side in profit or loss).","es":""},"explanation":{"fr":"","en":"Debit Deferred tax expense 25,000; credit Deferred tax liability 25,000: the difference arises from depreciation recognised in profit or loss, so the deferred tax follows profit or loss (IAS 12, paras. 15 and 58).","es":""},"common_error":{"fr":"","en":"Crediting current tax or taking the tax to equity: the difference comes from depreciation in profit or loss, so deferred tax follows profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"CURRENT_TAX_LIABILITY","text":{"fr":"","en":"Current tax liability","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_EXPENSE","side":"DEBIT","amount":25000},{"id":"L2","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":25000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000056","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"PRINTING","tested_point":"DTL_ENTRY_REVERSAL","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"entry"},"references":["IAS 12 §15","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Castelbru, end of year 3: the deferred tax liability of 50,000 in the opening statement of financial position, which arose from accelerated tax depreciation recognised in profit or loss, is no longer needed, as the difference has fully reversed. Record the entry.","es":""},"explanation":{"fr":"","en":"The liability of 50,000 disappears: debit Deferred tax liability 50,000; credit Deferred tax income 50,000 (IAS 12, para. 58). This income offsets the higher current tax of year 3, when there is no more tax depreciation.","es":""},"common_error":{"fr":"","en":"Reversing the entry: the liability is released by debiting it and crediting deferred tax income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"CURRENT_TAX_LIABILITY","text":{"fr":"","en":"Current tax liability","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_LIABILITY","side":"DEBIT","amount":50000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":50000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000057","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"HOSPITALITY","tested_point":"REVALUATION_NO_SALE_INTENT","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"other-sources"},"references":["IAS 12 §20"],"exercise":{"prompt":{"fr":"","en":"A fictitious hotelier revalues its hotel with no tax adjustment. As it has no intention of selling it, no deferred tax needs to be recognised on the revaluation.","es":""},"explanation":{"fr":"","en":"False. The difference between the carrying amount of the revalued asset and its tax base is a temporary difference giving rise to deferred tax, even if the entity does not intend to dispose of the asset (IAS 12, para. 20): the value will be recovered through use.","es":""},"common_error":{"fr":"","en":"Not recognising deferred tax on a revaluation because the asset will not be sold.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000058","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"RATE_ON_DIFFERENCE_NOT_CARRYING","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"how"},"references":["IAS 12 §15","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"A fibre network of a fictitious operator has a carrying amount of 900,000 and a tax base of 700,000 (rate 25%). What deferred tax liability?","es":""},"explanation":{"fr":"","en":"Taxable difference = 900,000 − 700,000 = 200,000; liability = 200,000 × 25% = 50,000 (IAS 12, paras. 15 and 47).","es":""},"common_error":{"fr":"","en":"Applying the tax rate to the carrying amount instead of the temporary difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"50,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"225,000","es":""},"correct":false,"feedback":{"fr":"","en":"That is 25% of the carrying amount: the rate applies to the temporary difference.","es":""}},{"id":"C","text":{"fr":"","en":"175,000","es":""},"correct":false,"feedback":{"fr":"","en":"That is 25% of the tax base, which is meaningless.","es":""}},{"id":"D","text":{"fr":"","en":"None, as no sale is planned","es":""},"correct":false,"feedback":{"fr":"","en":"Recovery through use also generates taxable profits.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000059","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"OTHER_SOURCES_OF_DIFFERENCES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"other-sources"},"references":["IAS 12 §18","IAS 12 §41"],"exercise":{"prompt":{"fr":"","en":"Which situations may give rise to temporary differences?","es":""},"explanation":{"fr":"","en":"Para. 18 mentions in particular fair value adjustments in a business combination, revaluations, goodwill, differences on initial recognition, and investments (IAS 12, para. 18); para. 41 adds non-monetary assets and liabilities affected by the gap between functional currency and tax currency (IAS 12, para. 41).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Assets acquired in a business combination recognised at fair value without an equivalent tax adjustment","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Assets revalued without an equivalent tax adjustment","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Goodwill arising in a business combination","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Non-monetary assets measured in the functional currency while taxable profit is determined in another currency","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Permanently non-deductible entertainment costs","es":""},"correct":false,"feedback":{"fr":"","en":"They create no difference between carrying amount and tax base.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000060","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"SHIPPING","tested_point":"FUNCTIONAL_CURRENCY_DIFFERENCES","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"other-sources"},"references":["IAS 12 §41"],"exercise":{"prompt":{"fr":"","en":"Navimar, a fictitious shipowner, has the dollar as its functional currency but is taxed in another local currency. Its ships are measured in historical dollars, their tax base in local currency. The local currency depreciates. What happens?","es":""},"explanation":{"fr":"","en":"When non-monetary assets and liabilities are measured in the functional currency and taxable profit is determined in another currency, exchange rate changes give rise to temporary differences that result in a deferred tax liability or asset (IAS 12, para. 41).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Exchange rate changes give rise to temporary differences that result in deferred tax","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No deferred tax: these are mere translation differences","es":""},"correct":false,"feedback":{"fr":"","en":"The differences on non-monetary items measured in the functional currency give rise to temporary differences.","es":""}},{"id":"C","text":{"fr":"","en":"Navimar must translate its ships at the closing rate","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 does not change how assets are measured; it draws the tax consequences.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000061","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"TAXABLE_DIFFERENCE_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"pitfalls"},"references":["IAS 12 §16","IAS 12","IAS 12 §20"],"exercise":{"prompt":{"fr":"","en":"Review the memo of the assistant of a fictitious car dealer (rate 25%, tax treatments: case data).","es":""},"explanation":{"fr":"","en":"Only line 4 is correct (IAS 12, para. 17). The others combine three frequent errors: reversing the direction of the difference, applying the rate to the carrying amount, ignoring the deferred tax on a revaluation.","es":""},"common_error":{"fr":"","en":"Reversing the direction of the difference (deferred tax liability on an asset whose tax base exceeds its carrying amount).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Workshop: carrying amount 500,000, tax base 650,000 → deferred tax liability of 37,500.","es":""},"erroneous":true,"correction":{"fr":"","en":"The tax base exceeds the carrying amount: a deductible difference (potential asset), not a taxable one (IAS 12, para. 16).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Demonstration vehicles: carrying amount 300,000, tax base 200,000 → liability of 75,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"The rate applies to the difference: 100,000 × 25% = 25,000.","es":""}},{"id":"S3","text":{"fr":"","en":"3. Showroom revalued by 200,000 with no tax adjustment: no deferred tax, as no sale is planned.","es":""},"erroneous":true,"correction":{"fr":"","en":"Deferred tax even with no intention to sell (IAS 12, para. 20).","es":""}},{"id":"S4","text":{"fr":"","en":"4. Accrued customer finance interest, taxed on receipt (40,000) → liability of 10,000.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000062","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"WHY_TAXABLE_DIFFERENCE","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §16"],"exercise":{"prompt":{"fr":"","en":"Complete the reasoning.","es":""},"explanation":{"fr":"","en":"This is the logic of para. 16: carrying amount > tax base → taxable difference → deferred tax liability (IAS 12, para. 16).","es":""},"common_error":{"fr":"","en":"Reversing the direction: when the carrying amount exceeds the tax base, the difference is taxable and gives a liability, not an asset.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"When the carrying amount of an asset {{cmp}} its tax base, the taxable benefits from its recovery exceed the deductions allowed: the difference is a {{kind}} temporary difference, and the tax that will be payable is a deferred tax {{item}}.","es":""},"blanks":[{"id":"cmp","mode":"CHOICE","choices":[{"id":"GT","text":{"fr":"","en":"exceeds","es":""}},{"id":"LT","text":{"fr":"","en":"is lower than","es":""}}],"answer":"GT"},{"id":"kind","mode":"CHOICE","choices":[{"id":"TAX","text":{"fr":"","en":"taxable","es":""}},{"id":"DED","text":{"fr":"","en":"deductible","es":""}}],"answer":"TAX"},{"id":"item","mode":"CHOICE","choices":[{"id":"LIAB","text":{"fr":"","en":"liability","es":""}},{"id":"ASSET","text":{"fr":"","en":"asset","es":""}}],"answer":"LIAB"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000063","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"APPLICATION","format":"MINI_CASE","context":"ELECTRONICS","tested_point":"DTL_INTEREST_AND_DEVELOPMENT","difficulty":"ADVANCED","estimated_time_s":360,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"numeric-example"},"references":["IAS 12","IAS 12 §15","IAS 12 §58","IAS 38 §57"],"exercise":{"prompt":{"fr":"","en":"Follow Varnelle's deferred tax over two years.","es":""},"explanation":{"fr":"","en":"Income taxed on receipt and development costs already deducted are two typical timing differences of para. 17; the liability reverses as the cash is received and the asset is amortised (IAS 12, paras. 15, 17 and 58).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Varnelle, a fictitious sensor maker, has at the end of N: accrued interest receivable of 40,000, taxed on receipt; development costs of 300,000 capitalised under IAS 38 (criteria met: case data), fully deducted for tax in N. In N+1, the interest is received and the development is amortised by 60,000. Rate 25%, no other items.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the deferred tax liability.","es":""},"explanation":{"fr":"","en":"End of N: (40,000 + 300,000) × 25% = 85,000. End of N+1: interest received (nil difference); development 240,000 against a nil base → 60,000 (IAS 12, para. 17).","es":""},"common_error":{"fr":"","en":"Keeping the interest in the N+1 difference: once collected and taxed, it no longer creates a gap; only development remains.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"End of N","es":""},"answer":85000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"End of N+1","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"End of N","es":""},"expression":"(a + b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Varnelle, a fictitious sensor maker, has at the end of N: accrued interest receivable of 40,000","es":""},"value":40000},{"symbol":"b","meaning":{"fr":"","en":"300,000 capitalised under IAS","es":""},"value":300000},{"symbol":"c","meaning":{"fr":"","en":"Rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":85000,"unit":"EUR"}],"references":["REF.IAS12.17"]}},{"prompt":{"fr":"","en":"Record the deferred tax entry for N+1.","es":""},"explanation":{"fr":"","en":"The liability falls from 85,000 to 60,000: debit Liability 25,000, credit Deferred tax income 25,000 (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Recording the new liability (60,000) instead of the change: only the 25,000 decrease is recognised as income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_LIABILITY","side":"DEBIT","amount":25000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":25000}],"id":"P2","dimension":"JOURNAL_ENTRY"},{"prompt":{"fr":"","en":"Development costs capitalised but already deducted for tax create a taxable temporary difference.","es":""},"explanation":{"fr":"","en":"True (IAS 12, para. 17); their capitalisation falls under IAS 38 (IAS 38, para. 57).","es":""},"common_error":{"fr":"","en":"Thinking capitalisation follows the tax treatment: already deducted, these costs have a nil tax base, hence a taxable difference.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000064","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"REVALUATION_NO_SALE_INTENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"judgment"},"references":["IAS 12 §20","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Amarelle's chief executive disputes the deferred tax on the revaluation of its head office. Decide.","es":""},"explanation":{"fr":"","en":"Recovery through use generates taxable profits: a revaluation without tax adjustment increases the taxable difference and the deferred tax liability (IAS 12, para. 20). The revaluation policy and the rate are case data.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Amarelle, a fictitious services company, applies the IAS 16 revaluation model to its head office (the case's accounting policy). Carrying amount before revaluation 2,000,000, after revaluation 2,600,000; tax base 1,500,000; the building will be used until the end of its life, recovery through use taxed at 25% (case data). The chief executive says: \"We will never sell: no tax on this gain.\"","es":""},"parts":[{"prompt":{"fr":"","en":"What should be answered?","es":""},"explanation":{"fr":"","en":"Temporary difference and deferred tax even with no intention to dispose of the asset (IAS 12, para. 20).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deferred tax arises whatever the intention to sell: the building will be recovered through use, which generates taxable profits","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"He is right: without a sale, the revaluation has no tax consequence","es":""},"correct":false,"feedback":{"fr":"","en":"The standard expressly addresses the case where the entity does not intend to dispose.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the deferred tax liability before and after revaluation, and the increase.","es":""},"explanation":{"fr":"","en":"Before: (2,000,000 − 1,500,000) × 25% = 125,000. After: (2,600,000 − 1,500,000) × 25% = 275,000. Increase: 150,000 = 600,000 × 25% (IAS 12, paras. 15 and 20). Its allocation (to other comprehensive income) is studied in the lesson on allocation.","es":""},"common_error":{"fr":"","en":"Computing tax on the whole revalued amount: the rate is applied to the gap between carrying amount and tax base, before and after.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Before revaluation","es":""},"answer":125000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"After revaluation","es":""},"answer":275000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Increase","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Before revaluation","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount before revaluation 2,000,000","es":""},"value":2000000},{"symbol":"b","meaning":{"fr":"","en":"tax base 1,500,000","es":""},"value":1500000},{"symbol":"c","meaning":{"fr":"","en":"recovery through use taxed at 25%","es":""},"value":25,"unit":"PERCENT"}],"result":125000,"unit":"EUR"}],"rationale":{"fr":"","en":"Increase: 150,000 = 600,000 × 25% (IAS 12, paras. 15 and 20).","es":""},"references":["REF.IAS12.20","REF.IAS12.15"]}},{"prompt":{"fr":"","en":"The closing memo should state that the intention to keep the building is not a reason to set aside deferred tax.","es":""},"explanation":{"fr":"","en":"True (IAS 12, para. 20): documenting the answer to the objection avoids a frequent error.","es":""},"common_error":{"fr":"","en":"Excluding deferred tax because the head office will be kept: the revaluation creates a temporary difference even with no intention to sell.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000065","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DTA_PROBABILITY_CONDITION","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Every deductible temporary difference gives rise, unconditionally, to a deferred tax asset.","es":""},"explanation":{"fr":"","en":"False. The asset is recognised only to the extent that it is probable that taxable profit will be available against which the difference can be used, unless the initial recognition exception applies (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Recognising a deferred tax asset without considering whether taxable profit is probable.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000066","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"AEROSPACE","tested_point":"PENSION_DEDUCTIBLE_DIFFERENCE","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"deductible-liabilities"},"references":["IAS 12 §26","IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Aérostel, a fictitious aerospace subcontractor, recognises a pension obligation of 300,000, deductible when benefits are paid (case data; rate 25%; future profits probable). Calculate.","es":""},"explanation":{"fr":"","en":"Tax base = 300,000 − 300,000 deductible later = 0 (IAS 12, para. 8); deductible difference 300,000, a typical example of retirement benefit costs (IAS 12, para. 26); asset = 75,000, future profit being probable.","es":""},"common_error":{"fr":"","en":"Giving the obligation a 300,000 tax base: deductible later, it has a nil tax base, hence a deductible difference.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Pension obligation (carrying amount)","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Rate","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tax base","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deductible temporary difference","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":75000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000067","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"CONSTRUCTION","tested_point":"DTA_CALC_PROVISIONS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"numeric-example"},"references":["IAS 12 §24","IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Bâtiments Sorlac, a fictitious company, has two provisions deductible when paid (rate 25%, future taxable profit probable). Calculate.","es":""},"explanation":{"fr":"","en":"Nil tax bases (IAS 12, para. 8): deductible differences 80,000 + 120,000 = 200,000; asset = 200,000 × 25% = 50,000, recognised because taxable profit is probable (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Omitting the deferred tax asset on a provision deductible when paid.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Ten-year warranty provision","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Restructuring provision","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deductible temporary differences","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deductible temporary differences","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Ten-year warranty provision","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Restructuring provision","es":""},"value":120000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"references":["REF.IAS12.24","REF.IAS12.8"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000068","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"INSURANCE","tested_point":"DEBT_INSTRUMENT_UNREALISED_LOSS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"assets-below-tax-base"},"references":["IAS 12 §26","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Mutuelle Ardezan, a fictitious entity, holds a government bond measured at fair value, 1,860,000, with a tax cost of 2,000,000; it intends to hold it to maturity, when it will receive 2,000,000. What analysis?","es":""},"explanation":{"fr":"","en":"An asset measured at fair value whose tax base exceeds its carrying amount gives rise to a deductible temporary difference (IAS 12, para. 26): 2,000,000 − 1,860,000 = 140,000; the deferred tax asset remains subject to taxable profit being probable (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Refusing the asset on an unrealised loss because the instrument is held to maturity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deductible temporary difference of 140,000, deferred tax asset if taxable profit is probable, despite the intention to hold","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No difference: the loss will never be realised","es":""},"correct":false,"feedback":{"fr":"","en":"The difference exists as soon as the tax base exceeds the carrying amount, whatever the intention to hold.","es":""}},{"id":"C","text":{"fr":"","en":"Taxable difference of 140,000","es":""},"correct":false,"feedback":{"fr":"","en":"An asset's tax base above its carrying amount: deductible difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000069","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"CONSTRUCTION","tested_point":"DTA_ENTRY_RECOGNITION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"entry"},"references":["IAS 12 §24","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Sorlac recognises for the first time the deferred tax asset of 50,000 on its provisions (charges recognised in profit or loss). Record the entry.","es":""},"explanation":{"fr":"","en":"Debit Deferred tax asset 50,000; credit Deferred tax income 50,000: the provisions were charged to profit or loss, so the deferred tax follows (IAS 12, paras. 24 and 58).","es":""},"common_error":{"fr":"","en":"Taking the asset to equity: the provision charges are in profit or loss, so deferred tax follows profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"CURRENT_TAX_ASSET","text":{"fr":"","en":"Current tax asset","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":50000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":50000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000070","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"CONSTRUCTION","tested_point":"DTA_ENTRY_REVERSAL","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"entry"},"references":["IAS 12 §24","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"In N+1, Sorlac pays 80,000 of repairs (provision fully used); the restructuring provision remains 120,000. The deferred tax asset falls from 50,000 to 30,000. Record the entry.","es":""},"explanation":{"fr":"","en":"Remaining difference 120,000 × 25% = 30,000; the reversal of 80,000 reduces the asset by 20,000: debit Deferred tax expense, credit Deferred tax asset (IAS 12, para. 58). At the same time, the deduction of 80,000 reduces current tax by 20,000.","es":""},"common_error":{"fr":"","en":"Recording income or eliminating the whole asset: the reversal of the difference reduces the asset by 20,000, as deferred tax expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"CURRENT_TAX_LIABILITY","text":{"fr":"","en":"Current tax liability","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_EXPENSE","side":"DEBIT","amount":20000},{"id":"L2","account":"DEFERRED_TAX_ASSET","side":"CREDIT","amount":20000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000071","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"DEDUCTIBLE_VS_TAXABLE_SORT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"how"},"references":["IAS 12 §5","IAS 12 §8","IAS 12 §26","IAS 36 §64"],"exercise":{"prompt":{"fr":"","en":"Classify the items of Maisons Brivel, a fictitious distributor (tax treatments: case data).","es":""},"explanation":{"fr":"","en":"A liability whose carrying amount exceeds its tax base (provision, revenue received in advance already taxed) and an asset whose tax base exceeds its carrying amount (impaired asset, bond at a loss): deductible differences (IAS 12, paras. 5, 8 and 26). After an impairment, deferred tax compares the new carrying amount with the tax base (IAS 36, para. 64). Accelerated depreciation and interest taxed on receipt: taxable differences.","es":""},"common_error":{"fr":"","en":"Classifying the gift cards or the impaired store as taxable differences: income received and already taxed, and an asset whose tax base exceeds its carrying amount, create deductible differences.","es":""},"format":"CLASSIFICATION","categories":[{"id":"DED","text":{"fr":"","en":"Deductible difference","es":""}},{"id":"TAX","text":{"fr":"","en":"Taxable difference","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Litigation provision deductible when paid","es":""},"category":"DED"},{"id":"I2","text":{"fr":"","en":"Gift cards received in advance, taxed on receipt","es":""},"category":"DED"},{"id":"I3","text":{"fr":"","en":"Shop impaired under IAS 36, loss not deductible before disposal","es":""},"category":"DED"},{"id":"I4","text":{"fr":"","en":"Bonds at fair value below tax cost","es":""},"category":"DED"},{"id":"I5","text":{"fr":"","en":"Cash registers depreciated faster for tax","es":""},"category":"TAX"},{"id":"I6","text":{"fr":"","en":"Interest receivable taxed on receipt","es":""},"category":"TAX"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000072","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"WHY_DTA_NEEDS_PROFIT","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"why"},"references":["IAS 12 §27","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Why does recognising a deferred tax asset depend on future taxable profit?","es":""},"explanation":{"fr":"","en":"The reversal of deductible differences gives rise to deductions; the economic benefit is obtained only if taxable profit is sufficient to absorb them, hence the probability condition (IAS 12, paras. 24 and 27).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because the reversal of a deductible difference produces a deduction in calculating taxable profit","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Because a deduction only reduces tax if there is sufficient taxable profit to absorb it","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because the tax authority always refunds unused deductions","es":""},"correct":false,"feedback":{"fr":"","en":"Without taxable profit, the deduction gives no benefit, unless a specific tax rule provides otherwise (case data).","es":""}},{"id":"D","text":{"fr":"","en":"Out of prudence, as the standard prohibits tax assets","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires them, to the extent of probable taxable profit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000073","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"DEDUCTIBLE_DIFFERENCE_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"pitfalls"},"references":["IAS 12 §24","IAS 12 §26","IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Review the deferred tax memo of a fictitious laboratory (rate 25%).","es":""},"explanation":{"fr":"","en":"Only line 4 is right (IAS 12, para. 26). Errors 1 to 3 are the three classic traps of deductible differences: forgetting liabilities deductible later, forgetting the probability condition, relying on the intention to hold.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Provision for product returns (100,000), deductible when paid: no deferred tax, as the provision is not an asset.","es":""},"erroneous":true,"correction":{"fr":"","en":"A liability deductible later creates a deductible difference: potential asset of 25,000 (IAS 12, paras. 8 and 24).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Deferred tax asset of 60,000 recognised automatically on 240,000 of deductible differences, without reviewing future profits.","es":""},"erroneous":true,"correction":{"fr":"","en":"Whether taxable profit is probable must be assessed (IAS 12, para. 24).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Bond with an unrealised loss of 50,000: no asset, as the bond is held to maturity.","es":""},"erroneous":true,"correction":{"fr":"","en":"The deductible difference exists despite the intention to hold (IAS 12, para. 26).","es":""}},{"id":"S4","text":{"fr":"","en":"4. Pension obligation of 200,000, deductible when paid: deductible difference of 200,000.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000074","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"FOOD","tested_point":"DTA_CALC_FILL","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"deductible-liabilities"},"references":["IAS 12 §8","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Complete for Conserveries Lanvoz, a fictitious company (rate 25%, future profit probable).","es":""},"explanation":{"fr":"","en":"Tax base = 90,000 − 90,000 = 0 (IAS 12, para. 8); deductible difference 90,000; asset = 22,500 if taxable profit is probable (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Taking 90,000 as the tax base: the benefits being deductible on payment, the base is nil and the deductible difference is 90,000.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Retirement indemnities payable: 90,000, deductible when paid. Tax base: {{tb}}; deductible difference: {{dd}}; deferred tax asset: {{dta}}.","es":""},"blanks":[{"id":"tb","mode":"NUMBER","answer":0,"tolerance":0},{"id":"dd","mode":"NUMBER","answer":90000,"tolerance":0},{"id":"dta","mode":"NUMBER","answer":22500,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000075","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"APPLICATION","format":"MINI_CASE","context":"RETAIL","tested_point":"DTA_INVENTORY_AND_IMPAIRMENT","difficulty":"ADVANCED","estimated_time_s":360,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"numeric-example"},"references":["IAS 12 §24","IAS 12 §26","IAS 2 §9","IAS 36 §64"],"exercise":{"prompt":{"fr":"","en":"Calculate and record the deferred tax on Modes Ancelot's write-downs.","es":""},"explanation":{"fr":"","en":"Write-downs not yet deductible create deductible differences; the deferred tax asset is recognised if taxable profit is probable (IAS 12, paras. 24 and 26; IAS 2, para. 9; IAS 36, para. 64).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Modes Ancelot, a fictitious fashion retailer, writes down in N an inventory of past collections from cost (560,000) to net realisable value (400,000) and impairs a shop by 200,000 under IAS 36. Under the case legislation, both write-downs are deductible only when the inventory is sold or the shop disposed of. Rate 25%; future taxable profits probable; no opening deferred tax.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate.","es":""},"explanation":{"fr":"","en":"Inventory: carrying amount 400,000 (lower of cost and net realisable value, IAS 2, para. 9), tax base 560,000 → 160,000. Shop: new carrying amount compared with the tax base (IAS 36, para. 64) → 200,000. Asset = 360,000 × 25% = 90,000 (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Comparing the tax base with the carrying amount before write-down: the new carrying amount of the inventory and the store is used.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Deductible difference on inventory","es":""},"answer":160000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deductible difference on the shop","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Record the entry.","es":""},"explanation":{"fr":"","en":"The write-downs are in profit or loss: the asset of 90,000 is matched by deferred tax income (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Taking the asset to equity: the write-downs being in profit or loss, the other side is deferred tax income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":90000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":90000}],"id":"P2","dimension":"JOURNAL_ENTRY"},{"prompt":{"fr":"","en":"The tax rule of deduction on sale is case data, not a rule of IAS 12.","es":""},"explanation":{"fr":"","en":"True: IAS 12 draws the consequences of the applicable tax legislation, which it does not set.","es":""},"common_error":{"fr":"","en":"Taking the deduction rule for an IAS 12 rule: it comes from the tax law of the case; IAS 12 only draws the consequences.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000076","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"INDUSTRIAL","tested_point":"DTA_RECOGNITION_JUDGMENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"judgment"},"references":["IAS 12 §24","IAS 12 §27","IAS 12 §28"],"exercise":{"prompt":{"fr":"","en":"Decide on the amount of Tolmane's deferred tax asset.","es":""},"explanation":{"fr":"","en":"Without a reliable forecast, the deferred tax asset is limited to the taxable differences reversing in the same periods (IAS 12, paras. 24, 27 and 28). The quality of the budget is a judgement.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Tolmane, a fictitious boiler maker, has just broken even. It has a restructuring provision of 120,000 and a warranty provision of 80,000, deductible when paid in N+1 and N+2, and a taxable difference of 160,000 (accelerated depreciation) that will also reverse in N+1 and N+2, same authority and same taxable entity. No reliable budget beyond. Rate 25%.","es":""},"parts":[{"prompt":{"fr":"","en":"What deferred tax asset should be recognised?","es":""},"explanation":{"fr":"","en":"Deductions only have value if there is taxable profit to absorb them (IAS 12, para. 27); taxable differences reversing in the same periods are a source of such profit (IAS 12, para. 28): 160,000 × 25% = 40,000 recognised; 40,000 of deductible differences remain without an asset (IAS 12, para. 24).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"40,000, to the extent of the taxable differences that reverse in the same periods","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"50,000, on all the deductible differences","es":""},"correct":false,"feedback":{"fr":"","en":"With no other probable profit, only 160,000 of deductions find taxable profit to absorb them.","es":""}},{"id":"C","text":{"fr":"","en":"Nil, for lack of a budget","es":""},"correct":false,"feedback":{"fr":"","en":"Taxable differences with the same authority and entity are a source of taxable profit.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the unrecognised asset.","es":""},"explanation":{"fr":"","en":"200,000 − 160,000 = 40,000; × 25% = 10,000 not recognised.","es":""},"common_error":{"fr":"","en":"Applying the rate to all deductible differences: only the part not covered by a source of taxable profit (40,000) is left without an asset.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Deductible differences without an asset","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Unrecognised deferred tax asset","es":""},"answer":10000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The file should keep the reversal schedule showing that the taxable differences reverse in N+1 and N+2.","es":""},"explanation":{"fr":"","en":"True: it is the evidence for the source of profit relied on (IAS 12, para. 28).","es":""},"common_error":{"fr":"","en":"Merely asserting that taxable differences are sufficient: the schedule of their reversal is the evidence to keep.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000077","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"GOODWILL_INITIAL_EXCEPTION","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000007","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §15","IAS 12 §21"],"exercise":{"prompt":{"fr":"","en":"Goodwill that is not tax deductible, recognised on an acquisition, gives rise to a deferred tax liability equal to its amount × the tax rate.","es":""},"explanation":{"fr":"","en":"False. The difference exists (nil tax base), but the standard prohibits recognising the liability arising from the initial recognition of goodwill (IAS 12, paras. 15 and 21).","es":""},"common_error":{"fr":"","en":"Recognising a deferred tax liability on the initial recognition of non-deductible goodwill.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000078","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"GOODWILL_RESIDUAL_LOGIC","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000007","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"why"},"references":["IAS 12 §21"],"exercise":{"prompt":{"fr":"","en":"Why is no deferred tax liability recognised on the initial recognition of non-deductible goodwill?","es":""},"explanation":{"fr":"","en":"Goodwill is measured as a residual amount; recognising the deferred tax liability would increase it, hence the prohibition (IAS 12, para. 21).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As goodwill is a residual amount, the liability would increase it by the same amount","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Because the temporary difference is nil","es":""},"correct":false,"feedback":{"fr":"","en":"The difference exists: positive carrying amount, nil tax base.","es":""}},{"id":"C","text":{"fr":"","en":"Because goodwill is never impaired","es":""},"correct":false,"feedback":{"fr":"","en":"This is not the reason given by the standard.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000079","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"MEDIA","tested_point":"GOODWILL_LATER_REDUCTIONS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000007","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"later-reductions"},"references":["IAS 12 §21A"],"exercise":{"prompt":{"fr":"","en":"The non-deductible goodwill of a fictitious media group is impaired from 900,000 to 700,000. The resulting decrease in the unrecognised deferred tax liability is not recognised either.","es":""},"explanation":{"fr":"","en":"True. Subsequent reductions in a liability that was unrecognised because it arose from the initial recognition of goodwill are also regarded as arising from it (IAS 12, para. 21A): no deferred tax income.","es":""},"common_error":{"fr":"","en":"Recognising deferred tax income on the goodwill impairment: the decrease of a liability never recognised is not recognised either.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000080","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"DEDUCTIBLE_GOODWILL_DTL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000007","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"deductible-goodwill"},"references":["IAS 12 §21B"],"exercise":{"prompt":{"fr":"","en":"Datelys, a fictitious publisher, acquired a business whose goodwill, 1,000,000, is tax deductible over 5 years (case data); on acquisition, carrying amount and tax base are equal. One year later, the goodwill is neither amortised nor impaired in the accounts. Rate 25%.","es":""},"explanation":{"fr":"","en":"Tax base 1,000,000 − 200,000 = 800,000; taxable difference 200,000, arising after initial recognition: the liability of 50,000 is recognised (IAS 12, para. 21B).","es":""},"common_error":{"fr":"","en":"Extending the goodwill exception to the difference arising from tax amortisation of deductible goodwill.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Annual tax deduction","es":""},"value":"200000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tax base after one year","es":""},"answer":800000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Taxable difference","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Tax base after one year","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Annual tax deduction","es":""},"value":200000,"unit":"EUR"}],"result":800000,"unit":"EUR"}],"references":["REF.IAS12.21B"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000081","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"SOFTWARE","tested_point":"DEDUCTIBLE_GOODWILL_DTL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000007","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"entry"},"references":["IAS 12 §21B","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Datelys: record the deferred tax liability of 50,000 on its deductible goodwill, one year after the acquisition.","es":""},"explanation":{"fr":"","en":"The liability arises after the business combination, from the year's tax deduction: it is recognised as an expense (IAS 12, paras. 21B and 58), without affecting goodwill.","es":""},"common_error":{"fr":"","en":"Increasing goodwill by the liability: arising after the combination from the tax deduction, it is recognised as an expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"GOODWILL","text":{"fr":"","en":"Goodwill","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_EXPENSE","side":"DEBIT","amount":50000},{"id":"L2","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":50000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000082","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"HEALTHCARE","tested_point":"GOODWILL_BELOW_TAX_BASE","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000007","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-below-tax-base"},"references":["IAS 12 §32A"],"exercise":{"prompt":{"fr":"","en":"Cliniques Hervane, a fictitious group, acquires an imaging centre. Accounting goodwill is 400,000; under the case legislation, its tax base is 520,000. Rate 25%; future taxable profit probable. Calculate.","es":""},"explanation":{"fr":"","en":"Carrying amount below tax base: deductible difference of 120,000; the asset of 30,000 is recognised as part of accounting for the business combination, to the extent that taxable profit is probable (IAS 12, para. 32A).","es":""},"common_error":{"fr":"","en":"Applying the initial recognition exception to goodwill: it concerns a liability; a tax base above the carrying amount gives an asset if profit is probable.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"520000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deductible difference","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000083","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"GOODWILL_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000007","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"pitfalls"},"references":["IAS 12 §21","IAS 12 §21A","IAS 12 §21B","IAS 12 §32A"],"exercise":{"prompt":{"fr":"","en":"Review the tax analysis of goodwill prepared for a fictitious retail group.","es":""},"explanation":{"fr":"","en":"Only line 4 is right (IAS 12, para. 32A). Lines 1 to 3 confuse the initial recognition exception (paras. 21 and 21A) with subsequent differences on deductible goodwill (para. 21B).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Non-deductible goodwill of 2,000,000: deferred tax liability of 500,000 recorded on acquisition.","es":""},"erroneous":true,"correction":{"fr":"","en":"Prohibited on the initial recognition of goodwill (IAS 12, para. 21).","es":""}},{"id":"S2","text":{"fr":"","en":"2. After impairment of that goodwill, deferred tax income is recognised on the decrease in the difference.","es":""},"erroneous":true,"correction":{"fr":"","en":"The decrease is also regarded as arising from initial recognition: nothing is recognised (IAS 12, para. 21A).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Deductible goodwill: no deferred tax will ever be recognised, as the exception covers all goodwill.","es":""},"erroneous":true,"correction":{"fr":"","en":"Differences arising after initial recognition (tax amortisation) give rise to a liability (IAS 12, para. 21B).","es":""}},{"id":"S4","text":{"fr":"","en":"4. Goodwill whose tax base exceeds its carrying amount: deferred tax asset if taxable profit is probable.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000084","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"GOODWILL_RECOGNISED_OR_NOT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000007","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"how"},"references":["IAS 12 §21","IAS 12 §21A","IAS 12 §21B","IAS 12 §32A"],"exercise":{"prompt":{"fr":"","en":"Classify each situation according to whether deferred tax is recognised or not.","es":""},"explanation":{"fr":"","en":"Exception for initial recognition and later decreases (IAS 12, paras. 21 and 21A); liability for differences arising afterwards (IAS 12, para. 21B); asset if the tax base exceeds the carrying amount and profit is probable (IAS 12, para. 32A).","es":""},"common_error":{"fr":"","en":"Extending the goodwill exception to differences arising later or to a higher tax base: only initial recognition and its decreases are excluded.","es":""},"format":"CLASSIFICATION","categories":[{"id":"YES","text":{"fr":"","en":"Deferred tax recognised (subject to probability for an asset)","es":""}},{"id":"NO","text":{"fr":"","en":"Deferred tax not recognised","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Initial recognition of non-deductible goodwill","es":""},"category":"NO"},{"id":"I2","text":{"fr":"","en":"Later decrease, after impairment, in the unrecognised liability on that goodwill","es":""},"category":"NO"},{"id":"I3","text":{"fr":"","en":"Difference arising from tax amortisation of deductible goodwill","es":""},"category":"YES"},{"id":"I4","text":{"fr":"","en":"Goodwill whose tax base exceeds its carrying amount on acquisition","es":""},"category":"YES"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000085","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LOGISTICS","tested_point":"PARTLY_DEDUCTIBLE_GOODWILL","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000007","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"judgment"},"references":["IAS 12 §15","IAS 12 §21B"],"exercise":{"prompt":{"fr":"","en":"Separate, within the difference on Transvale's goodwill, the part arising from initial recognition.","es":""},"explanation":{"fr":"","en":"Partly deductible goodwill combines an unrecognised initial difference and recognised subsequent differences (IAS 12, paras. 15 and 21B). The split adopted and its documentation are a matter of judgement; the tax rule is case data.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Transvale, a fictitious logistics company, recognises goodwill of 1,000,000; under the case legislation, only 600,000 is deductible, over 5 years (120,000 a year). One year later, accounting goodwill is unchanged. Rate 25%.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate.","es":""},"explanation":{"fr":"","en":"Tax base: 600,000 − 120,000 = 480,000; total difference 1,000,000 − 480,000 = 520,000. On acquisition, the difference was 400,000: it falls within the exception (IAS 12, para. 15). The part arising afterwards, 120,000, gives a liability of 30,000 (IAS 12, para. 21B).","es":""},"common_error":{"fr":"","en":"Recognising a liability on the whole 520,000 difference: the 400,000 arising at acquisition stays within the exception; only the 120,000 arising later gives a liability.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Total taxable difference after one year","es":""},"answer":520000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Part arising from initial recognition (unrecognised)","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Deferred tax liability recognised","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The controller proposes to recognise 130,000 (520,000 × 25%). What should be answered?","es":""},"explanation":{"fr":"","en":"Liabilities on goodwill are recognised to the extent that they do not arise from its initial recognition (IAS 12, para. 21B).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: only the part that does not arise from initial recognition is recognised, i.e. 30,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes: as the goodwill is partly deductible, the exception no longer applies","es":""},"correct":false,"feedback":{"fr":"","en":"The exception still covers the initial difference of 400,000.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The \"initial\" part (400,000) should be tracked in the file for subsequent year ends.","es":""},"explanation":{"fr":"","en":"True: this part stays unrecognised, including its later decreases (IAS 12, para. 21A); keeping it up to date is good practice.","es":""},"common_error":{"fr":"","en":"Forgetting the initial part at later reporting dates: without tracking it, its later decreases risk being wrongly recognised.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000086","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"IRE_THREE_CONDITIONS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Which conditions must be met for the initial recognition exception to apply to an asset or liability?","es":""},"explanation":{"fr":"","en":"Exception: initial recognition of an asset or liability in a transaction that is not a business combination, that affects neither accounting nor taxable profit and that does not give rise to equal differences (IAS 12, paras. 15 and 24).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The transaction is not a business combination","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"At the time of the transaction, it affects neither accounting profit nor taxable profit","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It does not give rise to equal taxable and deductible differences","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The asset has a useful life of less than one year","es":""},"correct":false,"feedback":{"fr":"","en":"Useful life is not a condition of the exception.","es":""}},{"id":"E","text":{"fr":"","en":"The entity chooses to apply it","es":""},"correct":false,"feedback":{"fr":"","en":"The exception is not optional: it applies when the conditions are met.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000087","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"IRE_NOT_FOR_LEASES","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"equal-differences"},"references":["IAS 12 §22A","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Since the 2021 amendment, a lessee can still apply the initial recognition exception to a lease when lease payments are deductible when paid.","es":""},"explanation":{"fr":"","en":"False. A lease may give rise to equal taxable (right-of-use asset) and deductible (lease liability) differences; the exception does not apply to them and the entity recognises the resulting deferred taxes (IAS 12, para. 22A).","es":""},"common_error":{"fr":"","en":"Still applying the initial recognition exception to a lessee's leases.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000088","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"NON_DEDUCTIBLE_COST","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"non-deductible-cost"},"references":["IAS 12 §22","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Domaines Arvinole, a fictitious company, separately buys a hunting lodge for 1,200,000; under the case legislation, neither its depreciation nor its disposal will ever be deductible. The purchase affects no profit. What deferred tax?","es":""},"explanation":{"fr":"","en":"When all or part of the cost of an asset is not deductible, a difference arises on initial recognition; its treatment depends on the nature of the transaction (IAS 12, para. 22): here, no business combination, no effect on profits, no equal differences, so the exception applies (IAS 12, para. 15).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: the taxable difference of 1,200,000 arises on initial recognition and falls within the exception","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A liability of 300,000 on purchase","es":""},"correct":false,"feedback":{"fr":"","en":"This would be true without the exception, whose three conditions are met here.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax asset of 300,000","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount (1,200,000) exceeds the tax base (0): the difference is taxable, not deductible.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000089","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"LEASE_EQUAL_DIFFERENCES_CALC","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"equal-differences"},"references":["IAS 12 §22A","IFRS 16 §22"],"exercise":{"prompt":{"fr":"","en":"Boutiques Pervane, a fictitious retailer, signs a lease: at the commencement date, right-of-use asset and lease liability of 750,000 (IFRS 16). Lease payments deductible when paid, right-of-use asset not deductible (case data). Rate 25%. Calculate.","es":""},"explanation":{"fr":"","en":"Taxable difference 750,000 (nil tax base of the right) and deductible difference 750,000 (nil tax base of the liability): equal, outside the exception (IAS 12, para. 22A) → 187,500 on each side. Both items are recognised under IFRS 16 (IFRS 16, para. 22).","es":""},"common_error":{"fr":"","en":"Applying the initial recognition exception to the lease: equal taxable and deductible differences are excluded from it, hence an asset and a liability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Right-of-use asset","es":""},"value":"750000","unit":"EUR"},{"label":{"fr":"","en":"Lease liability","es":""},"value":"750000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax liability (right-of-use asset)","es":""},"answer":187500,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax asset (lease liability)","es":""},"answer":187500,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000090","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"LEASE_EQUAL_DIFFERENCES_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"entry"},"references":["IAS 12 §22A"],"exercise":{"prompt":{"fr":"","en":"Pervane: record the deferred tax entry at the lease commencement date (750,000, rate 25%).","es":""},"explanation":{"fr":"","en":"Debit Deferred tax asset 187,500; credit Deferred tax liability 187,500: the transaction does not affect profit or loss for the period (IAS 12, para. 22A); any offsetting is a presentation matter.","es":""},"common_error":{"fr":"","en":"Recording tax expense or income: the asset and the liability arise together at the commencement date, with no effect on profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":187500},{"id":"L2","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":187500}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000091","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"DECOMMISSIONING_EQUAL_DIFFERENCES","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"numeric-example"},"references":["IAS 12 §22A","IAS 37 §45"],"exercise":{"prompt":{"fr":"","en":"Éoliennes du Morvigne, a fictitious operator, recognises a decommissioning provision of 240,000 (present value under IAS 37), included in the cost of the wind turbines under IAS 16 (case data). Decommissioning expenditure will be deductible when paid; the \"decommissioning\" component of cost is not deductible. Rate 25%. Calculate.","es":""},"explanation":{"fr":"","en":"Deductible difference 240,000 on the provision and taxable difference 240,000 on the asset component: equal, outside the exception (IAS 12, para. 22A) → 60,000 each. The provision is a present value under IAS 37 (IAS 37, para. 45); its inclusion in cost is case data.","es":""},"common_error":{"fr":"","en":"Recording no deferred tax by invoking the initial recognition exception: the equal differences on the provision and the asset are excluded from it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Decommissioning provision","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Decommissioning component of the asset cost","es":""},"value":"240000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000092","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"AGRICULTURE","tested_point":"GRANT_DEDUCTED_FROM_ASSET","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"government-grants"},"references":["IAS 12 §33","IAS 12","IAS 12 §22"],"exercise":{"prompt":{"fr":"","en":"A fictitious cooperative receives a non-taxable grant of 100,000 for a dryer; it deducts it from the carrying amount of the dryer (IAS 20 method chosen: case data), but not from its tax base. What deferred tax?","es":""},"explanation":{"fr":"","en":"The carrying amount becomes lower than the tax base: deductible difference; whatever the presentation of the grant, the deferred tax asset is not recognised, for the reason set out in para. 22 (IAS 12, paras. 4, 22 and 33).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A deductible difference of 100,000 arises, but the deferred tax asset is not recognised (initial recognition exception)","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A deferred tax asset of 25,000","es":""},"correct":false,"feedback":{"fr":"","en":"The standard rules out this asset for the reason underlying the initial recognition exception.","es":""}},{"id":"C","text":{"fr":"","en":"No difference: the grant falls under IAS 20","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 20 sets the method, but IAS 12 deals with the resulting temporary difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000093","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"COMPOUND_INSTRUMENT_DTL","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"compound-instruments"},"references":["IAS 12 §23"],"exercise":{"prompt":{"fr":"","en":"Teleris, a fictitious operator, issues a convertible bond of 5,000,000; the equity component is 400,000. Under the case legislation, the tax base of the liability component equals the total (5,000,000). Rate 25%. Calculate.","es":""},"explanation":{"fr":"","en":"Separating the equity component gives rise to a taxable difference of 400,000, which is not covered by the exception; the liability of 100,000 is charged directly to the carrying amount of the equity component (IAS 12, para. 23).","es":""},"common_error":{"fr":"","en":"Expensing the deferred tax liability in profit or loss: it is charged directly to the equity component.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Liability component (carrying amount)","es":""},"value":"4600000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of the liability component","es":""},"value":"5000000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Taxable difference","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000094","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"COMPOUND_INSTRUMENT_DTL","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"entry"},"references":["IAS 12 §23"],"exercise":{"prompt":{"fr":"","en":"Teleris: record the deferred tax liability of 100,000 relating to the equity component.","es":""},"explanation":{"fr":"","en":"Debit Equity component 100,000; credit Deferred tax liability 100,000 (IAS 12, para. 23). Later changes in this liability will go to profit or loss.","es":""},"common_error":{"fr":"","en":"Recognising this liability as tax expense for the period.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"EQUITY_COMPONENT","text":{"fr":"","en":"Equity component (compound instrument)","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"EQUITY_COMPONENT","side":"DEBIT","amount":100000},{"id":"L2","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":100000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000095","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"IRE_APPLIES_OR_NOT","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"how"},"references":["IAS 12 §15","IAS 12 §22A","IAS 12 §23","IAS 12 §33"],"exercise":{"prompt":{"fr":"","en":"Does the initial recognition exception apply? Classify.","es":""},"explanation":{"fr":"","en":"The exception requires a transaction outside a business combination, with no effect on profits and no equal differences (IAS 12, para. 15); it covers neither the equal differences of a lease (para. 22A) nor the compound instrument (para. 23); the grant deducted from the asset falls under the reason in para. 22 (para. 33).","es":""},"common_error":{"fr":"","en":"Applying the exception to the lease, the business combination or the compound instrument: it only covers non-combination transactions with no effect on profits and no equal differences.","es":""},"format":"CLASSIFICATION","categories":[{"id":"APPLIES","text":{"fr":"","en":"The exception applies (no deferred tax)","es":""}},{"id":"NOT","text":{"fr":"","en":"The exception does not apply (deferred tax)","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Asset bought separately, cost never deductible, no effect on profits","es":""},"category":"APPLIES"},{"id":"I2","text":{"fr":"","en":"Lease at commencement date, payments deductible when paid","es":""},"category":"NOT"},{"id":"I3","text":{"fr":"","en":"Asset acquired in a business combination","es":""},"category":"NOT"},{"id":"I4","text":{"fr":"","en":"Equity component of a convertible bond","es":""},"category":"NOT"},{"id":"I5","text":{"fr":"","en":"Non-taxable grant deducted from the carrying amount of an asset","es":""},"category":"APPLIES"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000096","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"HEALTHCARE","tested_point":"IRE_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"pitfalls"},"references":["IAS 12 §15","IAS 12 §22A","IAS 12 §22"],"exercise":{"prompt":{"fr":"","en":"Review the deferred tax memo of a fictitious network of testing laboratories (rate 25%).","es":""},"explanation":{"fr":"","en":"Only line 4 applies the exception correctly (IAS 12, paras. 15 and 22). The others extend it to leases, apply it to a transaction that affects profit or assume equal differences without checking.","es":""},"common_error":{"fr":"","en":"Applying the exception to a transaction that affects accounting or taxable profit.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Leases of our sites: no deferred tax, as the initial recognition exception applies to all leases.","es":""},"erroneous":true,"correction":{"fr":"","en":"Equal differences outside the exception: asset and liability recognised (IAS 12, para. 22A).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Analyser received free of charge from a supplier, recognised as income (300,000), nil tax base: exception applied.","es":""},"erroneous":true,"correction":{"fr":"","en":"The transaction affects accounting profit: the exception does not apply (IAS 12, para. 15).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Equal differences on the lease assumed without examining the tax legislation.","es":""},"erroneous":true,"correction":{"fr":"","en":"Equal differences arise \"depending on the tax law\": it must be analysed (IAS 12, para. 22A).","es":""}},{"id":"S4","text":{"fr":"","en":"4. Management car bought separately, never deductible: no deferred tax.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000097","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"IRE_THREE_CONDITIONS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Complete the conditions of the exception.","es":""},"explanation":{"fr":"","en":"The exception requires three cumulative conditions: a transaction that is not a business combination, that affects neither accounting profit nor taxable profit, and that does not give rise to equal taxable and deductible differences (IAS 12, para. 15); the third was added in 2021.","es":""},"common_error":{"fr":"","en":"Forgetting one of the three conditions, especially the absence of equal differences: they are cumulative.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The exception covers the initial recognition of an asset or liability in a transaction that {{bc}} a business combination, that affects neither accounting profit nor {{profit}} profit and that does not give rise to taxable and deductible differences of {{amount}} amounts.","es":""},"blanks":[{"id":"bc","mode":"CHOICE","choices":[{"id":"NOT","text":{"fr":"","en":"is not","es":""}},{"id":"IS","text":{"fr":"","en":"is","es":""}}],"answer":"NOT"},{"id":"profit","mode":"CHOICE","choices":[{"id":"TAX","text":{"fr":"","en":"taxable","es":""}},{"id":"NET","text":{"fr":"","en":"consolidated net","es":""}}],"answer":"TAX"},{"id":"amount","mode":"CHOICE","choices":[{"id":"EQ","text":{"fr":"","en":"equal","es":""}},{"id":"SIG","text":{"fr":"","en":"significant","es":""}}],"answer":"EQ"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000098","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"IRE_DECISION_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"how"},"references":["IAS 12 §15","IAS 12 §22","IAS 12 §22A"],"exercise":{"prompt":{"fr":"","en":"Put in order the analysis of a difference arising on initial recognition.","es":""},"explanation":{"fr":"","en":"The treatment depends on the nature of the transaction (IAS 12, para. 22) and on the three conditions of the exception (IAS 12, paras. 15 and 22A).","es":""},"common_error":{"fr":"","en":"Concluding that the exception applies without checking each condition or computing carrying amount and tax base.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Calculate carrying amount and tax base under the case legislation","es":""}},{"id":"S2","text":{"fr":"","en":"Check whether the transaction is a business combination","es":""}},{"id":"S3","text":{"fr":"","en":"Check whether it affects accounting or taxable profit","es":""}},{"id":"S4","text":{"fr":"","en":"Check whether it gives rise to equal taxable and deductible differences","es":""}},{"id":"S5","text":{"fr":"","en":"Conclude: exception (no deferred tax) or recognition of deferred taxes","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000099","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LOGISTICS","tested_point":"LEASE_TAX_LAW_JUDGMENT","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"judgment"},"references":["IAS 12 §22A","IAS 12 §7","IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Draft Hangars Delvoye's position on the deferred tax on its leases under two tax laws.","es":""},"explanation":{"fr":"","en":"The same lease may create equal differences (country A) or no difference (country B): everything starts from the tax bases under the legislation (IAS 12, paras. 7, 8 and 22A). The tax rules are case data.","es":""},"common_error":{"fr":"","en":"Assuming equal differences without checking the tax law on the lessee's deductions.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Hangars Delvoye, a fictitious logistics company, leases two warehouses in two countries: at the commencement date, right-of-use asset and lease liability of 500,000 each. Country A: lease payments are deductible when paid. Country B: the lessee deducts tax depreciation on the right-of-use asset (tax base 500,000), and neither repayments of the liability nor lease payments are deductible (case data). Rate 25% in both countries.","es":""},"parts":[{"prompt":{"fr":"","en":"Country A: what deferred tax at the commencement date?","es":""},"explanation":{"fr":"","en":"Nil tax bases (IAS 12, paras. 7 and 8): differences of 500,000 on each side, equal → deferred taxes of 125,000 (IAS 12, para. 22A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deferred tax asset and liability of 125,000 each","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"None","es":""},"correct":false,"feedback":{"fr":"","en":"The nil tax bases create equal differences, outside the exception.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Country B: what deferred tax at the commencement date?","es":""},"explanation":{"fr":"","en":"Tax bases depend on the legislation: in country B, they equal the carrying amounts (IAS 12, paras. 7 and 8), so no difference at the commencement date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: tax base of the right 500,000 = carrying amount; base of the liability 500,000 (nothing deductible) = carrying amount","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Asset and liability of 125,000, as in country A","es":""},"correct":false,"feedback":{"fr":"","en":"There is no temporary difference here at the commencement date.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The position paper should state, for each country, the tax deduction rule relied on and the resulting tax bases.","es":""},"explanation":{"fr":"","en":"True: equal differences arise \"depending on the tax law\" (IAS 12, para. 22A); that is the analysis to be documented.","es":""},"common_error":{"fr":"","en":"Reasoning without citing the law: equal differences are determined under each country's tax rule.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000100","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"HEALTHCARE","tested_point":"IRE_TRANSACTION_AFFECTS_PROFIT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"non-deductible-cost"},"references":["IAS 12 §15","IAS 12 §22"],"exercise":{"prompt":{"fr":"","en":"A fictitious laboratory receives free of charge from a supplier an analyser with a fair value of 300,000, recognised as income (the case method). Under the case legislation, this income is not taxable and the analyser has no tax base. Rate 25%. What deferred tax?","es":""},"explanation":{"fr":"","en":"The exception requires that the transaction affects neither accounting profit nor taxable profit at the time (IAS 12, paras. 15 and 22); here the income of 300,000 affects accounting profit: liability = 300,000 × 25% = 75,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A liability of 75,000: the transaction affects accounting profit, so the exception does not apply","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"None, under the initial recognition exception","es":""},"correct":false,"feedback":{"fr":"","en":"One of the conditions is not met: accounting profit is affected.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000101","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"ANALYSIS","format":"TRUE_FALSE","context":"AGRICULTURE","tested_point":"GRANT_DEFERRED_INCOME","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"government-grants"},"references":["IAS 12 §33","IAS 12 §22"],"exercise":{"prompt":{"fr":"","en":"The cooperative finally presents its non-taxable grant of 100,000 as deferred income (nil tax base). This deductible difference of 100,000 gives rise to a deferred tax asset of 25,000.","es":""},"explanation":{"fr":"","en":"False. The difference between the deferred income and its nil tax base is indeed a deductible difference, but whatever presentation is chosen, the asset is not recognised, for the reason set out in para. 22 (IAS 12, para. 33).","es":""},"common_error":{"fr":"","en":"Thinking a change of presentation makes the grant give rise to an asset: the deductible difference exists, but the asset is not recognised whatever the presentation.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000102","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SAME_AUTHORITY_SAME_ENTITY","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §28"],"exercise":{"prompt":{"fr":"","en":"A fictitious subsidiary can rely on the taxable differences of a sister company taxed in another country to support its deferred tax asset.","es":""},"explanation":{"fr":"","en":"False. The taxable differences relied on must relate to the same tax authority and the same taxable entity, and reverse in the appropriate periods (IAS 12, para. 28).","es":""},"common_error":{"fr":"","en":"Relying on taxable differences of another authority or another taxable entity.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000103","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"DTA_CAP_TWO_SOURCES","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"numeric-example"},"references":["IAS 12 §28","IAS 12 §29","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Ateliers Vosgelin, a fictitious company, assesses its deferred tax asset (same authority, same entity, same periods; rate 25%). Calculate.","es":""},"explanation":{"fr":"","en":"Sources: taxable differences 250,000 (IAS 12, para. 28) + future profit excluding reversal deductions 200,000 (IAS 12, para. 29) = 450,000; asset = 450,000 × 25% = 112,500; the remaining 150,000 are not covered: 37,500 not recognised (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Recognising the asset on the full 600,000 of deductible differences: it is limited to the available sources of taxable profit (450,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Deductible temporary differences","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Taxable differences reversing in the same periods","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Probable future taxable profit, excluding reversal deductions","es":""},"value":"200000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deductible differences covered","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":112500,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Asset not recognised","es":""},"answer":37500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible differences covered","es":""},"value":450000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":112500,"unit":"EUR"}],"references":["REF.IAS12.28","REF.IAS12.29","REF.IAS12.24"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000104","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"PROFIT_EXCLUDING_REVERSALS","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"future-profits"},"references":["IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"The N+1 tax budget of Caves Berlinot, a fictitious wine merchant, shows taxable profit of 300,000 after 120,000 of deductions from the reversal of its existing deductible differences. What taxable profit should be compared with those 120,000 of deductible differences?","es":""},"explanation":{"fr":"","en":"Future taxable profit is assessed excluding deductions resulting from the reversal of the deductible differences (IAS 12, para. 29): 300,000 + 120,000 = 420,000, more than enough to cover the 120,000.","es":""},"common_error":{"fr":"","en":"Comparing deductible differences with a profit already reduced by their own deductions, or counting them twice.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"420,000, profit before the deductions from the reversal","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"300,000, the budget profit","es":""},"correct":false,"feedback":{"fr":"","en":"This figure is already reduced by the deductions being tested: the comparison would be distorted.","es":""}},{"id":"C","text":{"fr":"","en":"180,000, profit reduced a second time by the deductions","es":""},"correct":false,"feedback":{"fr":"","en":"Double deduction: a calculation error.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000105","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"TAX_PLANNING_DEFINITION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"tax-planning"},"references":["IAS 12 §30"],"exercise":{"prompt":{"fr":"","en":"Which of these actions is not a tax planning opportunity within the meaning of IAS 12?","es":""},"explanation":{"fr":"","en":"Tax planning opportunities are actions the entity would take to create or increase taxable profit in a particular period; an action that merely reverses existing deductible differences is not one (IAS 12, para. 30).","es":""},"common_error":{"fr":"","en":"Calling a mere reversal of existing deductible differences tax planning.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Paying provided-for expenses earlier to accelerate the deduction of existing deductible differences","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An action the entity would take to create taxable profit in the period in which the loss can be used","es":""},"correct":false,"feedback":{"fr":"","en":"That is the very definition of a tax planning opportunity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000106","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"REAL_ESTATE","tested_point":"TAX_PLANNING_APPLICATION","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"tax-planning"},"references":["IAS 12 §29","IAS 12 §30"],"exercise":{"prompt":{"fr":"","en":"Immobilière Ravenal, a fictitious company, has tax losses that expire in two years. Among the actions considered, which may be taken into account as tax planning opportunities, if Ravenal would actually take them?","es":""},"explanation":{"fr":"","en":"A tax planning opportunity is an action the entity would take to create or increase taxable profit in the desired period (IAS 12, paras. 29 and 30); whether it would actually take it is a judgement to be documented.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Selling a building whose unrealised gain will be taxable before the losses expire","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Waiving an optional tax depreciation to increase taxable profit for the next two years, if the case legislation allows it","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Paying the provided-for indemnities early, deductible when paid","es":""},"correct":false,"feedback":{"fr":"","en":"This accelerates deductions and reduces taxable profit: it is not a source of profit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000107","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FINANCE","tested_point":"TYPE_RESTRICTION_SORT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"type-restrictions"},"references":["IAS 12 §27A"],"exercise":{"prompt":{"fr":"","en":"In the country of Gestion Arcolle, a fictitious company, losses on securities can only be used against gains on securities (case data). Classify each deductible difference according to the profit with which it is assessed.","es":""},"explanation":{"fr":"","en":"When the law restricts the use of certain losses to a type of income, the corresponding deductible difference is assessed only together with differences and profits of the same type; without restriction, it is assessed with all of them (IAS 12, para. 27A).","es":""},"common_error":{"fr":"","en":"Assessing the losses on securities against all taxable profit: the law of the case restricts their offset to gains of the same type.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CAPITAL","text":{"fr":"","en":"Only with gains on securities","es":""}},{"id":"ALL","text":{"fr":"","en":"With all taxable profit","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Unrealised loss on a portfolio of shares","es":""},"category":"CAPITAL"},{"id":"I2","text":{"fr":"","en":"Unrealised loss on fund units","es":""},"category":"CAPITAL"},{"id":"I3","text":{"fr":"","en":"Litigation provision deductible when paid","es":""},"category":"ALL"},{"id":"I4","text":{"fr":"","en":"Pension obligation deductible when paid","es":""},"category":"ALL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000108","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"TYPE_RESTRICTION_CALC","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"type-restrictions"},"references":["IAS 12 §27A","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Arcolle has an unrealised loss of 200,000 on securities (usable only against gains on securities); it expects 80,000 of gains on securities and large operating profits. Rate 25%. Calculate.","es":""},"explanation":{"fr":"","en":"The legal restriction requires the loss to be assessed only with gains of the same type (IAS 12, para. 27A): 80,000 covered → 20,000; operating profits do not count.","es":""},"common_error":{"fr":"","en":"Assessing globally losses that the law allows to be used only against gains.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Deductible difference (securities)","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Expected gains on securities","es":""},"value":"80000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deductible difference covered","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000109","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"RECOVERY_ABOVE_CARRYING_AMOUNT","difficulty":"ADVANCED","estimated_time_s":50,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"recovery-above-carrying-amount"},"references":["IAS 12 §29A"],"exercise":{"prompt":{"fr":"","en":"To estimate its future taxable profit, an entity can easily assume that an asset it has just impaired will be recovered for more than its carrying amount.","es":""},"explanation":{"fr":"","en":"False. Recovery above carrying amount is taken into account only if sufficient evidence makes it probable; it is unlikely for a recently impaired asset (IAS 12, para. 29A).","es":""},"common_error":{"fr":"","en":"Assuming recovery above carrying amount without evidence: it requires sufficient evidence and is unlikely after a recent impairment.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000110","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"INSURANCE","tested_point":"RECOVERY_ABOVE_CARRYING_AMOUNT","difficulty":"EXPERT","estimated_time_s":150,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"recovery-above-carrying-amount"},"references":["IAS 12 §29A","IAS 12 §26"],"exercise":{"prompt":{"fr":"","en":"Assurances Pelmont, a fictitious entity, holds a bond of a sound issuer at fair value, 950,000, tax cost 1,000,000; it can hold it to maturity and receive 1,000,000. It has no other probable taxable profit. Can it recognise the deferred tax asset on the difference of 50,000?","es":""},"explanation":{"fr":"","en":"The estimate of future taxable profit may include recovering some assets for more than their carrying amount when sufficient evidence makes it probable, all facts and circumstances considered (IAS 12, para. 29A); the deductible difference itself exists (IAS 12, para. 26). The soundness of the issuer and the ability to hold are judgements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, if sufficient evidence makes recovery of 1,000,000 probable: the estimate of future profit may include this recovery above carrying amount","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No, never without other taxable profit","es":""},"correct":false,"feedback":{"fr":"","en":"The standard allows this recovery above carrying amount when it is probable.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000111","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"SOURCES_OF_TAXABLE_PROFIT","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §28","IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"Which sources of taxable profit can support a deferred tax asset?","es":""},"explanation":{"fr":"","en":"Three sources: appropriate taxable differences (IAS 12, para. 28), probable future profit excluding reversal deductions and tax planning opportunities (IAS 12, para. 29).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Taxable differences with the same authority and entity that reverse in the appropriate periods","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Probable future taxable profit, assessed excluding reversal deductions","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Tax planning opportunities","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Tax instalments already paid","es":""},"correct":false,"feedback":{"fr":"","en":"They relate to current tax and create no future profit.","es":""}},{"id":"E","text":{"fr":"","en":"Taxable differences of a subsidiary taxed separately","es":""},"correct":false,"feedback":{"fr":"","en":"Another taxable entity: not relied on.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000112","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"DTA_ASSESSMENT_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"how"},"references":["IAS 12 §24","IAS 12 §28","IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"Put in order the assessment of the recoverability of a deferred tax asset.","es":""},"explanation":{"fr":"","en":"Appropriate taxable differences are the first source (IAS 12, para. 28); failing that, future profit and tax planning (IAS 12, para. 29); the asset is recognised only to the probable extent (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Starting from future profit before applying the taxable differences reversing in the same periods: these are the first source to consider.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"List the deductible differences and their reversal timing","es":""}},{"id":"S2","text":{"fr":"","en":"Apply the taxable differences with the same authority and entity that reverse in the same periods","es":""}},{"id":"S3","text":{"fr":"","en":"For the balance, estimate probable future taxable profit excluding reversal deductions","es":""}},{"id":"S4","text":{"fr":"","en":"Add the tax planning opportunities the entity would take","es":""}},{"id":"S5","text":{"fr":"","en":"Recognise the asset to the extent covered and document the evidence","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000113","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"DTA_RECOVERABILITY_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"pitfalls"},"references":["IAS 12 §27A","IAS 12 §28","IAS 12 §29","IAS 12 §30"],"exercise":{"prompt":{"fr":"","en":"Review the recoverability test prepared for a fictitious operator.","es":""},"explanation":{"fr":"","en":"Only line 4 is correct (IAS 12, para. 27A); lines 1 to 3 illustrate the errors of authority, double counting and false tax planning.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. The taxable differences of our Belgian subsidiary cover our French deductible differences.","es":""},"erroneous":true,"correction":{"fr":"","en":"Another authority and another taxable entity: excluded (IAS 12, para. 28).","es":""}},{"id":"S2","text":{"fr":"","en":"2. The budget, already reduced by the reversal deductions, is reduced a second time by those deductions.","es":""},"erroneous":true,"correction":{"fr":"","en":"Profit is assessed excluding reversal deductions, once only (IAS 12, para. 29).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Early payment of severance indemnities is treated as a tax planning opportunity.","es":""},"erroneous":true,"correction":{"fr":"","en":"Accelerating existing deductions is not tax planning (IAS 12, para. 30).","es":""}},{"id":"S4","text":{"fr":"","en":"4. The loss on shares, usable only against gains on securities, is assessed with those gains only.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000114","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"DTA_FULL_ASSESSMENT","difficulty":"EXPERT","estimated_time_s":420,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"judgment"},"references":["IAS 12 §24","IAS 12 §28","IAS 12 §29","IAS 12 §30"],"exercise":{"prompt":{"fr":"","en":"Determine the deferred tax asset of Plastiques Gervane at 31 December N.","es":""},"explanation":{"fr":"","en":"The asset results from three sources, each supported: taxable differences (para. 28), probable future profit and tax planning (paras. 29 and 30). Probabilities and intentions are case data or judgements, to be documented.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Plastiques Gervane, a fictitious company, has 900,000 of deductible differences that will reverse from N+1 to N+3. Possible sources, all with the same authority and entity: (1) taxable differences reversing over the same period, 400,000; (2) budgeted taxable profit excluding reversal deductions, 300,000, of which 100,000 relates to a tender Gervane has only a one-in-three chance of winning; (3) a planned sale of a warehouse whose taxable gain of 150,000 would arise in N+2, management having documented that it would carry it out if necessary to use its deductions. Rate 25%.","es":""},"parts":[{"prompt":{"fr":"","en":"Should the 100,000 relating to the tender be included?","es":""},"explanation":{"fr":"","en":"Only probable taxable profit is included (IAS 12, para. 29); the probability given by the case (one in three) leads to its exclusion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: with a one-in-three chance, this profit is not probable","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes: it is in the budget","es":""},"correct":false,"feedback":{"fr":"","en":"The budget is not enough: only probable profit is included.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The documented sale of the warehouse can be taken into account as a tax planning opportunity.","es":""},"explanation":{"fr":"","en":"True: it creates taxable profit in the desired period and management would carry it out (IAS 12, paras. 29 and 30).","es":""},"common_error":{"fr":"","en":"Disregarding the sale because it has not yet occurred: an action management would take that creates profit in the right period is a tax planning opportunity.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the recognised and the unrecognised asset.","es":""},"explanation":{"fr":"","en":"400,000 + (300,000 − 100,000) + 150,000 = 750,000 covered → 187,500; 150,000 not covered → 37,500 not recognised (IAS 12, paras. 24, 28 and 29).","es":""},"common_error":{"fr":"","en":"Using future profit without removing the 100,000 of reversing deductions: it is taken excluding deductions from the deductible differences.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Deductible differences covered","es":""},"answer":750000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":187500,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Asset not recognised","es":""},"answer":37500,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deductible differences covered","es":""},"expression":"a + (b - c) + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"taxable differences reversing over the same period, 400,000","es":""},"value":400000},{"symbol":"b","meaning":{"fr":"","en":"budgeted taxable profit excluding reversal deductions, 300,000","es":""},"value":300000},{"symbol":"c","meaning":{"fr":"","en":"100,000 relates to a tender Gervane has only a one-in-three chance of winning","es":""},"value":100000},{"symbol":"d","meaning":{"fr":"","en":"a planned sale of a warehouse whose taxable gain of 150,000","es":""},"value":150000}],"result":750000,"unit":"EUR"}],"references":["REF.IAS12.24","REF.IAS12.28","REF.IAS12.29"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000115","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"WHY_PROBABLE_PROFIT","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"why"},"references":["IAS 12 §27"],"exercise":{"prompt":{"fr":"","en":"Complete the logic.","es":""},"explanation":{"fr":"","en":"The reversal of a deductible difference gives a deduction; the entity benefits only if it earns sufficient taxable profit to absorb it, hence the probability condition for deferred tax assets (IAS 12, para. 27).","es":""},"common_error":{"fr":"","en":"Thinking the reversal of a deductible difference creates tax payable, or that any profit is enough: it gives a deduction, useful only against sufficient profit.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The reversal of a deductible difference produces a {{what}}; the entity only benefits if it generates {{enough}} taxable profit to absorb it.","es":""},"blanks":[{"id":"what","mode":"CHOICE","choices":[{"id":"DED","text":{"fr":"","en":"deduction","es":""}},{"id":"TAX","text":{"fr":"","en":"tax charge","es":""}}],"answer":"DED"},{"id":"enough","mode":"CHOICE","choices":[{"id":"SUFF","text":{"fr":"","en":"sufficient","es":""}},{"id":"ANY","text":{"fr":"","en":"any","es":""}}],"answer":"SUFF"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000116","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"SAME_AUTHORITY_SAME_ENTITY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §28"],"exercise":{"prompt":{"fr":"","en":"The fictitious Sorgalin group comprises a parent and a subsidiary in the same country, taxed separately (no tax group: case data). The parent has 300,000 of deductible differences; the subsidiary 500,000 of taxable differences. Which taxable differences can the parent rely on?","es":""},"explanation":{"fr":"","en":"Both conditions are cumulative: same authority and same taxable entity (IAS 12, para. 28).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: the subsidiary is another taxable entity","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The 500,000, same authority","es":""},"correct":false,"feedback":{"fr":"","en":"Same authority, but not the same taxable entity.","es":""}},{"id":"C","text":{"fr":"","en":"300,000, as needed","es":""},"correct":false,"feedback":{"fr":"","en":"No part can be used: another taxable entity.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS12.000117","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"LOSSES_PROBABILITY_RULE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §34"],"exercise":{"prompt":{"fr":"","en":"A deferred tax asset is recognised for tax losses carried forward to the extent that it is probable that future taxable profit will be available against which they can be used.","es":""},"explanation":{"fr":"","en":"True (IAS 12, para. 34); the same applies to unused tax credits.","es":""},"common_error":{"fr":"","en":"Recognising the asset on all losses carried forward, or excluding it on principle: it is recognised to the extent future taxable profit is probable.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000118","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"RECENT_LOSSES_EVIDENCE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"recent-losses"},"references":["IAS 12 §35"],"exercise":{"prompt":{"fr":"","en":"A fictitious entity has a history of recent losses. On what basis can it recognise a deferred tax asset for its losses?","es":""},"explanation":{"fr":"","en":"The existence of unused losses is strong evidence that future profit may not be available; with a history of recent losses, the asset is recognised only to the extent of sufficient taxable differences or if there is other convincing evidence (IAS 12, para. 35).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To the extent of sufficient taxable differences or other convincing evidence that sufficient taxable profit will be available","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"On the basis of its budget, like any other entity","es":""},"correct":false,"feedback":{"fr":"","en":"Unused losses are strong evidence to the contrary: a mere budget is not enough.","es":""}},{"id":"C","text":{"fr":"","en":"Never: a loss-making entity recognises no deferred tax asset","es":""},"correct":false,"feedback":{"fr":"","en":"The asset remains possible to the extent of taxable differences or convincing evidence.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000119","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","format":"CALCULATION","context":"TEXTILE","tested_point":"LOSSES_CAPPED_BY_TTD","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"numeric-example"},"references":["IAS 12 §35","IAS 12 §36"],"exercise":{"prompt":{"fr":"","en":"Confections Ramvelle, a fictitious company that has made losses for three years, has 1,500,000 of tax losses carried forward expiring in four years (case data) and 500,000 of taxable differences (same authority, same entity) reversing before expiry. No other convincing evidence. Rate 25%. Calculate.","es":""},"explanation":{"fr":"","en":"History of losses: asset limited to sufficient taxable differences that will produce taxable amounts before expiry (IAS 12, paras. 35 and 36): 500,000 × 25% = 125,000; 1,000,000 of losses remain without an asset.","es":""},"common_error":{"fr":"","en":"Recognising the whole of the losses (375,000) on the basis of a budget alone.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Tax losses carried forward","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Taxable differences before expiry","es":""},"value":"500000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":125000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Losses without an asset (to be disclosed)","es":""},"answer":1000000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable differences before expiry","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":125000,"unit":"EUR","rationale":{"fr":"","en":"History of losses: asset limited to sufficient taxable differences that will produce taxable amounts before expiry (IAS 12, paras. 35 and 36): 500,000 × 25% = 125,000","es":""}}],"references":["REF.IAS12.35","REF.IAS12.36"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000120","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","format":"CALCULATION","context":"TOURISM","tested_point":"LOSSES_EXPIRY","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"numeric-example"},"references":["IAS 12 §34","IAS 12 §36"],"exercise":{"prompt":{"fr":"","en":"Croisières Ondrisse, a fictitious company, has 800,000 of tax losses: 300,000 expire at the end of N+1, 500,000 at the end of N+4; they are used oldest first (case data). A firm contract makes taxable profit of 200,000 a year from N+1 to N+4 probable (evidence judged convincing). Rate 25%. Calculate.","es":""},"explanation":{"fr":"","en":"N+1: 200,000 of profit absorbs 200,000 of the oldest losses; 100,000 expire. N+2 to N+4: 600,000 of profit absorbs the remaining 500,000. Usable losses 700,000 → 175,000 (IAS 12, paras. 34 and 36).","es":""},"common_error":{"fr":"","en":"Ignoring the expiry date of losses when calculating the recoverable amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Losses expiring at end of N+1","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Losses expiring at end of N+4","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Probable taxable profit per year","es":""},"value":"200000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Losses lost at end of N+1","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Usable losses","es":""},"answer":700000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":175000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000121","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TEXTILE","tested_point":"LOSSES_DTA_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"entry"},"references":["IAS 12 §34","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Ramvelle recognises the deferred tax asset of 125,000 on its losses (losses arising in profit or loss). Record the entry.","es":""},"explanation":{"fr":"","en":"Debit Deferred tax asset 125,000; credit Deferred tax income 125,000 (IAS 12, paras. 34 and 58). This is deferred tax: losses carried forward do not give a current tax asset.","es":""},"common_error":{"fr":"","en":"Debiting a current tax asset: losses carried forward give a deferred tax asset.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"CURRENT_TAX_ASSET","text":{"fr":"","en":"Current tax asset","es":""}},{"id":"CURRENT_TAX_INCOME","text":{"fr":"","en":"Current tax income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":125000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":125000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000122","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TEXTILE","tested_point":"DTA_WRITE_DOWN_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"entry"},"references":["IAS 12 §56","IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"At the end of N+1, Ramvelle loses a major customer: the deferred tax asset on losses (125,000) is now recoverable only up to 75,000. Record the entry.","es":""},"explanation":{"fr":"","en":"The carrying amount of the asset is reduced to the extent that taxable profit is no longer probable (IAS 12, para. 56); the effect is recognised in profit or loss, as the losses arose in profit or loss (IAS 12, para. 60).","es":""},"common_error":{"fr":"","en":"Taking the reduction to equity or eliminating the whole asset: only the part no longer recoverable (50,000) is written down, as an expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_EXPENSE","side":"DEBIT","amount":50000},{"id":"L2","account":"DEFERRED_TAX_ASSET","side":"CREDIT","amount":50000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000123","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TEXTILE","tested_point":"DTA_WRITE_DOWN_REVERSAL","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"entry"},"references":["IAS 12 §56","IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"At the end of N+2, Ramvelle signs a new contract: profit becomes probable again and the recoverable asset rises to 105,000 (carrying amount 75,000). Record the entry.","es":""},"explanation":{"fr":"","en":"The reduction is reversed to the extent that taxable profit becomes probable again (IAS 12, para. 56): 105,000 − 75,000 = 30,000, in profit or loss (IAS 12, para. 60).","es":""},"common_error":{"fr":"","en":"Considering that a reduced deferred tax asset can no longer be reinstated.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":30000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":30000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000124","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"REASSESS_UNRECOGNISED","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"At each reporting date, the entity also reassesses deferred tax assets it had not recognised.","es":""},"explanation":{"fr":"","en":"True: it recognises a previously unrecognised asset to the extent that it has become probable that future taxable profit will allow it to be recovered (IAS 12, para. 37).","es":""},"common_error":{"fr":"","en":"Not reassessing unrecognised assets at the reporting date.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000125","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"WRITE_DOWN_REVERSIBLE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"Once reduced because future profit was no longer probable, a deferred tax asset can never be increased again.","es":""},"explanation":{"fr":"","en":"False: the reduction is reversed to the extent that sufficient taxable profit becomes probable again (IAS 12, para. 56).","es":""},"common_error":{"fr":"","en":"Considering that a reduced deferred tax asset can no longer be reinstated.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000126","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT","IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"DTA_THREE_YEAR_TRAJECTORY","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"numeric-example"},"references":["IAS 12 §35","IAS 12","IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"Turbines Tarvezac, a fictitious company, has 2,400,000 of tax losses with no time limit and 400,000 of appropriate taxable differences (rate 25%). Follow the deferred tax asset over three year ends.","es":""},"explanation":{"fr":"","en":"N: 400,000 × 25% = 100,000 (IAS 12, para. 35). N+1: (400,000 + 1,200,000) × 25% = 400,000, additional asset that has become probable (IAS 12, para. 37). N+2: (400,000 + 600,000) × 25% = 250,000, a reduction of 150,000 (IAS 12, para. 56). The probable profit amounts are case judgements.","es":""},"common_error":{"fr":"","en":"Recognising the asset on the full 2,400,000 of losses in year N: without other convincing evidence, it is limited to taxable differences, then follows the profit that becomes probable.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"N: no other convincing evidence","es":""},"value":"—","unit":"TEXT"},{"label":{"fr":"","en":"N+1: multi-year contract signed, additional probable taxable profit","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"N+2: customer defaults, additional probable taxable profit reduced to","es":""},"value":"600000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Asset at end of N","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Asset at end of N+1","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Deferred tax income for N+1","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Asset at end of N+2","es":""},"answer":250000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Deferred tax expense for N+2","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S4","meaning":{"fr":"","en":"Asset at end of N+2","es":""},"expression":"(a + b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Asset at end of N+1","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"N+2: customer defaults, additional probable taxable profit reduced to","es":""},"value":600000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":250000,"unit":"EUR"}],"references":["REF.IAS12.35","REF.IAS12.37","REF.IAS12.56"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000127","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"TRUE_FALSE","context":"TECHNOLOGY","tested_point":"OPTIMISTIC_BUDGET","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"recent-losses"},"references":["IAS 12 §35"],"exercise":{"prompt":{"fr":"","en":"After three years of losses, the optimistic budget of Quantorie, a fictitious start-up, unsupported by contracts or a track record, is enough to support a deferred tax asset on all its losses.","es":""},"explanation":{"fr":"","en":"False. With a history of recent losses, sufficient taxable differences or other convincing evidence are needed (IAS 12, para. 35); assessing what is \"convincing\" is a matter of judgement, and an unsupported budget is not.","es":""},"common_error":{"fr":"","en":"Recognising losses on the basis of an optimistic budget alone despite recent losses.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000128","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DISCLOSE_UNRECOGNISED_LOSSES","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"disclosure-losses"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"A fictitious entity does not recognise an asset on part of its tax losses. What must the note disclose?","es":""},"explanation":{"fr":"","en":"The entity discloses the amount of deductible temporary differences, unused tax losses and credits for which no deferred tax asset is recognised (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Omitting the disclosure of unrecognised losses.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of losses (and credits, deductible differences) for which no deferred tax asset is recognised","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nothing: what is not recognised is not disclosed","es":""},"correct":false,"feedback":{"fr":"","en":"The standard specifically requires this information.","es":""}},{"id":"C","text":{"fr":"","en":"Only the recognised asset","es":""},"correct":false,"feedback":{"fr":"","en":"The unrecognised amount must also be disclosed.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000129","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"DISCLOSE_DTA_EVIDENCE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"disclosure-losses"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"In which cases does the entity disclose the amount of a deferred tax asset and the nature of the evidence supporting its recognition?","es":""},"explanation":{"fr":"","en":"Disclosure of the asset amount and the nature of the supporting evidence is required in two cases: its use depends on future profits above the reversal of existing taxable differences, or the entity has suffered a loss in the jurisdiction in the current or preceding period (IAS 12, para. 82); it is not required for every asset.","es":""},"common_error":{"fr":"","en":"Omitting the nature of the evidence for a deferred tax asset dependent on future profits after a loss.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its use depends on future taxable profits in excess of those from reversing existing taxable differences","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The entity has suffered a loss in the jurisdiction concerned in the current or preceding period","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In all cases, whatever the asset","es":""},"correct":false,"feedback":{"fr":"","en":"The requirement targets these two specific situations.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000130","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"TEXTILE","tested_point":"DISCLOSE_UNRECOGNISED_LOSSES","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"disclosure-losses"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Complete the note of Filatures Damien, a fictitious company.","es":""},"explanation":{"fr":"","en":"1,800,000 − 600,000 = 1,200,000, to be disclosed in the notes (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Disclosing total losses (1,800,000): the note covers the losses for which no asset is recognised.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Total tax losses: 1,800,000; losses covered by a deferred tax asset: 600,000. Amount of losses for which no asset is recognised: {{amount}}.","es":""},"blanks":[{"id":"amount","mode":"NUMBER","answer":1200000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000131","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS","IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"LOSSES_REASSESSMENT_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"pitfalls"},"references":["IAS 12 §35","IAS 12 §36","IAS 12","IAS 12 §56","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Review the \"tax losses\" memo of a fictitious automotive supplier.","es":""},"explanation":{"fr":"","en":"Only line 4 complies (IAS 12, para. 81).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Despite three years of losses, the whole asset is recognised on the basis of the strategic plan.","es":""},"erroneous":true,"correction":{"fr":"","en":"Sufficient taxable differences or other convincing evidence are required (IAS 12, para. 35).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Taxable differences that will reverse after the losses expire are relied on.","es":""},"erroneous":true,"correction":{"fr":"","en":"Only those that will produce taxable amounts before expiry count (IAS 12, para. 36).","es":""}},{"id":"S3","text":{"fr":"","en":"3. The asset reduced last year will never be reassessed.","es":""},"erroneous":true,"correction":{"fr":"","en":"The reduction is reversed if profit becomes probable again; unrecognised assets are reassessed at each reporting date (IAS 12, paras. 37 and 56).","es":""}},{"id":"S4","text":{"fr":"","en":"4. Unrecognised losses are disclosed in the notes.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000132","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"APPLICATION","format":"MINI_CASE","context":"FOOD","tested_point":"ACQUIRER_LOSSES_AFTER_COMBINATION","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §67"],"exercise":{"prompt":{"fr":"","en":"Account for the losses of Laiteries Corvezan after the acquisition of a profitable cheese maker.","es":""},"explanation":{"fr":"","en":"The combination changes the probability of realising the acquirer's asset: change in profit or loss for the period (IAS 12, para. 67). The remaining 200,000 stay without an asset and are disclosed.","es":""},"common_error":{"fr":"","en":"Reducing goodwill for the acquirer's deferred tax asset that has become recoverable.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Laiteries Corvezan, a fictitious company, had 600,000 of unrecognised losses. In N, it absorbs a profitable cheese maker in a business combination; the case legislation allows it to use its losses against the future profits of the acquired business, which now make the use of 400,000 probable. Rate 25%.","es":""},"parts":[{"prompt":{"fr":"","en":"Where should the asset that has become recoverable be recognised?","es":""},"explanation":{"fr":"","en":"The acquirer recognises the change in its deferred tax asset in the period of the combination, without including it in the accounting for the combination (IAS 12, para. 67).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In profit or loss for N, outside the accounting for the business combination","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As a reduction of the goodwill of the combination","es":""},"correct":false,"feedback":{"fr":"","en":"The asset is the acquirer's, not an acquired asset.","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Record the entry.","es":""},"explanation":{"fr":"","en":"400,000 × 25% = 100,000: debit Deferred tax asset, credit Deferred tax income (IAS 12, para. 67); goodwill is unaffected.","es":""},"common_error":{"fr":"","en":"Reducing goodwill by the asset: an asset on the acquirer's own losses, made probable by the combination, is recognised as income without affecting goodwill.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"GOODWILL","text":{"fr":"","en":"Goodwill","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":100000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":100000}],"id":"P2","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000133","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"REASSESSMENT_EVENTS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"how"},"references":["IAS 12","IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"Classify the effect of each year-end event on the deferred tax asset of a fictitious loss-making entity.","es":""},"explanation":{"fr":"","en":"Reassessment at each reporting date: recognition of an asset that has become probable (IAS 12, para. 37), reduction if profit is no longer probable, reversal if it becomes probable again (IAS 12, para. 56).","es":""},"common_error":{"fr":"","en":"Leaving the asset unchanged between reporting dates: it is reassessed at each reporting date, upwards as well as downwards.","es":""},"format":"CLASSIFICATION","categories":[{"id":"UP","text":{"fr":"","en":"Increase (recognition or reversal)","es":""}},{"id":"DOWN","text":{"fr":"","en":"Decrease (reduction)","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Signing a multi-year contract making taxable profit probable","es":""},"category":"UP"},{"id":"I2","text":{"fr":"","en":"Loss of the main customer, future profit no longer being probable","es":""},"category":"DOWN"},{"id":"I3","text":{"fr":"","en":"Lasting return to profitability after an earlier reduction","es":""},"category":"UP"},{"id":"I4","text":{"fr":"","en":"Imminent expiry of losses not yet usable","es":""},"category":"DOWN"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000134","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"REASSESSMENT_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"how"},"references":["IAS 12","IAS 12 §56","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Put the year-end review of deferred tax assets in order.","es":""},"explanation":{"fr":"","en":"Reassessment (IAS 12, paras. 37 and 56), then disclosure of the unrecognised amounts (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Adjusting the asset without updating losses, credits and expiry dates, or forgetting the disclosure of unrecognised items.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Update the losses, credits and deductible differences and their expiry dates","es":""}},{"id":"S2","text":{"fr":"","en":"Reassess the probable sources of taxable profit","es":""}},{"id":"S3","text":{"fr":"","en":"Reduce, reverse or recognise the asset according to the amount now probable","es":""}},{"id":"S4","text":{"fr":"","en":"Update the disclosure on unrecognised items","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000135","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"ANALYSIS","format":"MATCHING","context":"GENERIC","tested_point":"LOSSES_SITUATIONS_TREATMENT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"how"},"references":["IAS 12 §34","IAS 12 §35","IAS 12 §36","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Match each loss situation with its treatment.","es":""},"explanation":{"fr":"","en":"The asset on losses is recognised to the extent of sufficient taxable differences or convincing evidence of future profit; it is not recognised for the part that will expire or without a probable source of profit (IAS 12, paras. 34 to 36), the amount of which is then disclosed (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Recognising an asset on losses that will expire before any probable profit: the part that will expire gives no asset.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Recent losses, sufficient taxable differences before expiry","es":""}},{"id":"L2","text":{"fr":"","en":"Recent losses, convincing evidence of future profit","es":""}},{"id":"L3","text":{"fr":"","en":"Losses that will expire before any probable profit","es":""}},{"id":"L4","text":{"fr":"","en":"Losses with no source of probable profit","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Asset to the extent of the taxable differences","es":""}},{"id":"R2","text":{"fr":"","en":"Asset to the extent of probable future profit","es":""}},{"id":"R3","text":{"fr":"","en":"No asset on the part that will expire","es":""}},{"id":"R4","text":{"fr":"","en":"No asset; amount disclosed in the notes","es":""}},{"id":"R5","text":{"fr":"","en":"Full asset by reverse prudence","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000136","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"MEDIA","tested_point":"WRITE_DOWN_AND_REVERSAL_FILL","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"Complete for Studios Brumaine, a fictitious company.","es":""},"explanation":{"fr":"","en":"200,000 − 140,000 = 60,000 reduction; 170,000 − 140,000 = 30,000 reversal (IAS 12, para. 56).","es":""},"common_error":{"fr":"","en":"Computing the reversal from the original asset (200,000): it starts from the reduced amount (140,000).","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Deferred tax asset recognised: 200,000. End of N, probable recoverable amount: 140,000, hence a reduction of {{wd}}. End of N+1, probable recoverable amount: 170,000, hence a reversal of {{rev}}.","es":""},"blanks":[{"id":"wd","mode":"NUMBER","answer":60000,"tolerance":0},{"id":"rev","mode":"NUMBER","answer":30000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000137","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"PHARMA","tested_point":"CONVINCING_EVIDENCE_JUDGMENT","difficulty":"EXPERT","estimated_time_s":420,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"judgment"},"references":["IAS 12 §34","IAS 12 §35","IAS 12 §81","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Determine Biolanne's position on its losses and the related note.","es":""},"explanation":{"fr":"","en":"Asset limited to convincing sources (IAS 12, para. 35), unrecognised losses and evidence disclosed (IAS 12, paras. 81 and 82). The qualification of the evidence is a documented judgement.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Biolanne, a fictitious laboratory, has accumulated 1,000,000 of tax losses with no time limit after three loss-making years. It has 200,000 of appropriate taxable differences. In December N, it signed a firm three-year contract with fixed prices with a major distributor, which, according to a detailed calculation, will generate 300,000 of taxable profit; beyond that, its plan forecasts strong unsupported growth. Rate 25%.","es":""},"parts":[{"prompt":{"fr":"","en":"Which sources should be relied on?","es":""},"explanation":{"fr":"","en":"After recent losses, only sufficient taxable differences and other convincing evidence count (IAS 12, para. 35); treating the firm contract as convincing is a judgement, here supported by fixed prices and a detailed calculation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The taxable differences and the profit from the firm contract; not the unsupported growth","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The taxable differences only","es":""},"correct":false,"feedback":{"fr":"","en":"The firm, quantified contract can be convincing evidence: excluding it would be too restrictive.","es":""}},{"id":"C","text":{"fr":"","en":"The whole plan, including growth","es":""},"correct":false,"feedback":{"fr":"","en":"Unsupported growth is not convincing evidence after recent losses.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate.","es":""},"explanation":{"fr":"","en":"(200,000 + 300,000) × 25% = 125,000; 1,000,000 − 500,000 = 500,000 of unrecognised losses, disclosed (IAS 12, paras. 34 and 81).","es":""},"common_error":{"fr":"","en":"Recognising the asset on all losses (1,000,000): it is limited to probable sources (500,000), the rest being disclosed.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":125000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Losses without an asset (to be disclosed)","es":""},"answer":500000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The note must disclose the amount of the asset and the nature of the evidence (firm contract), as Biolanne made a loss in the year.","es":""},"explanation":{"fr":"","en":"True: having suffered a loss in the period, the entity discloses the amount of the deferred tax asset and the nature of the evidence supporting its recognition, here the firm contract (IAS 12, para. 82).","es":""},"common_error":{"fr":"","en":"Giving only the asset amount: after a loss in the period, the nature of the supporting evidence must also be disclosed.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000138","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"APPLICATION","format":"MINI_CASE","context":"TECHNOLOGY","tested_point":"UNUSED_TAX_CREDITS","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §34","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Account for Algorine's research tax credit carried forward.","es":""},"explanation":{"fr":"","en":"Tax credits carried forward follow the same criteria as losses (IAS 12, para. 34); their life is case data.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Algorine, a fictitious algorithm publisher, has an unused research tax credit of 90,000, which can be set against tax payable over the next five years and is then lost (case legislation). Over that period, the tax it probably expects to owe is 60,000.","es":""},"parts":[{"prompt":{"fr":"","en":"What deferred tax asset should be recognised?","es":""},"explanation":{"fr":"","en":"Asset for unused tax credits to the extent that future taxable profit will allow them to be used (IAS 12, paras. 5 and 34): 60,000; 30,000 remain without an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"60,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"90,000","es":""},"correct":false,"feedback":{"fr":"","en":"Only the part probably usable is recognised.","es":""}},{"id":"C","text":{"fr":"","en":"22,500 (90,000 × 25%)","es":""},"correct":false,"feedback":{"fr":"","en":"A tax credit is already an amount of tax: the rate is not applied to it.","es":""}}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Record the entry (credit obtained for expenditure recognised in profit or loss).","es":""},"explanation":{"fr":"","en":"Debit Deferred tax asset 60,000; credit Deferred tax income 60,000 (IAS 12, para. 34).","es":""},"common_error":{"fr":"","en":"Recording the credit as current tax or in equity: a credit carried forward gives a deferred tax asset, in income since the expenditure is in profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"CURRENT_TAX_ASSET","text":{"fr":"","en":"Current tax asset","es":""}},{"id":"CURRENT_TAX_INCOME","text":{"fr":"","en":"Current tax income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":60000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":60000}],"id":"P2","dimension":"JOURNAL_ENTRY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000139","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"SHIPPING","tested_point":"TTD_MUST_REVERSE_BEFORE_EXPIRY","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"recent-losses"},"references":["IAS 12 §36"],"exercise":{"prompt":{"fr":"","en":"Fret Altamerin, a fictitious loss-making company, has 400,000 of losses expiring at the end of N+2 and 400,000 of taxable differences (same authority, same entity) that will reverse only from N+5. What deferred tax asset on these losses?","es":""},"explanation":{"fr":"","en":"The taxable differences relied on must produce taxable amounts before the losses expire (IAS 12, para. 36).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, absent any other source: the taxable differences will reverse after the losses expire","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"100,000, as the taxable differences cover the losses","es":""},"correct":false,"feedback":{"fr":"","en":"They will not produce taxable amounts before expiry.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000140","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"WRITE_DOWN_IN_TAX_EXPENSE","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §56","IAS 12 §60","IAS 12 §80"],"exercise":{"prompt":{"fr":"","en":"The reduction of a deferred tax asset on losses that arose in profit or loss is a deferred tax expense for the period, which may be presented as a component of tax expense.","es":""},"explanation":{"fr":"","en":"True: the reduction (IAS 12, para. 56) is recognised in profit or loss, unless it relates to items outside profit or loss (IAS 12, para. 60); the write-down of a deferred tax asset is among the possible components of tax expense (IAS 12, para. 80).","es":""},"common_error":{"fr":"","en":"Charging the reduction to equity: arising from losses in profit or loss, it is a deferred tax expense for the period.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000141","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"INVESTMENT_DTL_EXCEPTION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"dtl-investments"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"A fictitious parent does not recognise a deferred tax liability on the taxable difference relating to its subsidiary as long as it controls the timing of reversal, even if it has decided on a distribution next year.","es":""},"explanation":{"fr":"","en":"False. The exception requires two cumulative conditions: control over the timing of reversal and probability that the difference will not reverse in the foreseeable future (IAS 12, para. 39). A decided distribution causes part of the difference to reverse.","es":""},"common_error":{"fr":"","en":"Not recognising tax on dividends the parent has decided to bring up.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000142","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"INVESTMENT_DTL_PLANNED_DISTRIBUTION","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"numeric-example"},"references":["IAS 12 §38","IAS 12 §39","IAS 12 §40"],"exercise":{"prompt":{"fr":"","en":"The fictitious Hallomar group holds 100% of Sennova. In the consolidated statements, the investment amounts to 2,900,000 (share of net assets, goodwill included); its tax base is 2,200,000. Hallomar has decided that Sennova will pay it 300,000 of dividends next year, subject to 5% withholding tax (case data); the rest of the profits will not be distributed in the foreseeable future. Calculate.","es":""},"explanation":{"fr":"","en":"Difference relating to the investment: 2,900,000 − 2,200,000 = 700,000, arising from undistributed profits (IAS 12, para. 38). The parent controls distributions (IAS 12, para. 40): no liability on the part that will not reverse (400,000), but a liability on the part whose reversal is decided: 300,000 × 5% = 15,000 (IAS 12, para. 39).","es":""},"common_error":{"fr":"","en":"Recognising a liability on the whole 700,000 difference: the parent controls distributions, so only the part whose reversal is decided (300,000) gives a liability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Consolidated carrying amount of the investment","es":""},"value":"2900000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"2200000","unit":"EUR"},{"label":{"fr":"","en":"Dividend decided","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Withholding tax","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total taxable difference","es":""},"answer":700000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":15000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Unrecognised difference (to be disclosed)","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total taxable difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consolidated carrying amount of the investment","es":""},"value":2900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base","es":""},"value":2200000,"unit":"EUR"}],"result":700000,"unit":"EUR","rationale":{"fr":"","en":"Difference relating to the investment: 2,900,000 − 2,200,000 = 700,000, arising from undistributed profits (IAS 12, para. 38).","es":""}},{"step":"S2","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Dividend decided","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Withholding tax","es":""},"value":5,"unit":"PERCENT"}],"result":15000,"unit":"EUR","rationale":{"fr":"","en":"The parent controls distributions (IAS 12, para. 40): no liability on the part that will not reverse (400,000), but a liability on the part whose reversal is decided: 300,000 × 5% = 15,000 (IAS 12, para. 39).","es":""}}],"references":["REF.IAS12.38","REF.IAS12.39","REF.IAS12.40"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000143","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"ASSOCIATE_NO_CONTROL","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"dtl-investments"},"references":["IAS 12 §42","IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"Énergies Brémonde, a fictitious company, holds 30% of an associate; no agreement provides that its profits will not be distributed. The taxable difference relating to the investment is 500,000. What treatment?","es":""},"explanation":{"fr":"","en":"An investor in an associate does not control it and is usually not in a position to determine its distribution policy; without an agreement providing that profits will not be distributed, it recognises a deferred tax liability (IAS 12, paras. 39 and 42).","es":""},"common_error":{"fr":"","en":"Applying the exception to an associate without an agreement restricting distributions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise a deferred tax liability: the investor does not control the distribution policy","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No liability: Brémonde does not intend to ask for dividends","es":""},"correct":false,"feedback":{"fr":"","en":"The investor's intention is not enough: it does not control the timing of reversal.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000144","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"PARENT_CONTROLS_DISTRIBUTIONS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"dtl-investments"},"references":["IAS 12 §40","IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"A fictitious parent controls the distribution policy of its subsidiary and has established that its profits will not be distributed in the foreseeable future. What treatment of the taxable difference relating to the investment?","es":""},"explanation":{"fr":"","en":"A parent that controls distribution can control the timing of reversal; having established that there will be no foreseeable distribution, it recognises no liability (IAS 12, paras. 39 and 40), but discloses the aggregate amount of the differences concerned (IAS 12, para. 81).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No deferred tax liability; the aggregate amount of the differences is disclosed in the notes","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A full deferred tax liability, out of prudence","es":""},"correct":false,"feedback":{"fr":"","en":"Both conditions of the exception are met: the liability is not recognised.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000145","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"CONSTRUCTION","tested_point":"INVESTMENT_DTA_CONDITIONS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"dta-investments"},"references":["IAS 12 §44"],"exercise":{"prompt":{"fr":"","en":"Bâtisseurs Ollivane, a fictitious group, has written down its investment in an associate: carrying amount 700,000, tax base 1,000,000. No sale is planned. What deferred tax asset?","es":""},"explanation":{"fr":"","en":"A deferred tax asset is recognised on deductible differences relating to investments only to the extent that the difference will reverse in the foreseeable future and taxable profit will be available (IAS 12, para. 44).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, as the difference is not expected to reverse in the foreseeable future","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"75,000 (300,000 × 25%), as for any deductible difference","es":""},"correct":false,"feedback":{"fr":"","en":"For an investment, the asset also requires the difference to reverse in the foreseeable future.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000146","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"OUTSIDE_BASIS_SOURCES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §38","IAS 12 §18"],"exercise":{"prompt":{"fr":"","en":"Which causes can make the carrying amount of an investment differ from its tax base?","es":""},"explanation":{"fr":"","en":"Causes mentioned: undistributed profits, exchange rate changes between countries, write-down of an investment in an associate (IAS 12, paras. 18 and 38).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The subsidiary's undistributed profits","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Exchange rate changes when parent and subsidiary are in different countries","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Reducing the carrying amount of an investment in an associate to its recoverable amount","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The subsidiary's payment of its own current tax","es":""},"correct":false,"feedback":{"fr":"","en":"It concerns the subsidiary, not the gap between the investment's value and its tax base.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000147","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DISCLOSE_UNRECOGNISED_INVESTMENT_DIFFERENCES","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"disclosure-investments"},"references":["IAS 12 §81","IAS 12"],"exercise":{"prompt":{"fr":"","en":"What information does a fictitious group provide on differences relating to its subsidiaries for which no deferred tax liability is recognised?","es":""},"explanation":{"fr":"","en":"IAS 12 requires disclosure of the aggregate amount of differences relating to investments for which no liability is recognised (para. 81), as calculating the liabilities is often impracticable, while encouraging their disclosure where practicable (para. 87).","es":""},"common_error":{"fr":"","en":"Omitting the aggregate amount of unrecognised differences from the notes.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The aggregate amount of the temporary differences concerned, disclosure of the unrecognised liabilities being encouraged where practicable","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Mandatorily the exact amount of the unrecognised liabilities","es":""},"correct":false,"feedback":{"fr":"","en":"Often impracticable: the standard requires the amount of the differences, not of the liabilities.","es":""}},{"id":"C","text":{"fr":"","en":"No information","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosure is required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000148","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"INVESTMENT_DTL_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"entry"},"references":["IAS 12 §39","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Hallomar recognises the deferred tax liability of 15,000 on Sennova's decided dividend. Record the entry.","es":""},"explanation":{"fr":"","en":"The difference arises from the subsidiary's profits, recognised in consolidated profit or loss: debit Deferred tax expense, credit Deferred tax liability (IAS 12, paras. 39 and 58).","es":""},"common_error":{"fr":"","en":"Charging the deferred tax to equity: the difference comes from profits recognised in consolidated profit or loss, so tax follows profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"WITHHOLDING_TAX_PAYABLE","text":{"fr":"","en":"Withholding tax payable","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_EXPENSE","side":"DEBIT","amount":15000},{"id":"L2","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":15000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000149","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"INVESTMENT_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"pitfalls"},"references":["IAS 12 §39","IAS 12 §42","IAS 12 §44","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Review the \"investments\" memo of a fictitious telecom group.","es":""},"explanation":{"fr":"","en":"Only line 4 complies (IAS 12, para. 81).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. 25% associate, no agreement on distributions: no liability, as we will not ask for dividends.","es":""},"erroneous":true,"correction":{"fr":"","en":"With no control and no agreement, the liability is recognised (IAS 12, para. 42).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Dividend from the Spanish subsidiary decided for N+1: no liability, as we control the subsidiary.","es":""},"erroneous":true,"correction":{"fr":"","en":"Reversal is probable in the foreseeable future: liability on the part distributed (IAS 12, para. 39).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Deferred tax asset on an impaired investment we will keep indefinitely.","es":""},"erroneous":true,"correction":{"fr":"","en":"With no foreseeable reversal, no asset (IAS 12, para. 44).","es":""}},{"id":"S4","text":{"fr":"","en":"4. Unrecognised differences on subsidiaries are disclosed at their aggregate amount.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000150","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"INVESTMENT_DTL_OR_NOT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"how"},"references":["IAS 12 §39","IAS 12 §40","IAS 12 §42"],"exercise":{"prompt":{"fr":"","en":"Is a deferred tax liability needed on the taxable difference of each investment?","es":""},"explanation":{"fr":"","en":"No liability only if the entity controls the timing and reversal is not probable in the foreseeable future (IAS 12, paras. 39 and 40); for an associate, an agreement providing for no distribution is needed (IAS 12, para. 42).","es":""},"common_error":{"fr":"","en":"Applying the subsidiary exception to an associate with no non-distribution agreement: the investor does not control the timing, so a liability is recognised.","es":""},"format":"CLASSIFICATION","categories":[{"id":"YES","text":{"fr":"","en":"Liability recognised","es":""}},{"id":"NO","text":{"fr":"","en":"No liability (disclosure)","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Subsidiary whose parent has established no foreseeable distribution","es":""},"category":"NO"},{"id":"I2","text":{"fr":"","en":"Subsidiary whose parent has decided on a distribution next year (part distributed)","es":""},"category":"YES"},{"id":"I3","text":{"fr":"","en":"Associate with no agreement on distributions","es":""},"category":"YES"},{"id":"I4","text":{"fr":"","en":"Associate with an agreement providing for no distribution in the foreseeable future","es":""},"category":"NO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000151","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"CHEMICALS","tested_point":"PLANNED_SALE_OF_SUBSIDIARY","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"judgment"},"references":["IAS 12 §39","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Analyse the deferred tax relating to Chimie Vestral's investment in Polyréa.","es":""},"explanation":{"fr":"","en":"A sale probable in the foreseeable future ends the exception (IAS 12, para. 39); the liability is measured according to the expected manner of reversal, at the rate given by the case.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Chimie Vestral, a fictitious group, had never recognised a liability on the taxable difference of 1,000,000 relating to its subsidiary Polyréa (control of distributions, no distribution planned). In December N, the board approved the sale of Polyréa, expected within eighteen months. Under the case legislation, the gain on sale would be taxed at 15%.","es":""},"parts":[{"prompt":{"fr":"","en":"Does the exception still apply at 31 December N?","es":""},"explanation":{"fr":"","en":"The two conditions of the exception are cumulative (IAS 12, para. 39); assessing what the \"foreseeable future\" is and how probable the sale is involves judgement, supported here by the board decision.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: reversal of the difference through the sale is now probable in the foreseeable future","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes: Vestral still controls Polyréa","es":""},"correct":false,"feedback":{"fr":"","en":"Control is not enough; the second condition (no foreseeable reversal) is no longer met.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the liability.","es":""},"explanation":{"fr":"","en":"1,000,000 × 15% = 150,000, a rate consistent with the expected reversal through sale (case data).","es":""},"common_error":{"fr":"","en":"Applying the ordinary tax rate: the expected reversal is through sale, hence the capital gains rate given by the case.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Taxable difference","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Rate on gain on sale","es":""},"value":"15","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable difference","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate on gain on sale","es":""},"value":15,"unit":"PERCENT"}],"result":150000,"unit":"EUR"}],"references":["REF.IAS12.39","REF.IAS12.81"]}},{"prompt":{"fr":"","en":"Polyréa must no longer be included in the aggregate amount of unrecognised differences disclosed in the notes.","es":""},"explanation":{"fr":"","en":"True: as the liability is recognised, the difference is no longer among the unrecognised differences (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Leaving the difference in the aggregate of unrecognised differences: once the liability is recognised, it leaves that amount.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000152","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"INVESTMENT_ANALYSIS_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"how"},"references":["IAS 12 §38","IAS 12 §39","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Put the analysis of an investment in order.","es":""},"explanation":{"fr":"","en":"Difference (IAS 12, para. 38), conditions of the exception (IAS 12, para. 39), disclosure (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Concluding there is no liability without establishing that the entity controls the timing of reversal: that is the first condition of the exception.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Compare the carrying amount of the investment with its tax base","es":""}},{"id":"S2","text":{"fr":"","en":"Determine whether the entity controls the timing of reversal","es":""}},{"id":"S3","text":{"fr":"","en":"Assess whether reversal is probable in the foreseeable future (distribution, sale)","es":""}},{"id":"S4","text":{"fr":"","en":"Recognise the liability on the part that will reverse, disclose the aggregate amount of the rest","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000153","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DEFERRED_RATE_ON_REVERSAL","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"deferred-rate"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Deferred tax is always measured at the rate for the current year, even if the law has already set a different rate for the year in which the difference will reverse.","es":""},"explanation":{"fr":"","en":"False. Deferred taxes are measured at the rates expected to apply when the difference reverses, based on rates enacted or substantively enacted at the reporting date (IAS 12, para. 47).","es":""},"common_error":{"fr":"","en":"Using the current period rate for differences that will reverse under a future rate already enacted.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000154","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MINING","tested_point":"SCHEDULED_RATES","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"numeric-example"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Granits de Sarlève, a fictitious company, has a taxable difference of 400,000 at 31 December N: 150,000 will reverse in N+1 (rate 25%) and 250,000 from N+2 (rate of 22% already enacted). Calculate.","es":""},"explanation":{"fr":"","en":"150,000 × 25% = 37,500; 250,000 × 22% = 55,000; total 92,500, each tranche at the enacted rate expected on its reversal (IAS 12, para. 47).","es":""},"common_error":{"fr":"","en":"Applying one rate to the whole difference: each tranche is measured at the enacted rate expected when it reverses.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Reversal in N+1","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Reversal from N+2","es":""},"value":"250000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax on the N+1 part","es":""},"answer":37500,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax on the N+2 onwards part","es":""},"answer":55000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total deferred tax liability","es":""},"answer":92500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Deferred tax on the N+2 onwards part","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Reversal from N+2","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"rate of 22% already enacted","es":""},"value":22,"unit":"PERCENT"}],"result":55000,"unit":"EUR"}],"references":["REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000155","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"SUBSTANTIVELY_ENACTED_RULE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"substantively-enacted"},"references":["IAS 12 §48"],"exercise":{"prompt":{"fr":"","en":"In some countries, the announcement of a rate by the government has the effect of actual enactment, the formal vote following only several months later. Which rate should be used at the reporting date, between the announcement and the vote?","es":""},"explanation":{"fr":"","en":"Enacted rates are generally used; where the announcement has the effect of actual enactment, tax assets and liabilities are measured using the announced rates (IAS 12, para. 48).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The announced, substantively enacted rate","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The old rate until the formal vote","es":""},"correct":false,"feedback":{"fr":"","en":"In these countries, the announcement amounts to actual enactment.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000156","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"TOURISM","tested_point":"SUBSTANTIVELY_ENACTED_APPLICATION","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"substantively-enacted"},"references":["IAS 12 §48","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"For each situation (the country's practice: case data), is the new rate enacted or substantively enacted at the reporting date?","es":""},"explanation":{"fr":"","en":"Rates enacted or substantively enacted at the reporting date (IAS 12, para. 47); an announcement is used only if it has the effect of actual enactment (IAS 12, para. 48). Each country's practice is case data to be documented.","es":""},"common_error":{"fr":"","en":"Using a rate merely proposed by the government.","es":""},"format":"CLASSIFICATION","categories":[{"id":"YES","text":{"fr":"","en":"Yes: use it","es":""}},{"id":"NO","text":{"fr":"","en":"No: keep the current rate","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Law passed and promulgated before the reporting date","es":""},"category":"YES"},{"id":"I2","text":{"fr":"","en":"Government announcement in a country where it amounts to actual enactment","es":""},"category":"YES"},{"id":"I3","text":{"fr":"","en":"Election promise by an opposition party","es":""},"category":"NO"},{"id":"I4","text":{"fr":"","en":"Bill not passed, in a country where only a passed law is binding","es":""},"category":"NO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000157","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","format":"CALCULATION","context":"AGRICULTURE","tested_point":"PROGRESSIVE_AVERAGE_RATE","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"progressive-rates"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Vignobles Castaline, a fictitious company, is taxed on a progressive scale: 15% up to 200,000 of profit, 30% above (case data). It expects annual taxable profit of 500,000 during the years in which a taxable difference of 100,000 reverses. Calculate.","es":""},"explanation":{"fr":"","en":"Tax = 200,000 × 15% + 300,000 × 30% = 30,000 + 90,000 = 120,000; average rate 120,000 / 500,000 = 24%; liability = 100,000 × 24% = 24,000 (IAS 12, para. 49), not 30,000 at the marginal rate.","es":""},"common_error":{"fr":"","en":"Applying the highest marginal rate instead of the expected average rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Expected annual taxable profit","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Taxable difference","es":""},"value":"100000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Expected annual tax","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Expected average rate","es":""},"answer":24,"tolerance":0,"unit":"PERCENT"},{"id":"S3","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":24000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Expected average rate","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected annual tax","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected annual taxable profit","es":""},"value":500000,"unit":"EUR"}],"result":24,"unit":"PERCENT"},{"step":"S3","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable difference","es":""},"value":100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected average rate","es":""},"value":24,"unit":"PERCENT"}],"result":24000,"unit":"EUR"}],"references":["REF.IAS12.49"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000158","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"UNDISTRIBUTED_PROFITS_RATE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"undistributed-profits-rate"},"references":["IAS 12 §52A"],"exercise":{"prompt":{"fr":"","en":"In a fictitious company's country, undistributed profits are taxed at 30% and distributed profits at 20% (case data). At which rate does it measure its current and deferred tax?","es":""},"explanation":{"fr":"","en":"When the rate depends on distribution, current and deferred tax are measured at the rate applicable to undistributed profits (IAS 12, para. 52A).","es":""},"common_error":{"fr":"","en":"Measuring tax at the distributed-profits rate before the dividend is recognised.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"30%, the rate applicable to undistributed profits","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"20%, as the company is considering a distribution","es":""},"correct":false,"feedback":{"fr":"","en":"The consequences of the dividend are recognised when the dividend liability is recognised, not before.","es":""}},{"id":"C","text":{"fr":"","en":"The average, 25%","es":""},"correct":false,"feedback":{"fr":"","en":"No average: the standard points to the rate for undistributed profits.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000159","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"NO_DISCOUNTING_RULE","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"A deferred tax liability that will reverse only in fifteen years can be discounted.","es":""},"explanation":{"fr":"","en":"False. Deferred tax assets and liabilities are not discounted (IAS 12, para. 53).","es":""},"common_error":{"fr":"","en":"Discounting a deferred tax liability that reverses far in the future.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000160","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"WHY_NO_DISCOUNTING","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"why"},"references":["IAS 12 §54"],"exercise":{"prompt":{"fr":"","en":"Why does the standard neither require nor permit the discounting of deferred tax?","es":""},"explanation":{"fr":"","en":"The standard neither requires nor permits discounting: reliable discounting would need a detailed schedule of each difference, often impracticable or highly complex, and permitting it without requiring it would impair comparability (IAS 12, para. 54).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reliable discounting would require a detailed schedule of each difference, often impracticable or very complex","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Permitting it without requiring it would harm comparability","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Interest rates are always nil","es":""},"correct":false,"feedback":{"fr":"","en":"This is not the argument of the standard.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000161","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DIFFERENCES_FROM_CARRYING_AMOUNT","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §55","IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"Temporary differences are determined by reference to the carrying amount of the asset or liability, and the resulting deferred tax is not discounted.","es":""},"explanation":{"fr":"","en":"True: temporary differences are computed from the carrying amount, even a discounted one (IAS 12, para. 55), but the resulting deferred tax is not discounted (IAS 12, para. 53).","es":""},"common_error":{"fr":"","en":"Discounting deferred tax because the underlying carrying amount is itself discounted: deferred tax is never discounted.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000162","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","format":"CALCULATION","context":"LOGISTICS","tested_point":"RATE_CHANGE_REMEASUREMENT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"deferred-rate"},"references":["IAS 12 §47","IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Entrepôts Morvaz, a fictitious company, has a taxable difference of 800,000 arising from accelerated tax depreciation (in profit or loss). In November N, a law cuts the rate from 25% to 22% for all reversal years. Calculate.","es":""},"explanation":{"fr":"","en":"New liability at the enacted rate expected on reversal (IAS 12, para. 47): 800,000 × 22% = 176,000; decrease of 24,000, recognised in profit or loss as the difference arose in profit or loss (IAS 12, para. 60).","es":""},"common_error":{"fr":"","en":"Taking the decrease to equity or keeping the old rate: the liability is remeasured at the enacted rate and the effect goes to profit or loss like the original item.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Taxable difference","es":""},"value":"800000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Liability at the old rate","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Liability at the new rate","es":""},"answer":176000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Deferred tax income in profit or loss","es":""},"answer":24000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000163","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LOGISTICS","tested_point":"RATE_CHANGE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"entry"},"references":["IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Entrepôts Morvaz: taxable difference of 800,000 arising from accelerated tax depreciation (in profit or loss); a law cuts the rate from 25% to 22% for all reversal years, reducing the liability by 24,000. Record the entry.","es":""},"explanation":{"fr":"","en":"Debit Deferred tax liability 24,000; credit Deferred tax income 24,000 (IAS 12, para. 60): the change comes not from a change in the differences but from the rate.","es":""},"common_error":{"fr":"","en":"Recognising the effect of a rate change directly in equity for differences that arose in profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_LIABILITY","side":"DEBIT","amount":24000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":24000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000164","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"CHANGES_WITHOUT_DIFFERENCE_CHANGE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"deferred-rate"},"references":["IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Which causes can change deferred tax without the temporary difference changing?","es":""},"explanation":{"fr":"","en":"Para. 60 mentions a change in rates or law, a reassessment of recoverability and a change in the manner of recovery; the effect goes to profit or loss unless it relates to items previously recognised outside profit or loss (IAS 12, para. 60).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A change in tax rates or tax laws","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A reassessment of the recoverability of a deferred tax asset","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A change in the expected manner of recovery of an asset","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The passage of time, through unwinding of a discount","es":""},"correct":false,"feedback":{"fr":"","en":"As deferred tax is not discounted, there is no unwinding.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000165","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES","IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"RATES_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"pitfalls"},"references":["IAS 12 §47","IAS 12 §48","IAS 12","IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"Review the \"rates\" sheet of a fictitious laboratory.","es":""},"explanation":{"fr":"","en":"Only line 4 is correct (IAS 12, para. 53).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Differences reversing in N+3 measured at 25% (rate for N), whereas a rate of 21% has been passed for N+3.","es":""},"erroneous":true,"correction":{"fr":"","en":"Enacted rate expected on reversal: 21% (IAS 12, para. 47).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Rate of 18% used, merely mentioned by a minister in the press.","es":""},"erroneous":true,"correction":{"fr":"","en":"Neither enacted nor substantively enacted: not used (IAS 12, para. 48).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Progressive scale: marginal rate of 30% applied to all differences.","es":""},"erroneous":true,"correction":{"fr":"","en":"Average rate expected on the profit of the reversal periods (IAS 12, para. 49).","es":""}},{"id":"S4","text":{"fr":"","en":"4. No deferred tax is discounted.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000166","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"CURRENT_VS_DEFERRED_RATE","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"how"},"references":["IAS 12 §46","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Complete.","es":""},"explanation":{"fr":"","en":"Current tax is measured at the rates enacted or substantively enacted by the reporting date (IAS 12, para. 46); deferred tax at the rates expected to apply when the asset is realised or the liability settled, based on rates enacted or substantively enacted by the reporting date (IAS 12, para. 47).","es":""},"common_error":{"fr":"","en":"Measuring current tax at the payment date, or deferred tax at the current year's rate: each follows its own reference date.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Current tax is measured at the rates enacted or substantively enacted {{when1}}; deferred tax, at the rates expected to apply {{when2}}, based on the rates enacted or substantively enacted at the reporting date.","es":""},"blanks":[{"id":"when1","mode":"CHOICE","choices":[{"id":"CLOSE","text":{"fr":"","en":"at the reporting date","es":""}},{"id":"PAY","text":{"fr":"","en":"at the payment date","es":""}}],"answer":"CLOSE"},{"id":"when2","mode":"CHOICE","choices":[{"id":"REV","text":{"fr":"","en":"when the asset is realised or the liability settled","es":""}},{"id":"NOW","text":{"fr":"","en":"during the current year","es":""}}],"answer":"REV"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000167","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"APPLICATION","format":"MATCHING","context":"GENERIC","tested_point":"RATE_SELECTION_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"how"},"references":["IAS 12 §46","IAS 12 §47","IAS 12","IAS 12 §52A"],"exercise":{"prompt":{"fr":"","en":"Match each situation with the rate to use.","es":""},"explanation":{"fr":"","en":"Current tax: rate enacted or substantively enacted at the reporting date (IAS 12, para. 46). Difference reversing in N+2: rate already enacted for N+2 (para. 47). Graduated rates: expected average rate (para. 49). Rate depending on distribution: undistributed profits rate (IAS 12, para. 52A).","es":""},"common_error":{"fr":"","en":"Applying the current year's rate everywhere: deferred tax follows the rate of the reversal period, the average rate of graduated rates or the undistributed profits rate.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Current tax for year N","es":""}},{"id":"L2","text":{"fr":"","en":"Difference reversing in N+2, N+2 rate already passed","es":""}},{"id":"L3","text":{"fr":"","en":"Progressive scale","es":""}},{"id":"L4","text":{"fr":"","en":"Different rate depending on whether profits are distributed","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Rate enacted or substantively enacted at the reporting date for N","es":""}},{"id":"R2","text":{"fr":"","en":"Enacted N+2 rate","es":""}},{"id":"R3","text":{"fr":"","en":"Average rate expected over the reversal periods","es":""}},{"id":"R4","text":{"fr":"","en":"Rate for undistributed profits","es":""}},{"id":"R5","text":{"fr":"","en":"Highest rate of the scale","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000168","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MINING","tested_point":"SCHEDULED_RATES","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"entry"},"references":["IAS 12 §47","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Sarlève: record the entry creating the deferred tax liability of 92,500 (difference arising in profit or loss).","es":""},"explanation":{"fr":"","en":"Debit Deferred tax expense 92,500; credit Deferred tax liability 92,500 (IAS 12, paras. 47 and 58).","es":""},"common_error":{"fr":"","en":"Crediting current tax or taking tax to equity: the difference arising in profit or loss gives deferred tax expense and a liability.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}},{"id":"CURRENT_TAX_LIABILITY","text":{"fr":"","en":"Current tax liability","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_EXPENSE","side":"DEBIT","amount":92500},{"id":"L2","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":92500}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000169","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"TECHNOLOGY","tested_point":"SUBSTANTIVE_ENACTMENT_JUDGMENT","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"judgment"},"references":["IAS 12 §47","IAS 12 §48","IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Decide whether the new rate is substantively enacted at 31 December N at Numérion, and quantify.","es":""},"explanation":{"fr":"","en":"Substantive enactment depends on the country's procedure (case data) and is a matter of judgement (IAS 12, para. 48); the effect on a liability that arose in profit or loss goes to profit or loss (IAS 12, para. 60).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Numérion, a fictitious digital services company, has a taxable difference of 600,000 arising in profit or loss. Its country's parliament passed on 28 December N a cut in the rate from 25% to 20% for all reversal years; the law was promulgated on 10 January N+1. According to the case data, promulgation is a formality that the head of state cannot refuse.","es":""},"parts":[{"prompt":{"fr":"","en":"Is the 20% rate substantively enacted at 31 December N?","es":""},"explanation":{"fr":"","en":"The standard allows substantively enacted rates, as formal enactment may follow only later (IAS 12, para. 48); concluding that the 28 December vote has the effect of actual enactment is a judgement, supported here by the case data (promulgation with no power of refusal).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: the vote has taken place and promulgation is a mere formality","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No: only promulgation counts","es":""},"correct":false,"feedback":{"fr":"","en":"A rate can be substantively enacted before formal enactment: the significance of the remaining steps must be assessed.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the effect on the liability.","es":""},"explanation":{"fr":"","en":"600,000 × 25% = 150,000; × 20% = 120,000; decrease 30,000 in profit or loss, the difference having arisen in profit or loss (IAS 12, paras. 47 and 60).","es":""},"common_error":{"fr":"","en":"Charging the rate change effect to equity: the difference having arisen in profit or loss, the decrease in the liability is recognised there too.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Liability at 25%","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Liability at 20%","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Deferred tax income in profit or loss","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Liability at 25%","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"600,000 arising in profit or loss","es":""},"value":600000},{"symbol":"b","meaning":{"fr":"","en":"December N a cut in the rate from 25%","es":""},"value":25,"unit":"PERCENT"}],"result":150000,"unit":"EUR"}],"references":["REF.IAS12.47","REF.IAS12.60"]}},{"prompt":{"fr":"","en":"The file should describe the country's enactment procedure and justify why the 28 December vote is enough.","es":""},"explanation":{"fr":"","en":"True: it is the basis of the judgement on substantive enactment (IAS 12, para. 48).","es":""},"common_error":{"fr":"","en":"Using the new rate without supporting substantive enactment: the file must show that the remaining steps of the process will not change the outcome.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000170","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"DEFERRED_MEASUREMENT_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"how"},"references":["IAS 12 §47","IAS 12","IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"Put the measurement of deferred tax in order.","es":""},"explanation":{"fr":"","en":"Determine the difference and its reversal schedule, identify the rates enacted or substantively enacted for each period (IAS 12, para. 47), compute an average rate for graduated rates (para. 49), then multiply without discounting (IAS 12, para. 53).","es":""},"common_error":{"fr":"","en":"Discounting the result or applying a rate without a reversal schedule: deferred tax is the difference multiplied by each reversal period's rate, without discounting.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Determine the temporary difference and its reversal timing","es":""}},{"id":"S2","text":{"fr":"","en":"Identify the rates enacted or substantively enacted at the reporting date for each reversal period","es":""}},{"id":"S3","text":{"fr":"","en":"With a progressive scale, calculate the expected average rate","es":""}},{"id":"S4","text":{"fr":"","en":"Multiply, without discounting","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000171","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"NO_DISCOUNTING_APPLICATION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"Barrages d'Ostène, a fictitious operator, has a taxable difference of 1,200,000 that will reverse only in fifteen years (rate 25%). Its borrowing rate is 5%. What deferred tax liability?","es":""},"explanation":{"fr":"","en":"1,200,000 × 25% = 300,000, without discounting (IAS 12, para. 53).","es":""},"common_error":{"fr":"","en":"Discounting a deferred tax liability that reverses far in the future.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"300,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The present value of 300,000 at 5% over 15 years","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax is never discounted.","es":""}},{"id":"C","text":{"fr":"","en":"None: the reversal is too far away","es":""},"correct":false,"feedback":{"fr":"","en":"A distant reversal does not prevent recognition.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000172","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RECOGNITION","format":"TRUE_FALSE","context":"TEXTILE","tested_point":"ANNOUNCED_RATE_NO_EFFECT","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"substantively-enacted"},"references":["IAS 12 §47","IAS 12 §48"],"exercise":{"prompt":{"fr":"","en":"In a country where only a passed law is binding (case data), a rate announced in December but passed the following February is not used at the December reporting date.","es":""},"explanation":{"fr":"","en":"True: it is neither enacted nor substantively enacted at the reporting date (IAS 12, paras. 47 and 48).","es":""},"common_error":{"fr":"","en":"Using a rate that has only been announced: it must be enacted or substantively enacted at the reporting date under the country's process.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000173","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"MANNER_OF_RECOVERY_RULE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51"],"exercise":{"prompt":{"fr":"","en":"The measurement of deferred tax reflects the tax consequences of the manner in which the entity expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.","es":""},"explanation":{"fr":"","en":"True: the measurement of deferred tax reflects the tax consequences of the manner in which the entity expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities (IAS 12, para. 51).","es":""},"common_error":{"fr":"","en":"Measuring deferred tax without regard to the expected manner of recovery: sale and use can have different rates and bases.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000174","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"USE_OR_SALE_RATE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51A"],"exercise":{"prompt":{"fr":"","en":"In the country of Usines Calvary, a fictitious company, operating profits are taxed at 25% and gains on sale at 15% (case data). Calvary has decided to sell an unused building in three months (taxable difference 200,000). Which rate should be used?","es":""},"explanation":{"fr":"","en":"When the manner of recovery affects the rate or the tax base, deferred tax is measured using the rate and base consistent with the expected manner (IAS 12, para. 51A): 200,000 × 15% = 30,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"15%, consistent with recovery through sale: 30,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"25%, the standard rate: 50,000","es":""},"correct":false,"feedback":{"fr":"","en":"The rate must be consistent with the expected manner of recovery, here a sale.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000175","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"CALCULATION","format":"CALCULATION","context":"AGRICULTURE","tested_point":"REVALUED_LAND_SALE_RATE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"non-depreciable-revalued"},"references":["IAS 12 §51B"],"exercise":{"prompt":{"fr":"","en":"Domaine de Belcourtin, a fictitious farm, applies the IAS 16 revaluation model to its land (the case policy): land revalued from 800,000 to 1,300,000, tax base 800,000. Gains on land taxed at 18%, operating profits at 25% (case data). Calculate.","es":""},"explanation":{"fr":"","en":"Revalued non-depreciable asset: tax consequences of recovery through sale (IAS 12, para. 51B): 500,000 × 18% = 90,000 (not 125,000 at the operating rate).","es":""},"common_error":{"fr":"","en":"Measuring deferred tax on revalued land at the rate on operating income.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Revalued amount","es":""},"value":"1300000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"800000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Taxable difference","es":""},"answer":500000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable difference","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Gains on land taxed at 18%","es":""},"value":18,"unit":"PERCENT"}],"result":90000,"unit":"EUR","rationale":{"fr":"","en":"Revalued non-depreciable asset: tax consequences of recovery through sale (IAS 12, para. 51B): 500,000 × 18% = 90,000 (not 125,000 at the operating rate).","es":""}}],"references":["REF.IAS12.51B"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000176","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"INVESTMENT_PROPERTY_PRESUMPTION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"investment-property-presumption"},"references":["IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"Foncière Laurentis, a fictitious company, measures an investment property at fair value (IAS 40): 3,000,000; tax base on sale 2,200,000; gains on sale taxed at 15% (case data). Nothing rebuts the presumption. Calculate.","es":""},"explanation":{"fr":"","en":"Rebuttable presumption of recovery through sale for an investment property at fair value (IAS 12, para. 51C): 800,000 × 15% = 120,000.","es":""},"common_error":{"fr":"","en":"Applying the use rate or rebutting the presumption without evidence: for investment property at fair value, recovery through sale is presumed.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Tax base (sale)","es":""},"value":"2200000","unit":"EUR"},{"label":{"fr":"","en":"Rate on gains","es":""},"value":"15","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Taxable difference","es":""},"answer":800000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable difference","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate on gains","es":""},"value":15,"unit":"PERCENT"}],"result":120000,"unit":"EUR","rationale":{"fr":"","en":"Rebuttable presumption of recovery through sale for an investment property at fair value (IAS 12, para. 51C): 800,000 × 15% = 120,000.","es":""}}],"references":["REF.IAS12.51C"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000177","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"HOSPITALITY","tested_point":"PRESUMPTION_REBUTTAL","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"investment-property-presumption"},"references":["IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"In which case is the presumption of recovery through sale of an investment property at fair value rebutted?","es":""},"explanation":{"fr":"","en":"The presumption is rebutted if the property is depreciable and held in a business model of consuming the benefits rather than selling; paras. 51 and 51A then apply (IAS 12, paras. 51C).","es":""},"common_error":{"fr":"","en":"Rebutting the sale presumption for investment property without a consumption business model.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The property is depreciable and held within a business model whose objective is to consume substantially all of its benefits over time","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Management simply has no intention of selling within five years","es":""},"correct":false,"feedback":{"fr":"","en":"A mere absence of intention to sell does not rebut the presumption.","es":""}},{"id":"C","text":{"fr":"","en":"The rate on gains is lower than the operating rate","es":""},"correct":false,"feedback":{"fr":"","en":"The rate gap is not a rebuttal criterion.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000178","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"CALCULATION","format":"CALCULATION","context":"TECHNOLOGY","tested_point":"DUAL_TAX_BASE","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"numeric-example"},"references":["IAS 12 §51A"],"exercise":{"prompt":{"fr":"","en":"A patent of Cryptalis, a fictitious company, has a carrying amount of 900,000. Under the case legislation: on use, tax base 500,000 and rate 25%; on sale, tax base 600,000 and rate 18%. Cryptalis has committed to selling it next year. Calculate.","es":""},"explanation":{"fr":"","en":"Use: (900,000 − 500,000) × 25% = 100,000. Sale: (900,000 − 600,000) × 18% = 54,000. Expected manner: sale, so rate and base consistent with a sale (IAS 12, para. 51A): 54,000.","es":""},"common_error":{"fr":"","en":"Using the use calculation (100,000) although a sale is planned: base and rate must be consistent with the expected manner of recovery.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"900000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax if used","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax if sold","es":""},"answer":54000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Liability to recognise","es":""},"answer":54000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deferred tax if used","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Under the case legislation: on use, tax base 500,000","es":""},"value":500000},{"symbol":"c","meaning":{"fr":"","en":"rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":100000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Deferred tax if sold","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"on sale, tax base 600,000","es":""},"value":600000},{"symbol":"c","meaning":{"fr":"","en":"rate 18%","es":""},"value":18,"unit":"PERCENT"}],"result":54000,"unit":"EUR"}],"rationale":{"fr":"","en":"Expected manner: sale, so rate and base consistent with a sale (IAS 12, para. 51A): 54,000.","es":""},"references":["REF.IAS12.51A"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000179","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"INVESTMENT_PROPERTY_DT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"entry"},"references":["IAS 12 §51C","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"In N, Laurentis records an increase of 400,000 in the fair value of its investment property, recognised in profit or loss under IAS 40 (case data); gains taxed at 15%. Record the deferred tax entry.","es":""},"explanation":{"fr":"","en":"400,000 × 15% = 60,000 (sale presumption, IAS 12, para. 51C), in profit or loss like the fair value change (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Recognising the tax in OCI or at the ordinary rate: the fair value gain is in profit or loss and the sale presumption calls for the capital gains rate.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}},{"id":"REVALUATION_SURPLUS","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_EXPENSE","side":"DEBIT","amount":60000},{"id":"L2","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":60000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000180","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"REAL_ESTATE","tested_point":"MANNER_OF_RECOVERY_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"pitfalls"},"references":["IAS 12 §51A","IAS 12 §51B","IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"Review the memo of a fictitious property company (operations 25%, gains 15%: case data).","es":""},"explanation":{"fr":"","en":"Lines 3 and 4 correct (IAS 12, paras. 51A and 51C); lines 1 and 2 incorrect.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Revalued land (difference 600,000): liability of 150,000 at the operating rate.","es":""},"erroneous":true,"correction":{"fr":"","en":"Recovery through sale: 600,000 × 15% = 90,000 (IAS 12, para. 51B).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Sale presumption rebutted for an office building at fair value, as management \"does not want to sell for now\".","es":""},"erroneous":true,"correction":{"fr":"","en":"Rebuttal requires a depreciable asset held in a consumption model (IAS 12, para. 51C).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Investment property at fair value: deferred tax at the gains rate (presumption not rebutted).","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"4. Patent held for sale: tax base on sale and gains rate.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000181","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"MANNER_BASIS_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"how"},"references":["IAS 12 §51A","IAS 12 §51B","IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"Match each asset with the measurement basis of its deferred tax.","es":""},"explanation":{"fr":"","en":"Revalued land: sale (IAS 12, para. 51B); investment property: sale presumption (para. 51C), unless rebutted (same paragraph); machine: expected manner, use (paras. 51 and 51A).","es":""},"common_error":{"fr":"","en":"Measuring the revalued land on a use basis: a revalued non-depreciable asset reflects the consequences of sale.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Revalued non-depreciable land","es":""}},{"id":"L2","text":{"fr":"","en":"Investment property at fair value, presumption not rebutted","es":""}},{"id":"L3","text":{"fr":"","en":"Depreciable investment property consumed through use (presumption rebutted)","es":""}},{"id":"L4","text":{"fr":"","en":"Machine used until the end of its life","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Tax consequences of a sale","es":""}},{"id":"R2","text":{"fr":"","en":"Tax consequences of use","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R1"},{"left":"L3","right":"R2"},{"left":"L4","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000182","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"PRESUMPTION_REBUTTAL","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"judgment"},"references":["IAS 12 §51C","IAS 12 §51A"],"exercise":{"prompt":{"fr":"","en":"Decide whether Foncière Brisolac can rebut the sale presumption for its logistics centre.","es":""},"explanation":{"fr":"","en":"Rebuttal: depreciable asset + consumption model (IAS 12, para. 51C); deferred tax then follows the manner of use (IAS 12, para. 51A).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Foncière Brisolac, a fictitious company, measures at fair value (IAS 40) a logistics centre that is depreciable for tax, let on a long-term lease; its business model, documented by the board, is to keep its warehouses until their benefits are exhausted (about 40 years) and never to sell them. Fair value 5,000,000; tax base 4,000,000 under both manners; operations 25%, gains 15% (case data).","es":""},"parts":[{"prompt":{"fr":"","en":"Is the presumption rebutted?","es":""},"explanation":{"fr":"","en":"Both rebuttal conditions are met (IAS 12, para. 51C); assessing the business model is a judgement, supported here by the board decision.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: depreciable asset, documented consumption business model","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No: an investment property is always presumed to be sold","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption is rebuttable under the conditions of para. 51C.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the liability under the manner adopted, and under the presumption for comparison.","es":""},"explanation":{"fr":"","en":"Difference 1,000,000; use: × 25% = 250,000 (IAS 12, para. 51A); for comparison, sale: × 15% = 150,000.","es":""},"common_error":{"fr":"","en":"Sticking to the sale presumption although it is rebutted: tax then follows use, at the 25% rate.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Liability (use, 25%)","es":""},"answer":250000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Liability under sale presumption (15%)","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The file should keep the board decision describing the consumption business model.","es":""},"explanation":{"fr":"","en":"True: it is the evidence for the rebuttal (IAS 12, para. 51C).","es":""},"common_error":{"fr":"","en":"Rebutting the presumption without keeping evidence of the business model: the board's decision is the evidence for the rebuttal.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000183","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"SALE_BASIS_RULES","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"non-depreciable-revalued"},"references":["IAS 12 §51B","IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"Complete.","es":""},"explanation":{"fr":"","en":"For a revalued non-depreciable asset, deferred tax reflects recovery through sale (IAS 12, para. 51B); for investment property at fair value, the presumption of recovery through sale is rebuttable (IAS 12, para. 51C).","es":""},"common_error":{"fr":"","en":"Choosing use for the non-depreciable asset or an irrebuttable presumption: it is sale, and the presumption can be rebutted.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"For a non-depreciable asset measured using the revaluation model, deferred tax reflects recovery through {{a}}; for investment property at fair value, there is a {{b}} presumption of recovery through sale.","es":""},"blanks":[{"id":"a","mode":"CHOICE","choices":[{"id":"SALE","text":{"fr":"","en":"sale","es":""}},{"id":"USE","text":{"fr":"","en":"use","es":""}}],"answer":"SALE"},{"id":"b","mode":"CHOICE","choices":[{"id":"REB","text":{"fr":"","en":"rebuttable","es":""}},{"id":"ABS","text":{"fr":"","en":"irrebuttable","es":""}}],"answer":"REB"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000184","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PL_DEFAULT_RULE","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Current and deferred tax are recognised in profit or loss, unless they arise from a transaction recognised outside profit or loss or from a business combination.","es":""},"explanation":{"fr":"","en":"True: current and deferred tax is recognised in profit or loss, except when it arises from a transaction recognised outside profit or loss (OCI or equity) or from a business combination (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Putting all tax in profit or loss: tax on a transaction outside profit or loss or on a business combination follows that transaction.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000185","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"DT_PL_FROM_BALANCES","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"numeric-example"},"references":["IAS 12 §58","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Fonderies Malvezin, a fictitious company: determine the deferred tax expense in profit or loss for N.","es":""},"explanation":{"fr":"","en":"Movement 210,000 − 120,000 = 90,000, of which 50,000 in other comprehensive income (IAS 12, para. 61A); the balance, 40,000, is an expense in profit or loss (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Taking the total movement in the deferred tax balance as an expense in profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening net deferred tax liability","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Closing net deferred tax liability","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Of which N deferred tax on a revaluation in other comprehensive income","es":""},"value":"50000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total movement","es":""},"answer":90000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total movement","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing net deferred tax liability","es":""},"value":210000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening net deferred tax liability","es":""},"value":120000,"unit":"EUR"}],"result":90000,"unit":"EUR"}],"references":["REF.IAS12.58","REF.IAS12.61A"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000186","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"DT_PL_WITH_BUSINESS_COMBINATION","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"exclusions"},"references":["IAS 12 §58","IAS 12 §61A","IAS 12 §66"],"exercise":{"prompt":{"fr":"","en":"The fictitious Varennac group: isolate the deferred tax expense in profit or loss for N.","es":""},"explanation":{"fr":"","en":"Movement 220,000 = 150,000 from the business combination (other side: goodwill, IAS 12, paras. 58 and 66) + 20,000 in other comprehensive income (IAS 12, para. 61A) + 50,000 in profit or loss (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Taking the whole change (220,000) as the profit or loss charge: the part from the combination (goodwill) and the part in OCI are removed.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening net deferred tax liability","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Closing net deferred tax liability","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Liability assumed on acquiring a subsidiary in N (business combination)","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"N deferred tax on revaluations in other comprehensive income","es":""},"value":"20000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000187","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"DT_ENTRY_SPLIT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"entry"},"references":["IAS 12 §58","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Ateliers Morlac, a fictitious company: the deferred tax liability increases by 60,000 and the deferred tax asset by 15,000; 10,000 of the increase in the liability comes from a revaluation recognised in other comprehensive income. Record the entry.","es":""},"explanation":{"fr":"","en":"Net movement: 60,000 − 15,000 = 45,000; 10,000 in other comprehensive income (IAS 12, para. 61A), 35,000 in profit or loss (IAS 12, para. 58). Debits 15,000 + 35,000 + 10,000 = credit 60,000.","es":""},"common_error":{"fr":"","en":"Expensing the net change of 45,000 in profit or loss: the part linked to the revaluation (10,000) goes to OCI, and the asset and liability are posted separately.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":15000},{"id":"L2","account":"DEFERRED_TAX_EXPENSE","side":"DEBIT","amount":35000},{"id":"L3","account":"OCI_INCOME_TAX","side":"DEBIT","amount":10000},{"id":"L4","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":60000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000188","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"APPLICATION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"WHAT_GOES_TO_PL","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"exclusions"},"references":["IAS 12 §58","IAS 12 §60","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Which deferred tax movements go to profit or loss?","es":""},"explanation":{"fr":"","en":"By default, profit or loss (IAS 12, para. 58), including the effect of a rate change on differences that arose in profit or loss (IAS 12, para. 60); outside profit or loss for items outside profit or loss (IAS 12, para. 61A); goodwill for a business combination (IAS 12, para. 58).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Movement relating to accelerated tax depreciation","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Movement relating to a provision charged to profit or loss","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Effect of a rate cut on differences that arose in profit or loss","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Deferred tax on a revaluation recognised in other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"It follows the item, outside profit or loss.","es":""}},{"id":"E","text":{"fr":"","en":"Deferred tax on fair value adjustments in a business combination","es":""},"correct":false,"feedback":{"fr":"","en":"It affects goodwill, not profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000189","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CONSISTENCY_PRINCIPLE","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"why"},"references":["IAS 12 §57"],"exercise":{"prompt":{"fr":"","en":"Which principle guides the allocation of current and deferred tax?","es":""},"explanation":{"fr":"","en":"Consistency principle (IAS 12, para. 57), implemented by paras. 58 to 68C.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The tax effects of a transaction are recognised consistently with the recognition of the transaction itself","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"All tax is recognised in profit or loss, without exception","es":""},"correct":false,"feedback":{"fr":"","en":"Transactions outside profit or loss carry their tax outside profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"The entity chooses the most favourable allocation","es":""},"correct":false,"feedback":{"fr":"","en":"No choice: the allocation follows the transaction.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000190","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"ALLOCATION_DESTINATIONS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"exclusions"},"references":["IAS 12 §58","IAS 12 §61A","IAS 12 §62A"],"exercise":{"prompt":{"fr":"","en":"Classify the destination of each tax effect.","es":""},"explanation":{"fr":"","en":"Profit or loss by default (IAS 12, para. 58); other comprehensive income or equity depending on the item (IAS 12, paras. 61A and 62A); goodwill for a business combination (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Putting the tax on the change in policy or on the acquisition in profit or loss: it follows the adjustment to opening equity or goodwill.","es":""},"format":"CLASSIFICATION","categories":[{"id":"PL","text":{"fr":"","en":"Profit or loss","es":""}},{"id":"OCI","text":{"fr":"","en":"Other comprehensive income","es":""}},{"id":"EQ","text":{"fr":"","en":"Directly in equity","es":""}},{"id":"GW","text":{"fr":"","en":"Goodwill","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Deferred tax on a warranty provision","es":""},"category":"PL"},{"id":"I2","text":{"fr":"","en":"Deferred tax on a revaluation of an asset","es":""},"category":"OCI"},{"id":"I3","text":{"fr":"","en":"Tax effect of a retrospective change in policy adjusting opening retained earnings","es":""},"category":"EQ"},{"id":"I4","text":{"fr":"","en":"Deferred tax on fair value adjustments of an acquisition","es":""},"category":"GW"},{"id":"I5","text":{"fr":"","en":"Current tax for the year on operating profit","es":""},"category":"PL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000191","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"PL_ALLOCATION_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pitfalls"},"references":["IAS 12 §58","IAS 12 §60","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Review the deferred tax expense calculation of a fictitious operator.","es":""},"explanation":{"fr":"","en":"Only line 3 is correct (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Recognising the effect of a rate change directly in equity for differences that arose in profit or loss.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Deferred tax expense = total movement in the net liability (including the part from a revaluation).","es":""},"erroneous":true,"correction":{"fr":"","en":"The part relating to the revaluation goes to other comprehensive income (IAS 12, para. 61A).","es":""}},{"id":"S2","text":{"fr":"","en":"2. The effect of the rate cut on accelerated depreciation is taken directly to equity.","es":""},"erroneous":true,"correction":{"fr":"","en":"Difference arising in profit or loss: effect in profit or loss (IAS 12, para. 60).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Deferred tax on provisions charged to profit or loss is recognised in profit or loss.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000192","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"FOOD","tested_point":"TAX_EXPENSE_FROM_COMPONENTS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"numeric-example"},"references":["IAS 12 §6","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Complete for Brasseries Ollier, a fictitious company.","es":""},"explanation":{"fr":"","en":"820,000 − 70,000 = 750,000 (IAS 12, paras. 6 and 58); the 30,000 stay outside profit or loss.","es":""},"common_error":{"fr":"","en":"Adding the deferred tax income or including the 30,000 in OCI: the profit or loss charge is current tax less the deferred tax income in profit or loss.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Current tax 820,000; deferred tax in profit or loss: income of 70,000; deferred tax in other comprehensive income: 30,000. Tax expense in profit or loss: {{expense}}.","es":""},"blanks":[{"id":"expense","mode":"NUMBER","answer":750000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000193","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"DT_PL_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"how"},"references":["IAS 12 §58","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Put in order the determination of deferred tax expense in profit or loss.","es":""},"explanation":{"fr":"","en":"Compute the closing balances item by item, then the change; isolate the part relating to items outside profit or loss (OCI, equity) and to business combinations (IAS 12, paras. 61A and 58); the balance is the deferred tax expense or income in profit or loss (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Taking the whole change to profit or loss without isolating the part outside profit or loss and the business combination part.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Calculate closing deferred tax balances, item by item","es":""}},{"id":"S2","text":{"fr":"","en":"Calculate the movement from the opening balance","es":""}},{"id":"S3","text":{"fr":"","en":"Isolate the parts relating to items outside profit or loss and to business combinations","es":""}},{"id":"S4","text":{"fr":"","en":"Recognise the balance in profit or loss","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000194","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"INDUSTRIAL","tested_point":"DT_ROLL_FORWARD","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"judgment"},"references":["IAS 12 §58","IAS 12 §60","IAS 12 §61A","IAS 12 §66"],"exercise":{"prompt":{"fr":"","en":"Prepare Corsalis's deferred tax roll-forward and interpret it.","es":""},"explanation":{"fr":"","en":"The movement in the deferred tax balance is split between profit or loss, outside profit or loss and business combinations (IAS 12, paras. 58, 60, 61A and 66).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Corsalis, a fictitious industrial group: net deferred tax liability 400,000 at the start, 455,000 at the end. During N: revaluation of a building in other comprehensive income, deferred tax 30,000; acquisition of a subsidiary, deferred tax liability assumed 80,000; an enacted rate cut reducing liabilities that arose in profit or loss by 40,000; the rest of the movement comes from differences arising in profit or loss.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate.","es":""},"explanation":{"fr":"","en":"455,000 = 400,000 + 30,000 + 80,000 + X → X = −55,000: income of 55,000 in profit or loss, of which 40,000 from the rate (IAS 12, para. 60) and 15,000 from the differences.","es":""},"common_error":{"fr":"","en":"Forgetting the acquired subsidiary and OCI in the change: these parts are removed first to isolate the income in profit or loss, then the rate effect.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Total deferred tax income in profit or loss","es":""},"answer":55000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Of which effect of differences (excluding rate)","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Where is the deferred tax of 80,000 of the acquired subsidiary recognised?","es":""},"explanation":{"fr":"","en":"Deferred tax arising from a business combination is part of accounting for the combination and affects goodwill (IAS 12, para. 66); it is not recognised as tax expense (IAS 12, para. 58).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the accounting for the business combination (goodwill)","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As deferred tax expense","es":""},"correct":false,"feedback":{"fr":"","en":"A business combination is excluded from allocation to profit or loss.","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"The roll-forward should separate profit or loss, other comprehensive income and business combinations so that the tax expense in profit or loss can be checked.","es":""},"explanation":{"fr":"","en":"True: it implements paras. 58 and 61A of IAS 12; the format of the schedule is good practice.","es":""},"common_error":{"fr":"","en":"Presenting a single global movement table: without separating profit or loss, OCI and combinations, the tax charge in profit or loss cannot be checked.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000195","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"CHANGES_WITHOUT_DIFFERENCE_CHANGE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Hydrevane, a fictitious company, changes the expected manner of recovery of an asset from an ordinary acquisition (no item outside profit or loss): its deferred tax falls by 18,000 without the difference changing. Where should the decrease be recognised?","es":""},"explanation":{"fr":"","en":"A change in deferred tax without a change in the differences (rate, recoverability, manner of recovery) goes to profit or loss, unless it relates to items previously recognised outside profit or loss (IAS 12, para. 60).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In profit or loss","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In equity, as the difference has not changed","es":""},"correct":false,"feedback":{"fr":"","en":"Profit or loss remains the rule, unless the item was previously recognised outside profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000196","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"OCI_ITEM_OCI_TAX","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Deferred tax arising from a revaluation recognised in other comprehensive income is recognised in tax expense in profit or loss.","es":""},"explanation":{"fr":"","en":"False: tax relating to an item recognised in other comprehensive income is also recognised there (IAS 12, para. 61A).","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the deferred tax arising from a revaluation in other comprehensive income.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000197","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","format":"CALCULATION","context":"HOSPITALITY","tested_point":"REVALUATION_OCI_CALC","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"numeric-example"},"references":["IAS 12 §20","IAS 12 §61A","IAS 12 §62"],"exercise":{"prompt":{"fr":"","en":"Hôtels Sauvelle, a fictitious group, revalues a hotel by 240,000 in other comprehensive income (IAS 16 revaluation model: case data); tax base unchanged; rate 25%. Calculate.","es":""},"explanation":{"fr":"","en":"The revaluation without tax adjustment creates a taxable difference (IAS 12, para. 20); revaluation of property, plant and equipment under IAS 16 is an item of other comprehensive income (IAS 12, para. 62), so its tax is allocated there (IAS 12, para. 61A): 240,000 × 25% = 60,000; net 180,000.","es":""},"common_error":{"fr":"","en":"Taking the tax on the revaluation to profit or loss: it follows the revaluation, recognised in OCI.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Increase in value","es":""},"value":"240000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax in other comprehensive income","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Revaluation surplus net of tax","es":""},"answer":180000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deferred tax in other comprehensive income","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Increase in value","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":60000,"unit":"EUR","rationale":{"fr":"","en":"revaluation of property, plant and equipment under IAS 16 is an item of other comprehensive income (IAS 12, para. 62), so its tax is allocated there (IAS 12, para. 61A): 240,000 × 25% = 60,000","es":""}}],"references":["REF.IAS12.20","REF.IAS12.61A","REF.IAS12.62"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000198","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"HOSPITALITY","tested_point":"REVALUATION_OCI_ENTRY","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"entry"},"references":["IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Sauvelle: record the full entry for the revaluation (240,000) and its deferred tax (60,000).","es":""},"explanation":{"fr":"","en":"Debit Property, plant and equipment 240,000, credit Revaluation surplus 240,000 (under IAS 16, case data); debit Income tax on other comprehensive income 60,000, credit Deferred tax liability 60,000 (IAS 12, para. 61A). Debits 300,000 = credits 300,000.","es":""},"common_error":{"fr":"","en":"Debiting deferred tax expense: tax on the revaluation is charged to OCI, like the revaluation.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"REVALUATION_SURPLUS","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"PPE","text":{"fr":"","en":"Property, plant and equipment","es":""}}],"lines":[{"id":"L1","account":"PPE","side":"DEBIT","amount":240000},{"id":"L2","account":"REVALUATION_SURPLUS","side":"CREDIT","amount":240000},{"id":"L3","account":"OCI_INCOME_TAX","side":"DEBIT","amount":60000},{"id":"L4","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":60000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000199","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"POLICY_CHANGE_EQUITY_TAX","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"equity-items"},"references":["IAS 12 §62A","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Distrivert, a fictitious retailer, retrospectively applies a new accounting policy that increases an asset and its opening retained earnings by 200,000; tax base unchanged, rate 25%. Record the deferred tax entry.","es":""},"explanation":{"fr":"","en":"The adjustment to opening retained earnings is an item recognised directly in equity (IAS 12, para. 62A): the deferred tax of 50,000 is too (IAS 12, para. 61A).","es":""},"common_error":{"fr":"","en":"Expensing the tax in the year: linked to an adjustment to opening retained earnings, it is charged directly to equity.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"RETAINED_EARNINGS","side":"DEBIT","amount":50000},{"id":"L2","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":50000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000200","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"OUTSIDE_DESTINATIONS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"how"},"references":["IAS 12 §61A","IAS 12 §62","IAS 12 §62A","IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"Classify the destination of the tax on each item.","es":""},"explanation":{"fr":"","en":"OCI: IAS 16 revaluation (IAS 12, para. 62); equity: opening adjustment and equity component (para. 62A), excess deduction on share-based payments (para. 68C); the rest in profit or loss (para. 61A by contrast).","es":""},"common_error":{"fr":"","en":"Mixing up OCI and direct equity: the IAS 16 revaluation is in OCI; the opening adjustment, the equity component and the excess share option deduction are in equity.","es":""},"format":"CLASSIFICATION","categories":[{"id":"OCI","text":{"fr":"","en":"Other comprehensive income","es":""}},{"id":"EQ","text":{"fr":"","en":"Directly in equity","es":""}},{"id":"PL","text":{"fr":"","en":"Profit or loss","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Revaluation of property, plant and equipment","es":""},"category":"OCI"},{"id":"I2","text":{"fr":"","en":"Correction of an error adjusting opening retained earnings","es":""},"category":"EQ"},{"id":"I3","text":{"fr":"","en":"Equity component of a convertible bond","es":""},"category":"EQ"},{"id":"I4","text":{"fr":"","en":"Tax deduction on share options exceeding cumulative expense (excess part)","es":""},"category":"EQ"},{"id":"I5","text":{"fr":"","en":"Accelerated tax depreciation","es":""},"category":"PL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000201","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"RATE_CHANGE_ON_OCI_ITEM","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"difficult-allocation"},"references":["IAS 12 §60","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"The rate falls; part of the deferred tax liability comes from a revaluation recognised in other comprehensive income in earlier years. Where does the effect of the cut on that part go?","es":""},"explanation":{"fr":"","en":"The effect of a rate change goes to profit or loss except to the extent that it relates to items previously recognised outside profit or loss (IAS 12, para. 60); tax then follows the item, even from another period (IAS 12, para. 61A).","es":""},"common_error":{"fr":"","en":"Taking to profit or loss the whole of a rate effect on a difference that arose in other comprehensive income.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To other comprehensive income","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"To profit or loss, like any rate change","es":""},"correct":false,"feedback":{"fr":"","en":"The effect follows the item previously recognised outside profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000202","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"RATE_CHANGE_SPLIT_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"numeric-example"},"references":["IAS 12 §60","IAS 12 §61A","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Verreries Dalbanne, a fictitious company, has a taxable difference of 1,000,000: 300,000 from a revaluation in other comprehensive income, 700,000 from accelerated depreciation. The enacted rate falls from 30% to 25%. Calculate.","es":""},"explanation":{"fr":"","en":"A 5-point cut: 1,000,000 × 5% = 50,000; 300,000 × 5% = 15,000 in other comprehensive income; 700,000 × 5% = 35,000 in profit or loss (IAS 12, paras. 47, 60 and 61A).","es":""},"common_error":{"fr":"","en":"Taking the whole decrease to profit or loss: the part arising from revaluations in OCI (15,000) is also recognised there.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Part arising in other comprehensive income","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Part arising in profit or loss","es":""},"value":"700000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total decrease in the liability","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Of which in other comprehensive income","es":""},"answer":15000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Of which in profit or loss","es":""},"answer":35000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000203","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"RATE_CHANGE_SPLIT_ENTRY","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"entry"},"references":["IAS 12 §60","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Verreries Dalbanne: taxable difference of 1,000,000, of which 300,000 arose from a revaluation in other comprehensive income and 700,000 from accelerated depreciation; the enacted rate falls from 30% to 25%. Record the entry for the rate cut.","es":""},"explanation":{"fr":"","en":"Debit Deferred tax liability 50,000; credit Deferred tax income 35,000; credit Income tax on other comprehensive income 15,000 (IAS 12, paras. 60 and 61A).","es":""},"common_error":{"fr":"","en":"Crediting 50,000 to deferred tax income: the revaluation part (15,000) is credited to OCI.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_LIABILITY","side":"DEBIT","amount":50000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":35000},{"id":"L3","account":"OCI_INCOME_TAX","side":"CREDIT","amount":15000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000204","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DIFFICULT_ALLOCATION_METHOD","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"difficult-allocation"},"references":["IAS 12 §63"],"exercise":{"prompt":{"fr":"","en":"In exceptional circumstances, the share of tax relating to items outside profit or loss is difficult to determine (progressive scale, rate change on balances of mixed origin). What does the standard provide?","es":""},"explanation":{"fr":"","en":"When the tax relating to items outside profit or loss is exceptionally hard to determine, the standard requires a reasonable pro rata allocation of the entity's tax in the jurisdiction, or another more appropriate method (IAS 12, para. 63); putting everything on one side is not provided for. The choice of key is a judgement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A reasonable pro rata allocation of the entity's tax in the jurisdiction, or another method that achieves a more appropriate allocation in the circumstances","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"All the tax in profit or loss, for simplicity","es":""},"correct":false,"feedback":{"fr":"","en":"The standard requires an allocation, not taking everything to profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"All the tax in other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"No basis for this choice.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000205","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"TAX_REVALUATION_RULE","difficulty":"ADVANCED","estimated_time_s":50,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"tax-revaluation"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"When the tax law revalues the tax base of an asset, the tax effect is recognised in other comprehensive income only to the extent that a related accounting revaluation has been or will be recognised there.","es":""},"explanation":{"fr":"","en":"True: the tax effect of a revaluation of the tax base is recognised in OCI only to the extent that a related accounting revaluation was or will be recognised there (IAS 12, para. 65).","es":""},"common_error":{"fr":"","en":"Taking every effect of a tax revaluation to OCI: it only goes there if linked to an accounting revaluation in OCI; otherwise it goes to profit or loss.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000206","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"APPLICATION","format":"MATCHING","context":"REAL_ESTATE","tested_point":"TAX_REVALUATION_APPLICATION","difficulty":"EXPERT","estimated_time_s":150,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"tax-revaluation"},"references":["IAS 12","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Two fictitious companies benefit from a tax revaluation of 100,000 of the base of a building (rate 25%), which reduces their deferred tax liability by 25,000. Match each situation with the destination of that reduction.","es":""},"explanation":{"fr":"","en":"The effect of a tax revaluation goes to other comprehensive income only if it relates to an accounting revaluation that has been or will be recognised there (IAS 12, para. 65); otherwise, it follows the general profit or loss rule (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Taking the decrease to OCI for the property at cost: without a related accounting revaluation, the effect follows the general profit or loss rule.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Building revalued in the accounts (in other comprehensive income) last year, the tax revaluation relating to it","es":""}},{"id":"L2","text":{"fr":"","en":"Building at cost, with no past or planned accounting revaluation","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Other comprehensive income","es":""}},{"id":"R2","text":{"fr":"","en":"Profit or loss","es":""}},{"id":"R3","text":{"fr":"","en":"Goodwill","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000207","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"COMPOUND_INSTRUMENT_SUBSEQUENT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"equity-items"},"references":["IAS 12 §23"],"exercise":{"prompt":{"fr":"","en":"Teleris (convertible bond: liability component 4,600,000, tax base 5,000,000, initial deferred tax liability of 100,000 charged to the equity component) recognises in N+1 an accretion interest expense of 80,000 that brings the liability component to 4,680,000. Rate 25%. Calculate.","es":""},"explanation":{"fr":"","en":"Difference 5,000,000 − 4,680,000 = 320,000 → 80,000; the decrease of 20,000 is recognised in profit or loss: later changes in this liability go to profit or loss (IAS 12, para. 23).","es":""},"common_error":{"fr":"","en":"Charging the decrease in the liability to the equity component: only the initial charge is made there; later changes go to profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Liability component end of N+1","es":""},"value":"4680000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"5000000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax liability end of N+1","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax income in profit or loss","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000208","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"MEDIA","tested_point":"OUTSIDE_PL_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"pitfalls"},"references":["IAS 12 §60","IAS 12 §61A","IAS 12 §62A","IAS 12 §23"],"exercise":{"prompt":{"fr":"","en":"Review the allocation memo of a fictitious media group.","es":""},"explanation":{"fr":"","en":"Only line 3 is correct (IAS 12, para. 62A).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Deferred tax on the revaluation of the head office: tax expense for the year.","es":""},"erroneous":true,"correction":{"fr":"","en":"In other comprehensive income, like the revaluation (IAS 12, para. 61A).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Rate cut: the whole effect in profit or loss, including on the liability arising from revaluations.","es":""},"erroneous":true,"correction":{"fr":"","en":"The part relating to revaluations goes to other comprehensive income (IAS 12, para. 60).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Correction of an error adjusting opening retained earnings: tax in equity.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"4. Accretion of the liability component of the convertible bond: change in the deferred tax liability charged to the equity component.","es":""},"erroneous":true,"correction":{"fr":"","en":"Only initial recognition goes to the equity component; later changes go to profit or loss (IAS 12, para. 23).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000209","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"OCI_AND_EQUITY_EXAMPLES","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"equity-items"},"references":["IAS 12 §62","IAS 12 §62A"],"exercise":{"prompt":{"fr":"","en":"Which items does the standard mention as recognised directly in equity?","es":""},"explanation":{"fr":"","en":"Direct equity: para. 62A; other comprehensive income, including IAS 16 revaluation: para. 62.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The adjustment to opening retained earnings from a retrospective change in policy or a correction of an error","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Amounts arising on initial recognition of the equity component of a compound instrument","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Revaluation of property, plant and equipment under IAS 16","es":""},"correct":false,"feedback":{"fr":"","en":"This is an example of other comprehensive income, not of direct equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000210","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"OUTSIDE_RULE_FILL","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Complete.","es":""},"explanation":{"fr":"","en":"Tax relating to an item recognised outside profit or loss, in the same or a different period, is recognised in the same place: in OCI for an OCI item, in equity for an equity item (IAS 12, para. 61A).","es":""},"common_error":{"fr":"","en":"Thinking that tax on an OCI item from another period goes to profit or loss: it follows the item, whatever the period.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Tax relating to an item recognised, in the same period or a {{period}} period, in other comprehensive income is recognised in {{where1}}; tax on an item recognised directly in equity, in {{where2}}.","es":""},"blanks":[{"id":"period","mode":"CHOICE","choices":[{"id":"DIFF","text":{"fr":"","en":"different","es":""}},{"id":"LATER","text":{"fr":"","en":"later only","es":""}}],"answer":"DIFF"},{"id":"where1","mode":"CHOICE","choices":[{"id":"OCI","text":{"fr":"","en":"other comprehensive income","es":""}},{"id":"PL","text":{"fr":"","en":"profit or loss","es":""}}],"answer":"OCI"},{"id":"where2","mode":"CHOICE","choices":[{"id":"EQ","text":{"fr":"","en":"equity","es":""}},{"id":"PL","text":{"fr":"","en":"profit or loss","es":""}}],"answer":"EQ"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000211","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"CHEMICALS","tested_point":"PRO_RATA_ALLOCATION_JUDGMENT","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"judgment"},"references":["IAS 12 §63","IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Allocate the effect of Chimie Orbezine's rate cut between profit or loss and other comprehensive income.","es":""},"explanation":{"fr":"","en":"When the origin of differences cannot be traced, the standard allows a reasonable allocation (IAS 12, para. 63); the key used here is a teaching assumption, not a required method.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Chimie Orbezine, a fictitious group, sees its deferred tax liability fall by 60,000 following a rate cut. Its records do not make it possible to trace the origin of each difference precisely; according to its analyses, 400,000 of the differences come from revaluations recognised in other comprehensive income and 800,000 from transactions recognised in profit or loss. Management uses a pro rata allocation based on these amounts (teaching assumption: allocation key).","es":""},"parts":[{"prompt":{"fr":"","en":"Is this approach acceptable?","es":""},"explanation":{"fr":"","en":"Yes: in these exceptional circumstances, the standard allows a reasonable pro rata allocation or another more appropriate method (IAS 12, para. 63); taking everything to profit or loss is not required. Whether the key used is reasonable is a judgement to document.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, if it is a reasonable allocation in these exceptional circumstances","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No: the whole effect must go to profit or loss for lack of traceability","es":""},"correct":false,"feedback":{"fr":"","en":"The standard specifically provides for a reasonable allocation when determination is difficult.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the allocation using the key adopted.","es":""},"explanation":{"fr":"","en":"60,000 × 400,000 / 1,200,000 = 20,000; 60,000 × 800,000 / 1,200,000 = 40,000 (key: teaching assumption).","es":""},"common_error":{"fr":"","en":"Inverting the proportions or applying the key to another base: each part is total tax multiplied by its share of the allocation base.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Part in other comprehensive income","es":""},"answer":20000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Part in profit or loss","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The allocation key and the reasons why it is reasonable should be documented.","es":""},"explanation":{"fr":"","en":"True: the reasonableness of the method (IAS 12, para. 63) must be demonstrable.","es":""},"common_error":{"fr":"","en":"Applying a key without supporting it: its reasonableness must be demonstrable.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000212","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"ALLOCATION_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"how"},"references":["IAS 12 §58","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Put in order the allocation of the tax on a transaction.","es":""},"explanation":{"fr":"","en":"Identify where the transaction is recognised, compute its current and deferred tax, allocate it to the same place (IAS 12, paras. 58 and 61A) and follow that origin for later changes, for example a rate change (IAS 12, para. 60).","es":""},"common_error":{"fr":"","en":"Allocating tax before identifying where the transaction is recognised: that location determines where the tax goes.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Identify where the transaction itself is recognised","es":""}},{"id":"S2","text":{"fr":"","en":"Calculate its current and deferred tax effect","es":""}},{"id":"S3","text":{"fr":"","en":"Allocate the tax to the same place (profit or loss, OCI, equity, goodwill)","es":""}},{"id":"S4","text":{"fr":"","en":"Track the origin for later changes (rate, recoverability)","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000213","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"WITHHOLDING_TO_EQUITY","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"withholding-tax"},"references":["IAS 12 §65A"],"exercise":{"prompt":{"fr":"","en":"The withholding tax that a fictitious company pays to the tax authority on behalf of its shareholders when paying a dividend is a tax expense of the company.","es":""},"explanation":{"fr":"","en":"False: this amount is charged to equity as part of the dividends (IAS 12, para. 65A).","es":""},"common_error":{"fr":"","en":"Treating the withholding as the company's tax expense: withheld on behalf of shareholders, it is part of the dividend charged to equity.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000214","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"WITHHOLDING_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"entry"},"references":["IAS 12 §65A"],"exercise":{"prompt":{"fr":"","en":"Galeries Fontan, a fictitious company, declares a dividend of 1,200,000; the case legislation requires it to withhold 12% on behalf of shareholders. Record the declaration entry.","es":""},"explanation":{"fr":"","en":"Withholding 1,200,000 × 12% = 144,000, charged to equity as part of the dividend (IAS 12, para. 65A); net payable to shareholders 1,056,000. No tax expense.","es":""},"common_error":{"fr":"","en":"Recognising the 144,000 withholding as tax expense: it is charged to equity as part of the dividend.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}},{"id":"DIVIDENDS_PAYABLE","text":{"fr":"","en":"Dividends payable","es":""}},{"id":"WITHHOLDING_TAX_PAYABLE","text":{"fr":"","en":"Withholding tax payable","es":""}},{"id":"CURRENT_TAX_EXPENSE","text":{"fr":"","en":"Current tax expense","es":""}}],"lines":[{"id":"L1","account":"RETAINED_EARNINGS","side":"DEBIT","amount":1200000},{"id":"L2","account":"DIVIDENDS_PAYABLE","side":"CREDIT","amount":1056000},{"id":"L3","account":"WITHHOLDING_TAX_PAYABLE","side":"CREDIT","amount":144000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000215","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DIVIDEND_TAX_CONSEQUENCES_TIMING","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"dividend-tax-consequences"},"references":["IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"When and where does an entity recognise the tax consequences of a dividend (as defined in IFRS 9) it pays?","es":""},"explanation":{"fr":"","en":"The tax consequences of a dividend are recognised when the dividend liability is recognised, in profit or loss, OCI or equity according to where the transactions that generated the distributable profits were recognised (IAS 12, para. 57A); neither the dividend proposal nor a systematic charge to equity applies.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When the dividend liability is recognised, in profit or loss, OCI or equity depending on where the transactions that generated the distributable profits were recognised","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As soon as the dividend is proposed, always in equity","es":""},"correct":false,"feedback":{"fr":"","en":"Neither the timing nor the destination is correct.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000216","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"DISTRIBUTION_REFUND_TIMING","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"numeric-example"},"references":["IAS 12 §52A","IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"Tréfileries Galvenor, a fictitious company, is taxed at 30% on undistributed profits; 10 points are refunded on distributed profits (case data). Taxable profit for N: 2,000,000 (arising in profit or loss). The dividend of 500,000 is declared in March N+1, after the reporting date. Calculate.","es":""},"explanation":{"fr":"","en":"In N, undistributed-profits rate: 2,000,000 × 30% = 600,000 (IAS 12, para. 52A). The refund, 500,000 × 10% = 50,000, is recognised when the dividend liability is recognised, in N+1, in profit or loss as the profits arose in profit or loss (IAS 12, para. 57A).","es":""},"common_error":{"fr":"","en":"Measuring tax at the distributed-profits rate before the dividend is recognised.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Taxable profit for N","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Dividend declared in N+1","es":""},"value":"500000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Current tax for N","es":""},"answer":600000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Refund recognised in N+1","es":""},"answer":50000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Current tax for N","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable profit for N","es":""},"value":2000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"is taxed at 30% on undistributed profits","es":""},"value":30,"unit":"PERCENT"}],"result":600000,"unit":"EUR"}],"references":["REF.IAS12.52A","REF.IAS12.57A"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000217","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"DISTRIBUTION_REFUND_ENTRY","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"entry"},"references":["IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"Galvenor, March N+1: record the tax refund of 50,000 relating to the declared dividend.","es":""},"explanation":{"fr":"","en":"Debit Current tax asset 50,000; credit Current tax income 50,000: tax consequence of the dividend, in profit or loss as the distributed profits arose in profit or loss (IAS 12, para. 57A).","es":""},"common_error":{"fr":"","en":"Crediting equity: the tax consequence of the dividend follows the origin of the profits distributed, here profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CURRENT_TAX_ASSET","text":{"fr":"","en":"Current tax asset","es":""}},{"id":"CURRENT_TAX_INCOME","text":{"fr":"","en":"Current tax income","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}}],"lines":[{"id":"L1","account":"CURRENT_TAX_ASSET","side":"DEBIT","amount":50000},{"id":"L2","account":"CURRENT_TAX_INCOME","side":"CREDIT","amount":50000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000218","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"APPLICATION","format":"MATCHING","context":"FINANCE","tested_point":"WITHHOLDING_VS_ENTITY_TAX","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"withholding-tax"},"references":["IAS 12 §65A","IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"Match each levy relating to a dividend paid by a fictitious company (profits arising in profit or loss) with its accounting.","es":""},"explanation":{"fr":"","en":"Withholding on behalf of shareholders: equity (IAS 12, para. 65A). Tax borne by the entity: tax consequence of the dividend, allocated according to the origin of the profits, here profit or loss (IAS 12, para. 57A).","es":""},"common_error":{"fr":"","en":"Charging to equity the tax on distributions borne by the entity itself.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Withholding tax deducted on behalf of shareholders","es":""}},{"id":"L2","text":{"fr":"","en":"Additional tax payable by the company itself because of the distribution","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Equity, as part of the dividend","es":""}},{"id":"R2","text":{"fr":"","en":"Profit or loss, as a tax consequence of the dividend","es":""}},{"id":"R3","text":{"fr":"","en":"Other comprehensive income","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000219","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"DIVIDEND_REGIME_DISCLOSURE","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"dividend-tax-consequences"},"references":["IAS 12 §82A","IAS 12 §87A","IAS 12 §87B"],"exercise":{"prompt":{"fr":"","en":"A fictitious entity is taxed at a rate that depends on whether its profits are distributed. What information does it provide?","es":""},"explanation":{"fr":"","en":"IAS 12, paras. 82A (nature, determinable amounts, existence of non-determinable consequences), 87A (features of the regimes and factors) and 87B (total amount sometimes impracticable).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The nature of the potential tax consequences of paying dividends","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The amount of those consequences that is practicably determinable, and whether there are any that are not","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The main features of the income tax regimes and the factors that affect those consequences","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A deferred tax liability on all possible future dividends","es":""},"correct":false,"feedback":{"fr":"","en":"This is disclosure, not a liability; the consequences are recognised with the dividend liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000220","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"TAX_STATUS_CHANGE_ALLOCATION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §4"],"exercise":{"prompt":{"fr":"","en":"A fictitious company changes tax status on its stock market listing. Where does it recognise the tax consequences of the change?","es":""},"explanation":{"fr":"","en":"SIC-25, para. 4: in profit or loss for the period, unless the consequences relate to items recognised directly in equity or in other comprehensive income.","es":""},"common_error":{"fr":"","en":"Charging to equity the effect of a change in status linked to a listing.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In profit or loss, except for the part relating to items recognised outside profit or loss (OCI or equity)","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Entirely in equity, as the listing is a transaction with shareholders","es":""},"correct":false,"feedback":{"fr":"","en":"The change in status is not a transaction with shareholders for allocation purposes.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000221","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"CALCULATION","format":"CALCULATION","context":"TECHNOLOGY","tested_point":"TAX_STATUS_CHANGE_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"numeric-example"},"references":["SIC 25 §4","SIC 25 §2","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Logimax, a fictitious company, lists on the stock market: its rate falls from 30% to 25% (case data). Taxable differences: 1,200,000, of which 400,000 arose from revaluations in other comprehensive income. Calculate.","es":""},"explanation":{"fr":"","en":"The change in status changes deferred tax liabilities (SIC-25, para. 2): 1,200,000 × 5% = 60,000; 400,000 × 5% = 20,000 follow other comprehensive income, 40,000 go to profit or loss (SIC-25, para. 4).","es":""},"common_error":{"fr":"","en":"Taking the whole decrease to profit or loss: the part relating to differences arising in OCI follows OCI.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total taxable differences","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Of which arising in other comprehensive income","es":""},"value":"400000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Decrease in the liability","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"In other comprehensive income","es":""},"answer":20000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"In profit or loss","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000222","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TECHNOLOGY","tested_point":"TAX_STATUS_CHANGE_ENTRY","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"entry"},"references":["SIC 25 §4"],"exercise":{"prompt":{"fr":"","en":"Logimax: record the decrease of 60,000 in its deferred tax liability.","es":""},"explanation":{"fr":"","en":"Debit Deferred tax liability 60,000; credit Deferred tax income 40,000; credit Income tax on other comprehensive income 20,000 (SIC-25, para. 4).","es":""},"common_error":{"fr":"","en":"Crediting 60,000 to deferred tax income: 20,000 relates to OCI items and is credited there.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_LIABILITY","side":"DEBIT","amount":60000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":40000},{"id":"L3","account":"OCI_INCOME_TAX","side":"CREDIT","amount":20000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000223","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"TAX_STATUS_CHANGE_TRIGGERS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §1","SIC 25 §2"],"exercise":{"prompt":{"fr":"","en":"Which statements on changes in tax status are correct?","es":""},"explanation":{"fr":"","en":"The first three statements are correct: a change in tax status may result, for example, from a public listing or from a controlling shareholder moving abroad; it may have an immediate effect on current tax and increase or decrease deferred tax assets and liabilities. The last one is wrong: the effects are recognised in the period of the change (SIC-25, paras. 1 and 2).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A stock market listing or the move abroad of a controlling shareholder can cause one","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The change can have an immediate effect on current tax","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It can increase or decrease deferred tax assets and liabilities","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It never has an accounting effect before the next reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The effects are recognised in the period of the change.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000224","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS","IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"DIVIDENDS_STATUS_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"pitfalls"},"references":["IAS 12 §52A","IAS 12 §57A","IAS 12 §65A","SIC 25 §4"],"exercise":{"prompt":{"fr":"","en":"Review a fictitious group's memo on its dividends and its listing.","es":""},"explanation":{"fr":"","en":"Only line 2 is correct (IAS 12, para. 65A).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Tax for N measured at the lower distributed-profits rate, as a dividend is being considered for N+1.","es":""},"erroneous":true,"correction":{"fr":"","en":"Undistributed-profits rate until the dividend is recognised (IAS 12, paras. 52A and 57A).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Withholding tax on behalf of shareholders: charged to equity.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"3. Effect of the listing on deferred taxes arising in profit or loss: equity.","es":""},"erroneous":true,"correction":{"fr":"","en":"In profit or loss (SIC-25, para. 4).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000225","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"DIVIDEND_TAX_DESTINATION","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"how"},"references":["IAS 12 §57A","IAS 12 §65A"],"exercise":{"prompt":{"fr":"","en":"Classify the destination of each tax consequence relating to dividends (distributed profits arising in profit or loss).","es":""},"explanation":{"fr":"","en":"IAS 12, paras. 57A (consequences for the entity, according to the origin of the profits) and 65A (withholding for shareholders).","es":""},"common_error":{"fr":"","en":"Putting the withholding in profit or loss, or the company's tax consequences in equity: the withholding follows the dividend, the others follow the origin of the profits.","es":""},"format":"CLASSIFICATION","categories":[{"id":"PL","text":{"fr":"","en":"Profit or loss","es":""}},{"id":"EQ","text":{"fr":"","en":"Equity","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Withholding on behalf of shareholders","es":""},"category":"EQ"},{"id":"I2","text":{"fr":"","en":"Tax refund obtained by the company because of the distribution","es":""},"category":"PL"},{"id":"I3","text":{"fr":"","en":"Additional tax payable by the company because of the distribution","es":""},"category":"PL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000226","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"PROPOSED_DIVIDEND_JUDGMENT","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"judgment"},"references":["IAS 12 §52A","IAS 12 §57A","IAS 12 §81","IAS 12 §82A"],"exercise":{"prompt":{"fr":"","en":"Determine the treatment, at 31 December N, of the dividend proposed by Galvenor.","es":""},"explanation":{"fr":"","en":"As long as the dividend is not a liability, its tax consequences are not recognised (IAS 12, para. 57A) but are disclosed (IAS 12, paras. 81 and 82A).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Galvenor (30% rate on undistributed profits, 10-point refund on distributed profits: case data) proposes in February N+1, before the financial statements for N are authorised for issue, a dividend of 800,000 that is not a liability at 31 December N.","es":""},"parts":[{"prompt":{"fr":"","en":"Should the refund of 80,000 be recognised in the financial statements for N?","es":""},"explanation":{"fr":"","en":"No: the tax consequences of a dividend are recognised together with the dividend liability (IAS 12, para. 57A), which does not exist at the reporting date since the dividend is only proposed; the potential refund is disclosed in the notes (IAS 12, para. 81).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: the tax consequences are recognised with the dividend liability, which does not exist at the reporting date; they are disclosed in the notes","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes, as the dividend is proposed before issue","es":""},"correct":false,"feedback":{"fr":"","en":"No dividend liability at the reporting date, so no tax consequence recognised.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Amount of the tax consequences to be disclosed.","es":""},"explanation":{"fr":"","en":"Potential refund = proposed dividend × refund rate of the case = 800,000 × 10% = 80,000, an amount to disclose in the notes (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Recognising the refund in the statement of financial position: it is only an amount to disclose, the dividend not being a liability at the reporting date.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Proposed dividend","es":""},"value":"800000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Potential refund","es":""},"answer":80000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The note should also describe the nature of the potential tax consequences of a distribution to its shareholders.","es":""},"explanation":{"fr":"","en":"True: when tax depends on distribution, the entity describes the nature of the potential tax consequences of paying dividends to its shareholders (IAS 12, para. 82A).","es":""},"common_error":{"fr":"","en":"Giving only the figure: the nature of the potential tax consequences of a distribution must also be described.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000227","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"GENERIC","tested_point":"WITHHOLDING_FILL","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"withholding-tax"},"references":["IAS 12 §65A"],"exercise":{"prompt":{"fr":"","en":"Complete.","es":""},"explanation":{"fr":"","en":"600,000 × 15% = 90,000, part of the dividend charged to equity (IAS 12, para. 65A); net 510,000.","es":""},"common_error":{"fr":"","en":"Computing the withholding on the net dividend, or expensing it: it is computed on the declared dividend and charged to equity.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Dividend declared 600,000, 15% withholding on behalf of shareholders: amount charged to equity for the withholding {{w}}; net amount paid to shareholders {{net}}.","es":""},"blanks":[{"id":"w","mode":"NUMBER","answer":90000,"tolerance":0},{"id":"net","mode":"NUMBER","answer":510000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000228","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"BC_DT_AFFECTS_GOODWILL","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §66","IAS 12 §19"],"exercise":{"prompt":{"fr":"","en":"Deferred tax arising from fair value adjustments in a business combination is recognised as tax expense in the year of acquisition.","es":""},"explanation":{"fr":"","en":"False: the differences arising in the combination (fair value without tax adjustment, IAS 12, para. 19) give deferred tax that affects the amount of goodwill or of the bargain purchase gain (IAS 12, para. 66).","es":""},"common_error":{"fr":"","en":"Expensing deferred tax from the business combination: it is part of accounting for the combination and affects goodwill.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000229","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"BC_GOODWILL_WITH_DT","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"numeric-example"},"references":["IAS 12 §19","IAS 12 §66"],"exercise":{"prompt":{"fr":"","en":"The fictitious Altavène group acquires 100% of Biscuits Roudel for 8,000,000. Identifiable net assets at fair value: 6,500,000, of which 1,000,000 of uplifts without tax adjustment. Rate 25%. Calculate (non-controlling interests: not applicable).","es":""},"explanation":{"fr":"","en":"Liability = 1,000,000 × 25% = 250,000 (IAS 12, para. 19); net assets 6,250,000; goodwill = 8,000,000 − 6,250,000 = 1,750,000: deferred tax increases goodwill (IAS 12, para. 66).","es":""},"common_error":{"fr":"","en":"Omitting deferred tax on fair value adjustments, understating goodwill.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price","es":""},"value":"8000000","unit":"EUR"},{"label":{"fr":"","en":"Identifiable net assets at fair value (before deferred tax)","es":""},"value":"6500000","unit":"EUR"},{"label":{"fr":"","en":"Uplifts with no tax counterpart","es":""},"value":"1000000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":250000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Net assets after deferred tax","es":""},"answer":6250000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Goodwill","es":""},"answer":1750000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S3","meaning":{"fr":"","en":"Goodwill","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price","es":""},"value":8000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net assets after deferred tax","es":""},"value":6250000,"unit":"EUR"}],"result":1750000,"unit":"EUR"}],"references":["REF.IAS12.19","REF.IAS12.66"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000230","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FOOD","tested_point":"BC_ACQUISITION_ENTRY","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"entry"},"references":["IAS 12 §66","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"The Altavène group acquires 100% of Biscuits Roudel for 8,000,000 paid in cash; identifiable net assets at fair value, before deferred tax, 6,500,000, including 1,000,000 of revaluations with no tax adjustment; rate 25%. Record the consolidation entry for the acquisition.","es":""},"explanation":{"fr":"","en":"Debits 6,500,000 + 1,750,000 = credits 250,000 + 8,000,000. The deferred tax liability is part of the accounting for the combination, with no expense in profit or loss (IAS 12, paras. 58 and 66).","es":""},"common_error":{"fr":"","en":"Forgetting the deferred tax liability on the revaluations, which understates goodwill: it increases goodwill by 250,000.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"GOODWILL","text":{"fr":"","en":"Goodwill","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"NET_ASSETS","text":{"fr":"","en":"Identifiable assets acquired, net of liabilities assumed","es":""}}],"lines":[{"id":"L1","account":"NET_ASSETS","side":"DEBIT","amount":6500000},{"id":"L2","account":"GOODWILL","side":"DEBIT","amount":1750000},{"id":"L3","account":"DEFERRED_TAX_LIABILITY","side":"CREDIT","amount":250000},{"id":"L4","account":"CASH","side":"CREDIT","amount":8000000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000231","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FOOD","tested_point":"BC_GOODWILL_NO_DTL","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-goodwill"},"references":["IAS 12 §21","IAS 12 §66"],"exercise":{"prompt":{"fr":"","en":"Altavène's goodwill of 1,750,000 is not tax deductible. What deferred tax on this goodwill?","es":""},"explanation":{"fr":"","en":"No deferred tax is recognised on the initial recognition of non-deductible goodwill (IAS 12, para. 21); only deferred tax on the other assets and liabilities of the combination affects goodwill (IAS 12, para. 66).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: initial recognition exception for goodwill","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"437,500 (1,750,000 × 25%), to be added to goodwill","es":""},"correct":false,"feedback":{"fr":"","en":"As goodwill is residual, this liability would increase it: the standard prohibits it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000232","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"ACQUIRER_DTA_NOT_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"acquirer-dta"},"references":["IAS 12 §67"],"exercise":{"prompt":{"fr":"","en":"Thanks to the combination, the acquirer will be able to use its own previously unrecognised losses. Where does it recognise the deferred tax asset?","es":""},"explanation":{"fr":"","en":"When the combination makes the acquirer's own losses recoverable, the deferred tax asset is recognised in profit or loss for the period, outside the accounting for the combination; it does not reduce goodwill (IAS 12, para. 67).","es":""},"common_error":{"fr":"","en":"Reducing goodwill for the acquirer's deferred tax asset that has become recoverable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In profit or loss for the period of the combination, outside the accounting for the combination","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As a reduction of goodwill","es":""},"correct":false,"feedback":{"fr":"","en":"It is the acquirer's asset, not an acquired one.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000233","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"ACQUIRED_DTA_MEASUREMENT_PERIOD","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"acquired-benefits-later"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Six months after the acquisition, during the measurement period, Altavène obtains new information about facts existing at the acquisition date: 400,000 of Roudel's losses, not recognised at acquisition, are in fact usable (rate 25%). Goodwill before adjustment: 1,750,000. Calculate.","es":""},"explanation":{"fr":"","en":"Acquired benefit recognised during the measurement period on new information about existing facts: reduction of the related goodwill (IAS 12, para. 68): 1,750,000 − 100,000 = 1,650,000.","es":""},"common_error":{"fr":"","en":"Recognising the benefit as income: during the measurement period and based on facts existing at acquisition, it reduces goodwill.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Losses that have become usable","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Goodwill before adjustment","es":""},"value":"1750000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Goodwill after adjustment","es":""},"answer":1650000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Goodwill after adjustment","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill before adjustment","es":""},"value":1750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax asset","es":""},"value":100000,"unit":"EUR"}],"result":1650000,"unit":"EUR","rationale":{"fr":"","en":"Acquired benefit recognised during the measurement period on new information about existing facts: reduction of the related goodwill (IAS 12, para. 68): 1,750,000 − 100,000 = 1,650,000.","es":""}}],"references":["REF.IAS12.68"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000234","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"TEXTILE","tested_point":"ACQUIRED_DTA_GOODWILL_CAP","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"acquired-benefits-later"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Tissus Morand, a fictitious group, recognised goodwill of 40,000 on an acquisition. During the measurement period, on new information about existing facts, an acquired deferred tax benefit of 100,000 becomes recognisable. Calculate.","es":""},"explanation":{"fr":"","en":"Goodwill is reduced to nil (−40,000); the excess, 60,000, is recognised in profit or loss (IAS 12, para. 68).","es":""},"common_error":{"fr":"","en":"Making goodwill negative (−60,000): it is reduced to zero and the excess goes to profit or loss.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Goodwill","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Acquired benefit","es":""},"value":"100000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Reduction of goodwill","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Excess in profit or loss","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000235","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ACQUIRED_DTA_AFTER_PERIOD","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"acquired-benefits-later"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"An acquired deferred tax benefit recognised two years after the acquisition (outside the measurement period) reduces goodwill.","es":""},"explanation":{"fr":"","en":"False: only benefits recognised during the measurement period, on new information about facts existing at the acquisition date, reduce goodwill; the others go to profit or loss (or outside it where the standard requires) (IAS 12, para. 68).","es":""},"common_error":{"fr":"","en":"Adjusting goodwill for an acquired tax benefit recognised after the measurement period.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000236","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FOOD","tested_point":"ACQUIRED_DTA_ENTRY","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"entry"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Altavène: record the acquired benefit of 100,000 recognised during the measurement period.","es":""},"explanation":{"fr":"","en":"Debit Deferred tax asset 100,000; credit Goodwill 100,000 (IAS 12, para. 68).","es":""},"common_error":{"fr":"","en":"Crediting deferred tax income: during the measurement period, the acquired benefit reduces goodwill.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"GOODWILL","text":{"fr":"","en":"Goodwill","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":100000},{"id":"L2","account":"GOODWILL","side":"CREDIT","amount":100000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000237","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TEXTILE","tested_point":"ACQUIRED_DTA_GOODWILL_CAP","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"entry"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Morand: record the acquired benefit of 100,000 (goodwill available 40,000).","es":""},"explanation":{"fr":"","en":"Debit Asset 100,000; credit Goodwill 40,000 (reduced to nil); credit Deferred tax income 60,000 (IAS 12, para. 68).","es":""},"common_error":{"fr":"","en":"Crediting goodwill with 100,000: it can only be reduced to zero; the remaining 60,000 is income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"GOODWILL","text":{"fr":"","en":"Goodwill","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":100000},{"id":"L2","account":"GOODWILL","side":"CREDIT","amount":40000},{"id":"L3","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":60000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000238","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"RETAIL","tested_point":"BC_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"pitfalls"},"references":["IAS 12 §66","IAS 12 §67","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Review the \"tax and acquisition\" memo of a fictitious retail group.","es":""},"explanation":{"fr":"","en":"All three lines are wrong: this is the trilogy of business combination traps (paras. 19 and 66, 67, 68).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. No deferred tax on the uplift of the acquired shops, as the tax bases are not changed.","es":""},"erroneous":true,"correction":{"fr":"","en":"That is precisely what creates the difference: deferred tax liability and higher goodwill (IAS 12, paras. 19 and 66).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Our own losses, which have become usable thanks to the acquisition, reduce goodwill.","es":""},"erroneous":true,"correction":{"fr":"","en":"The acquirer's asset: in profit or loss, outside the combination (IAS 12, para. 67).","es":""}},{"id":"S3","text":{"fr":"","en":"3. The target's losses, recognised three years after the acquisition: reduction of goodwill.","es":""},"erroneous":true,"correction":{"fr":"","en":"Outside the measurement period: in profit or loss (IAS 12, para. 68).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000239","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"GOODWILL_OR_PL","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"how"},"references":["IAS 12 §66","IAS 12 §67","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Classify each deferred tax effect.","es":""},"explanation":{"fr":"","en":"IAS 12, paras. 66 (combination), 67 (acquirer) and 68 (later acquired benefits).","es":""},"common_error":{"fr":"","en":"Charging to goodwill the acquirer's own asset or a benefit acquired after the measurement period: they go to profit or loss.","es":""},"format":"CLASSIFICATION","categories":[{"id":"GW","text":{"fr":"","en":"Goodwill","es":""}},{"id":"PL","text":{"fr":"","en":"Profit or loss","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Deferred tax on fair value adjustments at the acquisition date","es":""},"category":"GW"},{"id":"I2","text":{"fr":"","en":"Acquirer's deferred tax asset that has become recoverable thanks to the combination","es":""},"category":"PL"},{"id":"I3","text":{"fr":"","en":"Acquired benefit recognised during the measurement period, on existing facts (up to goodwill)","es":""},"category":"GW"},{"id":"I4","text":{"fr":"","en":"Acquired benefit recognised after the measurement period","es":""},"category":"PL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000240","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"TECHNOLOGY","tested_point":"MEASUREMENT_PERIOD_JUDGMENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"judgment"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Analyse the tax benefit acquired by Datavance.","es":""},"explanation":{"fr":"","en":"Being in the measurement period is not enough: the information must concern existing facts (IAS 12, para. 68).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Datavance, a fictitious group, acquired Codexia on 1 March N; Codexia's losses (600,000, rate 25%) were not recognised, for lack of probable profit. In September N, during the measurement period, Codexia signs a major contract concluded after the acquisition, which makes the use of the losses probable. Goodwill: 2,000,000.","es":""},"parts":[{"prompt":{"fr":"","en":"Where should the asset of 150,000 be recognised?","es":""},"explanation":{"fr":"","en":"The two conditions of para. 68 are cumulative: measurement period and new information about facts existing at the acquisition date. Classifying the contract as a later event is a judgement, supported here by its date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In profit or loss: the information concerns an event after the acquisition, not facts existing at that date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As a reduction of goodwill, as this is within the measurement period","es":""},"correct":false,"feedback":{"fr":"","en":"The information must also relate to facts existing at the acquisition date.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Record the entry.","es":""},"explanation":{"fr":"","en":"600,000 × 25% = 150,000 in profit or loss (IAS 12, para. 68).","es":""},"common_error":{"fr":"","en":"Reducing goodwill: the new information not relating to facts existing at acquisition, the benefit goes to profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"GOODWILL","text":{"fr":"","en":"Goodwill","es":""}},{"id":"RETAINED_EARNINGS","text":{"fr":"","en":"Retained earnings","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":150000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":150000}],"id":"P2","dimension":"JOURNAL_ENTRY"},{"prompt":{"fr":"","en":"The file should date the new information and explain why it does not relate to facts existing at the acquisition date.","es":""},"explanation":{"fr":"","en":"True: it is the basis of the judgement (IAS 12, para. 68).","es":""},"common_error":{"fr":"","en":"Classifying the benefit in profit or loss without dating the new information: its date and subject justify not reducing goodwill.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000241","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"BC_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"how"},"references":["IAS 12 §19","IAS 12 §21","IAS 12 §66"],"exercise":{"prompt":{"fr":"","en":"Put in order the integration of deferred tax into a business combination.","es":""},"explanation":{"fr":"","en":"Measure the identifiable assets and liabilities at fair value, compare them with their tax bases (IAS 12, para. 19), recognise the related deferred taxes (para. 66), then determine goodwill as the residual, with no deferred tax on its initial recognition (IAS 12, para. 21).","es":""},"common_error":{"fr":"","en":"Computing goodwill before deferred taxes, or recognising deferred tax on goodwill itself: it is residual after deferred taxes, with no tax on its initial recognition.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Measure identifiable assets and liabilities at fair value","es":""}},{"id":"S2","text":{"fr":"","en":"Compare these amounts with their tax bases","es":""}},{"id":"S3","text":{"fr":"","en":"Recognise the corresponding deferred taxes","es":""}},{"id":"S4","text":{"fr":"","en":"Determine goodwill as a residual amount, with no deferred tax on its initial recognition","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000242","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SBP_DEDUCTION_DIFFERS","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68A"],"exercise":{"prompt":{"fr":"","en":"In some jurisdictions, the tax deduction relating to share options may differ, in amount and timing, from the cumulative remuneration expense.","es":""},"explanation":{"fr":"","en":"True (IAS 12, para. 68A); the existence and basis of the deduction are data of the legislation.","es":""},"common_error":{"fr":"","en":"Assuming the tax deduction always equals the accounting expense: depending on the law, amount and timing can differ.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000243","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"SBP_DEDUCTION_ESTIMATE_BASIS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68B"],"exercise":{"prompt":{"fr":"","en":"The future deduction for a share option plan of Sylvatec, a fictitious company, is not known at the reporting date. On what basis should it be estimated?","es":""},"explanation":{"fr":"","en":"When the future deduction is not known at the reporting date, it is estimated on the basis of information available at the reporting date (IAS 12, para. 68B), not on the grant-date fair value of the options.","es":""},"common_error":{"fr":"","en":"Estimating the future deduction on grant-date fair value instead of information available at the reporting date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the information available at the reporting date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"On the fair value of the options at grant date","es":""},"correct":false,"feedback":{"fr":"","en":"That is the basis of the expense, not of the estimated tax deduction.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000244","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"SBP_DTA_NO_EXCESS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"numeric-example"},"references":["IAS 12 §68B","IAS 12 §68C","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Éditions Corvalle, a fictitious company: cumulative share option expense 400,000; future deduction estimated at the reporting date 360,000 (case legislation); rate 25%; future profits probable. Calculate.","es":""},"explanation":{"fr":"","en":"360,000 × 25% = 90,000 (IAS 12, paras. 68B and 24). The deduction does not exceed the cumulative expense: the whole benefit goes to profit or loss (IAS 12, para. 68C).","es":""},"common_error":{"fr":"","en":"Computing the asset on the cumulative expense (400,000), or putting part in equity: it is based on the estimated deduction, which does not exceed the expense.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cumulative expense","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Estimated future deduction","es":""},"value":"360000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":90000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Of which in equity","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Of which in profit or loss","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated future deduction","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":90000,"unit":"EUR"}],"rationale":{"fr":"","en":"The deduction does not exceed the cumulative expense: the whole benefit goes to profit or loss (IAS 12, para. 68C).","es":""},"references":["REF.IAS12.68B","REF.IAS12.68C","REF.IAS12.24"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000245","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"TECHNOLOGY","tested_point":"SBP_EXCESS_TO_EQUITY","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"excess-to-equity"},"references":["IAS 12 §68B","IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"Zorvelle, a fictitious company: cumulative expense 500,000; future deduction estimated at the reporting date 620,000; rate 25%; future profits probable. Calculate.","es":""},"explanation":{"fr":"","en":"Asset 620,000 × 25% = 155,000; in profit or loss up to the cumulative expense: 500,000 × 25% = 125,000; excess (120,000 × 25% = 30,000) directly in equity (IAS 12, para. 68C).","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the tax on the excess of the deduction over the cumulative expense.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cumulative expense","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Estimated future deduction","es":""},"value":"620000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":155000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"In profit or loss","es":""},"answer":125000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"In equity","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated future deduction","es":""},"value":620000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":155000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"In profit or loss","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative expense","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":125000,"unit":"EUR"}],"references":["REF.IAS12.68C"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000246","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TECHNOLOGY","tested_point":"SBP_ENTRY","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"entry"},"references":["IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"Zorvelle: record the deferred tax asset (155,000).","es":""},"explanation":{"fr":"","en":"Debit Asset 155,000; credit Deferred tax income 125,000; credit Reserve (equity) 30,000 (IAS 12, para. 68C).","es":""},"common_error":{"fr":"","en":"Crediting the whole benefit to income: the part linked to the excess of the deduction over the cumulative expense goes to equity.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"SHARE_BASED_PAYMENT_RESERVE","text":{"fr":"","en":"Share-based payment reserve (equity)","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":155000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":125000},{"id":"L3","account":"SHARE_BASED_PAYMENT_RESERVE","side":"CREDIT","amount":30000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000247","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SBP_EXCESS_RULE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"excess-to-equity"},"references":["IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"Tax corresponding to the excess of the estimated deduction over the cumulative expense is recognised directly in equity.","es":""},"explanation":{"fr":"","en":"True: the excess relates to an equity item (IAS 12, para. 68C).","es":""},"common_error":{"fr":"","en":"Taking the excess to profit or loss: relating to an equity item, its tax is recognised directly in equity.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000248","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"SOFTWARE","tested_point":"SBP_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"pitfalls"},"references":["IAS 12 §68B","IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"Review a fictitious publisher's calculation on its options (cumulative expense 800,000, deduction estimated at the reporting date 1,000,000, rate 25%).","es":""},"explanation":{"fr":"","en":"Line 3 is right; lines 1 and 2 contain the two typical errors.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Deduction estimated on grant-date fair value rather than on information at the reporting date.","es":""},"erroneous":true,"correction":{"fr":"","en":"Information available at the reporting date (IAS 12, para. 68B).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Asset of 250,000 entirely in profit or loss.","es":""},"erroneous":true,"correction":{"fr":"","en":"200,000 in profit or loss, 50,000 in equity (IAS 12, para. 68C).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Asset of 250,000 = 1,000,000 × 25%.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000249","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"BIOTECH","tested_point":"SBP_RECOVERABILITY_JUDGMENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"judgment"},"references":["IAS 12 §68B","IAS 12 §68C","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Decide on the tax treatment of Génovia's options.","es":""},"explanation":{"fr":"","en":"The treatment of options combines the split rule (para. 68C) and the general recoverability condition (para. 24).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Génovia, a fictitious loss-making biotech, has cumulative option expense of 300,000; the future deduction estimated at the reporting date is 420,000 (rate 25%). It has neither taxable differences nor other convincing evidence of future profit.","es":""},"parts":[{"prompt":{"fr":"","en":"Should a deferred tax asset be recognised?","es":""},"explanation":{"fr":"","en":"The deductible difference is recognised only if taxable profit is probable (IAS 12, para. 24); here, nothing establishes it: judgement to be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, for lack of probable taxable profit","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes, as the profit or loss / equity split is enough to justify it","es":""},"correct":false,"feedback":{"fr":"","en":"The split does not remove the probability condition.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"If the situation improved, how would the asset be split?","es":""},"explanation":{"fr":"","en":"420,000 × 25% = 105,000; 300,000 × 25% = 75,000 in profit or loss; 30,000 in equity (IAS 12, paras. 68B and 68C).","es":""},"common_error":{"fr":"","en":"Putting the whole asset in profit or loss: the part matching the excess of the estimated deduction over the cumulative expense goes to equity.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Total asset","es":""},"answer":105000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"In profit or loss","es":""},"answer":75000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"In equity","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"the future deduction estimated at the reporting date is 420,000","es":""},"value":420000},{"symbol":"b","meaning":{"fr":"","en":"rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":105000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"In profit or loss","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Génovia, a fictitious loss-making biotech, has cumulative option expense of 300,000","es":""},"value":300000},{"symbol":"b","meaning":{"fr":"","en":"rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":75000,"unit":"EUR"}],"references":["REF.IAS12.68B","REF.IAS12.68C"]}},{"prompt":{"fr":"","en":"The unrecognised deductible difference is part of the amount of differences for which no asset is recognised, to be disclosed.","es":""},"explanation":{"fr":"","en":"True: the entity discloses the amount of deductible temporary differences, unused losses and credits for which no deferred tax asset is recognised (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Leaving the unrecognised difference out of the note: differences without a recognised asset are among the amounts to disclose.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000250","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"GENERIC","tested_point":"SBP_SPLIT_FILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"excess-to-equity"},"references":["IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"Complete (rate 25%).","es":""},"explanation":{"fr":"","en":"240,000 × 25% = 60,000 in profit or loss; (300,000 − 240,000) × 25% = 15,000 in equity (IAS 12, para. 68C).","es":""},"common_error":{"fr":"","en":"Putting the full 75,000 in profit or loss: the benefit beyond the cumulative expense (60,000 of excess deduction) goes to equity.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Cumulative expense 240,000; estimated deduction 300,000. Deferred tax asset in profit or loss: {{pl}}; in equity: {{eq}}.","es":""},"blanks":[{"id":"pl","mode":"NUMBER","answer":60000,"tolerance":0},{"id":"eq","mode":"NUMBER","answer":15000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000251","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"CURRENT_OFFSET_CONDITIONS","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §71"],"exercise":{"prompt":{"fr":"","en":"An entity offsets its current tax assets and liabilities as soon as it intends to settle net, even without a legally enforceable right of set-off.","es":""},"explanation":{"fr":"","en":"False: there must be, cumulatively, a legally enforceable right of set-off and the intention to settle net or realise and settle simultaneously (IAS 12, para. 71).","es":""},"common_error":{"fr":"","en":"Offsetting on the intention to settle net alone: a legally enforceable right of set-off is also required.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000252","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"CALCULATION","format":"CALCULATION","context":"LOGISTICS","tested_point":"OFFSET_BY_JURISDICTION","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"numeric-example"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"The fictitious Navelis group: entity X (country A) has a deferred tax asset of 140,000 and a liability of 360,000, same authority, right to set off current tax; subsidiary Y (country B) has a deferred tax asset of 70,000. Calculate the consolidated presentation.","es":""},"explanation":{"fr":"","en":"X meets the conditions: 360,000 − 140,000 = 220,000 as a liability; Y's asset relates to another authority and is not offset: 70,000 as an asset (IAS 12, para. 74).","es":""},"common_error":{"fr":"","en":"Offsetting deferred taxes relating to different tax authorities.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"X: asset","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"X: liability","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Y: asset","es":""},"value":"70000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax asset presented","es":""},"answer":70000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax liability presented","es":""},"answer":220000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Deferred tax liability presented","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"X: liability","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"X: asset","es":""},"value":140000,"unit":"EUR"}],"result":220000,"unit":"EUR"}],"references":["REF.IAS12.74"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000253","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"DEFERRED_OFFSET_CONDITIONS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"deferred-offsetting"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"Which conditions does offsetting deferred tax assets and liabilities require?","es":""},"explanation":{"fr":"","en":"Offsetting deferred taxes requires a legally enforceable right to set off current tax assets and liabilities, and taxes levied by the same authority on the same taxable entity, or on entities intending to settle net or simultaneously (IAS 12, para. 74); identical maturities are not a condition.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A legally enforceable right to set off current tax assets and liabilities","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Taxes levied by the same authority, on the same taxable entity or on entities that intend to settle net or simultaneously","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Amounts with identical maturity","es":""},"correct":false,"feedback":{"fr":"","en":"Not required: the standard specifically avoids a detailed schedule.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000254","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"GROUP_CURRENT_OFFSET","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §73"],"exercise":{"prompt":{"fr":"","en":"In the consolidated statements of a fictitious group, subsidiary A has a current tax receivable of 50,000 and subsidiary B a payable of 80,000, same country, with no single-payment regime (case data). Presentation?","es":""},"explanation":{"fr":"","en":"On consolidation, offsetting between entities requires a legally enforceable right and the intention of a net or simultaneous payment (IAS 12, para. 73).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Asset 50,000 and liability 80,000 presented separately","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Net liability 30,000","es":""},"correct":false,"feedback":{"fr":"","en":"Without a legally enforceable right to a net payment between the entities, no offsetting.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000255","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHY_DEFERRED_OFFSET","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"why"},"references":["IAS 12 §75"],"exercise":{"prompt":{"fr":"","en":"Why does the standard require offsetting a deferred tax asset and liability of the same taxable entity, same authority, with a right of set-off?","es":""},"explanation":{"fr":"","en":"Offsetting deferred taxes under these conditions avoids the need for a detailed schedule of the reversal of each difference (IAS 12, para. 75); the aim is not to reduce total assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To avoid a detailed schedule of the reversal of each difference","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"To reduce the balance sheet total","es":""},"correct":false,"feedback":{"fr":"","en":"This is not the reason given by the standard.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000256","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"ANALYSIS","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SCHEDULING_RARE_CASES","difficulty":"EXPERT","estimated_time_s":75,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"scheduling-rare"},"references":["IAS 12 §76"],"exercise":{"prompt":{"fr":"","en":"When the right of set-off and the intention to settle net exist only for some periods, a detailed schedule may be needed to establish whether the liability of one taxable entity will increase payments in the period in which the asset of another will decrease them.","es":""},"explanation":{"fr":"","en":"True: rare cases addressed by para. 76 of IAS 12.","es":""},"common_error":{"fr":"","en":"Offsetting in full when the right of set-off only applies to some periods: a detailed schedule may then be needed.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000257","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"TAX_EXPENSE_PRESENTATION","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §77","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Where is the tax expense related to profit from ordinary activities presented (IAS 12 wording before IFRS 18)?","es":""},"explanation":{"fr":"","en":"IAS 12, para. 77 (wording before IFRS 18; the IFRS 18 amendment, applicable from 2027, is not covered here). The expense comprises current and deferred tax (IAS 12, para. 6).","es":""},"common_error":{"fr":"","en":"Presenting tax expense within operating expenses.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In profit or loss, within the statement(s) of profit or loss and other comprehensive income","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Among operating expenses","es":""},"correct":false,"feedback":{"fr":"","en":"Tax expense is presented in profit or loss, not as an operating expense.","es":""}},{"id":"C","text":{"fr":"","en":"Only in the notes","es":""},"correct":false,"feedback":{"fr":"","en":"It is presented in the statement of profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000258","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"FX_ON_DEFERRED_TAX","difficulty":"ADVANCED","estimated_time_s":50,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §78"],"exercise":{"prompt":{"fr":"","en":"Exchange differences on foreign deferred tax assets or liabilities recognised in profit or loss may be classified as deferred tax expense (income) when that presentation is considered the most useful to users (wording before IFRS 18).","es":""},"explanation":{"fr":"","en":"True: exchange differences on foreign deferred tax assets or liabilities recognised in profit or loss may be classified as deferred tax expense (income) if that presentation is considered the most useful to users (IAS 12, para. 78, wording before IFRS 18).","es":""},"common_error":{"fr":"","en":"Believing exchange differences on foreign deferred taxes must always be presented as finance costs: they may be presented as deferred tax if that is most useful.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000259","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"LOGISTICS","tested_point":"OFFSET_RECLASS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"deferred-offsetting"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"Navelis: record the presentation entry offsetting entity X's deferred tax asset (140,000) and liability.","es":""},"explanation":{"fr":"","en":"Presentation reclassification, with no effect on profit or loss: debit Liability 140,000, credit Asset 140,000 (IAS 12, para. 74).","es":""},"common_error":{"fr":"","en":"Recording the offset in profit or loss: it is only a presentation reclassification between asset and liability.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_LIABILITY","side":"DEBIT","amount":140000},{"id":"L2","account":"DEFERRED_TAX_ASSET","side":"CREDIT","amount":140000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000260","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ENERGY","tested_point":"OFFSETTING_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"pitfalls"},"references":["IAS 12 §71","IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"Review the tax balance sheet of a fictitious energy group.","es":""},"explanation":{"fr":"","en":"Only line 3 is correct (IAS 12, para. 71).","es":""},"common_error":{"fr":"","en":"Not offsetting balances of the same taxable entity that meet the conditions.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Brazil's deferred tax asset offset against France's deferred tax liability.","es":""},"erroneous":true,"correction":{"fr":"","en":"Different authorities: no offsetting (IAS 12, para. 74).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Deferred tax asset and liability of the French company, same authority and right of set-off: presented gross.","es":""},"erroneous":true,"correction":{"fr":"","en":"Offsetting is required when the conditions are met (IAS 12, para. 74).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Italian current tax receivable and payable of the same company, right and intention to settle net: offset.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000261","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"OFFSET_OR_NOT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"how"},"references":["IAS 12 §71","IAS 12 §73","IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"Offsetting or separate presentation?","es":""},"explanation":{"fr":"","en":"Current tax: offset only with a legally enforceable right and the intention to settle net (IAS 12, paras. 71 and 73). Deferred tax: same authority, same taxable entity and right of set-off (IAS 12, para. 74). Two countries or two subsidiaries with no right to net payment: separate presentation.","es":""},"common_error":{"fr":"","en":"Offsetting taxes of two countries or two subsidiaries with no right to net payment: offset requires the same authority and an enforceable right.","es":""},"format":"CLASSIFICATION","categories":[{"id":"NET","text":{"fr":"","en":"Offset","es":""}},{"id":"GROSS","text":{"fr":"","en":"Separate presentation","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Deferred tax asset and liability of the same entity, same authority, right to set off current tax","es":""},"category":"NET"},{"id":"I2","text":{"fr":"","en":"Deferred taxes of two different countries","es":""},"category":"GROSS"},{"id":"I3","text":{"fr":"","en":"Current tax receivable and payable of two subsidiaries with no right to a net payment","es":""},"category":"GROSS"},{"id":"I4","text":{"fr":"","en":"Current tax receivable and payable of the same entity with the right and intention to settle net","es":""},"category":"NET"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000262","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"TAX_GROUP_OFFSET_JUDGMENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"judgment"},"references":["IAS 12 §74","IAS 12 §73"],"exercise":{"prompt":{"fr":"","en":"Determine the presentation of the deferred taxes of the Fermanet group.","es":""},"explanation":{"fr":"","en":"Offsetting is assessed by authority and by entity (or group of entities settling net) (IAS 12, para. 74).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"The fictitious Fermanet group: in country A, the parent (deferred tax liability 300,000) and its subsidiary F1 (asset 120,000) are in a tax consolidation regime that requires a single, legally enforceable net payment every year (case data). In country B, subsidiary F2 has a deferred tax asset of 90,000.","es":""},"parts":[{"prompt":{"fr":"","en":"Can the parent and F1 offset their deferred taxes?","es":""},"explanation":{"fr":"","en":"Yes: same authority, legally enforceable right and net settlement each period, the conditions for offset between different taxable entities (IAS 12, para. 74); being two legal entities does not prevent it. Assessing the legal effect of the tax group regime is a judgement based on the law of the case.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: same authority, legally enforceable right and net settlement each period","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No: they are two legal entities","es":""},"correct":false,"feedback":{"fr":"","en":"Different taxable entities can offset if they settle net or simultaneously each period.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate the consolidated presentation.","es":""},"explanation":{"fr":"","en":"Country A: 300,000 − 120,000 = 180,000 as a liability; country B: 90,000 as an asset, not offsettable (IAS 12, para. 74).","es":""},"common_error":{"fr":"","en":"Also offsetting country B's asset: belonging to another authority, it remains presented separately.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax liability presented","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Deferred tax asset presented","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deferred tax liability presented","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"deferred tax liability 300,000","es":""},"value":300000},{"symbol":"b","meaning":{"fr":"","en":"asset 120,000","es":""},"value":120000}],"result":180000,"unit":"EUR"}],"references":["REF.IAS12.74"]}},{"prompt":{"fr":"","en":"The file should describe the tax consolidation regime and the enforceability of the net payment.","es":""},"explanation":{"fr":"","en":"True: it is the evidence for the offsetting conditions (IAS 12, para. 74).","es":""},"common_error":{"fr":"","en":"Offsetting without documenting the tax group regime: it is the evidence of the enforceable right to net payment.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000263","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"COMPONENTS_SEPARATELY","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The major components of tax expense (income) are disclosed separately.","es":""},"explanation":{"fr":"","en":"True: the major components of tax expense or income are disclosed separately (IAS 12, para. 79).","es":""},"common_error":{"fr":"","en":"Presenting only total tax expense: its major components are disclosed separately.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000264","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"COMPONENTS_CURRENT_OR_DEFERRED","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12 §80"],"exercise":{"prompt":{"fr":"","en":"Classify each possible component of tax expense.","es":""},"explanation":{"fr":"","en":"Indicative list of components (IAS 12, para. 80).","es":""},"common_error":{"fr":"","en":"Classifying the adjustment of prior-period tax as deferred tax, or the effect of a rate change as current tax.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CUR","text":{"fr":"","en":"Current tax","es":""}},{"id":"DEF","text":{"fr":"","en":"Deferred tax","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Current tax expense for the period","es":""},"category":"CUR"},{"id":"I2","text":{"fr":"","en":"Adjustments recognised in the period for current tax of prior periods","es":""},"category":"CUR"},{"id":"I3","text":{"fr":"","en":"Tax relating to the origination and reversal of temporary differences","es":""},"category":"DEF"},{"id":"I4","text":{"fr":"","en":"Tax relating to changes in tax rates","es":""},"category":"DEF"},{"id":"I5","text":{"fr":"","en":"Write-down of a deferred tax asset or its reversal","es":""},"category":"DEF"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000265","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"COMPONENTS_TABLE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"numeric-example"},"references":["IAS 12","IAS 12 §80","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Prepare the table of tax expense components of Tôleries Arvent, a fictitious company.","es":""},"explanation":{"fr":"","en":"Current: 900,000 − 20,000 = 880,000; deferred: 60,000 − 30,000 = 30,000; total 910,000 (IAS 12, paras. 6, 79 and 80).","es":""},"common_error":{"fr":"","en":"Adding the income items instead of deducting them: the N−1 adjustment and the rate decrease reduce their respective totals.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Current tax for the period","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Adjustment of current tax for N−1 (income)","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax: origination and reversal of differences (expense)","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax: rate cut (income)","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total current tax","es":""},"answer":880000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total deferred tax","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Total tax expense","es":""},"answer":910000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total current tax","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax for the period","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Adjustment of current tax for N−1 (income)","es":""},"value":20000,"unit":"EUR"}],"result":880000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Total deferred tax","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deferred tax: origination and reversal of differences (expense)","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax: rate cut (income)","es":""},"value":30000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"references":["REF.IAS12.79","REF.IAS12.80","REF.IAS12.6"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000266","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"REQUIRED_DISCLOSURES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"required-information"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Which of these disclosures are required separately?","es":""},"explanation":{"fr":"","en":"Required separately include the tax on each OCI component, unused differences, losses and credits without an asset, deferred taxes by type of difference in the statement of financial position and in profit or loss, and the tax consequences of proposed or declared dividends not recognised (IAS 12, para. 81); deferred tax not being discounted, no discount rate is disclosed.","es":""},"common_error":{"fr":"","en":"Not disclosing the tax relating to each component of other comprehensive income.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The tax relating to each component of other comprehensive income","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The amount of deductible differences, unused losses and credits with no deferred tax asset","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"For each type of difference, deferred taxes recognised in the balance sheet and in profit or loss","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The tax consequences of dividends proposed or declared before authorisation for issue and not recognised","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The discount rate for deferred taxes","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred taxes are not discounted.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000267","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"DTA_EVIDENCE_DISCLOSURE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"dta-evidence"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Boutiques Delmazin, a fictitious retailer, made a loss in N and recognises a deferred tax asset of 200,000 supported by a recovery plan. What specific disclosure?","es":""},"explanation":{"fr":"","en":"Having suffered a loss in the period, the entity discloses the amount of the deferred tax asset and the nature of the evidence supporting its recognition, here the recovery plan (IAS 12, para. 82); the amount in the statement of financial position alone is not enough.","es":""},"common_error":{"fr":"","en":"Omitting the nature of the evidence for a deferred tax asset dependent on future profits after a loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of the asset and the nature of the evidence supporting its recognition","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No disclosure beyond the balance sheet amount","es":""},"correct":false,"feedback":{"fr":"","en":"A loss in the year triggers the para. 82 disclosure.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000268","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"TAX_CONTINGENCIES_DISCLOSURE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"investments-and-contingencies"},"references":["IAS 12 §88","IAS 37 §86"],"exercise":{"prompt":{"fr":"","en":"A fictitious entity has an unresolved dispute with the tax authority. Under which standard does it disclose this tax-related contingent liability?","es":""},"explanation":{"fr":"","en":"Tax contingencies are disclosed under IAS 37 (IAS 12, para. 88), which requires a brief description and, where practicable, the financial effect (IAS 37, para. 86); recognition of the tax itself remains governed by IAS 12.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under IAS 37, recognition being under IAS 12","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Under IAS 37, for both recognition and disclosure","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 37 governs only disclosure; recognition stays in IAS 12.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000269","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PROBABLE_ACCEPTANCE_CONTINGENCY","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"investments-and-contingencies"},"references":["IFRIC 23 §A5","IAS 12 §88"],"exercise":{"prompt":{"fr":"","en":"When an entity concludes that it is probable that the tax authority will accept an uncertain tax treatment, it determines whether to disclose the potential effect of the uncertainty as a tax-related contingency.","es":""},"explanation":{"fr":"","en":"True: even if acceptance is judged probable, the entity determines whether to disclose the potential effect of the uncertainty as a tax-related contingency (IFRIC 23, para. A5; IAS 12, para. 88).","es":""},"common_error":{"fr":"","en":"Thinking that probable acceptance removes any need to consider disclosure: the entity still assesses whether to disclose the tax contingency.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000270","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"TELECOM","tested_point":"TAX_NOTE_REVIEW","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"pitfalls"},"references":["IAS 12","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Review the draft tax note of a fictitious operator.","es":""},"explanation":{"fr":"","en":"Lines 3 and 4 comply (IAS 12, paras. 81, 82 and 87); lines 1 and 2 to be corrected.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Tax expense is presented as a single amount, without distinguishing current and deferred tax.","es":""},"erroneous":true,"correction":{"fr":"","en":"The major components are disclosed separately (IAS 12, para. 79).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Unrecognised losses (2,400,000) are not mentioned, as no asset is recognised.","es":""},"erroneous":true,"correction":{"fr":"","en":"Their amount must be disclosed (IAS 12, para. 81).","es":""}},{"id":"S3","text":{"fr":"","en":"3. The aggregate amount of differences relating to subsidiaries with no deferred tax liability is disclosed.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"4. After a loss, the deferred tax asset of 150,000 is disclosed with the nature of the evidence.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000271","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"PHARMA","tested_point":"JUDGMENTS_DISCLOSURE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"judgment"},"references":["IFRIC 23 §A4","IAS 12","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Prepare Laboratoires Pervillon's note items on its tax judgements.","es":""},"explanation":{"fr":"","en":"The tax note combines required disclosures (paras. 81, 82) and disclosures whose need must be assessed (IFRIC 23, para. A4).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Laboratoires Pervillon, a fictitious company, has an uncertain transfer pricing position (current tax liability of 180,000 under IFRIC 23) and, after a loss in N, a deferred tax asset of 300,000 based on a multi-year licence contract. 1,100,000 of losses remain unrecognised.","es":""},"parts":[{"prompt":{"fr":"","en":"Which disclosures must Pervillon provide or consider?","es":""},"explanation":{"fr":"","en":"IFRIC 23, para. A4 (judgements and estimates), IAS 12, paras. 82 (evidence) and 81 (unrecognised losses).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Determine whether to disclose the judgements and assumptions made on the transfer pricing position","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The amount of the 300,000 asset and the nature of the evidence (licence contract)","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The amount of unrecognised losses (1,100,000)","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Nothing on the transfer pricing position, already recognised","es":""},"correct":false,"feedback":{"fr":"","en":"Recognition does not rule out disclosure of the judgements, to be assessed.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Deciding whether or not to disclose the tax judgements is itself a judgement to be documented.","es":""},"explanation":{"fr":"","en":"True: the interpretation asks the entity to \"determine whether\" to provide this information (IFRIC 23, para. A4).","es":""},"common_error":{"fr":"","en":"Treating disclosure of tax judgements as automatic or optional without analysis: the entity must determine whether to provide it.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P2","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000272","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"TAX_NOTE_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"how"},"references":["IAS 12","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Put the preparation of the tax note in order.","es":""},"explanation":{"fr":"","en":"Break tax expense down into components (IAS 12, para. 79), reconcile it with accounting profit at the applicable rate, present deferred taxes by type of difference, loss and credit, then unrecognised amounts and contingencies (IAS 12, para. 81); the order of presentation is good practice.","es":""},"common_error":{"fr":"","en":"Drafting the note without breaking down the expense or reconciling it with accounting profit: those are the basis of the required disclosures.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Break tax expense down into components","es":""}},{"id":"S2","text":{"fr":"","en":"Reconcile the expense with accounting profit at the applicable rate","es":""}},{"id":"S3","text":{"fr":"","en":"Present deferred taxes by type of difference, losses and credits","es":""}},{"id":"S4","text":{"fr":"","en":"Disclose the unrecognised amounts and the contingencies","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000273","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"RECONCILIATION_FORMS","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"The explanation of the relationship between tax expense and accounting profit may take the form of a numerical reconciliation between tax expense and accounting profit multiplied by the applicable rate, disclosing the basis on which that rate is computed.","es":""},"explanation":{"fr":"","en":"True (IAS 12, para. 81); the other form reconciles the average effective rate with the applicable rate.","es":""},"common_error":{"fr":"","en":"Thinking the reconciliation can only be between rates: it can also be numerical, between tax expense and accounting profit multiplied by the applicable rate.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000274","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"THEORETICAL_TAX","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"numeric-example"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Magasins Tavernac, a fictitious retailer: accounting profit 3,000,000, applicable rate 25%. Calculate the theoretical tax.","es":""},"explanation":{"fr":"","en":"3,000,000 × 25% = 750,000, the starting point of the reconciliation (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Computing notional tax on taxable profit: the reconciliation starts from accounting profit multiplied by the applicable rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Accounting profit","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Applicable rate","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Theoretical tax","es":""},"answer":750000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Theoretical tax","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accounting profit","es":""},"value":3000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Applicable rate","es":""},"value":25,"unit":"PERCENT"}],"result":750000,"unit":"EUR"}],"rationale":{"fr":"","en":"3,000,000 × 25% = 750,000, the starting point of the reconciliation (IAS 12, para. 81).","es":""},"references":["REF.IAS12.81"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000275","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"RECONCILIATION_FULL","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"numeric-example"},"references":["IAS 12 §81","IAS 12 §84"],"exercise":{"prompt":{"fr":"","en":"Tavernac: prepare the reconciliation (applicable rate 25%).","es":""},"explanation":{"fr":"","en":"750,000 + 20,000 − 30,000 − 100,000 (1,000,000 × 10 points) + 40,000 + 15,000 = 695,000. These factors (exempt income, non-deductible expenses, losses) are those the reconciliation should help users understand (IAS 12, paras. 81 and 84).","es":""},"common_error":{"fr":"","en":"Including temporary differences as reconciling items of the effective rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Accounting profit","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Non-deductible expenses","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Exempt income","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Profit of a subsidiary taxed at 15%","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Losses for the year of a subsidiary, with no deferred tax asset","es":""},"value":"160000","unit":"EUR"},{"label":{"fr":"","en":"Under-provision of tax for N−1","es":""},"value":"15000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Effect of non-deductible expenses","es":""},"answer":20000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Effect of exempt income (decrease)","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Effect of the subsidiary's rate (decrease)","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Effect of unrecognised losses","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Tax expense","es":""},"answer":695000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000276","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"MANUFACTURING","tested_point":"RECONCILIATION_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"pitfalls"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Review the draft reconciliation of a fictitious manufacturer.","es":""},"explanation":{"fr":"","en":"Only line 4 is correct; the other three are the typical reconciliation errors.","es":""},"common_error":{"fr":"","en":"Reconciling tax expense with accounting profit after tax.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. The year's accelerated tax depreciation is shown as a reconciling item.","es":""},"erroneous":true,"correction":{"fr":"","en":"A temporary difference recognised in deferred tax explains no gap between the expense and the theoretical tax.","es":""}},{"id":"S2","text":{"fr":"","en":"2. The theoretical tax is calculated on profit after tax.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is calculated on accounting profit before tax (IAS 12, para. 81).","es":""}},{"id":"S3","text":{"fr":"","en":"3. The note does not say how the applicable rate of 25% is determined.","es":""},"erroneous":true,"correction":{"fr":"","en":"The basis on which the applicable rate is computed must be disclosed (IAS 12, para. 81).","es":""}},{"id":"S4","text":{"fr":"","en":"4. Non-deductible expenses are shown as a reconciling item.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000277","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"APPLICABLE_RATE_CHOICE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §85"],"exercise":{"prompt":{"fr":"","en":"Which applicable rate does an entity use for its reconciliation?","es":""},"explanation":{"fr":"","en":"The entity uses the applicable rate that provides the most meaningful information, often the domestic rate in its home country, aggregating national tax and local taxes computed on a comparable level of taxable profit (IAS 12, para. 85); nothing requires the group's lowest rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The one that provides the most relevant information, often the domestic rate of the country of domicile, aggregating national tax and local taxes on a comparable profit","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Always the lowest rate in the group","es":""},"correct":false,"feedback":{"fr":"","en":"No such rule; the criterion is relevance.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000278","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"GENERIC","tested_point":"AGGREGATED_DOMESTIC_RATE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §85"],"exercise":{"prompt":{"fr":"","en":"Complete.","es":""},"explanation":{"fr":"","en":"The domestic rate aggregates national tax and comparable local taxes (IAS 12, para. 85): 20 + 5 = 25%.","es":""},"common_error":{"fr":"","en":"Using only the national rate (20%): the applicable rate aggregates local taxes based on a comparable level of profit.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"National tax 20% and local tax on a taxable profit of a comparable level 5% (case data): aggregated applicable rate {{rate}}%.","es":""},"blanks":[{"id":"rate","mode":"NUMBER","answer":25,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000279","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"RECONCILIATION_PURPOSE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"purpose"},"references":["IAS 12 §84"],"exercise":{"prompt":{"fr":"","en":"What is the purpose of the reconciliation between tax expense and accounting profit?","es":""},"explanation":{"fr":"","en":"The reconciliation helps users understand whether the relationship between tax expense and accounting profit is unusual and which significant factors, such as exempt income, non-deductible expenses or tax losses, could affect it in future (IAS 12, para. 84); it is not used to compute current tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To understand whether the relationship is unusual and which significant factors could affect it in the future","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"To calculate current tax","es":""},"correct":false,"feedback":{"fr":"","en":"Current tax is calculated from taxable profit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000280","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"RECONCILING_ITEMS_SORT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"how"},"references":["IAS 12 §81","IAS 12 §84"],"exercise":{"prompt":{"fr":"","en":"Reconciling item or not?","es":""},"explanation":{"fr":"","en":"The reconciliation explains permanent, rate and unrecognised-loss gaps (IAS 12, paras. 81 and 84); a temporary difference recognised at the same rate is neutralised by deferred tax.","es":""},"common_error":{"fr":"","en":"Listing in the reconciliation a temporary difference already covered by deferred tax at the same rate: its effect is neutralised.","es":""},"format":"CLASSIFICATION","categories":[{"id":"YES","text":{"fr":"","en":"Reconciling item","es":""}},{"id":"NO","text":{"fr":"","en":"No effect on the reconciliation","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Permanently non-deductible expenses","es":""},"category":"YES"},{"id":"I2","text":{"fr":"","en":"Exempt income","es":""},"category":"YES"},{"id":"I3","text":{"fr":"","en":"The year's losses with no deferred tax asset","es":""},"category":"YES"},{"id":"I4","text":{"fr":"","en":"Rate difference of a foreign subsidiary","es":""},"category":"YES"},{"id":"I5","text":{"fr":"","en":"Provision deductible when paid, with a deferred tax asset recognised at the same rate","es":""},"category":"NO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000281","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"ANALYSIS","format":"MATCHING","context":"GENERIC","tested_point":"RECONCILING_ITEM_DIRECTION","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"how"},"references":["IAS 12 §81","IAS 12 §84"],"exercise":{"prompt":{"fr":"","en":"Match each item with its effect on tax expense compared with the theoretical tax.","es":""},"explanation":{"fr":"","en":"Non-deductible expenses and unrecognised losses increase the expense; exempt income and lower rates reduce it (IAS 12, paras. 81 and 84).","es":""},"common_error":{"fr":"","en":"Reversing the effects: unrecognised losses increase the expense, a subsidiary taxed at a lower rate reduces it.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Non-deductible expenses","es":""}},{"id":"L2","text":{"fr":"","en":"Exempt income","es":""}},{"id":"L3","text":{"fr":"","en":"Subsidiary taxed at a lower rate","es":""}},{"id":"L4","text":{"fr":"","en":"The year's unrecognised losses","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Increases the expense","es":""}},{"id":"R2","text":{"fr":"","en":"Decreases the expense","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R2"},{"left":"L4","right":"R1"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000282","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"SERVICES","tested_point":"RECONCILIATION_FILL","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"numeric-example"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Complete the reconciliation of Conseil Arbaud, a fictitious company (applicable rate 25%).","es":""},"explanation":{"fr":"","en":"800,000 × 25% = 200,000; 40,000 × 25% = 10,000; expense 210,000 (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Deducting the effect of the fines: being non-deductible, they increase tax expense compared with notional tax.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Accounting profit 800,000 → theoretical tax {{th}}; non-deductible fines 40,000 → effect {{fine}}; tax expense {{total}}.","es":""},"blanks":[{"id":"th","mode":"NUMBER","answer":200000,"tolerance":0},{"id":"fine","mode":"NUMBER","answer":10000,"tolerance":0},{"id":"total","mode":"NUMBER","answer":210000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000283","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"TECHNOLOGY","tested_point":"UNUSUAL_RELATIONSHIP_ANALYSIS","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"judgment"},"references":["IAS 12 §81","IAS 12 §84","IAS 12 §85"],"exercise":{"prompt":{"fr":"","en":"Explain Visiolab's unusual tax expense.","es":""},"explanation":{"fr":"","en":"A complete reconciliation explains the expense through identified factors (IAS 12, paras. 81 and 84); a significant residual must be analysed.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Visiolab, a fictitious group domiciled in a country with a 25% rate, reports accounting profit of 2,000,000 and tax expense of 760,000. Analysis: losses for the year of a subsidiary not recognised 600,000; non-deductible expenses 160,000; research tax credit (tax reduction) 30,000; subsidiary taxed at 30% on 1,000,000.","es":""},"parts":[{"prompt":{"fr":"","en":"Rebuild the reconciliation.","es":""},"explanation":{"fr":"","en":"500,000 + 150,000 + 40,000 − 30,000 + 50,000 = 710,000: 50,000 is missing to reach 760,000, to be analysed (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Taking the recognised expense (760,000) without spotting the gap: the rebuilt reconciliation gives 710,000 and the 50,000 gap remains to be analysed.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Theoretical tax","es":""},"answer":500000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Unrecognised losses","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Non-deductible expenses","es":""},"answer":40000,"tolerance":0,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Tax credit (decrease)","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"S5","label":{"fr":"","en":"Subsidiary's rate difference","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"S6","label":{"fr":"","en":"Tax expense","es":""},"answer":710000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S6","meaning":{"fr":"","en":"Tax expense","es":""},"expression":"a + b + c - d + e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Theoretical tax","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Unrecognised losses","es":""},"value":150000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Non-deductible expenses","es":""},"value":40000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Tax credit (decrease)","es":""},"value":30000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Subsidiary's rate difference","es":""},"value":50000,"unit":"EUR"}],"result":710000,"unit":"EUR"}],"rationale":{"fr":"","en":"500,000 + 150,000 + 40,000 − 30,000 + 50,000 = 710,000: 50,000 is missing to reach 760,000, to be analysed (IAS 12, para. 81).","es":""},"references":["REF.IAS12.81"]}},{"prompt":{"fr":"","en":"What approach to this unexplained gap of 50,000?","es":""},"explanation":{"fr":"","en":"The reconciliation serves to understand significant factors (IAS 12, para. 84); investigating the gap is a matter of control and judgement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Look for the missing item (for example a prior-year adjustment) before publishing","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Classify it as \"other\" without analysis","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliation should help understand significant factors: an unexplained significant gap does not.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The note should state that the applicable rate of 25% is the domestic rate of the country of domicile.","es":""},"explanation":{"fr":"","en":"True: the basis of the applicable rate is disclosed (IAS 12, paras. 81 and 85).","es":""},"common_error":{"fr":"","en":"Giving the rate without its basis: the entity discloses how the applicable rate is determined.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000284","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"RECONCILIATION_STEPS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"how"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Put the construction of the reconciliation in order.","es":""},"explanation":{"fr":"","en":"The reconciliation starts from accounting profit before tax multiplied by the applicable rate, adds or subtracts the effect of each reconciling item, checks that the total equals tax expense and discloses the basis on which the rate is computed (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Starting from tax expense and working back to profit, or omitting the basis of the rate: the reconciliation starts from accounting profit at the applicable rate.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Start from accounting profit before tax","es":""}},{"id":"S2","text":{"fr":"","en":"Multiply it by the applicable rate","es":""}},{"id":"S3","text":{"fr":"","en":"Add or subtract the effects of the reconciling items","es":""}},{"id":"S4","text":{"fr":"","en":"Check that the total equals the tax expense and disclose the basis of the rate","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000285","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"NO_DETECTION_RISK","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"full-knowledge"},"references":["IFRIC 23"],"exercise":{"prompt":{"fr":"","en":"In assessing an uncertain tax treatment, an entity may take into account the low risk that the tax authority will discover the treatment.","es":""},"explanation":{"fr":"","en":"False: the entity assumes the tax authority will examine the amounts it has a right to examine, with full knowledge of all relevant information; detection risk is not taken into account (IFRIC 23, para. 8).","es":""},"common_error":{"fr":"","en":"Taking into account the risk of non-detection by the tax authority.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000286","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"IFRIC23_NOT_IAS37","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23","IAS 37"],"exercise":{"prompt":{"fr":"","en":"A fictitious entity disputes a corporate income tax reassessment. Under which framework does it account for the uncertainty?","es":""},"explanation":{"fr":"","en":"IFRIC 23 clarifies how to apply IAS 12 when there is uncertainty over tax treatments (IFRIC 23, para. 4); IAS 37 leaves income taxes to IAS 12 (IAS 37, para. 5).","es":""},"common_error":{"fr":"","en":"Treating a tax uncertainty as an IAS 37 provision.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 12, applied on the basis of amounts determined under IFRIC 23","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IAS 37, as a litigation provision","es":""},"correct":false,"feedback":{"fr":"","en":"Income taxes are excluded from the scope of IAS 37.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000287","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"IFRIC23_DEFINITIONS","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §3"],"exercise":{"prompt":{"fr":"","en":"Match each IFRIC 23 term with its meaning.","es":""},"explanation":{"fr":"","en":"Tax treatment: the treatment the entity uses or plans to use in its tax filings; taxation authority: the body or bodies that decide whether treatments are acceptable, including a court; uncertain tax treatment: one whose acceptance by the relevant authority is uncertain (IFRIC 23, para. 3).","es":""},"common_error":{"fr":"","en":"Restricting the taxation authority to the tax office: it includes any body that decides acceptability, including a court.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Tax treatment","es":""}},{"id":"L2","text":{"fr":"","en":"Taxation authority","es":""}},{"id":"L3","text":{"fr":"","en":"Uncertain tax treatment","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Treatment the entity uses or plans to use in its tax returns","es":""}},{"id":"R2","text":{"fr":"","en":"Body or bodies deciding whether treatments are acceptable, including a court","es":""}},{"id":"R3","text":{"fr":"","en":"Treatment whose acceptance by the relevant authority is uncertain","es":""}},{"id":"R4","text":{"fr":"","en":"Any reassessment already notified","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000288","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"UNIT_OF_ACCOUNT","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"unit-of-account"},"references":["IFRIC 23 §6"],"exercise":{"prompt":{"fr":"","en":"How does an entity decide whether to assess an uncertain tax treatment separately or together with others?","es":""},"explanation":{"fr":"","en":"The entity uses the approach, individual or grouped, that better predicts the resolution of the uncertainty, considering for example how it prepares its returns or how the authority is expected to conduct its examination (IFRIC 23, para. 6); minimising the liability is not a criterion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"According to the approach that better predicts the resolution of the uncertainty","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"According to the approach that minimises the liability","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is predicting the resolution, not the desired accounting result.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000289","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"IFRIC23_FOUR_ISSUES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §5"],"exercise":{"prompt":{"fr":"","en":"Which issues does IFRIC 23 address?","es":""},"explanation":{"fr":"","en":"IFRIC 23 addresses whether uncertain treatments are considered separately or together, the assumptions about examination by the authority, the determination of taxable profit, tax bases, losses, credits and rates, and changes in facts and circumstances (IFRIC 23, para. 5); it does not address interest and penalties.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Considering uncertain treatments separately or together","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Assumptions about examination by the authority","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Determining taxable profit, tax bases, losses, credits and rates","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Considering changes in facts and circumstances","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Penalties and late-payment interest","es":""},"correct":false,"feedback":{"fr":"","en":"They are not among the four issues in the summary of para. 3.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000290","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"PROBABLE_ACCEPTANCE_CONSEQUENCE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"probable-acceptance"},"references":["IFRIC 23 §9","IFRIC 23 §10"],"exercise":{"prompt":{"fr":"","en":"A fictitious entity considers it probable that the authority will accept its disputable deduction. Consequence?","es":""},"explanation":{"fr":"","en":"If the entity concludes it is probable that the authority will accept the treatment, it determines its tax consistently with the treatment used in its return (IFRIC 23, para. 10); no liability is set up for the highest possible amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It determines its tax consistently with the treatment used in its return","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It nevertheless recognises a liability for the highest possible amount","es":""},"correct":false,"feedback":{"fr":"","en":"If acceptance is probable, no uncertainty effect is reflected.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000291","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"NOT_PROBABLE_REFLECT_EFFECT","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"probable-acceptance"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"A fictitious entity concludes that it is not probable that the authority will accept an uncertain treatment. What does it do?","es":""},"explanation":{"fr":"","en":"If acceptance is not probable, the entity reflects the effect of the uncertainty in the related taxable profit, tax bases, losses, credits or rates (IFRIC 23, para. 11); a note alone is not enough.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It reflects the effect of the uncertainty in the taxable profit, tax bases, losses, credits or rates concerned","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It merely discloses it in the notes","es":""},"correct":false,"feedback":{"fr":"","en":"The effect must be reflected in the amounts.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000292","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"GROUPED_TREATMENTS_MEANING","difficulty":"ADVANCED","estimated_time_s":50,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"unit-of-account"},"references":["IFRIC 23 §7","IFRIC 23 §6"],"exercise":{"prompt":{"fr":"","en":"When an entity considers several uncertain tax treatments together, the term \"uncertain tax treatment\" refers to the group of treatments considered together.","es":""},"explanation":{"fr":"","en":"True: when the entity considers several uncertain treatments together (IFRIC 23, para. 6), the term “uncertain tax treatment” refers to the group of treatments so considered (IFRIC 23, para. 7).","es":""},"common_error":{"fr":"","en":"Still reasoning treatment by treatment after grouping them: the “uncertain tax treatment” is then the whole group.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000293","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"ACCEPTANCE_SORT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"how"},"references":["IFRIC 23 §9","IFRIC 23 §10","IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"According to the tax adviser's opinion (case data), classify each position of a fictitious group.","es":""},"explanation":{"fr":"","en":"Probable acceptance: tax consistent with the return (IFRIC 23, para. 10); not probable: effect reflected (para. 11), detection risk being ignored (para. 8).","es":""},"common_error":{"fr":"","en":"Not reflecting the uncertainty because the authority never checks this point: a fully informed examination is assumed; detection risk is ignored.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ASIS","text":{"fr":"","en":"Tax consistent with the return","es":""}},{"id":"REFLECT","text":{"fr":"","en":"Effect of the uncertainty reflected","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Acceptance considered probable: consistent favourable case law","es":""},"category":"ASIS"},{"id":"I2","text":{"fr":"","en":"Acceptance considered not probable: contrary published administrative guidance","es":""},"category":"REFLECT"},{"id":"I3","text":{"fr":"","en":"Acceptance considered not probable, but the authority never audits this point","es":""},"category":"REFLECT"},{"id":"I4","text":{"fr":"","en":"Acceptance considered probable: ruling obtained from the authority","es":""},"category":"ASIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000294","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"PHARMA","tested_point":"ASSESSMENT_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"pitfalls"},"references":["IFRIC 23","IFRIC 23 §6","IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Review the memo of a fictitious laboratory's tax director.","es":""},"explanation":{"fr":"","en":"Only line 4 complies (IFRIC 23, para. 11).","es":""},"common_error":{"fr":"","en":"Grouping treatments with no examination link only to offset positions.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. The reassessment risk on royalties is provided for under IAS 37.","es":""},"erroneous":true,"correction":{"fr":"","en":"Tax uncertainty: IAS 12 and IFRIC 23 (IFRIC 23, para. 4).","es":""}},{"id":"S2","text":{"fr":"","en":"2. No additional tax: the authority does not have the means to audit our transfer prices.","es":""},"erroneous":true,"correction":{"fr":"","en":"Full knowledge assumed: detection risk is ignored (IFRIC 23, para. 8).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Two unrelated positions are grouped so that the probable saving on one offsets the risk on the other.","es":""},"erroneous":true,"correction":{"fr":"","en":"Grouping must better predict the resolution, not offset positions (IFRIC 23, para. 6).","es":""}},{"id":"S4","text":{"fr":"","en":"4. For the deduction considered not probable, the effect is reflected in taxable profit.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000295","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"IFRIC23_STEPS","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"how"},"references":["IFRIC 23 §6","IFRIC 23","IFRIC 23 §9","IFRIC 23 §10","IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Put the IFRIC 23 approach in order.","es":""},"explanation":{"fr":"","en":"Identify the uncertain treatments, choose the unit of account (IFRIC 23, para. 6), assume a fully informed examination (para. 8), assess whether acceptance is probable (paras. 9 and 10), then, if not, measure the effect using the most likely amount or the expected value (IFRIC 23, para. 11).","es":""},"common_error":{"fr":"","en":"Measuring the effect before assessing the probability of acceptance, or factoring in the risk of no examination.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Identify the uncertain tax treatments","es":""}},{"id":"S2","text":{"fr":"","en":"Choose the unit of account (separate or grouped)","es":""}},{"id":"S3","text":{"fr":"","en":"Assume examination with full knowledge by the authority","es":""}},{"id":"S4","text":{"fr":"","en":"Assess whether acceptance is probable","es":""}},{"id":"S5","text":{"fr":"","en":"If not, measure the effect (most likely amount or expected value)","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000296","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"TECHNOLOGY","tested_point":"UNIT_OF_ACCOUNT_JUDGMENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"judgment"},"references":["IFRIC 23 §6","IFRIC 23 §7"],"exercise":{"prompt":{"fr":"","en":"Choose the unit of account for Cybelis's tax positions.","es":""},"explanation":{"fr":"","en":"The unit of account is the one that better predicts the resolution (IFRIC 23, paras. 6 and 7); the authority's practice is case data.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Cybelis, a fictitious group, invoiced brand royalties in N to its five European subsidiaries using the same transfer pricing method; the authority usually examines these royalties together, in the light of the method (case data). Cybelis also has a separate position on the deductibility of a fine.","es":""},"parts":[{"prompt":{"fr":"","en":"How should the five royalties be assessed?","es":""},"explanation":{"fr":"","en":"The five royalties are considered together: that is how the authority is expected to examine them, which better predicts the resolution (IFRIC 23, para. 6); the group is then the “uncertain tax treatment” (para. 7). Seeking to maximise probable positions is not a criterion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Together: that is how the authority is expected to examine them, which better predicts the resolution","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"One by one, to maximise the positions considered probable","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is not maximisation but predicting the resolution.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The position on the fine, with no examination link to the royalties, should be assessed separately.","es":""},"explanation":{"fr":"","en":"True: grouping it would not better predict the resolution (IFRIC 23, para. 6).","es":""},"common_error":{"fr":"","en":"Grouping the fine with the royalties for convenience: with no examination link, grouping does not better predict the resolution.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"The choice of unit of account and its reasons should be documented.","es":""},"explanation":{"fr":"","en":"True: it is a judgement based on the authority's examination practice (IFRIC 23, para. 6).","es":""},"common_error":{"fr":"","en":"Choosing the unit of account without giving reasons: it is a judgement based on the authority's examination practice.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000297","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"APPLICATION","format":"MINI_CASE","context":"ENERGY","tested_point":"THREE_POSITIONS_EXAMPLE","difficulty":"ADVANCED","estimated_time_s":300,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"example"},"references":["IFRIC 23 §3","IFRIC 23 §9","IFRIC 23 §10","IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Analyse Solarien's three tax positions at 31 December N.","es":""},"explanation":{"fr":"","en":"Position 1: consistent with the return (para. 10); positions 2 and 3: effect reflected (para. 11), ignoring detection risk (para. 8).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Solarien, a fictitious energy producer, took three positions in its N tax return (tax adviser's opinion: case data): (1) accelerated depreciation of panels, consistent with a ruling obtained; (2) deduction of head office costs charged by the parent, which the authority regularly challenges at comparable companies, acceptance not probable; (3) exemption of a grant, never audited but contrary to published guidance.","es":""},"parts":[{"prompt":{"fr":"","en":"Which are uncertain tax treatments?","es":""},"explanation":{"fr":"","en":"A treatment is uncertain when its acceptance by the authority is uncertain (IFRIC 23, para. 3).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Positions 2 and 3","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only position 2, as position 3 has never been audited","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of audit does not remove the uncertainty about acceptance.","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"What treatment for position 3?","es":""},"explanation":{"fr":"","en":"The entity assumes examination by a fully informed authority, disregarding the absence of past checks (IFRIC 23, para. 8); acceptance not being probable, it reflects the effect of the uncertainty (IFRIC 23, para. 11).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reflect the effect of the uncertainty, as acceptance is not probable","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nothing, as there has been no audit","es":""},"correct":false,"feedback":{"fr":"","en":"Detection risk is excluded.","es":""}}],"id":"P2","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000298","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"BINARY_MOST_LIKELY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"The outcome of a tax position is binary: the deduction is either fully accepted or fully disallowed. Which method generally better predicts the resolution?","es":""},"explanation":{"fr":"","en":"Most likely amount for binary or concentrated outcomes; expected value otherwise (IFRIC 23, para. 11). The choice remains a judgement.","es":""},"common_error":{"fr":"","en":"Using the expected value for a binary outcome without justification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The most likely amount","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The expected value","es":""},"correct":false,"feedback":{"fr":"","en":"Suited when the range is neither binary nor concentrated on one value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000299","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"EXPECTED_VALUE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"numeric-example"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"The transfer prices of Métallurgie Ostrevin, a fictitious company, could lead to additional tax of 0 (25%), 200,000 (45%) or 600,000 (30%) (probabilities: case data). Calculate.","es":""},"explanation":{"fr":"","en":"Expected value = 25% × 0 + 45% × 200,000 + 30% × 600,000 = 90,000 + 180,000 = 270,000; most likely amount: 200,000 (IFRIC 23, para. 11). Dispersed outcomes: the expected value is likely to better predict the resolution (judgement).","es":""},"common_error":{"fr":"","en":"Mixing up the two measures: the expected value weights all outcomes (270,000), the most likely amount takes the single most likely outcome (200,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Outcome 1 (25%)","es":""},"value":"0","unit":"EUR"},{"label":{"fr":"","en":"Outcome 2 (45%)","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Outcome 3 (30%)","es":""},"value":"600000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Expected value","es":""},"answer":270000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Most likely amount","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000300","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"BINARY_MOST_LIKELY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"numeric-example"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Logicor, a fictitious publisher, deducted 1,600,000 for a restructuring; the authority will accept or reject all of it (probability of acceptance 35%: case data). Rate 25%. Calculate.","es":""},"explanation":{"fr":"","en":"Acceptance not probable (35%): effect reflected (IFRIC 23, para. 11). Binary outcome: most likely amount, disallowance (65%): 1,600,000 × 25% = 400,000 (IFRIC 23, para. 11).","es":""},"common_error":{"fr":"","en":"Weighting a binary outcome (65% × 400,000): for an all-or-nothing outcome, the most likely amount, rejection, better predicts the resolution.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Disputable deduction","es":""},"value":"1600000","unit":"EUR"},{"label":{"fr":"","en":"Probability of acceptance","es":""},"value":"35","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tax at stake","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Additional tax reflected (most likely amount)","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Tax at stake","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Disputable deduction","es":""},"value":1600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":400000,"unit":"EUR","rationale":{"fr":"","en":"Binary outcome: most likely amount, disallowance (65%): 1,600,000 × 25% = 400,000 (IFRIC 23, para. 11).","es":""}}],"references":["REF.IFRIC23.11"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000301","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"UNCERTAIN_TAX_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"entry"},"references":["IFRIC 23","IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"Ostrevin uses the expected value (270,000): record the entry.","es":""},"explanation":{"fr":"","en":"The uncertainty is built into current tax (IFRIC 23, para. 4): debit Current tax expense, credit Current tax liability (IAS 12, para. 12), not an IAS 37 provision.","es":""},"common_error":{"fr":"","en":"Treating a tax uncertainty as an IAS 37 provision.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CURRENT_TAX_EXPENSE","text":{"fr":"","en":"Current tax expense","es":""}},{"id":"CURRENT_TAX_LIABILITY","text":{"fr":"","en":"Current tax liability","es":""}},{"id":"PROVISION_EXPENSE","text":{"fr":"","en":"Provision expense","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}}],"lines":[{"id":"L1","account":"CURRENT_TAX_EXPENSE","side":"DEBIT","amount":270000},{"id":"L2","account":"CURRENT_TAX_LIABILITY","side":"CREDIT","amount":270000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000302","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CONSISTENT_JUDGMENTS","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"consistency"},"references":["IFRIC 23 §12"],"exercise":{"prompt":{"fr":"","en":"The same uncertainty affects the current and deferred tax of a fictitious entity. What does IFRIC 23 provide?","es":""},"explanation":{"fr":"","en":"When an uncertainty affects both current and deferred tax, the entity makes consistent judgements and estimates for both (IFRIC 23, para. 12); different assumptions for each tax are not allowed.","es":""},"common_error":{"fr":"","en":"Using different assumptions for current and deferred tax affected by the same uncertainty.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Consistent judgements and estimates for both","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A prudent approach for current tax and an optimistic one for deferred tax","es":""},"correct":false,"feedback":{"fr":"","en":"The assumptions must be consistent.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000303","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"CALCULATION","format":"CALCULATION","context":"AUTOMOTIVE","tested_point":"CONSISTENCY_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"consistency"},"references":["IFRIC 23 §12","IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Carrosseries Belvanor, a fictitious company, deducted disputable accelerated tax depreciation of 400,000 in N; acceptance not probable, binary outcome, disallowance most likely. If disallowed, the deduction would still be available later (tax base of the asset increased by 400,000). Rate 25%. Calculate.","es":""},"explanation":{"fr":"","en":"Consistent assumption (disallowance) for current and deferred tax (IFRIC 23, para. 12): current tax + 100,000; tax base increased by 400,000, so deferred liability − 100,000; nil net effect on the expense, but a reclassification from deferred to current.","es":""},"common_error":{"fr":"","en":"Reflecting rejection only in current tax: the same assumption applies to deferred tax, whose liability falls by the same amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Disputable deduction","es":""},"value":"400000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Increase in current tax","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Decrease in the deferred tax liability","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Net effect on tax expense","es":""},"answer":0,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000304","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"CONSISTENCY_ENTRY","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"entry"},"references":["IFRIC 23 §12"],"exercise":{"prompt":{"fr":"","en":"Carrosseries Belvanor deducted disputable accelerated tax depreciation of 400,000 in N; binary outcome, disallowance most likely; if disallowed, the tax base of the asset would increase by 400,000; rate 25%. Record the entries for the uncertainty (current and deferred tax).","es":""},"explanation":{"fr":"","en":"Current tax expense 100,000 / current tax liability; deferred tax liability 100,000 / deferred tax income (IFRIC 23, para. 12). Debits 200,000 = credits 200,000.","es":""},"common_error":{"fr":"","en":"Recording only the current tax entry: the rejection assumption also reduces the deferred tax liability, with deferred tax income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CURRENT_TAX_EXPENSE","text":{"fr":"","en":"Current tax expense","es":""}},{"id":"CURRENT_TAX_LIABILITY","text":{"fr":"","en":"Current tax liability","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"PROVISION_EXPENSE","text":{"fr":"","en":"Provision expense","es":""}}],"lines":[{"id":"L1","account":"CURRENT_TAX_EXPENSE","side":"DEBIT","amount":100000},{"id":"L2","account":"CURRENT_TAX_LIABILITY","side":"CREDIT","amount":100000},{"id":"L3","account":"DEFERRED_TAX_LIABILITY","side":"DEBIT","amount":100000},{"id":"L4","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":100000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000305","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CHANGE_IN_ESTIMATE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"changes"},"references":["IFRIC 23 §13","IFRIC 23 §14"],"exercise":{"prompt":{"fr":"","en":"A tax audit completed in N+1 reveals that tax for N was overestimated by 40,000. How should this be treated?","es":""},"explanation":{"fr":"","en":"Reassessment on new information (IFRIC 23, para. 13), treated as a change in estimate under IAS 8 (IFRIC 23, para. 14).","es":""},"common_error":{"fr":"","en":"Restating retrospectively the effect of new information instead of treating it as a change in estimate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a change in accounting estimate, in N+1","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"By restating the N financial statements","es":""},"correct":false,"feedback":{"fr":"","en":"New information is not an error: no restatement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000306","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"CHANGES_EXAMPLES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"changes"},"references":["IFRIC 23 §A2","IFRIC 23 §A3"],"exercise":{"prompt":{"fr":"","en":"Which of these events may lead to reassessing an IFRIC 23 judgement?","es":""},"explanation":{"fr":"","en":"IFRIC 23, paras. A2 (examples) and A3 (silence alone is generally not enough).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An examination by the authority expressing disagreement on a similar treatment","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A change in the rules established by the authority","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The expiry of the authority's right to examine the treatment","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The authority's mere silence since the return was filed","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of agreement or disagreement, on its own, is unlikely to be a change.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000307","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"SILENCE_NOT_A_CHANGE","difficulty":"INTERMEDIATE","estimated_time_s":40,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"changes"},"references":["IFRIC 23 §A3"],"exercise":{"prompt":{"fr":"","en":"The fact that the authority has neither accepted nor challenged a tax treatment is, on its own, enough to justify a reassessment.","es":""},"explanation":{"fr":"","en":"False: such absence, on its own, is unlikely to constitute a change in facts and circumstances (IFRIC 23, para. A3).","es":""},"common_error":{"fr":"","en":"Treating the authority's silence as a reason to reassess: on its own it is unlikely to be a change in facts.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000308","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"POST_BALANCE_SHEET_INFO","difficulty":"ADVANCED","estimated_time_s":50,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"changes"},"references":["IFRIC 23 §14"],"exercise":{"prompt":{"fr":"","en":"A tax court decision is issued after the reporting date, before authorisation for issue. Which standard determines whether the financial statements must be adjusted?","es":""},"explanation":{"fr":"","en":"For an event after the reporting period, such as a tax court decision before authorisation for issue, IAS 10 determines whether it is adjusting or not (IFRIC 23, para. 14); IAS 37 does not govern this point.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 10, which distinguishes adjusting and non-adjusting events","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IAS 37","es":""},"correct":false,"feedback":{"fr":"","en":"IFRIC 23 refers to IAS 10 on this point.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000309","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"EXPIRY_OF_EXAMINATION_RIGHT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"numeric-example"},"references":["IFRIC 23 §13","IFRIC 23 §A2","IFRIC 23 §14"],"exercise":{"prompt":{"fr":"","en":"Négoces Lambert, a fictitious company, carries two IFRIC 23 liabilities: 120,000 for N−3 and 150,000 for N−1. In N, the authority's right to examine N−3 expires. Calculate.","es":""},"explanation":{"fr":"","en":"Expiry of the right to examine is a change in facts (IFRIC 23, paras. 13 and A2): change in estimate in N (para. 14), release of 120,000; the N−1 position remains open.","es":""},"common_error":{"fr":"","en":"Restating N−3 or also releasing the N−1 liability: the expiry is a change in estimate in N affecting only the time-barred position.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"N−3 liability","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"N−1 liability","es":""},"value":"150000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Release to profit or loss in N","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Remaining liability","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000310","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"MEASUREMENT_ERRORS","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"pitfalls"},"references":["IFRIC 23 §11","IFRIC 23 §12","IFRIC 23 §14","IFRIC 23 §A3"],"exercise":{"prompt":{"fr":"","en":"Review a fictitious operator's IFRIC 23 file.","es":""},"explanation":{"fr":"","en":"Only line 4 complies (IFRIC 23, para. 14).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. Binary position (70% probable disallowance) measured at expected value (70% of the tax at stake), without justification.","es":""},"erroneous":true,"correction":{"fr":"","en":"Binary outcome: the most likely amount generally better predicts the resolution (IFRIC 23, para. 11); any other choice must be justified.","es":""}},{"id":"S2","text":{"fr":"","en":"2. Current tax calculated assuming disallowance, deferred tax assuming acceptance.","es":""},"erroneous":true,"correction":{"fr":"","en":"Consistent judgements for both (IFRIC 23, para. 12).","es":""}},{"id":"S3","text":{"fr":"","en":"3. Liability released because the authority has not reacted for six months.","es":""},"erroneous":true,"correction":{"fr":"","en":"Silence alone is generally not a change (IFRIC 23, para. A3).","es":""}},{"id":"S4","text":{"fr":"","en":"4. Adjustment from an audit completed in the year treated as a change in estimate.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000311","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"LOGISTICS","tested_point":"REMEASUREMENT_AFTER_AUDIT","difficulty":"EXPERT","estimated_time_s":420,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"judgment"},"references":["IFRIC 23 §11","IFRIC 23 §13","IFRIC 23 §14","IFRIC 23 §A1","IFRIC 23 §A2"],"exercise":{"prompt":{"fr":"","en":"Update the measurement of Fret Valdane's tax position after the reassessment notice.","es":""},"explanation":{"fr":"","en":"New information → reassessment (paras. 13, A2), as a change in estimate (para. 14), position by position under the legislation (para. A1). Probabilities and method: case data and judgements.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Fret Valdane, a fictitious logistics company, had measured a transfer pricing position at the end of N at its expected value: 0 (40%), 150,000 (40%), 400,000 (20%), i.e. 140,000. In March N+1, after the N financial statements were issued, the authority notifies a reassessment of 400,000; according to the lawyer, negotiation should end at 250,000 (60%) or 400,000 (40%). The same notice does not concern another Valdane position under foreign legislation.","es":""},"parts":[{"prompt":{"fr":"","en":"Is the notice a reason for reassessment?","es":""},"explanation":{"fr":"","en":"Yes: the authority's examination and action provide new information, an example of a change in facts and circumstances requiring reassessment (IFRIC 23, paras. 13 and A2), even though the negotiation is not over.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: examination and action by the authority, new information","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No: the negotiation is not over","es":""},"correct":false,"feedback":{"fr":"","en":"New information is enough to reassess, without waiting for the resolution.","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the new expected value and the adjustment in N+1.","es":""},"explanation":{"fr":"","en":"60% × 250,000 + 40% × 400,000 = 150,000 + 160,000 = 310,000; adjustment 310,000 − 140,000 = 170,000 in N+1, change in estimate (IFRIC 23, para. 14), without restating N.","es":""},"common_error":{"fr":"","en":"Restating N or recognising the whole new expected value in N+1: only the difference from the existing liability (170,000) is a change in estimate in N+1.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"New expected value","es":""},"answer":310000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Additional expense in N+1","es":""},"answer":170000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The notice also requires Valdane's foreign position to be reassessed.","es":""},"explanation":{"fr":"","en":"False: the same event may affect one treatment without affecting another under different legislation; the effect is assessed against the applicable law (IFRIC 23, para. A1).","es":""},"common_error":{"fr":"","en":"Extending the effect of the notice to a foreign position: an event's effect is assessed under the law applicable to each treatment.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000312","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"TAX_CONTINGENCY_DISCLOSURE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"tax-contingencies"},"references":["IAS 12 §88","IFRIC 23 §A5"],"exercise":{"prompt":{"fr":"","en":"A fictitious entity considers acceptance of an uncertain treatment probable, but a tax dispute remains open. What does it do?","es":""},"explanation":{"fr":"","en":"Acceptance probable: no amount is recognised for the uncertainty (IFRIC 23, para. 10); the entity assesses whether to disclose the tax contingency under IAS 37 (IFRIC 23, para. A5; IAS 12, para. 88).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No amount is recognised; it assesses whether to disclose the tax contingency under IAS 37","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It recognises a liability for the dispute","es":""},"correct":false,"feedback":{"fr":"","en":"As acceptance is probable, tax follows the return.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000313","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PILLAR_TWO_NO_DT","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000024","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"A fictitious group subject to Pillar Two recognises a deferred tax liability for the top-up tax it will owe on future profits.","es":""},"explanation":{"fr":"","en":"False: under a mandatory exception, no deferred tax asset or liability related to Pillar Two taxes is recognised (IAS 12, para. 4A).","es":""},"common_error":{"fr":"","en":"Recognising deferred tax for the Pillar Two top-up tax.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000314","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"PILLAR_TWO_CURRENT_TAX_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000024","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"entry"},"references":["IAS 12 §4A","IAS 12 §88B"],"exercise":{"prompt":{"fr":"","en":"The fictitious Altimer group: the Pillar Two legislation in force gives rise to a top-up tax of 240,000 for N (amount provided by the regulatory calculation). Record the entry.","es":""},"explanation":{"fr":"","en":"Current tax (IAS 12, para. 4A), disclosed separately (IAS 12, para. 88B); no deferred tax.","es":""},"common_error":{"fr":"","en":"Recognising deferred tax or a provision: the top-up tax for the period is current tax.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"CURRENT_TAX_EXPENSE","text":{"fr":"","en":"Current tax expense","es":""}},{"id":"CURRENT_TAX_LIABILITY","text":{"fr":"","en":"Current tax liability","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}}],"lines":[{"id":"L1","account":"CURRENT_TAX_EXPENSE","side":"DEBIT","amount":240000},{"id":"L2","account":"CURRENT_TAX_LIABILITY","side":"CREDIT","amount":240000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000315","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"PILLAR_TWO_DISCLOSURES","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000024","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"disclosures"},"references":["IAS 12 §88A","IAS 12 §88B"],"exercise":{"prompt":{"fr":"","en":"Which disclosures does a group subject to Pillar Two legislation in force provide?","es":""},"explanation":{"fr":"","en":"The group discloses that it has applied the deferred tax exception (IAS 12, para. 88A) and presents its Pillar Two current tax expense separately (para. 88B); nothing is disclosed about Pillar Two deferred tax, which is neither recognised nor disclosed (IAS 12, para. 4A).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"That it has applied the deferred tax exception","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Its current tax expense related to Pillar Two, separately","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The amount of unrecognised Pillar Two deferred tax","es":""},"correct":false,"feedback":{"fr":"","en":"The exception also covers disclosures about deferred tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000316","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"EXPOSURE_BEFORE_EFFECT","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000024","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exposure-before-effect"},"references":["IAS 12 §88C","IAS 12 §88D"],"exercise":{"prompt":{"fr":"","en":"A country's Pillar Two legislation is enacted but will only take effect next year. What disclosure should be provided?","es":""},"explanation":{"fr":"","en":"Legislation enacted but not yet in effect: the entity discloses known or reasonably estimable information on its exposure, qualitative and quantitative, possibly as a range; otherwise it says so and reports its progress (IAS 12, paras. 88C and 88D). Neither silence nor an exact calculation is required.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Known or reasonably estimable information on the exposure, qualitative and quantitative, possibly as a range; if none, say so and disclose progress","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nothing before the effective date","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosure of the exposure is required from enactment.","es":""}},{"id":"C","text":{"fr":"","en":"The exact calculation of top-up tax under all the requirements of the legislation","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosures need not reflect all the requirements of the legislation.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000317","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"PILLAR_TWO_SEPARATE_AMOUNT","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000024","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"numeric-example"},"references":["IAS 12 §88B"],"exercise":{"prompt":{"fr":"","en":"The fictitious Kerdane group has total current tax expense of 1,500,000, of which 240,000 is Pillar Two top-up tax. Calculate the amounts to disclose.","es":""},"explanation":{"fr":"","en":"Pillar Two current tax expense is disclosed separately: 240,000; other current tax = total − Pillar Two = 1,500,000 − 240,000 = 1,260,000 (IAS 12, para. 88B).","es":""},"common_error":{"fr":"","en":"Not disclosing Pillar Two current tax separately.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total current tax expense","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Of which Pillar Two","es":""},"value":"240000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Pillar Two current tax (disclosed separately)","es":""},"answer":240000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Other current tax","es":""},"answer":1260000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Other current tax","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total current tax expense","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Of which Pillar Two","es":""},"value":240000,"unit":"EUR"}],"result":1260000,"unit":"EUR","rationale":{"fr":"","en":"other current tax = total − Pillar Two = 1,500,000 − 240,000 = 1,260,000 (IAS 12, para. 88B).","es":""}}],"references":["REF.IAS12.88B"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000318","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TECHNOLOGY","tested_point":"PILLAR_TWO_ERRORS","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000024","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"pitfalls"},"references":["IAS 12 §4A","IAS 12 §88A","IAS 12 §88B"],"exercise":{"prompt":{"fr":"","en":"Review the Pillar Two note of a fictitious technology group.","es":""},"explanation":{"fr":"","en":"Only line 3 complies (IAS 12, para. 88A).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. A deferred tax asset is recognised on expected Pillar Two credits.","es":""},"erroneous":true,"correction":{"fr":"","en":"Exception: no Pillar Two deferred tax (IAS 12, para. 4A).","es":""}},{"id":"S2","text":{"fr":"","en":"2. Top-up tax is included, without distinction, in current tax.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is disclosed separately (IAS 12, para. 88B).","es":""}},{"id":"S3","text":{"fr":"","en":"3. The note states that the group applies the deferred tax exception.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000319","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"PILLAR_TWO_REQUIRED_OR_NOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000024","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"how"},"references":["IAS 12 §4A","IAS 12 §88A","IAS 12 §88B","IAS 12 §88C"],"exercise":{"prompt":{"fr":"","en":"Classify each item for a group subject to Pillar Two.","es":""},"explanation":{"fr":"","en":"Required: disclosure that the exception has been applied (IAS 12, para. 88A), Pillar Two current tax presented separately (para. 88B) and information on exposure when legislation is enacted but not in effect (para. 88C); no deferred tax is recognised for it (IAS 12, para. 4A).","es":""},"common_error":{"fr":"","en":"Recognising a deferred tax liability for future top-up tax: the exception excludes it.","es":""},"format":"CLASSIFICATION","categories":[{"id":"REQ","text":{"fr":"","en":"Required","es":""}},{"id":"PROH","text":{"fr":"","en":"Excluded by the exception","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Statement that the exception is applied","es":""},"category":"REQ"},{"id":"I2","text":{"fr":"","en":"Pillar Two current tax disclosed separately","es":""},"category":"REQ"},{"id":"I3","text":{"fr":"","en":"Disclosure of the exposure, legislation enacted but not yet in effect","es":""},"category":"REQ"},{"id":"I4","text":{"fr":"","en":"Deferred tax liability for future top-up tax","es":""},"category":"PROH"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000320","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"RETAIL","tested_point":"EXPOSURE_ESTIMATE_JUDGMENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000024","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"judgment"},"references":["IAS 12 §88C","IAS 12 §88D"],"exercise":{"prompt":{"fr":"","en":"Prepare Distrivalia's Pillar Two disclosure for N.","es":""},"explanation":{"fr":"","en":"Before the effective date: disclosure of the exposure, possibly as a range (IAS 12, paras. 88C and 88D); the Pillar Two calculation itself is governed by the legislation, case data.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Distrivalia, a fictitious group, operates in a country whose Pillar Two legislation was enacted in N and will take effect in N+1. A preliminary study, based on N figures, indicates top-up tax of around 300,000 to 450,000 a year, without including all the adjustments provided by the legislation.","es":""},"parts":[{"prompt":{"fr":"","en":"Can it present the range of 300,000 to 450,000?","es":""},"explanation":{"fr":"","en":"Yes: information on exposure may take the form of an indicative range and need not reflect all the legislation's requirements (IAS 12, para. 88D); judging the study “reasonably estimable” is a matter of judgement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes: the disclosure may take the form of an indicative range and need not reflect all the requirements","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No: only an exact amount is permitted","es":""},"correct":false,"feedback":{"fr":"","en":"The standard allows an indicative range.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"No top-up tax is recognised in N under this legislation not yet in effect.","es":""},"explanation":{"fr":"","en":"True: in N, the entity discloses its exposure (IAS 12, para. 88C); no deferred tax is ever recognised for it (IAS 12, para. 4A).","es":""},"common_error":{"fr":"","en":"Recognising top-up tax in N under legislation not yet in effect: only information on the exposure is given.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"The note may include qualitative information (countries concerned, low effective rates) in addition to the range.","es":""},"explanation":{"fr":"","en":"True: qualitative and quantitative information (IAS 12, para. 88D).","es":""},"common_error":{"fr":"","en":"Giving only the numerical range: the information can and should also be qualitative.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000321","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"PILLAR_TWO_STEPS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000024","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"how"},"references":["IAS 12 §4A","IAS 12 §88A","IAS 12 §88B"],"exercise":{"prompt":{"fr":"","en":"Put the year-end Pillar Two treatment in order.","es":""},"explanation":{"fr":"","en":"Check whether Pillar Two legislation is enacted or substantively enacted, apply the exception (no deferred tax, IAS 12, para. 4A), recognise the period's top-up tax as current tax, then disclose the application of the exception and Pillar Two current tax separately (IAS 12, paras. 88A and 88B).","es":""},"common_error":{"fr":"","en":"Recognising Pillar Two deferred tax or omitting the statement on the exception: the period's tax is current and the exception must be disclosed.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Check whether Pillar Two legislation is enacted or substantively enacted","es":""}},{"id":"S2","text":{"fr":"","en":"Apply the exception: no deferred tax for it","es":""}},{"id":"S3","text":{"fr":"","en":"Recognise the period's top-up tax as current tax","es":""}},{"id":"S4","text":{"fr":"","en":"Disclose the application of the exception and Pillar Two current tax separately","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000322","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"HEALTHCARE","tested_point":"TAX_EXPENSE_TOTAL","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"numeric-example"},"references":["IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Complete for Cliniques Sorvagne, a fictitious group.","es":""},"explanation":{"fr":"","en":"520,000 − 15,000 = 505,000: the expense combines current and deferred tax (IAS 12, para. 6).","es":""},"common_error":{"fr":"","en":"Adding the deferred tax income to current tax: income reduces tax expense.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Current tax 520,000; deferred tax income in profit or loss 15,000. Tax expense: {{x}}.","es":""},"blanks":[{"id":"x","mode":"NUMBER","answer":505000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000323","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AGRICULTURE","tested_point":"TAX_EXPENSE_NOT_TAX_PAID","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000002","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"how"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Serres Dumontel, a fictitious company, paid instalments of 300,000; its current tax is 340,000 and its deferred tax expense 25,000. What is its tax expense?","es":""},"explanation":{"fr":"","en":"Expense = current tax + deferred tax = 340,000 + 25,000 = 365,000 (IAS 12, paras. 5 and 6); the instalments only determine the balance payable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"365,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"300,000","es":""},"correct":false,"feedback":{"fr":"","en":"These are the instalments, not the expense.","es":""}},{"id":"C","text":{"fr":"","en":"340,000","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax is missing.","es":""}},{"id":"D","text":{"fr":"","en":"325,000","es":""},"correct":false,"feedback":{"fr":"","en":"Instalments + deferred tax: mixes cash flows and expense.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS12.000324","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"HOSPITALITY","tested_point":"TAX_BASE_LIABILITY_CALC","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-liability"},"references":["IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Complete for Auberges Varnier, a fictitious company (tax treatments: case data).","es":""},"explanation":{"fr":"","en":"18,000 − 18,000 = 0; 50,000 − 0 = 50,000 (IAS 12, para. 8).","es":""},"common_error":{"fr":"","en":"Giving the interest an 18,000 base or the deposit a nil base: only what is deductible later is removed from the carrying amount.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Accrued interest payable 18,000, deductible when paid: tax base {{a}}. Security deposit received from a tenant 50,000, with no tax effect: tax base {{b}}.","es":""},"blanks":[{"id":"a","mode":"NUMBER","answer":0,"tolerance":0},{"id":"b","mode":"NUMBER","answer":50000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000325","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"TAX_BASE_ASSET_CALC","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000003","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §7"],"exercise":{"prompt":{"fr":"","en":"A patent acquired for 240,000 by a fictitious company has already given rise to 90,000 of tax deductions. Tax base?","es":""},"explanation":{"fr":"","en":"Amount still deductible: 240,000 − 90,000 = 150,000 (IAS 12, para. 7).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"150,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"240,000","es":""},"correct":false,"feedback":{"fr":"","en":"The deductions already obtained are no longer available.","es":""}},{"id":"C","text":{"fr":"","en":"90,000","es":""},"correct":false,"feedback":{"fr":"","en":"That is what has been deducted, not what remains deductible.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS12.000326","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"TEXTILE","tested_point":"CURRENT_TAX_CALC","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"numeric-example"},"references":["IAS 12 §5","IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"Calculate for Teintures Valmeyre, a fictitious company (rate 25%, adjustments: case data).","es":""},"explanation":{"fr":"","en":"1,500,000 + 50,000 − 30,000 + 70,000 = 1,590,000; × 25% = 397,500 (IAS 12, para. 46).","es":""},"common_error":{"fr":"","en":"Deducting the provision charge: not deductible before payment, it is added back to taxable profit.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Accounting profit 1,500,000; non-deductible expenses 50,000; exempt income 30,000; charge to a provision deductible when paid 70,000. Taxable profit {{tp}}; current tax {{ct}}.","es":""},"blanks":[{"id":"tp","mode":"NUMBER","answer":1590000,"tolerance":0},{"id":"ct","mode":"NUMBER","answer":397500,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000327","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"LOSS_CARRYBACK_CAP","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000004","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"loss-carry-back"},"references":["IAS 12 §13","IAS 12 §14"],"exercise":{"prompt":{"fr":"","en":"Fromageries Lescaut, a fictitious company, makes a tax loss of 250,000, which can be set against N−1 profit (300,000, taxed at 28%) under the case legislation. Calculate the asset for N.","es":""},"explanation":{"fr":"","en":"The loss (250,000) is below the cap (300,000): 250,000 × 28% = 70,000, recognised in N (IAS 12, paras. 13 and 14).","es":""},"common_error":{"fr":"","en":"Capping at year N−1's profit (300,000) or applying year N's rate: the 250,000 loss is below the cap and the asset is computed at N−1's rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Tax loss","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Profit for N−1","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Rate for N−1","es":""},"value":"28","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Current tax asset","es":""},"answer":70000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Current tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax loss","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate for N−1","es":""},"value":28,"unit":"PERCENT"}],"result":70000,"unit":"EUR"}],"rationale":{"fr":"","en":"The loss (250,000) is below the cap (300,000): 250,000 × 28% = 70,000, recognised in N (IAS 12, paras. 13 and 14).","es":""},"references":["REF.IAS12.13","REF.IAS12.14"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000328","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"TELECOM","tested_point":"DTL_CALC_BASIC","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"numeric-example"},"references":["IAS 12 §15","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Complete for a mast of a fictitious operator (rate 25%).","es":""},"explanation":{"fr":"","en":"750,000 − 520,000 = 230,000; × 25% = 57,500 (IAS 12, paras. 15 and 47).","es":""},"common_error":{"fr":"","en":"Applying the rate to the carrying amount rather than the taxable difference.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Carrying amount 750,000; tax base 520,000. Taxable difference {{d}}; deferred tax liability {{l}}.","es":""},"blanks":[{"id":"d","mode":"NUMBER","answer":230000,"tolerance":0},{"id":"l","mode":"NUMBER","answer":57500,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000329","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MINING","tested_point":"DTL_ENTRY_REVERSAL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000005","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"entry"},"references":["IAS 12 §15","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"The deferred tax liability of a fictitious quarry falls from 80,000 to 55,000 as the taxable difference reverses (no item outside profit or loss). Record the entry.","es":""},"explanation":{"fr":"","en":"Decrease of 25,000: debit Liability, credit Deferred tax income (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Recording the new balance (55,000) instead of the change: only the 25,000 decrease goes to income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"DEFERRED_TAX_EXPENSE","text":{"fr":"","en":"Deferred tax expense","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_LIABILITY","side":"DEBIT","amount":25000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":25000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000330","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"AUTOMOTIVE","tested_point":"DTA_CALC_PROVISIONS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"numeric-example"},"references":["IAS 12 §8","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Complete for Garages Montvel, a fictitious company (rate 25%, future profit probable).","es":""},"explanation":{"fr":"","en":"140,000 + 36,000 = 176,000; × 25% = 44,000 (IAS 12, paras. 8 and 24).","es":""},"common_error":{"fr":"","en":"Taking only one of the two provisions: both, deductible on payment, create deductible differences.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Warranty provision 140,000 and litigation provision 36,000, deductible when paid. Deductible differences {{d}}; deferred tax asset {{a}}.","es":""},"blanks":[{"id":"d","mode":"NUMBER","answer":176000,"tolerance":0},{"id":"a","mode":"NUMBER","answer":44000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000331","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"DTA_ENTRY_RECOGNITION","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS12.000006","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"entry"},"references":["IAS 12 §24","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Montvel: record the deferred tax asset of 44,000 (provisions charged to profit or loss, no opening balance).","es":""},"explanation":{"fr":"","en":"Debit Deferred tax asset 44,000; credit Deferred tax income 44,000 (IAS 12, paras. 24 and 58).","es":""},"common_error":{"fr":"","en":"Taking the asset to equity: the provisions being charged to profit or loss, the other side is deferred tax income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"CURRENT_TAX_ASSET","text":{"fr":"","en":"Current tax asset","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":44000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":44000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000332","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"DEDUCTIBLE_GOODWILL_DTL","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000007","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"deductible-goodwill"},"references":["IAS 12 §21B"],"exercise":{"prompt":{"fr":"","en":"Goodwill of 600,000, tax deductible over 10 years (case data; equal to its tax base on acquisition), is neither amortised nor impaired in the accounts. Two years later (rate 25%), what deferred tax liability?","es":""},"explanation":{"fr":"","en":"Tax base 600,000 − 2 × 60,000 = 480,000; difference 120,000 × 25% = 30,000, recognised (IAS 12, para. 21B).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"30,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"None: goodwill exception","es":""},"correct":false,"feedback":{"fr":"","en":"The difference arises after initial recognition: it is recognised.","es":""}},{"id":"C","text":{"fr":"","en":"150,000","es":""},"correct":false,"feedback":{"fr":"","en":"That is 25% of the whole goodwill, not of the difference.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS12.000333","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"LOGISTICS","tested_point":"LEASE_EQUAL_DIFFERENCES_CALC","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"equal-differences"},"references":["IAS 12 §22A"],"exercise":{"prompt":{"fr":"","en":"Complete for a lease of a fictitious haulier (rate 30%, payments deductible when paid: case data).","es":""},"explanation":{"fr":"","en":"Equal differences outside the exception: 320,000 × 30% = 96,000 on each side (IAS 12, para. 22A).","es":""},"common_error":{"fr":"","en":"Recording no deferred tax under the initial recognition exception: equal differences on a lease are excluded from it.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Right-of-use asset and lease liability at commencement: 320,000. Deferred tax liability {{l}}; deferred tax asset {{a}}.","es":""},"blanks":[{"id":"l","mode":"NUMBER","answer":96000,"tolerance":0},{"id":"a","mode":"NUMBER","answer":96000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000334","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"MEDIA","tested_point":"DTA_CAP_TWO_SOURCES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"numeric-example"},"references":["IAS 12 §28","IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"Complete for Radio Velmont, a fictitious company (rate 25%, sources with the same authority and entity).","es":""},"explanation":{"fr":"","en":"180,000 + 120,000 = 300,000 covered → 75,000; 200,000 not covered → 50,000 not recognised (IAS 12, paras. 28 and 29).","es":""},"common_error":{"fr":"","en":"Recognising an asset on the full 500,000 of deductible differences: it is limited to available sources (300,000), the rest is unrecognised.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Deductible differences 500,000; taxable differences reversing in the same periods 180,000; probable future profit excluding reversal deductions 120,000. Differences covered {{c}}; asset recognised {{a}}; asset not recognised {{u}}.","es":""},"blanks":[{"id":"c","mode":"NUMBER","answer":300000,"tolerance":0},{"id":"a","mode":"NUMBER","answer":75000,"tolerance":0},{"id":"u","mode":"NUMBER","answer":50000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000335","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"DTA_CAP_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"numeric-example"},"references":["IAS 12 §24","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Velmont: record the deferred tax asset recognised (75,000), the differences having arisen in profit or loss.","es":""},"explanation":{"fr":"","en":"Only the probable part is recognised (IAS 12, para. 24): debit Asset 75,000, credit Deferred tax income 75,000 (IAS 12, para. 58); the remaining 50,000 are not recognised.","es":""},"common_error":{"fr":"","en":"Recognising an asset of 125,000: only the probable part (75,000) is recognised.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"DEFERRED_TAX_ASSET","text":{"fr":"","en":"Deferred tax asset","es":""}},{"id":"DEFERRED_TAX_INCOME","text":{"fr":"","en":"Deferred tax income","es":""}},{"id":"DEFERRED_TAX_LIABILITY","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"OCI_INCOME_TAX","text":{"fr":"","en":"Income tax on other comprehensive income","es":""}}],"lines":[{"id":"L1","account":"DEFERRED_TAX_ASSET","side":"DEBIT","amount":75000},{"id":"L2","account":"DEFERRED_TAX_INCOME","side":"CREDIT","amount":75000}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000336","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"ENERGY","tested_point":"RECOVERABILITY_MEMO_REVIEW","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS12.000009","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"pitfalls"},"references":["IAS 12 §28","IAS 12 §29","IAS 12 §30"],"exercise":{"prompt":{"fr":"","en":"Review the recoverability memo prepared for the closing file of a fictitious energy producer.","es":""},"explanation":{"fr":"","en":"Lines 1 and 4: good documentation of the sources (IAS 12, paras. 28 and 29); lines 2 and 3: substantive errors a review must pick up.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. The taxable differences relied on all relate to the same authority and the same taxable entity; their reversal schedule is attached.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"2. The future profit relied on is the budget profit after deducting the reversal deductions of the differences being tested.","es":""},"erroneous":true,"correction":{"fr":"","en":"Profit is assessed excluding those deductions (IAS 12, para. 29).","es":""}},{"id":"S3","text":{"fr":"","en":"3. The tax planning opportunity relied on consists of paying the decommissioning provisions early.","es":""},"erroneous":true,"correction":{"fr":"","en":"Accelerating deductions is not tax planning (IAS 12, para. 30).","es":""}},{"id":"S4","text":{"fr":"","en":"4. Each source of profit is described with the period in which it will produce taxable amounts.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000337","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"HOSPITALITY","tested_point":"LOSSES_CAPPED_BY_TTD","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"recent-losses"},"references":["IAS 12 §35","IAS 12 §36"],"exercise":{"prompt":{"fr":"","en":"Hôtels Cassagne, a fictitious company with recent losses, has 900,000 of losses and 240,000 of appropriate taxable differences reversing before expiry; no other convincing evidence. Rate 25%. What asset?","es":""},"explanation":{"fr":"","en":"240,000 × 25% = 60,000 (IAS 12, paras. 35 and 36).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"60,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"225,000","es":""},"correct":false,"feedback":{"fr":"","en":"Not all the losses are covered.","es":""}},{"id":"C","text":{"fr":"","en":"0","es":""},"correct":false,"feedback":{"fr":"","en":"Sufficient taxable differences support an asset up to their amount.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS12.000338","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"LOSSES_SUPPORT_SORT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"how"},"references":["IAS 12 §28","IAS 12 §35","IAS 12 §36"],"exercise":{"prompt":{"fr":"","en":"For an entity with recent losses, classify each item.","es":""},"explanation":{"fr":"","en":"After recent losses, the asset on losses is only supported by taxable differences of the same authority and entity that reverse before the losses expire, or by other convincing evidence (IAS 12, paras. 28, 35 and 36); judging evidence “convincing” remains a judgement.","es":""},"common_error":{"fr":"","en":"Supporting the asset with a sister company's differences or an unsupported budget: only differences of the same authority and entity reversing in time, or convincing evidence, count.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CAN","text":{"fr":"","en":"Can support the asset on losses","es":""}},{"id":"CANNOT","text":{"fr":"","en":"Cannot support it","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Taxable differences with the same authority and entity, reversing before the losses expire","es":""},"category":"CAN"},{"id":"I2","text":{"fr":"","en":"Taxable differences of a sister company taxed separately","es":""},"category":"CANNOT"},{"id":"I3","text":{"fr":"","en":"Taxable differences that will reverse after the losses expire","es":""},"category":"CANNOT"},{"id":"I4","text":{"fr":"","en":"Unsupported growth budget, after three years of losses","es":""},"category":"CANNOT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000339","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"REASSESSMENT_JUDGMENT","difficulty":"EXPERT","estimated_time_s":360,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"judgment"},"references":["IAS 12","IAS 12 §35","IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Reassess the unrecognised losses of Usinages Fervelin at 31 December N.","es":""},"explanation":{"fr":"","en":"Annual reassessment of unrecognised assets (IAS 12, para. 37), to the extent of profit that has become probable.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Usinages Fervelin, a fictitious company, had recognised no asset on 800,000 of tax losses with no time limit. After two profitable years, it holds a firm order book that, according to a detailed calculation, will produce 500,000 of taxable profit; beyond that, no visibility. Rate 25%.","es":""},"parts":[{"prompt":{"fr":"","en":"What should be done at the reporting date?","es":""},"explanation":{"fr":"","en":"At each reporting date, the entity recognises a previously unrecognised deferred tax asset to the extent future taxable profit has become probable (IAS 12, para. 37); it does not wait for the losses to be used. Treating the order book as convincing evidence is a judgement (IAS 12, para. 35).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise an asset to the extent of the profit that has become probable","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Wait until all losses are used","es":""},"correct":false,"feedback":{"fr":"","en":"Unrecognised assets are reassessed at each reporting date.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Calculate.","es":""},"explanation":{"fr":"","en":"500,000 × 25% = 125,000, in profit or loss, as the losses arose in profit or loss (IAS 12, para. 60); 300,000 remain unrecognised.","es":""},"common_error":{"fr":"","en":"Recognising all the losses: only the part covered by the profit that has become probable (500,000) gives an asset.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax asset (income in profit or loss)","es":""},"answer":125000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Losses still unrecognised","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The file should keep the analysis of the order book on which the probable amount is based.","es":""},"explanation":{"fr":"","en":"True: it is the evidence for the judgement (IAS 12, paras. 35 and 37).","es":""},"common_error":{"fr":"","en":"Recognising the asset without keeping the order book analysis: it is the evidence for the probable amount.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000340","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"ENERGY","tested_point":"INVESTMENT_DTL_PLANNED_DISTRIBUTION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000011","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"numeric-example"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"Complete for a fictitious energy group.","es":""},"explanation":{"fr":"","en":"The part that will reverse in the foreseeable future carries a liability: 500,000 × 8% = 40,000 (IAS 12, para. 39).","es":""},"common_error":{"fr":"","en":"Computing the liability on all undistributed profits: only the decided distribution will reverse in the foreseeable future.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Distribution decided by the parent for next year: 500,000; applicable withholding tax: 8% (case data). Deferred tax liability on the investment: {{x}}.","es":""},"blanks":[{"id":"x","mode":"NUMBER","answer":40000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000341","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"AGRICULTURE","tested_point":"SCHEDULED_RATES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"numeric-example"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Complete (enacted rates: 28% in N+1, 24% thereafter).","es":""},"explanation":{"fr":"","en":"120,000 × 28% = 33,600; 180,000 × 24% = 43,200; total 76,800 (IAS 12, para. 47).","es":""},"common_error":{"fr":"","en":"Applying a single rate to the whole difference: each tranche takes the enacted rate of its reversal period.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Taxable difference 300,000, of which 120,000 reverses in N+1 and 180,000 thereafter. Liability: {{a}} + {{b}} = {{t}}.","es":""},"blanks":[{"id":"a","mode":"NUMBER","answer":33600,"tolerance":0},{"id":"b","mode":"NUMBER","answer":43200,"tolerance":0},{"id":"t","mode":"NUMBER","answer":76800,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000342","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"NO_DISCOUNTING_APPLICATION","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"A fictitious laboratory has 800,000 of deductible differences reversing over ten years; future profit probable; rate 25%; borrowing rate 4%. Calculate the deferred tax asset.","es":""},"explanation":{"fr":"","en":"800,000 × 25% = 200,000, without discounting (IAS 12, para. 53); the borrowing rate is irrelevant data.","es":""},"common_error":{"fr":"","en":"Discounting a deferred tax asset or liability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Deductible differences","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Borrowing rate (not relevant)","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible differences","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"rate 25%","es":""},"value":25,"unit":"PERCENT"}],"result":200000,"unit":"EUR"}],"rationale":{"fr":"","en":"800,000 × 25% = 200,000, without discounting (IAS 12, para. 53)","es":""},"references":["REF.IAS12.53"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000343","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"DISCOUNTED_OR_NOT_SORT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000012","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §53","IAS 37 §45","IFRS 16 §26"],"exercise":{"prompt":{"fr":"","en":"Classify each liability of a fictitious entity according to how it is measured.","es":""},"explanation":{"fr":"","en":"Deferred taxes: never discounted (IAS 12, para. 53). Provision: present value if the effect is material (IAS 37, para. 45); lease liability: present value of lease payments (IFRS 16, para. 26).","es":""},"common_error":{"fr":"","en":"Discounting deferred tax like a provision or a lease liability: it is never discounted, unlike those liabilities governed by their own standard.","es":""},"format":"CLASSIFICATION","categories":[{"id":"NEVER","text":{"fr":"","en":"Never discounted","es":""}},{"id":"PV","text":{"fr":"","en":"Present value under its own standard","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Deferred tax liability reversing far in the future","es":""},"category":"NEVER"},{"id":"I2","text":{"fr":"","en":"Deferred tax asset on tax losses","es":""},"category":"NEVER"},{"id":"I3","text":{"fr":"","en":"Decommissioning provision, material time value","es":""},"category":"PV"},{"id":"I4","text":{"fr":"","en":"Lessee's lease liability","es":""},"category":"PV"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000344","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"AGRICULTURE","tested_point":"REVALUED_LAND_SALE_RATE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"non-depreciable-revalued"},"references":["IAS 12 §51B"],"exercise":{"prompt":{"fr":"","en":"Complete (land revalued under IAS 16: case data; gains taxed at 16%, operations at 25%).","es":""},"explanation":{"fr":"","en":"Recovery through sale (IAS 12, para. 51B): 350,000 × 16% = 56,000.","es":""},"common_error":{"fr":"","en":"Measuring deferred tax on revalued land at the rate on operating income.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Land revalued from 600,000 to 950,000, tax base 600,000. Deferred tax liability: {{x}}.","es":""},"blanks":[{"id":"x","mode":"NUMBER","answer":56000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000345","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"TECHNOLOGY","tested_point":"DT_PL_FROM_BALANCES","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"numeric-example"},"references":["IAS 12 §58","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Complete for a fictitious group.","es":""},"explanation":{"fr":"","en":"430,000 = 500,000 + 30,000 (OCI) − X → X = 100,000 of income in profit or loss (IAS 12, paras. 58 and 61A).","es":""},"common_error":{"fr":"","en":"Taking the total movement in the deferred tax balance as an expense in profit or loss.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Net deferred tax liability: 500,000 opening, 430,000 closing; deferred tax for the year recognised in other comprehensive income: charge of 30,000. Deferred tax income in profit or loss: {{x}}.","es":""},"blanks":[{"id":"x","mode":"NUMBER","answer":100000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000346","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS","IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"RETAIL","tested_point":"ERROR_CORRECTION_TAX_ALLOCATION","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000014","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"judgment"},"references":["IAS 12 §58","IAS 12 §62A","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Allocate the tax on the correction of an error at Bazars Ollivec.","es":""},"explanation":{"fr":"","en":"Tax follows the transaction: equity if corrected retrospectively (IAS 12, para. 62A), profit or loss otherwise (IAS 12, para. 58). Materiality is a judgement.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Bazars Ollivec, a fictitious retailer, discovers in N that an expense of 400,000 for N−2 was omitted; the corresponding tax deduction is still available, creating a deductible difference (rate 25%). Management must first judge whether the error is material (if so, retrospective correction through opening retained earnings; if not, recognition in N: case assumption).","es":""},"parts":[{"prompt":{"fr":"","en":"If the error is judged material, where does the deferred tax asset of 100,000 go?","es":""},"explanation":{"fr":"","en":"A material error corrected adjusts opening retained earnings, an item recognised directly in equity (IAS 12, para. 62A); the related deferred tax is therefore charged there (IAS 12, para. 61A), not to N's income.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Directly in equity, with the adjustment to opening retained earnings","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As tax income for N","es":""},"correct":false,"feedback":{"fr":"","en":"Tax follows the item, here recognised directly in equity.","es":""}}],"id":"P1","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"If it is judged immaterial and expensed in N?","es":""},"explanation":{"fr":"","en":"If the item is expensed in year N, its tax follows profit or loss: deferred tax income of 100,000 in N's profit or loss (IAS 12, para. 58), with no charge to equity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deferred tax income of 100,000 in profit or loss for N","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In equity nevertheless","es":""},"correct":false,"feedback":{"fr":"","en":"As the item is in profit or loss, so is its tax.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The judgement on materiality of the error, on which the allocation of tax depends, should be documented.","es":""},"explanation":{"fr":"","en":"True: the allocation of tax follows that of the item (IAS 12, paras. 58 and 61A).","es":""},"common_error":{"fr":"","en":"Allocating the tax without documenting the materiality judgement: it decides between equity and profit or loss.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000347","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"FOOD","tested_point":"REVALUATION_OCI_CALC","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"numeric-example"},"references":["IAS 12 §61A","IAS 12 §62"],"exercise":{"prompt":{"fr":"","en":"Complete (rate 22%, IAS 16 revaluation in other comprehensive income: case data).","es":""},"explanation":{"fr":"","en":"400,000 × 22% = 88,000 in other comprehensive income (IAS 12, paras. 61A and 62); net 312,000.","es":""},"common_error":{"fr":"","en":"Expensing the tax or computing the net surplus without deducting it: it is charged to OCI and reduces the revaluation surplus.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Increase in value of a plant 400,000, tax base unchanged. Deferred tax in other comprehensive income {{t}}; net revaluation surplus {{n}}.","es":""},"blanks":[{"id":"t","mode":"NUMBER","answer":88000,"tolerance":0},{"id":"n","mode":"NUMBER","answer":312000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000348","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"ENERGY","tested_point":"RATE_CHANGE_SPLIT_CALC","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000015","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"numeric-example"},"references":["IAS 12 §60","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Complete (rate from 25% to 20%).","es":""},"explanation":{"fr":"","en":"800,000 × 5% = 40,000; 200,000 × 5% = 10,000 outside profit or loss; 30,000 in profit or loss (IAS 12, paras. 60 and 61A).","es":""},"common_error":{"fr":"","en":"Taking the whole decrease to profit or loss: the part relating to differences arising in OCI (10,000) follows OCI.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Taxable difference 800,000, of which 200,000 arose in other comprehensive income. Total decrease in the liability {{t}}; of which in other comprehensive income {{o}}; of which in profit or loss {{p}}.","es":""},"blanks":[{"id":"t","mode":"NUMBER","answer":40000,"tolerance":0},{"id":"o","mode":"NUMBER","answer":10000,"tolerance":0},{"id":"p","mode":"NUMBER","answer":30000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000349","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"TAX_STATUS_CHANGE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §4","SIC 25 §1"],"exercise":{"prompt":{"fr":"","en":"The controlling shareholder of Finances Arlequin, a fictitious company, moves its seat abroad; the rate applicable to Arlequin rises from 20% to 25% (case data). Taxable differences, all arising in profit or loss: 600,000. What effect?","es":""},"explanation":{"fr":"","en":"Move of a controlling shareholder: change in status (SIC-25, para. 1); 600,000 × 5% = 30,000 in profit or loss (SIC-25, para. 4).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deferred tax expense of 30,000 in profit or loss","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Decrease of 30,000 in equity","es":""},"correct":false,"feedback":{"fr":"","en":"The change in status goes to profit or loss, except items arising outside profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"No effect before the next reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The effect is recognised in the period of the change.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS12.000350","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"TAX_STATUS_CHANGE_JUDGMENT","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS12.000016","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"judgment"},"references":["SIC 25 §2","SIC 25 §4"],"exercise":{"prompt":{"fr":"","en":"Analyse Kelmarin's loss of the reduced regime.","es":""},"explanation":{"fr":"","en":"A change in status can immediately affect current tax and remeasure deferred tax (SIC-25, para. 2); effects in profit or loss for items arising in profit or loss (SIC-25, para. 4).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Kelmarin, a fictitious SME taxed at 15%, is acquired in September N by a large group and, under the case legislation, loses the reduced rate: 25% from year N. Its taxable differences, all arising in profit or loss, amount to 400,000; its taxable profit for N to 600,000.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the effects in Kelmarin's individual financial statements.","es":""},"explanation":{"fr":"","en":"Current: 600,000 × 10 points = 60,000; deferred: 400,000 × 10 points = 40,000 (SIC-25, para. 2).","es":""},"common_error":{"fr":"","en":"Forgetting the effect on deferred tax: the change in status also changes the deferred tax liability, not just current tax.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"S1","label":{"fr":"","en":"Immediate effect on current tax for N","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Increase in the deferred tax liability","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Where should these effects be recognised?","es":""},"explanation":{"fr":"","en":"The consequences of a change in tax status are recognised in profit or loss for the period, unless they relate to items recognised outside profit or loss (SIC-25, para. 4); the fact that the change results from a shareholder transaction makes no difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In profit or loss for N","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In equity, as the acquisition is a shareholder transaction","es":""},"correct":false,"feedback":{"fr":"","en":"The differences arose in profit or loss: SIC-25 points to profit or loss.","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"The file should date the change in status and cite the tax rule that removes the reduced rate.","es":""},"explanation":{"fr":"","en":"True: the tax rule is case data on which the calculation is based (SIC-25, para. 2).","es":""},"common_error":{"fr":"","en":"Computing the effect without dating the change or citing the tax rule: these are the data on which the calculation rests.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000351","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"PRINTING","tested_point":"BC_GOODWILL_WITH_DT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"numeric-example"},"references":["IAS 12 §19","IAS 12 §66"],"exercise":{"prompt":{"fr":"","en":"Complete (rate 30%, non-controlling interests: not applicable).","es":""},"explanation":{"fr":"","en":"400,000 × 30% = 120,000; goodwill = 3,000,000 − (2,400,000 − 120,000) = 720,000 (IAS 12, paras. 19 and 66).","es":""},"common_error":{"fr":"","en":"Computing goodwill without deducting deferred tax from net assets: the deferred tax liability reduces net assets and increases goodwill.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Price 3,000,000; identifiable net assets at fair value 2,400,000, of which 400,000 of uplifts without tax adjustment. Deferred tax liability {{d}}; goodwill {{g}}.","es":""},"blanks":[{"id":"d","mode":"NUMBER","answer":120000,"tolerance":0},{"id":"g","mode":"NUMBER","answer":720000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000352","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"SBP_DTA_NO_EXCESS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"excess-to-equity"},"references":["IAS 12 §68B","IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"Cumulative option expense 260,000; future deduction estimated at the reporting date 200,000; rate 25%; future profit probable. How should the asset be recognised?","es":""},"explanation":{"fr":"","en":"200,000 × 25% = 50,000 (IAS 12, para. 68B); as the deduction does not exceed the cumulative expense, all in profit or loss (IAS 12, para. 68C).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"50,000, entirely in profit or loss","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"65,000, in profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"The asset is measured on the estimated deduction (200,000), not on the expense.","es":""}},{"id":"C","text":{"fr":"","en":"50,000, part of it in equity","es":""},"correct":false,"feedback":{"fr":"","en":"There is no excess over the cumulative expense: nothing in equity.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS12.000353","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"SBP_SPLIT_SORT","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000018","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"excess-to-equity"},"references":["IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"Classify the destination of each part of the tax benefit on options.","es":""},"explanation":{"fr":"","en":"Tax on the deduction up to the cumulative expense goes to profit or loss; tax on the excess of the estimated deduction over that expense goes directly to equity; if the deduction is below the expense, the whole asset goes to profit or loss (IAS 12, para. 68C).","es":""},"common_error":{"fr":"","en":"Putting the whole benefit in equity, or all in profit or loss: only the part of the deduction above the cumulative expense goes to equity.","es":""},"format":"CLASSIFICATION","categories":[{"id":"PL","text":{"fr":"","en":"Profit or loss","es":""}},{"id":"EQ","text":{"fr":"","en":"Equity","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Tax on the deduction up to the cumulative expense","es":""},"category":"PL"},{"id":"I2","text":{"fr":"","en":"Tax on the excess of the deduction over the cumulative expense","es":""},"category":"EQ"},{"id":"I3","text":{"fr":"","en":"Whole asset when the deduction is below the expense","es":""},"category":"PL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000354","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"RETAIL","tested_point":"OFFSET_BY_JURISDICTION","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"numeric-example"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"Complete for a fictitious group.","es":""},"explanation":{"fr":"","en":"A: 210,000 − 60,000 = 150,000 (IAS 12, para. 74); B: 40,000, another authority, presented separately.","es":""},"common_error":{"fr":"","en":"Also offsetting B's liability against A's asset: belonging to another authority, it is presented separately.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Entity A (country 1): deferred tax asset 60,000, liability 210,000, offsetting conditions met. Entity B (country 2): deferred tax liability 40,000. Net liability presented for A: {{a}}; liability presented for B: {{b}}.","es":""},"blanks":[{"id":"a","mode":"NUMBER","answer":150000,"tolerance":0},{"id":"b","mode":"NUMBER","answer":40000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000355","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"TAX_PRESENTATION_SORT","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §77","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Where is each tax amount presented (IAS 12 wording before IFRS 18)?","es":""},"explanation":{"fr":"","en":"Tax on profit or loss from ordinary activities is presented in profit or loss (IAS 12, para. 77, wording before IFRS 18); tax on a revaluation is presented with other comprehensive income and tax on a retrospective opening adjustment directly in equity (IAS 12, para. 61A).","es":""},"common_error":{"fr":"","en":"Presenting all tax within tax expense in profit or loss: tax on an OCI or equity item is presented with that item.","es":""},"format":"CLASSIFICATION","categories":[{"id":"PL","text":{"fr":"","en":"In profit or loss (tax expense)","es":""}},{"id":"OCI","text":{"fr":"","en":"With other comprehensive income","es":""}},{"id":"EQ","text":{"fr":"","en":"Directly in equity","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Tax relating to profit from ordinary activities","es":""},"category":"PL"},{"id":"I2","text":{"fr":"","en":"Tax on a revaluation of an asset","es":""},"category":"OCI"},{"id":"I3","text":{"fr":"","en":"Tax on a retrospective adjustment to opening retained earnings","es":""},"category":"EQ"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000356","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"SHIPPING","tested_point":"FX_ON_DEFERRED_TAX","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §78"],"exercise":{"prompt":{"fr":"","en":"Navires Calendor, a fictitious shipowner, recognises in profit or loss an exchange difference of 12,000 on a foreign deferred tax liability. How may it present it (wording before IFRS 18)?","es":""},"explanation":{"fr":"","en":"IAS 12, para. 78 (wording before IFRS 18); the presentation choice is a judgement of usefulness.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As deferred tax expense (income) if that presentation is considered the most useful to users","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Necessarily in other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is recognised in profit or loss; only its presentation line is at issue.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS12.000357","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"ANALYSIS","format":"MATCHING","context":"TELECOM","tested_point":"COMPONENT_IDENTIFICATION","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12 §80","IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"Match each N event of a fictitious operator with the component of tax expense it feeds.","es":""},"explanation":{"fr":"","en":"Write-down of the asset on losses: write-down of a deferred tax asset (IAS 12, para. 56); N−1 top-up: adjustment of current tax of prior periods; rate decrease: deferred tax relating to rate changes; old unrecognised losses used: benefit from a previously unrecognised loss (IAS 12, para. 80).","es":""},"common_error":{"fr":"","en":"Classifying the use of old unrecognised losses as a deferred tax asset write-down: it is the benefit of a previously unrecognised loss.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Deferred tax asset on losses reduced by 80,000","es":""}},{"id":"L2","text":{"fr":"","en":"Additional N−1 tax notified in N","es":""}},{"id":"L3","text":{"fr":"","en":"Enacted rate cut","es":""}},{"id":"L4","text":{"fr":"","en":"Old unrecognised losses used to reduce tax for N","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Write-down of a deferred tax asset","es":""}},{"id":"R2","text":{"fr":"","en":"Adjustment of current tax of prior periods","es":""}},{"id":"R3","text":{"fr":"","en":"Deferred tax relating to changes in tax rates","es":""}},{"id":"R4","text":{"fr":"","en":"Benefit from a previously unrecognised tax loss","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000358","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"CONSTRUCTION","tested_point":"RECONCILIATION_FULL","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"numeric-example"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Complete the reconciliation of Bâtiments Ricard, a fictitious company (applicable rate 25%).","es":""},"explanation":{"fr":"","en":"300,000 + 10,000 − 20,000 = 290,000 (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Adding the effect of exempt income instead of subtracting it: being exempt, it reduces the expense compared with notional tax.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Accounting profit 1,200,000 → theoretical tax {{a}}; non-deductible expenses 40,000 → {{b}}; exempt income 80,000 → −{{c}}; tax expense {{d}}.","es":""},"blanks":[{"id":"a","mode":"NUMBER","answer":300000,"tolerance":0},{"id":"b","mode":"NUMBER","answer":10000,"tolerance":0},{"id":"c","mode":"NUMBER","answer":20000,"tolerance":0},{"id":"d","mode":"NUMBER","answer":290000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000359","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TRANSPORT","tested_point":"NO_DETECTION_RISK","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS12.000022","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"full-knowledge"},"references":["IFRIC 23"],"exercise":{"prompt":{"fr":"","en":"The adviser of Lignes Varel, a fictitious carrier, considers that the authority \"does not have the staff to examine\" a disputable deduction. How should this be taken into account?","es":""},"explanation":{"fr":"","en":"The entity assumes the authority will examine the amounts with full knowledge of all relevant information (IFRIC 23, para. 8): the authority's lack of staff is disregarded and does not reduce the probability of rejection.","es":""},"common_error":{"fr":"","en":"Taking into account the risk of non-detection by the tax authority.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Not at all: examination is assumed, with full knowledge","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"By reducing the probability of disallowance","es":""},"correct":false,"feedback":{"fr":"","en":"Detection risk is excluded from the assessment.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000360","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"MEDIA","tested_point":"EXPECTED_VALUE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"numeric-example"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Complete (probabilities: case data).","es":""},"explanation":{"fr":"","en":"30% × 120,000 + 20% × 300,000 = 36,000 + 60,000 = 96,000; most likely outcome: 0 (IFRIC 23, para. 11). The choice of method remains a judgement.","es":""},"common_error":{"fr":"","en":"Taking the most likely amount as the highest outcome: here the most likely outcome is 0, while the expected value weights all outcomes.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Additional tax outcomes: 0 (50%), 120,000 (30%), 300,000 (20%). Expected value {{ev}}; most likely amount {{ml}}.","es":""},"blanks":[{"id":"ev","mode":"NUMBER","answer":96000,"tolerance":0},{"id":"ml","mode":"NUMBER","answer":0,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000361","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"METHOD_FOR_CONCENTRATED_OUTCOMES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"The possible outcomes of a position are: 400,000 (85%), 380,000 (10%), 0 (5%). Which method is likely to better predict the resolution?","es":""},"explanation":{"fr":"","en":"The outcomes are concentrated on one value (400,000 at 85%): the most likely amount probably better predicts the resolution; it suits binary or concentrated outcomes, the expected value suits dispersed ones (IFRIC 23, para. 11). This choice is a judgement to be explained.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The most likely amount (400,000), as outcomes are concentrated on one value","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The expected value, which is always more accurate","es":""},"correct":false,"feedback":{"fr":"","en":"The expected value suits ranges that are neither binary nor concentrated.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000362","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"DOCUMENTATION","format":"ERROR_SPOT","context":"PHARMA","tested_point":"IFRIC23_FILE_REVIEW","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS12.000023","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"pitfalls"},"references":["IFRIC 23 §11","IFRIC 23 §13","IFRIC 23 §A4"],"exercise":{"prompt":{"fr":"","en":"Review a fictitious laboratory's IFRIC 23 documentation file.","es":""},"explanation":{"fr":"","en":"Line 1 describes good documentation (IFRIC 23, para. 11); lines 2 and 3 are gaps.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. For each position: possible outcomes, probabilities, source (lawyer opinion) and method chosen with its justification.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"2. No update for three years, as the authority has notified nothing.","es":""},"erroneous":true,"correction":{"fr":"","en":"Judgements are reassessed whenever there is new information (for example expiry of a right to examine): a review at each reporting date is needed (IFRIC 23, para. 13).","es":""}},{"id":"S3","text":{"fr":"","en":"3. The decision whether or not to disclose the tax judgements is not analysed.","es":""},"erroneous":true,"correction":{"fr":"","en":"The entity must determine whether to provide this information (IFRIC 23, para. A4).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000363","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"TECHNOLOGY","tested_point":"PILLAR_TWO_SEPARATE_AMOUNT","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS12.000024","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"numeric-example"},"references":["IAS 12 §88B"],"exercise":{"prompt":{"fr":"","en":"Complete for a fictitious group.","es":""},"explanation":{"fr":"","en":"Pillar Two current tax expense is disclosed separately: 350,000; other current tax = 2,100,000 − 350,000 = 1,750,000 (IAS 12, para. 88B).","es":""},"common_error":{"fr":"","en":"Not isolating Pillar Two top-up tax: it is disclosed separately, the rest of current tax being shown apart.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Total current tax expense 2,100,000, of which 350,000 is Pillar Two top-up tax. Amount disclosed separately {{p}}; other current tax {{o}}.","es":""},"blanks":[{"id":"p","mode":"NUMBER","answer":350000,"tolerance":0},{"id":"o","mode":"NUMBER","answer":1750000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000364","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.OBJECTIVE"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"OBJECTIVE_CURRENT_AND_FUTURE","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"objective"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"For Épiceries Brannec, a fictitious retailer, classify each tax consequence.","es":""},"explanation":{"fr":"","en":"IAS 12 recognises both the current tax consequences of the period's transactions and the future consequences of recovering or settling carrying amounts (IAS 12, objective).","es":""},"common_error":{"fr":"","en":"Classifying the provision's future deduction or the future tax on the tills as current consequences: they arise from recovering or settling carrying amounts.","es":""},"format":"CLASSIFICATION","categories":[{"id":"NOW","text":{"fr":"","en":"Current tax consequence (transactions of the period)","es":""}},{"id":"FUTURE","text":{"fr":"","en":"Future tax consequence (recovery or settlement of carrying amounts)","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Tax payable on taxable profit for the year","es":""},"category":"NOW"},{"id":"I2","text":{"fr":"","en":"Tax that will be payable when the tills, depreciated faster for tax, are used","es":""},"category":"FUTURE"},{"id":"I3","text":{"fr":"","en":"Future deduction relating to the litigation provision","es":""},"category":"FUTURE"},{"id":"I4","text":{"fr":"","en":"Refund of an overpayment of instalments for the year","es":""},"category":"NOW"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000365","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"APPLICATION","format":"TRUE_FALSE","context":"GENERIC","tested_point":"INCOME_TAX_DEFINITION_SORT","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IAS12.000001","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2","IAS 12 §1"],"exercise":{"prompt":{"fr":"","en":"An additional contribution calculated at 3% of the corporate income tax payable, and thus based on taxable profit, falls within the scope of IAS 12 (case legislation).","es":""},"explanation":{"fr":"","en":"True: IAS 12 applies to income taxes (IAS 12, para. 1), i.e. taxes based on taxable profits (IAS 12, para. 2).","es":""},"common_error":{"fr":"","en":"Excluding the surcharge because it has another name: based on taxable profit, it is an income tax.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000366","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"REAL_ESTATE","tested_point":"INVESTMENT_PROPERTY_PRESUMPTION","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000013","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"investment-property-presumption"},"references":["IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"Complete (investment property at fair value, presumption not rebutted; gains taxed at 12%: case data).","es":""},"explanation":{"fr":"","en":"500,000 × 12% = 60,000 (IAS 12, para. 51C).","es":""},"common_error":{"fr":"","en":"Applying the rate to the full fair value, or the ordinary rate: the capital gains rate is applied to the gap with the tax base on sale.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Fair value 1,800,000; tax base on sale 1,300,000. Deferred tax liability: {{x}}.","es":""},"blanks":[{"id":"x","mode":"NUMBER","answer":60000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000367","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"APPLICATION","format":"TRUE_FALSE","context":"MANUFACTURING","tested_point":"IRE_APPLIES_OR_NOT","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS12.000008","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15","IAS 12 §19"],"exercise":{"prompt":{"fr":"","en":"A building acquired in a business combination, whose cost will never be deductible, falls within the initial recognition exception.","es":""},"explanation":{"fr":"","en":"False: the exception does not cover business combinations; deferred tax is recognised and affects goodwill (IAS 12, paras. 15 and 19).","es":""},"common_error":{"fr":"","en":"Invoking the initial recognition exception for an asset acquired in a business combination: it does not cover combinations.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000368","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","format":"FILL_BLANK","context":"TECHNOLOGY","tested_point":"UNUSED_TAX_CREDITS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IAS12.000010","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §34"],"exercise":{"prompt":{"fr":"","en":"Complete.","es":""},"explanation":{"fr":"","en":"Asset to the extent of probable use (IAS 12, para. 34): 35,000; 15,000 remain without an asset.","es":""},"common_error":{"fr":"","en":"Recognising the whole credit (50,000): the asset is limited to the tax against which it will probably be used.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Tax credit carried forward 50,000; tax probably payable during its life 35,000 (case data). Deferred tax asset {{a}}; credit without an asset {{u}}.","es":""},"blanks":[{"id":"a","mode":"NUMBER","answer":35000,"tolerance":0},{"id":"u","mode":"NUMBER","answer":15000,"tolerance":0}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000369","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RECOGNITION","format":"TRUE_FALSE","context":"TELECOM","tested_point":"ACQUIRER_DTA_NOT_GOODWILL","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000017","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"acquirer-dta"},"references":["IAS 12 §67"],"exercise":{"prompt":{"fr":"","en":"The increase in the acquirer's deferred tax asset made possible by a business combination is included in the accounting for the combination.","es":""},"explanation":{"fr":"","en":"False: it is recognised in the period of the combination, outside the accounting for it (IAS 12, para. 67).","es":""},"common_error":{"fr":"","en":"Including the acquirer's asset in the combination: it is recognised in the period, outside the combination, without affecting goodwill.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000370","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"REQUIRED_DISCLOSURES","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000020","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"required-information"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"The entity discloses the tax relating to each component of other comprehensive income.","es":""},"explanation":{"fr":"","en":"True: the tax relating to each component of other comprehensive income is disclosed separately (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Giving only OCI net of tax: the tax on each component of OCI is disclosed.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000371","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"ANALYSIS","format":"TRUE_FALSE","context":"GENERIC","tested_point":"RECONCILING_ITEMS_SORT","difficulty":"INTERMEDIATE","estimated_time_s":50,"lesson_id":"LS.IAS12.000021","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"how"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"A temporary difference fully covered by deferred tax recognised at the applicable rate is a reconciling item between tax expense and theoretical tax.","es":""},"explanation":{"fr":"","en":"False: deferred tax neutralises its effect on the expense; the reconciliation explains permanent, rate or unrecognised-loss gaps (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Including temporary differences as reconciling items of the effective rate.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000372","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"HOSPITALITY","tested_point":"TAX_EXPENSE_IN_PROFIT_OR_LOSS","difficulty":"BEGINNER","estimated_time_s":40,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §77","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"The management controller of Hôtels Vaudrenne, a fictitious group, says: \"The tax expense on our ordinary activities is presented in other comprehensive income, not in profit or loss.\"","es":""},"explanation":{"fr":"","en":"False. The tax expense (income) related to profit or loss from ordinary activities is presented in profit or loss (IAS 12, para. 77, wording before IFRS 18); it comprises current tax and deferred tax (para. 6).","es":""},"common_error":{"fr":"","en":"Confusing the presentation of the tax expense with that of the tax on items recognised in other comprehensive income.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000373","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"TAX_EXPENSE_EXCLUDES_OCI_TAX","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §6","IAS 12 §77","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Pellicorne, a fictitious distributor, has finalised its tax for N. Calculate the tax expense presented in profit or loss.","es":""},"explanation":{"fr":"","en":"Tax expense = current tax + deferred tax in profit or loss = 610,000 − 35,000 = 575,000 (IAS 12, para. 6; presented in profit or loss, para. 77, wording before IFRS 18). The 20,000 relates to an item recognised in other comprehensive income and is recognised there (para. 61A): it is not part of the expense in profit or loss.","es":""},"common_error":{"fr":"","en":"Including the 20,000 tax on the revaluation in the profit or loss charge: it is recognised in OCI.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Current tax for N","es":""},"value":"610000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax income in profit or loss (decrease in the liability)","es":""},"value":"35000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax on a revaluation recognised in other comprehensive income","es":""},"value":"20000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Tax expense presented in profit or loss","es":""},"answer":575000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Tax expense presented in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax for N","es":""},"value":610000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax income in profit or loss (decrease in the liability)","es":""},"value":35000,"unit":"EUR"}],"result":575000,"unit":"EUR","rationale":{"fr":"","en":"Tax expense = current tax + deferred tax in profit or loss = 610,000 − 35,000 = 575,000 (IAS 12, para. 6; presented in profit or loss, para. 77, wording before IFRS 18).","es":""}}],"references":["REF.IAS12.6"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000374","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"TAX_EXPENSE_PRESENTATION_REVIEW","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §77","IAS 12 §78","IAS 12 §6","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Review the presentation memo drafted for Ombrevald Télécom, a fictitious operator, and spot the incorrect statements (IAS 12 wording before IFRS 18).","es":""},"explanation":{"fr":"","en":"Statements 1 and 2 are correct (IAS 12, paras. 77 and 78, wording before IFRS 18; classifying the exchange difference is a judgement of usefulness). Statements 3 and 4 are incorrect: tax on an item recognised in other comprehensive income is recognised there (para. 61A) and tax expense comprises current tax and deferred tax (para. 6).","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"1. The tax expense on our ordinary activities is shown in profit or loss.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"2. The exchange difference recognised in profit or loss on our foreign deferred tax liability may be classified as deferred tax expense if that presentation is considered the most useful.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"3. The deferred tax on the revaluation of our towers, recognised in other comprehensive income, is added to the tax expense in profit or loss.","es":""},"erroneous":true,"correction":{"fr":"","en":"It relates to an item recognised in other comprehensive income and is recognised there (para. 61A).","es":""}},{"id":"S4","text":{"fr":"","en":"4. The tax expense is limited to current tax; deferred tax is presented directly in the balance sheet.","es":""},"erroneous":true,"correction":{"fr":"","en":"Tax expense comprises current tax and deferred tax (para. 6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000375","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"CALCULATION","format":"CALCULATION","context":"SHIPPING","tested_point":"FX_IN_DEFERRED_TAX_EXPENSE","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IAS12.000019","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §78","IAS 12 §6","IAS 12 §77"],"exercise":{"prompt":{"fr":"","en":"Armement Corlayne, a fictitious shipowner, presents its tax expense for N in profit or loss. Case data: management judged it more useful to classify as deferred tax expense the exchange difference recognised in profit or loss on its foreign deferred tax liability. Calculate the deferred tax expense presented, then the total tax expense.","es":""},"explanation":{"fr":"","en":"With the classification adopted (IAS 12, para. 78, wording before IFRS 18; a choice based on usefulness, management judgement), the deferred tax expense presented is 50,000 + 8,000 = 58,000 and the total tax expense 400,000 + 58,000 = 458,000 (paras. 6 and 77). Without that classification, the exchange difference would remain in profit or loss, on another line, and the tax expense would be 450,000.","es":""},"common_error":{"fr":"","en":"Ignoring the classification chosen by management: with that choice, the exchange difference is added to the deferred tax expense presented.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Current tax for N","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax relating to temporary differences of N","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Exchange loss in profit or loss on the foreign deferred tax liability","es":""},"value":"8000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Deferred tax expense presented","es":""},"answer":58000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total tax expense presented","es":""},"answer":458000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Deferred tax expense presented","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deferred tax relating to temporary differences of N","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Exchange loss in profit or loss on the foreign deferred tax liability","es":""},"value":8000,"unit":"EUR"}],"result":58000,"unit":"EUR","rationale":{"fr":"","en":"With the classification adopted (IAS 12, para. 78, wording before IFRS 18; a choice based on usefulness, management judgement), the deferred tax expense presented is 50,000 + 8,000 = 58,000 and the total tax expense 400,000 + 58,000 = 458,000 (paras. 6 and 77).","es":""}},{"step":"S2","meaning":{"fr":"","en":"Total tax expense presented","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax for N","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax expense presented","es":""},"value":58000,"unit":"EUR"}],"result":458000,"unit":"EUR","rationale":{"fr":"","en":"With the classification adopted (IAS 12, para. 78, wording before IFRS 18; a choice based on usefulness, management judgement), the deferred tax expense presented is 50,000 + 8,000 = 58,000 and the total tax expense 400,000 + 58,000 = 458,000 (paras. 6 and 77).","es":""}}],"references":["REF.IAS12.78"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000376","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE","IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"IAS12_V2027_MINICASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IAS12.000025","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000025","section_id":"example"},"references":["IAS 12 §77","IAS 12 §78","IAS 12 §61A","IFRS 18 §67","IFRS 18 §69"],"exercise":{"prompt":{"fr":"","en":"IFRS 18 version, annual periods beginning on or after 1 January 2027. Read the Korvane SA case and answer.","es":""},"explanation":{"fr":"","en":"Income taxes category: tax in profit or loss and related exchange differences (paras. 77, 78; IFRS 18, para. 67); tax on the hedge in other comprehensive income (para. 61A). Amounts and the former choice are case data.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Korvane SA (fictitious), an automotive supplier, applies IFRS 18 for the first time to the period beginning on 1 January 2027. Case data: current tax 610,000 and deferred tax 40,000 in profit or loss; exchange loss of 18,000 on the deferred tax liability of its foreign subsidiary, recognised in profit or loss; deferred tax of 30,000 on a cash flow hedge in other comprehensive income. In its 2026 accounts, Korvane classified the exchange difference as deferred tax expense (a choice under the current version).","es":""},"parts":[{"prompt":{"fr":"","en":"What amount is shown in the income taxes category in 2027?","es":""},"explanation":{"fr":"","en":"610,000 + 40,000 + 18,000 = 668,000; the 30,000 stay in other comprehensive income.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"a","text":{"fr":"","en":"668,000","es":""},"correct":true},{"id":"b","text":{"fr":"","en":"650,000","es":""},"correct":false,"feedback":{"fr":"","en":"The 18,000 tax-related exchange difference is also classified in this category (para. 78; IFRS 18, para. 67).","es":""}},{"id":"c","text":{"fr":"","en":"698,000","es":""},"correct":false,"feedback":{"fr":"","en":"The 30,000 relate to an item of other comprehensive income and stay there (para. 61A).","es":""}}],"id":"p1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"In 2027, Korvane may keep its former presentation choice for the exchange difference, since it was permitted in 2026.","es":""},"explanation":{"fr":"","en":"False: the 2027 version of para. 78 refers to IFRS 18 para. 67; the former choice no longer exists. In this case it happens to lead to the same category.","es":""},"common_error":{"fr":"","en":"Believing a former policy choice survives the new version.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p2","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000377","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"APPLICATION","format":"MINI_CASE","context":"GENERIC","tested_point":"IAS12_V2027_MC_CATEGORIES","difficulty":"BEGINNER","estimated_time_s":150,"lesson_id":"LS.IAS12.000025","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000025","section_id":"understand"},"references":["IAS 12 §77","IFRS 18 §47","IFRS 18 §69","IAS 12 §78"],"exercise":{"prompt":{"fr":"","en":"IFRS 18 version, annual periods beginning on or after 1 January 2027. Answer the questions on the IFRS 18 categories.","es":""},"explanation":{"fr":"","en":"Five categories (IFRS 18, para. 47); tax has its own, outside operating profit (paras. 67, 69); IFRS 18 only changes the presentation and cross-references of IAS 12 (para. 98N).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"For several fictitious clients, you prepare the presentation of tax for their first period under IFRS 18, beginning on 1 January 2027. The amounts and facts of each question are case data; no operation is discontinued.","es":""},"parts":[{"prompt":{"fr":"","en":"Which are categories of the statement of profit or loss under IFRS 18?","es":""},"explanation":{"fr":"","en":"IFRS 18, para. 47: five categories, including income taxes, to which IAS 12 para. 77 refers.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"a","text":{"fr":"","en":"Operating","es":""},"correct":true},{"id":"b","text":{"fr":"","en":"Income taxes","es":""},"correct":true},{"id":"c","text":{"fr":"","en":"Discontinued operations","es":""},"correct":true},{"id":"d","text":{"fr":"","en":"Extraordinary items","es":""},"correct":false,"feedback":{"fr":"","en":"This is not an IFRS 18 category: the five categories are operating, investing, financing, income taxes and discontinued operations.","es":""}}],"id":"p1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Income tax expense is included in operating profit.","es":""},"explanation":{"fr":"","en":"False: it is in the income taxes category, after the subtotal \"profit or loss before financing and income taxes\" (IFRS 18, paras. 67 and 69).","es":""},"common_error":{"fr":"","en":"Treating tax as an operating expense.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Classify each item: unchanged or amended by IFRS 18 in IAS 12.","es":""},"explanation":{"fr":"","en":"IFRS 18 amends paras. 62A, 77, 78 and 81 (para. 98N): presentation and cross-references; recognition, measurement and offsetting rules stay the same.","es":""},"common_error":{"fr":"","en":"Thinking deferred tax is calculated differently in 2027.","es":""},"format":"CLASSIFICATION","categories":[{"id":"U","text":{"fr":"","en":"Unchanged","es":""}},{"id":"A","text":{"fr":"","en":"Amended","es":""}}],"items":[{"id":"a","text":{"fr":"","en":"Calculation of current and deferred tax","es":""},"category":"U"},{"id":"b","text":{"fr":"","en":"Place of the tax expense in the statement of profit or loss","es":""},"category":"A"},{"id":"c","text":{"fr":"","en":"Classification of exchange differences on tax balances","es":""},"category":"A"},{"id":"d","text":{"fr":"","en":"Conditions for offsetting tax assets and liabilities","es":""},"category":"U"}],"id":"p3","dimension":"RECOGNITION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000378","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE","IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"APPLICATION","format":"MINI_CASE","context":"RETAIL","tested_point":"IAS12_V2027_MC_ALLOCATION","difficulty":"INTERMEDIATE","estimated_time_s":200,"lesson_id":"LS.IAS12.000025","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000025","section_id":"rule-77"},"references":["IAS 12 §77","IAS 12 §61A","IFRS 18 §67","IAS 12 §78"],"exercise":{"prompt":{"fr":"","en":"IFRS 18 version, annual periods beginning on or after 1 January 2027. Classify and check the presentation of tax.","es":""},"explanation":{"fr":"","en":"Tax follows the item (paras. 58, 61A, 62A); tax in profit or loss and its exchange differences go to the income taxes category (paras. 77, 78; IFRS 18, para. 67).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"For several fictitious clients, you prepare the presentation of tax for their first period under IFRS 18, beginning on 1 January 2027. The amounts and facts of each question are case data; no operation is discontinued.","es":""},"parts":[{"prompt":{"fr":"","en":"Classify each tax amount of Tiravel SA (fictitious); the amounts are case data.","es":""},"explanation":{"fr":"","en":"Tax follows the item (paras. 58, 61A, 62A); what is in profit or loss goes to the income taxes category, exchange differences included (paras. 77, 78; IFRS 18, para. 67).","es":""},"common_error":{"fr":"","en":"Taking everything to profit or loss, including the tax on items outside it.","es":""},"format":"CLASSIFICATION","categories":[{"id":"TAX","text":{"fr":"","en":"Income taxes category","es":""}},{"id":"OCI","text":{"fr":"","en":"Other comprehensive income","es":""}},{"id":"EQ","text":{"fr":"","en":"Equity","es":""}}],"items":[{"id":"a","text":{"fr":"","en":"Current tax for the year on continuing operations","es":""},"category":"TAX"},{"id":"b","text":{"fr":"","en":"Deferred tax on a revaluation of an asset recognised in other comprehensive income","es":""},"category":"OCI"},{"id":"c","text":{"fr":"","en":"Exchange difference in profit or loss on a foreign deferred tax liability","es":""},"category":"TAX"},{"id":"d","text":{"fr":"","en":"Tax on the opening adjustment from correcting an error","es":""},"category":"EQ"}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Spot the errors in the 2027 draft presentation of Selvara SA (fictitious).","es":""},"explanation":{"fr":"","en":"Income taxes category for tax in profit or loss and its exchange differences (paras. 77, 78); tax outside profit or loss for items outside it (para. 61A).","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"\"The tax expense of our continuing operations is in the income taxes category.\"","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"\"We chose to classify the exchange difference on our foreign deferred tax in the operating category, a presentation considered more useful.\"","es":""},"erroneous":true,"correction":{"fr":"","en":"In 2027, this difference is classified in the income taxes category (para. 78; IFRS 18, para. 67): there is no longer a choice based on usefulness.","es":""}},{"id":"s3","text":{"fr":"","en":"\"The tax on the revaluation of our land is taken to the income taxes category.\"","es":""},"erroneous":true,"correction":{"fr":"","en":"Tax follows the item: the revaluation being in other comprehensive income, so is its tax (para. 61A).","es":""}}],"id":"p2","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000379","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE","IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"APPLICATION","format":"MINI_CASE","context":"ENERGY","tested_point":"IAS12_V2027_MC_FX","difficulty":"INTERMEDIATE","estimated_time_s":200,"lesson_id":"LS.IAS12.000025","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000025","section_id":"rule-78"},"references":["IAS 12 §78","IFRS 18 §67","IAS 12 §77","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"IFRS 18 version, annual periods beginning on or after 1 January 2027. Deal with the exchange differences and compute the income taxes category.","es":""},"explanation":{"fr":"","en":"Para. 78 (2027 version): exchange differences on tax balances classified under IFRS 18, para. 67, with no choice; they add to tax in profit or loss in the same category.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"For several fictitious clients, you prepare the presentation of tax for their first period under IFRS 18, beginning on 1 January 2027. The amounts and facts of each question are case data; no operation is discontinued.","es":""},"parts":[{"prompt":{"fr":"","en":"Orvanne SA (fictitious) recognises in profit or loss an exchange loss of 14,000 on a deferred tax liability of its foreign branch (case data). How does it classify it in 2027?","es":""},"explanation":{"fr":"","en":"IAS 12, para. 78 (2027 version) refers to IFRS 18, para. 67: tax-related exchange differences in the income taxes category.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"a","text":{"fr":"","en":"In the income taxes category","es":""},"correct":true},{"id":"b","text":{"fr":"","en":"In the financing category, like a difference on debt","es":""},"correct":false,"feedback":{"fr":"","en":"Tax-related exchange differences follow the tax category (IFRS 18, para. 67), not that of a financial debt.","es":""}},{"id":"c","text":{"fr":"","en":"Wherever management considers most useful","es":""},"correct":false,"feedback":{"fr":"","en":"That was the choice in the current version of para. 78; it disappears in 2027.","es":""}}],"id":"p1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Period beginning 1 January 2027. Case data: current tax 300,000 and deferred tax 45,000 in profit or loss; exchange loss of 5,000 on a foreign-currency tax asset; tax of 12,000 on an item of other comprehensive income. Complete.","es":""},"explanation":{"fr":"","en":"300,000 + 45,000 + 5,000 = 350,000 in the income taxes category (paras. 77, 78); 12,000 in other comprehensive income (para. 61A).","es":""},"common_error":{"fr":"","en":"Forgetting the exchange difference or adding the tax on other comprehensive income.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Income taxes category: {{b1}}. Other comprehensive income: {{b2}}.","es":""},"blanks":[{"id":"b1","mode":"CHOICE","choices":[{"id":"x","text":{"fr":"","en":"350,000","es":""}},{"id":"y","text":{"fr":"","en":"345,000","es":""}},{"id":"z","text":{"fr":"","en":"362,000","es":""}}],"answer":"x"},{"id":"b2","mode":"CHOICE","choices":[{"id":"p","text":{"fr":"","en":"12,000","es":""}},{"id":"q","text":{"fr":"","en":"0","es":""}}],"answer":"p"}],"id":"p2","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000380","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING","IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"APPLICATION","format":"MINI_CASE","context":"GENERIC","tested_point":"IAS12_V2027_MC_UNCHANGED","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS12.000025","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000025","section_id":"rule-offset"},"references":["IAS 12 §71","IAS 12 §74","IAS 12 §62A"],"exercise":{"prompt":{"fr":"","en":"IFRS 18 version, annual periods beginning on or after 1 January 2027. Check what IFRS 18 does not change.","es":""},"explanation":{"fr":"","en":"Offsetting (paras. 71, 74) and the charge to equity of opening adjustments (para. 62A) unchanged; only the title of IAS 8 changes in the cross-reference.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"For several fictitious clients, you prepare the presentation of tax for their first period under IFRS 18, beginning on 1 January 2027. The amounts and facts of each question are case data; no operation is discontinued.","es":""},"parts":[{"prompt":{"fr":"","en":"When are current tax assets and liabilities offset in the 2027 version?","es":""},"explanation":{"fr":"","en":"Para. 71 (and 74 for deferred tax), not amended by IFRS 18.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"a","text":{"fr":"","en":"Legally enforceable right to set off and intention to settle net or simultaneously","es":""},"correct":true},{"id":"b","text":{"fr":"","en":"Always, as soon as they fall in the income taxes category","es":""},"correct":false,"feedback":{"fr":"","en":"The IFRS 18 categories concern profit or loss, not offsetting in the balance sheet, which is unchanged (para. 71).","es":""}},{"id":"c","text":{"fr":"","en":"Never","es":""},"correct":false,"feedback":{"fr":"","en":"Offsetting is required when the two conditions of para. 71 are met.","es":""}}],"id":"p1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"In 2027, the tax on the opening adjustment from correcting an error is still charged directly to equity.","es":""},"explanation":{"fr":"","en":"True: para. 62A keeps its examples; only the cross-reference to IAS 8 carries its new title.","es":""},"common_error":{"fr":"","en":"Believing this tax moves into the income taxes category.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p2","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS12.000381","source":"V2","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES","IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"APPLICATION","format":"MINI_CASE","context":"LOGISTICS","tested_point":"IAS12_V2027_MC_NOTE","difficulty":"ADVANCED","estimated_time_s":220,"lesson_id":"LS.IAS12.000026","review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000026","section_id":"rule"},"references":["IAS 12 §81","IAS 12","IAS 12 §80"],"exercise":{"prompt":{"fr":"","en":"IFRS 18 version, annual periods beginning on or after 1 January 2027. Review the 2027 tax note.","es":""},"explanation":{"fr":"","en":"Disclosures of paras. 79 to 81 unchanged; the para. 81(ab) cross-reference points to IFRS 18, para. 93.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"For several fictitious clients, you prepare the presentation of tax for their first period under IFRS 18, beginning on 1 January 2027. The amounts and facts of each question are case data; no operation is discontinued.","es":""},"parts":[{"prompt":{"fr":"","en":"In 2027, which text does para. 81(ab) refer to for the tax on each item of other comprehensive income?","es":""},"explanation":{"fr":"","en":"IAS 12, para. 81(ab) (2027 version); IFRS 18, para. 93: tax on each item presented in the statement or disclosed in the notes.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"a","text":{"fr":"","en":"IFRS 18, para. 93","es":""},"correct":true},{"id":"b","text":{"fr":"","en":"IAS 1","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 1 is replaced in 2027; the cross-reference now points to IFRS 18.","es":""}},{"id":"c","text":{"fr":"","en":"IAS 8, para. 27A","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 8 para. 27A concerns accounting policy information.","es":""}}],"id":"p1","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"Which disclosures does the 2027 tax note still contain?","es":""},"explanation":{"fr":"","en":"Paras. 79 to 81: unchanged in substance in 2027.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"a","text":{"fr":"","en":"The major components of tax expense","es":""},"correct":true},{"id":"b","text":{"fr":"","en":"The reconciliation between tax expense and accounting profit","es":""},"correct":true},{"id":"c","text":{"fr":"","en":"Unrecognised tax losses","es":""},"correct":true},{"id":"d","text":{"fr":"","en":"Next year's tax budget","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 requires no budget; it is not a para. 81 disclosure.","es":""}}],"id":"p2","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Spot the errors in the 2027 tax note of Varnik SA (fictitious).","es":""},"explanation":{"fr":"","en":"Disclosures unchanged (paras. 79 to 81); para. 81(ab) cross-reference to IFRS 18.","es":""},"format":"ERROR_SPOT","statements":[{"id":"s1","text":{"fr":"","en":"\"We disclose separately current and deferred tax for the year.\"","es":""},"erroneous":false},{"id":"s2","text":{"fr":"","en":"\"As IFRS 18 applies, we no longer provide a reconciliation with accounting profit.\"","es":""},"erroneous":true,"correction":{"fr":"","en":"The para. 81(c) reconciliation is still required in 2027.","es":""}},{"id":"s3","text":{"fr":"","en":"\"The tax on our other comprehensive income is presented under IAS 1.\"","es":""},"erroneous":true,"correction":{"fr":"","en":"In 2027, the cross-reference points to IFRS 18, para. 93 (para. 81(ab)).","es":""}}],"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000001","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.OBJECTIVE","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000001","tested_point":"QST.IAS12.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"objective"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"IAS 12 is limited to the tax payable for the year: the future tax consequences of recovering the assets and settling the liabilities in the statement of financial position are outside its objective.","es":""},"explanation":{"fr":"","en":"The objective of IAS 12 covers current and future tax consequences of, first, the future recovery or settlement of the carrying amounts of assets and liabilities in the statement of financial position and, second, the transactions and events of the period. The core principle follows: with limited exceptions, a deferred tax liability (asset) is recognised whenever that recovery or settlement would make future tax payments larger (smaller) than if it had no tax consequences (IAS 12, objective; para. 10).","es":""},"common_error":{"fr":"","en":"Reducing IAS 12 to computing the year's tax.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000002","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.OBJECTIVE","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000002","tested_point":"QST.IAS12.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"objective"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Where recovering the carrying amount of an asset will probably make future tax payments larger than if it had no tax consequences, IAS 12 requires a deferred tax liability to be recognised, with limited exceptions.","es":""},"explanation":{"fr":"","en":"This is the core principle of the standard: recovery of a carrying amount that will probably increase future tax payments gives rise to a deferred tax liability, and a recovery or settlement that will reduce them gives rise to a deferred tax asset, subject to limited exceptions (IAS 12, objective; para. 10).","es":""},"common_error":{"fr":"","en":"Waiting until the tax is payable before accounting for it.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000003","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.OBJECTIVE","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000003","tested_point":"QST.IAS12.000003","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"objective"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"What is the principal issue addressed by IAS 12?","es":""},"explanation":{"fr":"","en":"IAS 12 does not set tax rules: it deals with accounting for the current and future tax consequences of the recovery or settlement of carrying amounts and of the transactions of the period, which leads to the deferred tax principle (IAS 12, objective; para. 10).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"How to account for the current and future tax consequences of carrying amounts and of the period's transactions.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"How to compute, under national tax law, the amount of tax to be paid each year.","es":""},"correct":false,"feedback":{"fr":"","en":"Computing the tax payable is a matter of tax law; IAS 12 governs how it is accounted for.","es":""}},{"id":"C","text":{"fr":"","en":"How to present the income taxes paid during the period in the statement of cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"The statement of cash flows is not the subject of IAS 12.","es":""}},{"id":"D","text":{"fr":"","en":"How to choose, among the available tax regimes, the one that minimises the group's tax expense.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax planning is a management choice, not an accounting issue dealt with by IAS 12.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000004","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.OBJECTIVE","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000004","tested_point":"QST.IAS12.000004","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"objective"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Settling a liability in the statement of financial position will probably make the entity's future tax payments smaller than if it had no tax consequences. What does the core principle of IAS 12 require?","es":""},"explanation":{"fr":"","en":"Under the objective and core principle of IAS 12, settling a carrying amount that will make future tax payments smaller than if it had no tax consequences gives rise to a deferred tax asset, with limited exceptions (IAS 12, objective; para. 10). The standard then sets the recognition conditions for that asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No entry: the tax saving will be recognised only when the tax return is filed.","es":""},"correct":false,"feedback":{"fr":"","en":"Waiting for the tax return ignores the future tax consequences IAS 12 addresses.","es":""}},{"id":"B","text":{"fr":"","en":"A reduction in the carrying amount of the liability by the expected tax saving.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax is a separate asset; it does not change the carrying amount of the liability.","es":""}},{"id":"C","text":{"fr":"","en":"Current tax income recognised now for the amount of the expected saving.","es":""},"correct":false,"feedback":{"fr":"","en":"The saving relates to future periods: it is not current tax of the period.","es":""}},{"id":"D","text":{"fr":"","en":"A deferred tax asset, with limited exceptions.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000005","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000005","tested_point":"QST.IAS12.000005","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §1","IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"What does IAS 12 apply to?","es":""},"explanation":{"fr":"","en":"IAS 12 applies in accounting for income taxes (IAS 12, para. 1), that is domestic and foreign taxes based on taxable profits and withholding taxes payable by a subsidiary, associate or joint arrangement on their distributions to the entity (IAS 12, para. 2).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Accounting for income taxes.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Determining taxable profit under each country's tax law.","es":""},"correct":false,"feedback":{"fr":"","en":"Taxable profit is determined by tax law, not by IAS 12.","es":""}},{"id":"C","text":{"fr":"","en":"All compulsory levies borne by the entity, whatever their basis.","es":""},"correct":false,"feedback":{"fr":"","en":"Only income taxes are covered, not all levies.","es":""}},{"id":"D","text":{"fr":"","en":"Domestic taxes only, foreign taxes falling under the standard on provisions.","es":""},"correct":false,"feedback":{"fr":"","en":"Foreign taxes based on taxable profits also fall under IAS 12.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000006","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000006","tested_point":"QST.IAS12.000006","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"A foreign tax computed on the taxable profit of a branch located outside the entity's country is an income tax under IAS 12, just like the domestic tax on profits.","es":""},"explanation":{"fr":"","en":"Income taxes include all domestic and foreign taxes based on taxable profits (IAS 12, para. 2). The foreign origin of the tax does not change its classification.","es":""},"common_error":{"fr":"","en":"Excluding taxes on profits paid abroad from IAS 12.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000007","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000007","tested_point":"QST.IAS12.000007","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"A levy equal to a percentage of revenue, with no reference to profit, becomes an income tax under IAS 12 as soon as it is paid to the tax authorities.","es":""},"explanation":{"fr":"","en":"IAS 12 covers taxes based on taxable profits, and withholding taxes payable on distributions by a subsidiary, associate or joint arrangement (IAS 12, para. 2). A levy computed on revenue has no profit basis: the fact that the tax authorities collect it does not bring it within IAS 12.","es":""},"common_error":{"fr":"","en":"Applying IAS 12 to any levy collected by the tax authorities.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000008","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000008","tested_point":"QST.IAS12.000008","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"The withholding tax that a subsidiary must pay on the dividends it distributes to its parent is, for the parent as the reporting entity, an income tax under IAS 12.","es":""},"explanation":{"fr":"","en":"Besides taxes based on taxable profits, income taxes include taxes, such as withholding taxes, payable by a subsidiary, associate or joint arrangement on distributions to the reporting entity (IAS 12, para. 2).","es":""},"common_error":{"fr":"","en":"Omitting withholding taxes on intragroup distributions.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000009","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000009","tested_point":"QST.IAS12.000009","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"IAS 12 sets the method of accounting for government grants received by the entity, since such grants generally change its tax.","es":""},"explanation":{"fr":"","en":"IAS 12 does not deal with the methods of accounting for government grants, which fall under IAS 20, or for investment tax credits; it does, however, deal with the temporary differences that such grants or credits may give rise to (IAS 12, para. 4).","es":""},"common_error":{"fr":"","en":"Applying IAS 12 to the accounting for a government grant.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000010","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000010","tested_point":"QST.IAS12.000010","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"Taxes arising from legislation enacted to implement the OECD Pillar Two rules are excluded from the scope of IAS 12, since they are computed under international rules.","es":""},"explanation":{"fr":"","en":"IAS 12 applies to income taxes arising from legislation enacted or substantively enacted to implement the Pillar Two rules, including qualified domestic minimum top-up taxes. As an exception, the entity neither recognises deferred tax assets and liabilities related to those taxes nor discloses information about them (IAS 12, para. 4A).","es":""},"common_error":{"fr":"","en":"Confusing the deferred tax exception with a scope exclusion.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000011","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000011","tested_point":"QST.IAS12.000011","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"Quilmorel bears the following levies. Which one is an income tax under IAS 12?","es":""},"explanation":{"fr":"","en":"Only a tax based on taxable profit (or a withholding tax on distributions by a subsidiary, associate or joint arrangement) is an income tax (IAS 12, para. 2). Property tax, payroll contributions and value added tax have no profit basis.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Property tax computed on the rental value of its industrial buildings.","es":""},"correct":false,"feedback":{"fr":"","en":"A tax computed on the value of buildings has no profit basis.","es":""}},{"id":"B","text":{"fr":"","en":"The tax computed on the taxable profit of its foreign branch.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Employer's contributions computed on the payroll of its plants.","es":""},"correct":false,"feedback":{"fr":"","en":"Contributions computed on wages are not based on profit.","es":""}},{"id":"D","text":{"fr":"","en":"Value added tax collected on its sales and paid over every month.","es":""},"correct":false,"feedback":{"fr":"","en":"Value added tax is levied on sales, not on taxable profit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000012","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000012","tested_point":"QST.IAS12.000012","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"What primarily characterises an income tax under IAS 12?","es":""},"explanation":{"fr":"","en":"Income taxes are the domestic and foreign taxes based on taxable profits, plus withholding taxes payable by a subsidiary, associate or joint arrangement on their distributions to the entity (IAS 12, para. 2). Neither the authority collecting the tax nor its payment timetable determines the classification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is based on taxable profit.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is collected by a national authority, local authorities being excluded.","es":""},"correct":false,"feedback":{"fr":"","en":"A foreign or local tax may also be based on taxable profit.","es":""}},{"id":"C","text":{"fr":"","en":"It is paid once a year, after the entity's tax return has been filed.","es":""},"correct":false,"feedback":{"fr":"","en":"The payment timetable is irrelevant: instalments do not change the nature of the tax.","es":""}},{"id":"D","text":{"fr":"","en":"It is one of the non-deductible expenses used in preparing the tax return.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax treatment of the tax in the return does not define its accounting scope.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000013","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000013","tested_point":"QST.IAS12.000013","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Ternavel obtains an investment tax credit linked to the purchase of a production line. Which statement about the role of IAS 12 is correct?","es":""},"explanation":{"fr":"","en":"IAS 12 does not deal with the methods of accounting for investment tax credits, any more than for government grants; it does, however, deal with the temporary differences that such credits or grants may give rise to (IAS 12, para. 4).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 12 sets the method of accounting for the credit, as a reduction of the year's current tax.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 precisely does not set the method of accounting for these credits.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 12 prohibits recognising any deferred tax in connection with an investment tax credit.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 deals with the temporary differences arising from these credits; it does not ignore them.","es":""}},{"id":"C","text":{"fr":"","en":"IAS 12 does not set the method of accounting for the credit, but deals with the temporary differences it may give rise to.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An investment tax credit is outside the scope of all existing IFRS Accounting Standards.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 expressly mentions these credits, at least for their temporary differences.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000014","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000014","tested_point":"QST.IAS12.000014","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"The Haldermont group is subject to Pillar Two legislation enacted in several countries where it operates. What treatment does IAS 12 require for deferred tax related to those taxes?","es":""},"explanation":{"fr":"","en":"IAS 12 applies to taxes arising from Pillar Two legislation that is enacted or substantively enacted. As an exception, the entity neither recognises deferred tax assets and liabilities related to those taxes nor discloses information about them (IAS 12, para. 4A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise deferred tax on all temporary differences of the entities affected by Pillar Two.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception precisely covers deferred tax related to Pillar Two taxes.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise no deferred tax asset or liability related to those taxes, and disclose no information about them.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise a provision for future top-up taxes under the standard on provisions.","es":""},"correct":false,"feedback":{"fr":"","en":"These taxes are income taxes within IAS 12, not provisions.","es":""}},{"id":"D","text":{"fr":"","en":"Recognise a deferred tax asset whenever a future refund appears probable.","es":""},"correct":false,"feedback":{"fr":"","en":"No deferred tax asset is recognised in respect of these taxes.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000015","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000015","tested_point":"QST.IAS12.000015","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"A joint arrangement in which Moranvel holds rights distributes part of its profits to Moranvel. The law of the joint arrangement's country requires it to pay a withholding tax on that distribution. For Moranvel, how should this withholding tax be classified?","es":""},"explanation":{"fr":"","en":"Income taxes include taxes, such as withholding taxes, payable by a subsidiary, associate or joint arrangement on distributions to the reporting entity (IAS 12, para. 2). The withholding tax payable by the joint arrangement on its distribution to Moranvel is one of them.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A finance cost linked to the distribution, outside the scope of IAS 12.","es":""},"correct":false,"feedback":{"fr":"","en":"The withholding tax is expressly classified as an income tax.","es":""}},{"id":"B","text":{"fr":"","en":"A mere reduction of the amount distributed, with no consequence under IAS 12.","es":""},"correct":false,"feedback":{"fr":"","en":"The withholding tax is an income tax covered by IAS 12, not a mere distribution arrangement.","es":""}},{"id":"C","text":{"fr":"","en":"An income tax only if the joint arrangement is a subsidiary of Moranvel.","es":""},"correct":false,"feedback":{"fr":"","en":"The definition also covers associates and joint arrangements, not only subsidiaries.","es":""}},{"id":"D","text":{"fr":"","en":"An income tax under IAS 12.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000016","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS12.000005","tested_point":"VG.IAS12.000005","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"Of the levies borne by the Sarbelin group, which are income taxes under IAS 12?","es":""},"explanation":{"fr":"","en":"Income taxes cover domestic and foreign taxes based on taxable profits, and withholding taxes payable by a subsidiary, associate or joint arrangement on their distributions to the entity (IAS 12, para. 2). Levies computed on wages or on total assets have no profit basis.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An annual levy computed on the payroll.","es":""},"correct":false,"feedback":{"fr":"","en":"A levy on the payroll is not based on profit.","es":""}},{"id":"B","text":{"fr":"","en":"The domestic tax computed on the taxable profit of the parent.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A bank levy computed on the total assets of a financial subsidiary.","es":""},"correct":false,"feedback":{"fr":"","en":"A levy computed on total assets is not based on profit.","es":""}},{"id":"D","text":{"fr":"","en":"The tax computed on the taxable profit of a subsidiary established abroad.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The withholding tax payable by a subsidiary on dividends paid to the parent.","es":""},"correct":true}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000017","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000017","tested_point":"QST.IAS12.000017","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Which statements about government grants and investment tax credits are correct under IAS 12?","es":""},"explanation":{"fr":"","en":"IAS 12 does not deal with the methods of accounting for government grants (IAS 20) or for investment tax credits, but it does deal with the temporary differences that such grants or credits may give rise to (IAS 12, para. 4).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 12 does not set the method of accounting for government grants.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Temporary differences arising from a government grant are dealt with by IAS 12.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 12 sets the method of accounting for investment tax credits.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 does not set the method of accounting for these credits.","es":""}},{"id":"D","text":{"fr":"","en":"A government grant is a negative income tax, to be presented with tax expense.","es":""},"correct":false,"feedback":{"fr":"","en":"A grant is not an income tax; accounting for it falls under IAS 20.","es":""}},{"id":"E","text":{"fr":"","en":"Temporary differences arising from an investment tax credit are dealt with by IAS 12.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000018","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000018","tested_point":"QST.IAS12.000018","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"Which statements about Pillar Two taxes are correct under IAS 12?","es":""},"explanation":{"fr":"","en":"IAS 12 applies to income taxes arising from legislation enacted or substantively enacted to implement the Pillar Two rules, including qualified domestic minimum top-up taxes; as an exception, the entity neither recognises deferred tax assets and liabilities related to those taxes nor discloses information about them (IAS 12, para. 4A).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are outside the scope of IAS 12 until the legislation has come into effect.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is enactment or substantive enactment of the legislation, not its coming into effect.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 12 applies to taxes arising from legislation enacted or substantively enacted to implement those rules.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Qualified domestic minimum top-up taxes are also within the scope of IAS 12.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The entity recognises a deferred tax asset for the top-up taxes it expects.","es":""},"correct":false,"feedback":{"fr":"","en":"No deferred tax is recognised for these taxes.","es":""}},{"id":"E","text":{"fr":"","en":"The entity discloses detailed information on deferred tax related to those taxes.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception also covers disclosure about that deferred tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000019","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS12.000005","tested_point":"VG.IAS12.000005","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"Based on the analysis of the legislation provided by Ombrelys's tax specialists (case data), which levies fall under IAS 12?","es":""},"explanation":{"fr":"","en":"Classification depends on the basis set by the legislation, not on the name of the levy: income taxes are taxes based on taxable profits and withholding taxes payable by a subsidiary, associate or joint arrangement on their distributions to the entity (IAS 12, para. 2). The analysis of the legislation is case data; classifying a hybrid levy is a matter of judgement.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An 'exceptional solidarity contribution' computed on the taxable profit for the year.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A 'flat minimum tax' set by revenue bands, payable even when a loss is made.","es":""},"correct":false,"feedback":{"fr":"","en":"A levy set by revenue and payable when a loss is made has no profit basis.","es":""}},{"id":"C","text":{"fr":"","en":"The withholding tax payable by an associate on the dividend paid to Ombrelys.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Customs duties paid on the import of raw materials.","es":""},"correct":false,"feedback":{"fr":"","en":"Customs duties are not based on profit.","es":""}},{"id":"E","text":{"fr":"","en":"A 'tax on profits' which, under the legislation, is actually computed on the floor area of the stores.","es":""},"correct":false,"feedback":{"fr":"","en":"The name is not enough: computed on floor area, this tax has no profit basis.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000020","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000015","tested_point":"VG.IAS12.000015","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"Velquerin, established in a fictitious country, pays a 'contribution to the regional development fund'. Under the law (case data), this contribution is a percentage of the taxable profit determined for the tax on profits, after the same add-backs and deductions. The accounting department classifies it as an operating expense because it 'is not corporation tax'. Which analysis should be adopted?","es":""},"explanation":{"fr":"","en":"Any tax, domestic or foreign, based on taxable profit is an income tax (IAS 12, para. 2). The law given in the case makes this contribution a percentage of taxable profit: it therefore falls under IAS 12, whatever its name or the use of its proceeds. Reading the law is case data; the resulting classification is a judgement to be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The classification is correct: only the main national tax on profits falls under IAS 12.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 is not limited to the main tax: any tax based on taxable profit is covered.","es":""}},{"id":"B","text":{"fr":"","en":"The contribution is an income tax within IAS 12, because it is based on taxable profit.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The contribution falls under IAS 12 only if it is paid to the same tax authority as the main tax on profits.","es":""},"correct":false,"feedback":{"fr":"","en":"The collector is not a criterion; only the basis matters.","es":""}},{"id":"D","text":{"fr":"","en":"The contribution is outside IAS 12 because it funds a regional fund, not the state budget.","es":""},"correct":false,"feedback":{"fr":"","en":"How the proceeds are used does not affect classification.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000021","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000015","tested_point":"VG.IAS12.000015","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2"],"exercise":{"prompt":{"fr":"","en":"The distributor Corbanis owes a 'territorial equity levy' equal to 0.5% of its gross revenue, payable whether the year is profitable or loss-making (case data). The financial controller proposes including it in income tax expense and computing deferred tax on it. Which analysis should be adopted?","es":""},"explanation":{"fr":"","en":"IAS 12 covers taxes based on taxable profits and withholding taxes on distributions by a subsidiary, associate or joint arrangement (IAS 12, para. 2). A levy computed on gross revenue and payable even when a loss is made has no profit basis: it is neither part of income tax expense nor included in the deferred tax computation. Its treatment falls under other standards.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The proposal is correct: the levy is collected by the tax authorities, so it falls under IAS 12.","es":""},"correct":false,"feedback":{"fr":"","en":"The collector does not classify the tax; only the basis matters.","es":""}},{"id":"B","text":{"fr":"","en":"The levy falls under IAS 12 only for the years in which Corbanis makes a profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The basis does not change with the result: the levy is still computed on revenue.","es":""}},{"id":"C","text":{"fr":"","en":"The levy is not an income tax: with no profit basis, it is outside IAS 12.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The levy falls under IAS 12, but with no deferred tax, like Pillar Two taxes.","es":""},"correct":false,"feedback":{"fr":"","en":"The Pillar Two exception is specific to those taxes; it does not bring a revenue levy within IAS 12.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000022","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000022","tested_point":"QST.IAS12.000022","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Lindomère receives a government grant to finance a press. Under its accounting policy (case data), it deducts the grant from the carrying amount of the press; tax law, however, uses the full cost of the press as its tax base. Which allocation of roles between the standards is correct?","es":""},"explanation":{"fr":"","en":"IAS 12 does not deal with the methods of accounting for government grants, which fall under IAS 20, but it does deal with the temporary differences that such grants may give rise to (IAS 12, para. 4). The gap between the carrying amount of the press, net of the grant, and its tax base therefore falls under IAS 12. The deferred tax consequences of that gap are studied with the initial recognition exception, without being settled here.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 20 governs the accounting for the grant; IAS 12 deals with the temporary difference between the carrying amount of the press and its tax base.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IAS 12 governs both the accounting for the grant and the gap between carrying amount and tax base.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 does not set the method of accounting for the grant.","es":""}},{"id":"C","text":{"fr":"","en":"IAS 20 governs everything, including tax effects: IAS 12 does not apply to subsidised assets.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 expressly deals with the temporary differences arising from grants.","es":""}},{"id":"D","text":{"fr":"","en":"No standard deals with the gap, since it results from the entity's choice of policy.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice of policy falls under IAS 20, but the resulting gap is a temporary difference dealt with by IAS 12.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000023","standard_id":"IAS12","concept_ids":["IAS12.SCOPE.GENERAL","IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000023","tested_point":"QST.IAS12.000023","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §4A","IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"A subsidiary of the Astrenor group is subject, in its country, to a qualified domestic minimum top-up tax arising from enacted Pillar Two legislation. The group's tax specialists have computed the top-up tax due for the year (amount given in the case, not yet paid). How should it be treated in the subsidiary's financial statements?","es":""},"explanation":{"fr":"","en":"IAS 12 applies to taxes arising from enacted Pillar Two legislation, including qualified domestic minimum top-up taxes; as an exception, no deferred tax asset or liability related to those taxes is recognised (IAS 12, para. 4A). The tax due for the year is current tax, recognised as a liability to the extent unpaid (IAS 12, para. 12). The computation of the top-up tax, based on the legislation, is case data.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a provision under the standard on provisions, since the tax is computed under OECD rules.","es":""},"correct":false,"feedback":{"fr":"","en":"These taxes are income taxes within IAS 12, not provisions.","es":""}},{"id":"B","text":{"fr":"","en":"As a deferred tax liability, since the top-up tax depends on the results of other group entities.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception precisely prohibits deferred tax related to Pillar Two taxes.","es":""}},{"id":"C","text":{"fr":"","en":"As an operating expense outside income tax, with no effect on tax expense.","es":""},"correct":false,"feedback":{"fr":"","en":"These taxes are within IAS 12: they are part of income tax expense.","es":""}},{"id":"D","text":{"fr":"","en":"As current tax within IAS 12 (a liability for the unpaid part), with no deferred tax related to Pillar Two.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000024","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000024","tested_point":"QST.IAS12.000024","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"The tax expense for a period is, by definition, equal to the amount of tax paid during that period.","es":""},"explanation":{"fr":"","en":"Tax expense (tax income) is the aggregate amount included in profit or loss for the period in respect of current tax and deferred tax (IAS 12, para. 5; IAS 12, para. 6). The cash paid during the period (instalments, balance for the previous year) is not its measure.","es":""},"common_error":{"fr":"","en":"Confusing tax expense with the tax paid.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000025","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000025","tested_point":"QST.IAS12.000025","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Taxable profit is determined under the rules of the taxation authority; it may therefore differ from accounting profit for the same period.","es":""},"explanation":{"fr":"","en":"Accounting profit is profit or loss for the period before tax expense; taxable profit (tax loss) is determined under the rules of the taxation authority and is the basis on which tax is computed (IAS 12, para. 5). The two amounts differ as soon as tax law adjusts income or expenses.","es":""},"common_error":{"fr":"","en":"Computing tax on accounting profit without tax adjustments.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000026","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000026","tested_point":"QST.IAS12.000026","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Brumelot has recognised as an expense a fine of 40,000, still unpaid at the reporting date; tax law (case data) will never allow it to be deducted. This fine gives rise to a temporary difference.","es":""},"explanation":{"fr":"","en":"A temporary difference is the difference between the carrying amount of an asset or liability and its tax base (IAS 12, para. 5). The tax base of a liability is its carrying amount less amounts deductible in future periods (IAS 12, para. 8): 40,000 − 0 = 40,000, equal to the carrying amount. No difference arises: the permanent non-deductibility affects only taxable profit for the period.","es":""},"common_error":{"fr":"","en":"Calling a permanently non-deductible expense a 'temporary difference'.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000027","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000027","tested_point":"QST.IAS12.000027","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"The tax expense for the period may be lower than the current tax for that same period when the entity recognises deferred tax income in profit or loss.","es":""},"explanation":{"fr":"","en":"Tax expense (tax income) comprises current tax expense and deferred tax expense or income (IAS 12, para. 5; IAS 12, para. 6). Deferred tax income is a reduction: total tax expense is then lower than current tax.","es":""},"common_error":{"fr":"","en":"Believing that deferred tax only ever increases tax expense.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000028","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000028","tested_point":"QST.IAS12.000028","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Under IAS 12, what does accounting profit mean?","es":""},"explanation":{"fr":"","en":"Accounting profit is profit or loss for the period before deducting tax expense (IAS 12, para. 5). It differs from taxable profit, which is determined under the tax rules.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Profit or loss for the period before deducting tax expense.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Profit or loss for the period after deducting income tax expense.","es":""},"correct":false,"feedback":{"fr":"","en":"Accounting profit is measured before tax expense.","es":""}},{"id":"C","text":{"fr":"","en":"The profit used by the tax authorities, before offsetting prior losses.","es":""},"correct":false,"feedback":{"fr":"","en":"This is a tax measure, not accounting profit.","es":""}},{"id":"D","text":{"fr":"","en":"Operating profit, before finance costs and before tax expense.","es":""},"correct":false,"feedback":{"fr":"","en":"Finance costs are part of accounting profit: only tax expense is excluded.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000029","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000029","tested_point":"QST.IAS12.000029","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"What is the current tax for a period?","es":""},"explanation":{"fr":"","en":"Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period (IAS 12, para. 5). Deferred tax and total tax expense are separate notions, as are the payments made during the period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of tax actually paid to the tax authorities during the period, instalments and balances included.","es":""},"correct":false,"feedback":{"fr":"","en":"Payments in the period do not measure current tax: they may relate to another period.","es":""}},{"id":"B","text":{"fr":"","en":"The tax that will be paid in future periods in respect of temporary differences.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the definition of a deferred tax liability.","es":""}},{"id":"C","text":{"fr":"","en":"The amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for the period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The total of current tax and deferred tax recognised in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This is tax expense, which also includes deferred tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000030","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000030","tested_point":"QST.IAS12.000030","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Why is the tax expense for a period not limited to current tax?","es":""},"explanation":{"fr":"","en":"Tax expense comprises current tax expense (income) and deferred tax expense (income) (IAS 12, para. 6). Deferred tax corresponds to the income taxes payable or recoverable in future periods in respect of temporary differences, unused tax losses and unused tax credits (IAS 12, para. 5).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because deferred tax corrects errors in the computation of current tax for prior periods.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax corrections for prior periods are not deferred tax.","es":""}},{"id":"B","text":{"fr":"","en":"Because deferred tax represents the tax penalties likely to be paid if there is a tax audit.","es":""},"correct":false,"feedback":{"fr":"","en":"Possible penalties are not deferred tax.","es":""}},{"id":"C","text":{"fr":"","en":"Because the standard requires tax expense to be smoothed over several years.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 has no smoothing objective: deferred tax reflects future tax consequences.","es":""}},{"id":"D","text":{"fr":"","en":"Because it also includes deferred tax, payable or recoverable in future periods in respect of temporary differences and carryforwards.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000031","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000031","tested_point":"QST.IAS12.000031","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Which description corresponds to a deferred tax liability?","es":""},"explanation":{"fr":"","en":"Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable temporary differences (IAS 12, para. 5). Unpaid current tax is a current tax liability; tax losses carried forward give rise, where applicable, to a deferred tax asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Income taxes payable in future periods in respect of taxable temporary differences.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Current tax for the period still unpaid at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"This is a current tax liability, not a deferred tax liability.","es":""}},{"id":"C","text":{"fr":"","en":"Tax recoverable in respect of tax losses carried forward.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax recoverable on losses carried forward belongs to deferred tax assets.","es":""}},{"id":"D","text":{"fr":"","en":"A provision for a tax reassessment that may be notified following a tax audit.","es":""},"correct":false,"feedback":{"fr":"","en":"A reassessment risk does not correspond to a deferred tax liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000032","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000032","tested_point":"QST.IAS12.000032","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"In respect of which items do income taxes recoverable in future periods constitute deferred tax assets?","es":""},"explanation":{"fr":"","en":"Deferred tax assets are the income taxes recoverable in future periods in respect of deductible temporary differences, the carryforward of unused tax losses and the carryforward of unused tax credits (IAS 12, para. 5). Taxable differences give rise to liabilities; excess instalments are a current tax asset.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Taxable temporary differences.","es":""},"correct":false,"feedback":{"fr":"","en":"Taxable temporary differences give rise to deferred tax liabilities.","es":""}},{"id":"B","text":{"fr":"","en":"Deductible temporary differences.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The carryforward of unused tax losses.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Tax instalments paid in excess of the tax due for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Excess instalments are a current tax asset, not a deferred one.","es":""}},{"id":"E","text":{"fr":"","en":"The carryforward of unused tax credits.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000033","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000033","tested_point":"QST.IAS12.000033","difficulty":"BEGINNER","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Which statements about the definitions in IAS 12 are correct?","es":""},"explanation":{"fr":"","en":"Accounting profit is measured before tax expense; taxable profit follows the tax rules; current tax relates to taxable profit for the period; a temporary difference is the gap between carrying amount and tax base (IAS 12, para. 5). Tax expense comprises current tax and deferred tax (IAS 12, para. 6).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Taxable profit is determined under the rules of the taxation authority.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Accounting profit is measured after deducting tax expense.","es":""},"correct":false,"feedback":{"fr":"","en":"Accounting profit is measured before tax expense.","es":""}},{"id":"C","text":{"fr":"","en":"Current tax is the tax payable (recoverable) in respect of the taxable profit (tax loss) for the period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Tax expense is limited to current tax for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax expense also includes deferred tax.","es":""}},{"id":"E","text":{"fr":"","en":"A temporary difference is the difference between the carrying amount of an asset or liability and its tax base.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000034","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000034","tested_point":"QST.IAS12.000034","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"For Fendral, current tax for the year is 150,000; during the year, a deferred tax liability increased by 20,000 and a deferred tax asset by 5,000, both changes being recognised in profit or loss. Fendral paid instalments of 138,000. Which statements are correct?","es":""},"explanation":{"fr":"","en":"Tax expense comprises current tax and deferred tax recognised in profit or loss (IAS 12, para. 5; IAS 12, para. 6). Deferred component: increase in the liability 20,000 (expense) − increase in the asset 5,000 (income) = net expense of 15,000; tax expense: 150,000 + 15,000 = 165,000. Instalments paid do not measure the expense.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Tax expense for the year is 175,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The increase in the deferred tax asset is income that reduces, not increases, the expense.","es":""}},{"id":"B","text":{"fr":"","en":"Tax expense for the year is 165,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The current component of tax expense is 150,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The net deferred component is an expense of 15,000.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Tax expense for the year equals the instalments paid, i.e. 138,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Payments do not measure tax expense.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000037","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000001","tested_point":"VG.IAS12.000001","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Grenaval has determined current tax of {current_tax} for the year. Its deferred tax liability, arising from accelerated tax depreciation, increased by {dtl_increase}, a change recognised in profit or loss. Compute tax expense for the year.","es":""},"explanation":{"fr":"","en":"Tax expense comprises current tax expense and deferred tax expense (IAS 12, para. 6), i.e. the aggregate amount included in profit or loss for both (IAS 12, para. 5): 126,000 + 18,000 = 144,000.","es":""},"common_error":{"fr":"","en":"Taking current tax alone as tax expense.","es":""},"format":"CALCULATION","placeholders":[{"id":"current_tax","value":"126000","unit":"EUR"},{"id":"dtl_increase","value":"18000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Current tax for the year","es":""},"value":"126000","unit":"EUR"},{"label":{"fr":"","en":"Increase in the deferred tax liability (in profit or loss)","es":""},"value":"18000","unit":"EUR"}],"steps":[{"id":"TAX_EXPENSE","label":{"fr":"","en":"Tax expense for the year","es":""},"answer":144000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAX_EXPENSE","meaning":{"fr":"","en":"Tax expense for the year","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax for the year","es":""},"value":126000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Increase in the deferred tax liability (in profit or loss)","es":""},"value":18000,"unit":"EUR"}],"result":144000,"unit":"EUR","rationale":{"fr":"","en":"Tax expense comprises current tax expense and deferred tax expense (IAS 12, para. 6), i.e. the aggregate amount included in profit or loss for both (IAS 12, para. 5): 126,000 + 18,000 = 144,000.","es":""}}],"references":["REF.IAS12.5","REF.IAS12.6"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000038","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000001","tested_point":"VG.IAS12.000001","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"At the publisher Solmaris, current tax for the year amounts to {current_tax}. A warranty provision, deductible only when payments are made, increased the deferred tax asset by {dta_increase}, recognised in profit or loss. What is tax expense for the year?","es":""},"explanation":{"fr":"","en":"Tax expense comprises current tax and deferred tax expense or income (IAS 12, para. 5; IAS 12, para. 6). The increase in the deferred tax asset is income: 88,000 − 7,500 = 80,500.","es":""},"common_error":{"fr":"","en":"Adding the increase in the deferred tax asset to current tax.","es":""},"format":"CALCULATION","placeholders":[{"id":"current_tax","value":"88000","unit":"EUR"},{"id":"dta_increase","value":"7500","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Current tax for the year","es":""},"value":"88000","unit":"EUR"},{"label":{"fr":"","en":"Increase in the deferred tax asset (in profit or loss)","es":""},"value":"7500","unit":"EUR"}],"steps":[{"id":"TAX_EXPENSE","label":{"fr":"","en":"Tax expense for the year","es":""},"answer":80500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAX_EXPENSE","meaning":{"fr":"","en":"Tax expense for the year","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax for the year","es":""},"value":88000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Increase in the deferred tax asset (in profit or loss)","es":""},"value":7500,"unit":"EUR"}],"result":80500,"unit":"EUR"}],"rationale":{"fr":"","en":"Tax expense comprises current tax and deferred tax expense or income (IAS 12, para. 5; IAS 12, para. 6).","es":""},"references":["REF.IAS12.5","REF.IAS12.6"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000039","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS","IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000039","tested_point":"QST.IAS12.000039","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §6","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Cassevin has current tax of {current_tax}. Its deferred tax liability increased by {dtl_increase_total} in total, of which {dtl_increase_oci} relates to a land revaluation recognised in other comprehensive income (case data); the rest arises from depreciation differences recognised in profit or loss. Compute deferred tax expense in profit or loss and tax expense in profit or loss.","es":""},"explanation":{"fr":"","en":"Tax expense is the amount included in profit or loss for current and deferred tax (IAS 12, para. 5; IAS 12, para. 6). Deferred tax relating to an item recognised outside profit or loss is not recognised in profit or loss (IAS 12, para. 58). Deferred tax expense in profit or loss: 36,000 − 14,000 = 22,000; tax expense in profit or loss: 210,000 + 22,000 = 232,000.","es":""},"common_error":{"fr":"","en":"Adding deferred tax recognised in other comprehensive income to tax expense in profit or loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"current_tax","value":"210000","unit":"EUR"},{"id":"dtl_increase_total","value":"36000","unit":"EUR"},{"id":"dtl_increase_oci","value":"14000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Current tax","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Total increase in the deferred tax liability","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Part relating to the revaluation in other comprehensive income","es":""},"value":"14000","unit":"EUR"}],"steps":[{"id":"DEFERRED_TAX_PL","label":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"answer":22000,"tolerance":0,"unit":"EUR"},{"id":"TAX_EXPENSE","label":{"fr":"","en":"Tax expense in profit or loss","es":""},"answer":232000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_PL","meaning":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total increase in the deferred tax liability","es":""},"value":36000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Part relating to the revaluation in other comprehensive income","es":""},"value":14000,"unit":"EUR"}],"result":22000,"unit":"EUR"},{"step":"TAX_EXPENSE","meaning":{"fr":"","en":"Tax expense in profit or loss","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax","es":""},"value":210000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"value":22000,"unit":"EUR"}],"result":232000,"unit":"EUR"}],"rationale":{"fr":"","en":"Tax expense is the amount included in profit or loss for current and deferred tax (IAS 12, para. 5; IAS 12, para. 6).","es":""},"references":["REF.IAS12.5","REF.IAS12.6","REF.IAS12.58"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000040","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000040","tested_point":"QST.IAS12.000040","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Myrtelle reports accounting profit of {accounting_profit}. Under tax law (case data), the fines recognised, i.e. {non_deductible_fines}, are not deductible, and tax depreciation for the year exceeds accounting depreciation by {excess_tax_depreciation}. Compute taxable profit.","es":""},"explanation":{"fr":"","en":"Taxable profit is determined under the rules of the taxation authority, starting from accounting profit before tax (IAS 12, para. 5). The adjustments are case data: 640,000 + 12,000 − 75,000 = 577,000.","es":""},"common_error":{"fr":"","en":"Subtracting the non-deductible fines instead of adding them back.","es":""},"format":"CALCULATION","placeholders":[{"id":"accounting_profit","value":"640000","unit":"EUR"},{"id":"non_deductible_fines","value":"12000","unit":"EUR"},{"id":"excess_tax_depreciation","value":"75000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Accounting profit","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Non-deductible fines","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Excess of tax depreciation over accounting depreciation","es":""},"value":"75000","unit":"EUR"}],"steps":[{"id":"TAXABLE_PROFIT","label":{"fr":"","en":"Taxable profit","es":""},"answer":577000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAXABLE_PROFIT","meaning":{"fr":"","en":"Taxable profit","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accounting profit","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Non-deductible fines","es":""},"value":12000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Excess of tax depreciation over accounting depreciation","es":""},"value":75000,"unit":"EUR"}],"result":577000,"unit":"EUR"}],"rationale":{"fr":"","en":"Taxable profit is determined under the rules of the taxation authority, starting from accounting profit before tax (IAS 12, para. 5).","es":""},"references":["REF.IAS12.5"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000041","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000041","tested_point":"QST.IAS12.000041","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §7"],"exercise":{"prompt":{"fr":"","en":"The tax base of an asset is the amount that will be deductible for tax purposes against the taxable economic benefits the entity will obtain when it recovers the carrying amount of that asset.","es":""},"explanation":{"fr":"","en":"This is the definition of the tax base of an asset; if those benefits are not taxable, the tax base equals the carrying amount (IAS 12, para. 7).","es":""},"common_error":{"fr":"","en":"Confusing the tax base with the carrying amount of the asset.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000042","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000042","tested_point":"QST.IAS12.000042","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §7"],"exercise":{"prompt":{"fr":"","en":"Where the economic benefits that an asset will generate will not be taxable, the tax base of that asset is nil.","es":""},"explanation":{"fr":"","en":"If the economic benefits from recovering an asset are not taxable, its tax base equals its carrying amount (IAS 12, para. 7): recovery then has no tax consequences and creates no temporary difference.","es":""},"common_error":{"fr":"","en":"Giving a nil tax base to an asset whose recovery is not taxable.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000043","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000043","tested_point":"QST.IAS12.000043","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §9"],"exercise":{"prompt":{"fr":"","en":"Research costs recognised as an expense under IAS 38, but which tax law allows to be deducted over the following years, have a tax base even though no asset is recognised.","es":""},"explanation":{"fr":"","en":"Some items have a tax base but are not recognised as assets: this is the case for research costs expensed under IAS 38 and deductible for tax over several periods. The difference between their tax base (the amount still deductible) and a nil carrying amount is a deductible temporary difference that gives rise to a deferred tax asset (IAS 12, para. 9).","es":""},"common_error":{"fr":"","en":"Omitting research costs deductible over time because no asset is recognised.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000044","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000044","tested_point":"QST.IAS12.000044","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Revenue received in advance, taxed when received, has a tax base equal to its carrying amount.","es":""},"explanation":{"fr":"","en":"For revenue received in advance, the tax base is the carrying amount less any revenue that will not be taxable in future periods (IAS 12, para. 8). Already taxed on receipt, the revenue will not be taxed again: the whole amount is non-taxable in the future and the tax base is nil.","es":""},"common_error":{"fr":"","en":"Using the carrying amount as the tax base of revenue already taxed.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000045","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000045","tested_point":"QST.IAS12.000045","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §7"],"exercise":{"prompt":{"fr":"","en":"Pernelle holds a trade receivable of 90,000. The related revenue has already been included in its taxable profit, so the collection will not be taxed (case data). What is the tax base of the receivable?","es":""},"explanation":{"fr":"","en":"Where the economic benefits obtained by recovering an asset are not taxable, the tax base of the asset equals its carrying amount (IAS 12, para. 7). As the collection of the receivable is not taxed, its tax base is 90,000: no temporary difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"90,000, equal to the carrying amount.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nil, since the collection will not give rise to any tax deduction.","es":""},"correct":false,"feedback":{"fr":"","en":"A nil base would mean the collection is taxed with no deduction.","es":""}},{"id":"C","text":{"fr":"","en":"The amount of tax already paid on that revenue.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base is an amount attributed to the asset, not an amount of tax.","es":""}},{"id":"D","text":{"fr":"","en":"Nil until the customer pays, then 90,000 on collection.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base does not depend on the customer's payment date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000046","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000046","tested_point":"QST.IAS12.000046","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Castellane has recognised an accrual of 36,000 for professional fees, which tax law will deduct only when paid, next year (case data). What is the tax base of this liability?","es":""},"explanation":{"fr":"","en":"The tax base of a liability is its carrying amount less any amount that will be deductible for tax purposes in respect of that liability in future periods (IAS 12, para. 8): 36,000 − 36,000 = 0.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"36,000, the amount that will be deducted on payment.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the amount deductible in the future, not the tax base: it must be deducted from the carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"Nil.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"36,000 multiplied by the applicable tax rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base is not an amount of tax.","es":""}},{"id":"D","text":{"fr":"","en":"36,000, since a liability always has a tax base equal to its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"A liability has a tax base equal to its carrying amount only if its payment is not deductible.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000047","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000047","tested_point":"QST.IAS12.000047","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Ivrandel has borrowed 500,000 from a bank; under tax law (case data), repaying the principal will have no tax consequences. What is the tax base of the loan?","es":""},"explanation":{"fr":"","en":"The tax base of a liability is its carrying amount less amounts deductible in respect of that liability in future periods (IAS 12, para. 8). As the repayment is not deductible, nothing is deducted: 500,000 − 0 = 500,000, with no temporary difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nil, because a loan is never taken into account by the tax authorities.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base derives from the carrying amount and future deductions, not from any overall recognition.","es":""}},{"id":"B","text":{"fr":"","en":"500,000 multiplied by the tax rate, i.e. the tax saving linked to the repayment.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base is not an amount of tax.","es":""}},{"id":"C","text":{"fr":"","en":"Nil, because repayment of the principal is not deductible.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: with no future deduction, nothing is deducted from the carrying amount.","es":""}},{"id":"D","text":{"fr":"","en":"500,000, equal to the carrying amount.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000048","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000048","tested_point":"QST.IAS12.000048","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"For an unusual asset, Corlanne's tax team cannot directly identify its tax base. What approach does IAS 12 suggest?","es":""},"explanation":{"fr":"","en":"Where the tax base is not immediately apparent, it is helpful to go back to the fundamental principle: with limited exceptions, a deferred tax liability (asset) is recognised whenever recovery or settlement of the carrying amount would make future tax payments larger (smaller) than if it had no tax consequences (IAS 12, para. 10). Analysing the legislation remains a judgement to be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use a nil tax base by default, which maximises deferred tax for prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"A nil base by default has no basis; prudence is not the criterion.","es":""}},{"id":"B","text":{"fr":"","en":"Go back to the fundamental principle: ask whether recovering the carrying amount will make future tax payments larger or smaller.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Use a tax base equal to the carrying amount by default and recognise no deferred tax.","es":""},"correct":false,"feedback":{"fr":"","en":"A base equal to the carrying amount by default may ignore real tax consequences.","es":""}},{"id":"D","text":{"fr":"","en":"Wait for the first tax audit to learn the authorities' position.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 requires the expected tax consequences to be analysed at the reporting date, without waiting for an audit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000049","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000049","tested_point":"QST.IAS12.000049","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §9"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, which of the following items of Bérondel have a positive tax base even though no asset is recognised? (Tax treatments: case data.)","es":""},"explanation":{"fr":"","en":"Some items have a tax base but are not recognised as assets, such as research costs expensed but deductible in future periods (IAS 12, para. 9). The same applies to start-up costs that tax law spreads. An expense that is never deductible has no tax base, and a machine fully depreciated on both sides has nothing left to deduct.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Research costs expensed, deductible for tax in thirds over the next three years.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A fine expensed and paid, permanently non-deductible.","es":""},"correct":false,"feedback":{"fr":"","en":"An expense that is never deductible leaves nothing deductible in the future.","es":""}},{"id":"C","text":{"fr":"","en":"Start-up costs expensed, which tax law spreads over the next two years.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A machine fully depreciated, both for accounting and for tax.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing is deductible any more: nil tax base, like the carrying amount.","es":""}},{"id":"E","text":{"fr":"","en":"Entertainment costs expensed and never deductible.","es":""},"correct":false,"feedback":{"fr":"","en":"An expense that is never deductible has no tax base.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000050","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000050","tested_point":"QST.IAS12.000050","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Which statements about temporary differences in consolidated financial statements are correct?","es":""},"explanation":{"fr":"","en":"In consolidated financial statements, temporary differences are determined by comparing the consolidated carrying amounts with tax bases, determined by reference to a consolidated tax return where one is filed, otherwise to the returns of each group entity (IAS 12, para. 11). Whether a consolidated return exists is tax case data.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The tax bases are always those of the parent's tax return.","es":""},"correct":false,"feedback":{"fr":"","en":"A subsidiary taxed separately has its own tax bases.","es":""}},{"id":"B","text":{"fr":"","en":"Consolidated carrying amounts are compared with tax bases.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Where a consolidated tax return is filed, tax bases are determined by reference to it.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Subsidiaries' tax bases are eliminated like intragroup transactions.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax bases are not eliminated: they come from the relevant returns.","es":""}},{"id":"E","text":{"fr":"","en":"In the absence of a consolidated return, the tax returns of each group entity are used.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000051","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000051","tested_point":"QST.IAS12.000051","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Fauvelle holds an asset whose tax base is not immediately apparent. Which lines of reasoning are consistent with IAS 12?","es":""},"explanation":{"fr":"","en":"Where the tax base is not apparent, one goes back to the fundamental principle: a deferred tax liability (asset) is recognised whenever recovery or settlement of the carrying amount would make future tax payments larger (smaller) than if it had no tax consequences, with limited exceptions (IAS 12, para. 10). No default base is provided.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Using a nil tax base by default, for lack of information.","es":""},"correct":false,"feedback":{"fr":"","en":"No default base is provided; a nil base may overstate deferred tax.","es":""}},{"id":"B","text":{"fr":"","en":"Asking whether recovering the carrying amount will make future tax payments larger than if it had no tax consequences.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Using a base equal to the carrying amount by default, which removes any deferred tax.","es":""},"correct":false,"feedback":{"fr":"","en":"No default base is provided; this choice may hide a real tax consequence.","es":""}},{"id":"D","text":{"fr":"","en":"If future payments will be larger, recognising a deferred tax liability, with limited exceptions.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000052","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000003","tested_point":"VG.IAS12.000003","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §7","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Loubreuil acquired a machine for {tax_cost}, a cost recognised by the tax authorities. At the reporting date, tax law has already allowed it to deduct {tax_depreciation_to_date} (case data); the carrying amount of the machine is {carrying_amount}. Compute the tax base and the difference between carrying amount and tax base.","es":""},"explanation":{"fr":"","en":"The tax base of an asset is the amount that will remain deductible against future taxable benefits (IAS 12, para. 7): 480,000 − 192,000 = 288,000. The temporary difference is the gap between carrying amount and tax base (IAS 12, para. 5): 336,000 − 288,000 = 48,000.","es":""},"common_error":{"fr":"","en":"Deducting accounting depreciation instead of tax depreciation.","es":""},"format":"CALCULATION","placeholders":[{"id":"tax_cost","value":"480000","unit":"EUR"},{"id":"tax_depreciation_to_date","value":"192000","unit":"EUR"},{"id":"carrying_amount","value":"336000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Tax cost of the machine","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Tax depreciation already deducted","es":""},"value":"192000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount","es":""},"value":"336000","unit":"EUR"}],"steps":[{"id":"TAX_BASE","label":{"fr":"","en":"Tax base","es":""},"answer":288000,"tolerance":0,"unit":"EUR"},{"id":"TEMPORARY_DIFFERENCE","label":{"fr":"","en":"Temporary difference (carrying amount − tax base)","es":""},"answer":48000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAX_BASE","meaning":{"fr":"","en":"Tax base","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax cost of the machine","es":""},"value":480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax depreciation already deducted","es":""},"value":192000,"unit":"EUR"}],"result":288000,"unit":"EUR","rationale":{"fr":"","en":"The tax base of an asset is the amount that will remain deductible against future taxable benefits (IAS 12, para. 7): 480,000 − 192,000 = 288,000.","es":""}},{"step":"TEMPORARY_DIFFERENCE","meaning":{"fr":"","en":"Temporary difference (carrying amount − tax base)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":336000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base","es":""},"value":288000,"unit":"EUR"}],"result":48000,"unit":"EUR","rationale":{"fr":"","en":"The temporary difference is the gap between carrying amount and tax base (IAS 12, para. 5): 336,000 − 288,000 = 48,000.","es":""}}],"references":["REF.IAS12.7","REF.IAS12.5"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000053","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000003","tested_point":"VG.IAS12.000003","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §7","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Management software bought for {tax_cost} by the Valquirin cooperative is amortised faster for tax than for accounting: {tax_amortisation_to_date} has already been deducted for tax, while its carrying amount is still {carrying_amount} (case data). What are its tax base and the related temporary difference?","es":""},"explanation":{"fr":"","en":"Tax base = amount still deductible (IAS 12, para. 7): 150,000 − 90,000 = 60,000. Temporary difference = carrying amount − tax base (IAS 12, para. 5): 75,000 − 60,000 = 15,000.","es":""},"common_error":{"fr":"","en":"Taking the original cost as the tax base.","es":""},"format":"CALCULATION","placeholders":[{"id":"tax_cost","value":"150000","unit":"EUR"},{"id":"tax_amortisation_to_date","value":"90000","unit":"EUR"},{"id":"carrying_amount","value":"75000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Tax cost of the software","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Tax amortisation already deducted","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount","es":""},"value":"75000","unit":"EUR"}],"steps":[{"id":"TAX_BASE","label":{"fr":"","en":"Tax base","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"TEMPORARY_DIFFERENCE","label":{"fr":"","en":"Temporary difference (carrying amount − tax base)","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAX_BASE","meaning":{"fr":"","en":"Tax base","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax cost of the software","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax amortisation already deducted","es":""},"value":90000,"unit":"EUR"}],"result":60000,"unit":"EUR"},{"step":"TEMPORARY_DIFFERENCE","meaning":{"fr":"","en":"Temporary difference (carrying amount − tax base)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":75000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base","es":""},"value":60000,"unit":"EUR"}],"result":15000,"unit":"EUR","rationale":{"fr":"","en":"Temporary difference = carrying amount − tax base (IAS 12, para. 5): 75,000 − 60,000 = 15,000.","es":""}}],"references":["REF.IAS12.7","REF.IAS12.5"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000054","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000004","tested_point":"VG.IAS12.000004","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"The Ostrivane training centre collected {revenue_in_advance} in December for courses to be held next year; the revenue is recognised as a liability. Tax law (case data) taxes these amounts when received. Compute the tax base of the revenue received in advance and the gap with its carrying amount.","es":""},"explanation":{"fr":"","en":"For revenue received in advance, the tax base is the carrying amount less any revenue that will not be taxable in future periods (IAS 12, para. 8). Taxed on receipt, the amount will not be taxed again: 60,000 − 60,000 = 0. Gap (IAS 12, para. 5): 60,000 − 0 = 60,000.","es":""},"common_error":{"fr":"","en":"Using the carrying amount as the tax base of revenue already taxed.","es":""},"format":"CALCULATION","placeholders":[{"id":"revenue_in_advance","value":"60000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Revenue received in advance (carrying amount)","es":""},"value":"60000","unit":"EUR"}],"steps":[{"id":"TAX_BASE","label":{"fr":"","en":"Tax base","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"TEMPORARY_DIFFERENCE","label":{"fr":"","en":"Temporary difference (carrying amount − tax base)","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TEMPORARY_DIFFERENCE","meaning":{"fr":"","en":"Temporary difference (carrying amount − tax base)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revenue received in advance (carrying amount)","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base","es":""},"value":0,"unit":"EUR"}],"result":60000,"unit":"EUR"}],"rationale":{"fr":"","en":"For revenue received in advance, the tax base is the carrying amount less any revenue that will not be taxable in future periods (IAS 12, para. 8).","es":""},"references":["REF.IAS12.8","REF.IAS12.5"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000055","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000004","tested_point":"VG.IAS12.000004","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"The magazine publisher Tervaline received {revenue_in_advance} of subscriptions covering next year, recognised as a liability. In its country, tax law (case data) taxes these subscriptions only when the revenue is recognised in profit or loss. What are the tax base of this liability and the temporary difference?","es":""},"explanation":{"fr":"","en":"Tax base of revenue received in advance = carrying amount − revenue not taxable in the future (IAS 12, para. 8). Here the whole amount will be taxed in the future: 45,000 − 0 = 45,000. Gap (IAS 12, para. 5): 45,000 − 45,000 = 0.","es":""},"common_error":{"fr":"","en":"Using a nil tax base without checking when the revenue is taxed.","es":""},"format":"CALCULATION","placeholders":[{"id":"revenue_in_advance","value":"45000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Subscriptions received in advance (carrying amount)","es":""},"value":"45000","unit":"EUR"}],"steps":[{"id":"TAX_BASE","label":{"fr":"","en":"Tax base","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"TEMPORARY_DIFFERENCE","label":{"fr":"","en":"Temporary difference (carrying amount − tax base)","es":""},"answer":0,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000056","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000056","tested_point":"QST.IAS12.000056","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Hautmarel's accrued expenses amount to {accrued_expenses} at the reporting date. Under tax law (case data), {deductible_on_payment} will be deductible only on payment; the rest has already been deducted for the year. Compute the tax base of these accrued expenses.","es":""},"explanation":{"fr":"","en":"The tax base of a liability is its carrying amount less amounts deductible in respect of that liability in future periods (IAS 12, para. 8): 52,000 − 20,000 = 32,000. The part already deducted is not subtracted, since it will not be deducted again.","es":""},"common_error":{"fr":"","en":"Using the amount deductible in the future (20,000) as the tax base.","es":""},"format":"CALCULATION","placeholders":[{"id":"accrued_expenses","value":"52000","unit":"EUR"},{"id":"deductible_on_payment","value":"20000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Accrued expenses (carrying amount)","es":""},"value":"52000","unit":"EUR"},{"label":{"fr":"","en":"Amount deductible on future payment","es":""},"value":"20000","unit":"EUR"}],"steps":[{"id":"TAX_BASE","label":{"fr":"","en":"Tax base","es":""},"answer":32000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAX_BASE","meaning":{"fr":"","en":"Tax base","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accrued expenses (carrying amount)","es":""},"value":52000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Amount deductible on future payment","es":""},"value":20000,"unit":"EUR"}],"result":32000,"unit":"EUR","rationale":{"fr":"","en":"The tax base of a liability is its carrying amount less amounts deductible in respect of that liability in future periods (IAS 12, para. 8): 52,000 − 20,000 = 32,000.","es":""}}],"references":["REF.IAS12.8"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000057","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000057","tested_point":"QST.IAS12.000057","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §9"],"exercise":{"prompt":{"fr":"","en":"The Quintaverne laboratory expensed {research_costs} of research costs under IAS 38. Tax law (case data) spreads their deduction over three years; {deducted_this_year} was deducted this year. At the reporting date, what are the tax base of these costs and their carrying amount?","es":""},"explanation":{"fr":"","en":"These costs have a tax base but are not recognised as an asset: the tax base is the amount the authorities will allow to be deducted later, i.e. 90,000 − 30,000 = 60,000, against a nil carrying amount. The gap is a deductible temporary difference that gives rise to a deferred tax asset (IAS 12, para. 9).","es":""},"common_error":{"fr":"","en":"Ignoring these costs because no asset is recognised.","es":""},"format":"CALCULATION","placeholders":[{"id":"research_costs","value":"90000","unit":"EUR"},{"id":"deducted_this_year","value":"30000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Research costs expensed","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Amount deducted this year","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"TAX_BASE","label":{"fr":"","en":"Tax base at the reporting date","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Carrying amount at the reporting date","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAX_BASE","meaning":{"fr":"","en":"Tax base at the reporting date","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Research costs expensed","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Amount deducted this year","es":""},"value":30000,"unit":"EUR"}],"result":60000,"unit":"EUR"}],"rationale":{"fr":"","en":"The gap is a deductible temporary difference that gives rise to a deferred tax asset (IAS 12, para. 9).","es":""},"references":["REF.IAS12.9"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000058","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000058","tested_point":"QST.IAS12.000058","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"Mérandol has recognised a litigation provision of 70,000, deductible for tax only when paid (case data). In its tax base schedule, the accountant shows a tax base of 70,000 for this provision, 'the amount that will be deducted'. Where is the error?","es":""},"explanation":{"fr":"","en":"The tax base of a liability is its carrying amount less amounts deductible in respect of that liability in future periods (IAS 12, para. 8): 70,000 − 70,000 = 0. The accountant entered the deductible amount itself, instead of subtracting it from the carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"There is no error: the tax base of a liability is the amount that will be deductible.","es":""},"correct":false,"feedback":{"fr":"","en":"That is precisely the error: the deductible amount is subtracted from the carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"The tax base is the carrying amount less future deductions, i.e. nil, not 70,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A provision has no tax base: it should simply not appear in the tax base schedule.","es":""},"correct":false,"feedback":{"fr":"","en":"A liability always has a tax base, possibly nil; it must appear in the schedule.","es":""}},{"id":"D","text":{"fr":"","en":"The tax base should have been 70,000 multiplied by the tax rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base is not an amount of tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000059","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000059","tested_point":"QST.IAS12.000059","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §7"],"exercise":{"prompt":{"fr":"","en":"Rivelane has recognised a dividend receivable of 120,000; tax law (case data) fully exempts this dividend. The accountant uses a nil tax base and derives a temporary difference of 120,000. What is the error?","es":""},"explanation":{"fr":"","en":"Where the economic benefits from recovering an asset are not taxable, the tax base of the asset equals its carrying amount (IAS 12, para. 7): 120,000. As the collection has no tax consequences, no temporary difference arises.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: an asset whose recovery gives no deduction has a nil tax base.","es":""},"correct":false,"feedback":{"fr":"","en":"A nil base applies to a taxable recovery with no deduction, not to an exempt recovery.","es":""}},{"id":"B","text":{"fr":"","en":"The temporary difference should have been computed on the dividend net of tax.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no temporary difference: nothing is to be computed on a net amount.","es":""}},{"id":"C","text":{"fr":"","en":"As the benefits are not taxable, the tax base equals the carrying amount: there is no temporary difference.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The dividend receivable should have been excluded from the statement of financial position until collected.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognising the dividend is not at issue: only the tax base is wrong.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000060","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000060","tested_point":"QST.IAS12.000060","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"For its consolidated financial statements, the Aubrelin group computes the temporary differences on a warehouse of its foreign subsidiary, which is taxed separately (no consolidated return: case data). It uses as tax base the one the warehouse would have under the law of the parent's country. What is the error?","es":""},"explanation":{"fr":"","en":"In consolidated financial statements, temporary differences compare consolidated carrying amounts with tax bases, determined by reference to a consolidated return where one is filed, otherwise to the returns of each group entity (IAS 12, para. 11). As the subsidiary is taxed separately, its own return sets the tax base of the warehouse.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The carrying amount of the warehouse in the subsidiary's separate accounts should have been used.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount to use is the consolidated one; the error concerns the tax base.","es":""}},{"id":"B","text":{"fr":"","en":"There is no error: on consolidation, the parent's law applies to the whole group.","es":""},"correct":false,"feedback":{"fr":"","en":"The parent's law does not apply to a subsidiary taxed abroad.","es":""}},{"id":"C","text":{"fr":"","en":"Temporary differences of foreign subsidiaries are not computed in consolidated financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"Differences of foreign subsidiaries are indeed computed on consolidation.","es":""}},{"id":"D","text":{"fr":"","en":"The tax base must be determined by reference to the subsidiary's tax return, as it is taxed separately.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000061","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000002","tested_point":"VG.IAS12.000002","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The Calvereau group and its three domestic subsidiaries are under a tax consolidation regime: a single consolidated return is filed by the parent (case data). For a machine held by one of the subsidiaries, how is the tax base used in the consolidated financial statements determined?","es":""},"explanation":{"fr":"","en":"In consolidated financial statements, tax bases are determined by reference to a consolidated tax return where one is filed, otherwise to the returns of each entity (IAS 12, para. 11). Here a consolidated return exists: it is the reference for the subsidiary's machine.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By reference to the consolidated return filed for the tax group.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"By reference to the separate return the subsidiary would file if it were taxed alone.","es":""},"correct":false,"feedback":{"fr":"","en":"A hypothetical separate return is not the reference when a consolidated return exists.","es":""}},{"id":"C","text":{"fr":"","en":"By using the carrying amount of the machine in the consolidated financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"The consolidated carrying amount is compared with the tax base; it does not replace it.","es":""}},{"id":"D","text":{"fr":"","en":"By using the average of the tax bases of the subsidiary and of the parent.","es":""},"correct":false,"feedback":{"fr":"","en":"No average is provided: the relevant return is used.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000062","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000062","tested_point":"QST.IAS12.000062","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §7","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Sorbière has lent 400,000 to a distributor. At the reporting date, it has recognised 24,000 of accrued interest receivable. Under tax law (case data), interest is taxed when received and repayment of the principal has no tax consequences. Which analysis of the tax bases should be adopted?","es":""},"explanation":{"fr":"","en":"The tax base of an asset is the amount deductible against the taxable benefits its recovery will generate; if those benefits are not taxable, it equals the carrying amount (IAS 12, para. 7). The interest will be taxed with no deduction: nil base, and its recovery will increase future tax payments, which leads to a deferred tax liability under the fundamental principle (IAS 12, para. 10). Repayment of the principal is not taxed: base of 400,000, equal to the carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Interest receivable: nil base; loan: base of 400,000. Only the interest will increase future tax payments.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Interest receivable and loan: bases equal to their carrying amounts, with no future tax consequences.","es":""},"correct":false,"feedback":{"fr":"","en":"The interest will be taxed when received: its base does not equal its carrying amount.","es":""}},{"id":"C","text":{"fr":"","en":"Interest receivable: base of 24,000; loan: nil base, since repayment is not deductible.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: the interest, taxed with no deduction, has a nil base; the loan, not taxed, has a base equal to its carrying amount.","es":""}},{"id":"D","text":{"fr":"","en":"An overall tax base of 424,000 × tax rate for the loan and interest together.","es":""},"correct":false,"feedback":{"fr":"","en":"Each asset has its own tax base, which is not an amount of tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000063","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000063","tested_point":"QST.IAS12.000063","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8"],"exercise":{"prompt":{"fr":"","en":"The equipment hirer Brissange has received 15,000 of security deposits from customers, recognised as liabilities and repayable at the end of the contracts. Under tax law (case data), these deposits are neither taxed when received nor deductible when repaid. Which conclusion should be adopted?","es":""},"explanation":{"fr":"","en":"The tax base of a liability is its carrying amount less amounts deductible in respect of that liability in future periods (IAS 12, para. 8). As the repayment is not deductible, nothing is subtracted: 15,000 − 0 = 15,000, with no temporary difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nil tax base, since the deposits will never be deductible: temporary difference of 15,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No future deduction means nothing is subtracted, not a nil base.","es":""}},{"id":"B","text":{"fr":"","en":"Tax base equal to 15,000 multiplied by the tax rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base is not an amount of tax.","es":""}},{"id":"C","text":{"fr":"","en":"Tax base of 15,000, equal to the carrying amount: no temporary difference.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The deposits are not liabilities for tax purposes: they have no tax base.","es":""},"correct":false,"feedback":{"fr":"","en":"Every recognised liability has a tax base, possibly equal to its carrying amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000064","standard_id":"IAS12","concept_ids":["IAS12.DEFINITIONS.TAX_BASE"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000002","tested_point":"VG.IAS12.000002","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"In the Escandor group, the North subsidiary, which had acquired land for 500,000, sold it for 650,000 to the South subsidiary. Both subsidiaries are taxed separately, with no consolidated return; in South's return, the tax base of the land is 650,000 (case data). On consolidation, the intragroup gain is eliminated. Which temporary difference arises in the consolidated financial statements?","es":""},"explanation":{"fr":"","en":"On consolidation, temporary differences compare consolidated carrying amounts with tax bases taken, in the absence of a consolidated return, from the return of the entity holding the asset (IAS 12, para. 11; IAS 12, para. 5). Consolidated carrying amount: 500,000; tax base in South's return: 650,000; temporary difference: 150,000, the tax base exceeding the carrying amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, since the intragroup gain was eliminated on consolidation.","es":""},"correct":false,"feedback":{"fr":"","en":"Eliminating the gain reduces the consolidated carrying amount, but not South's tax base.","es":""}},{"id":"B","text":{"fr":"","en":"A difference of 150,000 in South's separate accounts, then eliminated on consolidation.","es":""},"correct":false,"feedback":{"fr":"","en":"In South's accounts, carrying amount and tax base are both 650,000: the difference arises only on consolidation, where it is not eliminated.","es":""}},{"id":"C","text":{"fr":"","en":"A difference of 150,000 between the consolidated carrying amount (500,000) and South's tax base (650,000).","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"None, because the tax base to use is the original cost borne by North.","es":""},"correct":false,"feedback":{"fr":"","en":"The relevant tax base is the one in South's return, not North's cost.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000065","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000065","tested_point":"QST.IAS12.000065","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, the part of current tax for the period that has not yet been paid is recognised as a liability.","es":""},"explanation":{"fr":"","en":"Current tax for current and prior periods is recognised as a liability to the extent unpaid (IAS 12, para. 12).","es":""},"common_error":{"fr":"","en":"Waiting for the payment date to recognise the period's tax.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000066","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000066","tested_point":"QST.IAS12.000066","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"Where the instalments paid for the period exceed current tax for that period, the excess is recognised as an expense.","es":""},"explanation":{"fr":"","en":"If the amount already paid in respect of current and prior periods exceeds the amount due, the excess is recognised as an asset (IAS 12, para. 12): it is a current tax receivable, not an expense.","es":""},"common_error":{"fr":"","en":"Expensing excess instalments.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000067","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000067","tested_point":"QST.IAS12.000067","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §13","IAS 12 §14"],"exercise":{"prompt":{"fr":"","en":"The benefit of a tax loss carried back against the tax of a prior period is recognised only when the tax authorities refund the tax.","es":""},"explanation":{"fr":"","en":"The benefit relating to a tax loss that can be carried back to recover current tax of a prior period is recognised as an asset (IAS 12, para. 13), in the period in which the loss occurs, since the benefit is then probable and can be reliably measured (IAS 12, para. 14).","es":""},"common_error":{"fr":"","en":"Waiting for the refund before recognising the carryback asset.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000068","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000068","tested_point":"QST.IAS12.000068","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"Current tax for the period is measured using the tax rates and tax laws enacted or substantively enacted by the end of the reporting period.","es":""},"explanation":{"fr":"","en":"Current tax liabilities (assets) for current and prior periods are measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates and laws enacted or substantively enacted by the end of the reporting period (IAS 12, para. 46).","es":""},"common_error":{"fr":"","en":"Applying a rate that is merely proposed, neither enacted nor substantively enacted at the reporting date.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000069","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000069","tested_point":"QST.IAS12.000069","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"On what amount is the current tax for a period computed?","es":""},"explanation":{"fr":"","en":"Current tax is the tax payable (recoverable) in respect of the taxable profit (tax loss) for the period, determined under the tax rules (IAS 12, para. 5). It is recognised as a liability to the extent unpaid (IAS 12, para. 12).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On accounting profit for the period, before tax expense.","es":""},"correct":false,"feedback":{"fr":"","en":"Accounting profit is the starting point, but the tax is levied on taxable profit.","es":""}},{"id":"B","text":{"fr":"","en":"On taxable profit for the period.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"On revenue collected during the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Revenue is not the basis of income tax.","es":""}},{"id":"D","text":{"fr":"","en":"On the change in cash for the period, adjusted for dividends.","es":""},"correct":false,"feedback":{"fr":"","en":"Cash is not the basis of income tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000070","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000070","tested_point":"QST.IAS12.000070","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"For Lanvérac, the tax rate applicable to profits for the year ended 31 December 20X5 is 28%. In February 20X6, before the financial statements are authorised, Parliament adopts a 25% rate applicable retroactively to 20X5 profits; at 31 December 20X5, this law was neither enacted nor substantively enacted (case data). Which rate should be used for 20X5 current tax?","es":""},"explanation":{"fr":"","en":"Current tax is measured using the tax rates and laws enacted or substantively enacted by the end of the reporting period (IAS 12, para. 46). At 31 December 20X5, only the 28% rate is enacted: it applies. The legislative status of the new rate at the reporting date is case data.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"28%, the rate enacted at the reporting date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"25%, since this rate applies to 20X5 profits.","es":""},"correct":false,"feedback":{"fr":"","en":"The new rate was neither enacted nor substantively enacted at the reporting date.","es":""}},{"id":"C","text":{"fr":"","en":"The average of the two rates, i.e. 26.5%, to reflect the uncertainty.","es":""},"correct":false,"feedback":{"fr":"","en":"No average is provided: the rate enacted or substantively enacted at the reporting date is used.","es":""}},{"id":"D","text":{"fr":"","en":"The rate in force at the date the tax balance is paid.","es":""},"correct":false,"feedback":{"fr":"","en":"The payment date is not the reference date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000071","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000071","tested_point":"QST.IAS12.000071","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §13","IAS 12 §14"],"exercise":{"prompt":{"fr":"","en":"In 20X5, Pradomir incurs a tax loss which the law (case data) allows it to carry back against its 20X4 taxable profit, with a refund of the tax paid. When does it recognise the related asset?","es":""},"explanation":{"fr":"","en":"The benefit of a tax loss that can be carried back to recover current tax of a prior period is recognised as an asset (IAS 12, para. 13) in the period in which the loss occurs, since the benefit is then probable and can be reliably measured (IAS 12, para. 14).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In 20X6, when the tax authorities actually refund the tax.","es":""},"correct":false,"feedback":{"fr":"","en":"Waiting for the refund wrongly delays recognition of the asset.","es":""}},{"id":"B","text":{"fr":"","en":"When the 20X5 return is filed, if this happens after the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The filing date of the return does not drive recognition.","es":""}},{"id":"C","text":{"fr":"","en":"In the 20X5 financial statements, the period in which the tax loss occurs.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Never: the benefit is only disclosed in the notes until the refund.","es":""},"correct":false,"feedback":{"fr":"","en":"The benefit is recognised as an asset, not merely disclosed in the notes.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000072","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000072","tested_point":"QST.IAS12.000072","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"Ormessan paid instalments of 210,000 for the year; current tax for the year amounts to 190,000. What does it present at the reporting date in respect of this tax?","es":""},"explanation":{"fr":"","en":"If the amount already paid in respect of the period exceeds the amount due, the excess is recognised as an asset (IAS 12, para. 12): 210,000 − 190,000 = 20,000 of current tax asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A current tax liability of 190,000 and an additional expense of 20,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The instalments have already settled the tax due; the excess is not an expense.","es":""}},{"id":"B","text":{"fr":"","en":"A current tax asset of 20,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No balance: the excess is closed out through the year's profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The excess remains a receivable from the authorities, not an item of profit or loss.","es":""}},{"id":"D","text":{"fr":"","en":"A current tax liability of 20,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The direction is reversed: the entity overpaid, so it holds an asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000073","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000006","tested_point":"VG.IAS12.000006","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §46","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Tavernol makes an accounting profit of {accounting_profit}. Tax law (case data) requires {add_backs} of non-deductible expenses to be added back and allows {deductions} of exempt income to be deducted. The rate enacted at the reporting date is {tax_rate}%. Compute taxable profit and current tax.","es":""},"explanation":{"fr":"","en":"Taxable profit is determined under the tax rules (IAS 12, para. 5): 455,000 + 37,000 − 12,000 = 480,000. Current tax is measured using the rate enacted or substantively enacted at the reporting date (IAS 12, para. 46): 480,000 × 25% = 120,000.","es":""},"common_error":{"fr":"","en":"Applying the rate to accounting profit without tax adjustments.","es":""},"format":"CALCULATION","placeholders":[{"id":"accounting_profit","value":"455000","unit":"EUR"},{"id":"add_backs","value":"37000","unit":"EUR"},{"id":"deductions","value":"12000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Accounting profit","es":""},"value":"455000","unit":"EUR"},{"label":{"fr":"","en":"Add-backs","es":""},"value":"37000","unit":"EUR"},{"label":{"fr":"","en":"Deductions","es":""},"value":"12000","unit":"EUR"},{"label":{"fr":"","en":"Enacted tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"TAXABLE_PROFIT","label":{"fr":"","en":"Taxable profit","es":""},"answer":480000,"tolerance":0,"unit":"EUR"},{"id":"CURRENT_TAX","label":{"fr":"","en":"Current tax","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAXABLE_PROFIT","meaning":{"fr":"","en":"Taxable profit","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accounting profit","es":""},"value":455000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Add-backs","es":""},"value":37000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Deductions","es":""},"value":12000,"unit":"EUR"}],"result":480000,"unit":"EUR","rationale":{"fr":"","en":"Taxable profit is determined under the tax rules (IAS 12, para. 5): 455,000 + 37,000 − 12,000 = 480,000.","es":""}},{"step":"CURRENT_TAX","meaning":{"fr":"","en":"Current tax","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable profit","es":""},"value":480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Enacted tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":120000,"unit":"EUR","rationale":{"fr":"","en":"Current tax is measured using the rate enacted or substantively enacted at the reporting date (IAS 12, para. 46): 480,000 × 25% = 120,000.","es":""}}],"references":["REF.IAS12.46","REF.IAS12.5"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000074","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000006","tested_point":"VG.IAS12.000006","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §46","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"The hotel group Clairmonde (an entity taxed on its own) reports accounting profit of {accounting_profit}. It recognised {non_deductible_expenses} of non-deductible entertainment costs and {exempt_dividends} of exempt dividends received (case data). With an enacted rate of {tax_rate}%, what are its taxable profit and current tax?","es":""},"explanation":{"fr":"","en":"Taxable profit under the tax rules (IAS 12, para. 5): 812,000 + 54,000 − 26,000 = 840,000. Current tax at the rate enacted at the reporting date (IAS 12, para. 46): 840,000 × 30% = 252,000.","es":""},"common_error":{"fr":"","en":"Adding back the exempt dividends instead of deducting them.","es":""},"format":"CALCULATION","placeholders":[{"id":"accounting_profit","value":"812000","unit":"EUR"},{"id":"non_deductible_expenses","value":"54000","unit":"EUR"},{"id":"exempt_dividends","value":"26000","unit":"EUR"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Accounting profit","es":""},"value":"812000","unit":"EUR"},{"label":{"fr":"","en":"Non-deductible entertainment costs","es":""},"value":"54000","unit":"EUR"},{"label":{"fr":"","en":"Exempt dividends","es":""},"value":"26000","unit":"EUR"},{"label":{"fr":"","en":"Enacted tax rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"TAXABLE_PROFIT","label":{"fr":"","en":"Taxable profit","es":""},"answer":840000,"tolerance":0,"unit":"EUR"},{"id":"CURRENT_TAX","label":{"fr":"","en":"Current tax","es":""},"answer":252000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAXABLE_PROFIT","meaning":{"fr":"","en":"Taxable profit","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accounting profit","es":""},"value":812000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Non-deductible entertainment costs","es":""},"value":54000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Exempt dividends","es":""},"value":26000,"unit":"EUR"}],"result":840000,"unit":"EUR","rationale":{"fr":"","en":"Taxable profit under the tax rules (IAS 12, para. 5): 812,000 + 54,000 − 26,000 = 840,000.","es":""}},{"step":"CURRENT_TAX","meaning":{"fr":"","en":"Current tax","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable profit","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Enacted tax rate (%)","es":""},"value":30,"unit":"PERCENT"}],"result":252000,"unit":"EUR"}],"references":["REF.IAS12.46","REF.IAS12.5"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000075","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000075","tested_point":"QST.IAS12.000075","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"Bellefosse's current tax for the year amounts to {current_tax}; it paid instalments of {instalments_paid} during the year. What current tax liability does it present at the reporting date?","es":""},"explanation":{"fr":"","en":"Current tax is recognised as a liability to the extent unpaid (IAS 12, para. 12): 318,000 − 290,000 = 28,000.","es":""},"common_error":{"fr":"","en":"Presenting the whole current tax as a liability, ignoring the instalments.","es":""},"format":"CALCULATION","placeholders":[{"id":"current_tax","value":"318000","unit":"EUR"},{"id":"instalments_paid","value":"290000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Current tax for the year","es":""},"value":"318000","unit":"EUR"},{"label":{"fr":"","en":"Instalments paid","es":""},"value":"290000","unit":"EUR"}],"steps":[{"id":"CURRENT_TAX_LIABILITY","label":{"fr":"","en":"Current tax liability at the reporting date","es":""},"answer":28000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CURRENT_TAX_LIABILITY","meaning":{"fr":"","en":"Current tax liability at the reporting date","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax for the year","es":""},"value":318000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Instalments paid","es":""},"value":290000,"unit":"EUR"}],"result":28000,"unit":"EUR","rationale":{"fr":"","en":"Current tax is recognised as a liability to the extent unpaid (IAS 12, para. 12): 318,000 − 290,000 = 28,000.","es":""}}],"references":["REF.IAS12.12"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000076","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000008","tested_point":"VG.IAS12.000008","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §13","IAS 12 §14"],"exercise":{"prompt":{"fr":"","en":"In 20X5, Vauclerc incurs a tax loss of {tax_loss}. Tax law (case data) allows it to carry the loss back against its 20X4 profit, taxed at {prior_year_rate}%, up to the tax paid for 20X4, i.e. {prior_year_tax_paid}. What asset does it recognise in its 20X5 financial statements?","es":""},"explanation":{"fr":"","en":"The benefit of a loss that can be carried back is recognised as an asset (IAS 12, para. 13) in the period of the loss (IAS 12, para. 14). Under the law in the case: 400,000 × 25% = 100,000, lower than the tax paid of 130,000: the asset is 100,000.","es":""},"common_error":{"fr":"","en":"Taking the whole 20X4 tax paid.","es":""},"format":"CALCULATION","placeholders":[{"id":"tax_loss","value":"400000","unit":"EUR"},{"id":"prior_year_rate","value":"25","unit":"PERCENT"},{"id":"prior_year_tax_paid","value":"130000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"20X5 tax loss","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"20X4 tax rate (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Tax paid for 20X4","es":""},"value":"130000","unit":"EUR"}],"steps":[{"id":"CARRYBACK_ASSET","label":{"fr":"","en":"Carryback asset","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYBACK_ASSET","meaning":{"fr":"","en":"Carryback asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"20X5 tax loss","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"20X4 tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":100000,"unit":"EUR"}],"rationale":{"fr":"","en":"The benefit of a loss that can be carried back is recognised as an asset (IAS 12, para. 13) in the period of the loss (IAS 12, para. 14).","es":""},"references":["REF.IAS12.13","REF.IAS12.14"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000077","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000008","tested_point":"VG.IAS12.000008","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §13","IAS 12 §14"],"exercise":{"prompt":{"fr":"","en":"The dairy cooperative Fonsalve records a tax loss of {tax_loss} in 20X5. The legislation (case data) allows a carryback only against 20X4 taxable profit, which amounted to {prior_year_taxable_profit} taxed at {prior_year_rate}%; the rest of the loss can be carried forward. Compute the carryback asset recognised in 20X5 and the loss still to be carried forward.","es":""},"explanation":{"fr":"","en":"The benefit of the carryback is an asset recognised in the period of the loss (IAS 12, para. 13; IAS 12, para. 14). Under the law in the case, only the 20X4 profit can absorb the loss: 600,000 × 30% = 180,000. Loss still to be carried forward: 900,000 − 600,000 = 300,000; its treatment falls under the rules on unused tax losses.","es":""},"common_error":{"fr":"","en":"Applying the rate to the whole loss of 900,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"tax_loss","value":"900000","unit":"EUR"},{"id":"prior_year_taxable_profit","value":"600000","unit":"EUR"},{"id":"prior_year_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"20X5 tax loss","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"20X4 taxable profit","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"20X4 tax rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"CARRYBACK_ASSET","label":{"fr":"","en":"Carryback asset","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"LOSS_NOT_CARRIED_BACK","label":{"fr":"","en":"Loss still to be carried forward","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CARRYBACK_ASSET","meaning":{"fr":"","en":"Carryback asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"20X4 taxable profit","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"20X4 tax rate (%)","es":""},"value":30,"unit":"PERCENT"}],"result":180000,"unit":"EUR"},{"step":"LOSS_NOT_CARRIED_BACK","meaning":{"fr":"","en":"Loss still to be carried forward","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"20X5 tax loss","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"20X4 taxable profit","es":""},"value":600000,"unit":"EUR"}],"result":300000,"unit":"EUR"}],"rationale":{"fr":"","en":"The benefit of the carryback is an asset recognised in the period of the loss (IAS 12, para. 13; IAS 12, para. 14).","es":""},"references":["REF.IAS12.13","REF.IAS12.14"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000078","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000078","tested_point":"QST.IAS12.000078","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"Merisande's taxable profit is {taxable_profit}. The rate applicable to profits for the year, enacted at the reporting date, is {enacted_rate}%. A bill providing for {proposed_rate}% for future years is under discussion, neither enacted nor substantively enacted (case data). Compute current tax for the year.","es":""},"explanation":{"fr":"","en":"Current tax is measured at the amount expected to be paid, using the rates enacted or substantively enacted by the reporting date (IAS 12, para. 46): 360,000 × 26% = 93,600. The proposed rate is ignored.","es":""},"common_error":{"fr":"","en":"Applying the proposed rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"taxable_profit","value":"360000","unit":"EUR"},{"id":"enacted_rate","value":"26","unit":"PERCENT"},{"id":"proposed_rate","value":"24","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Taxable profit","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Rate enacted at the reporting date (%)","es":""},"value":"26","unit":"PERCENT"},{"label":{"fr":"","en":"Proposed rate (%)","es":""},"value":"24","unit":"PERCENT"}],"steps":[{"id":"CURRENT_TAX","label":{"fr":"","en":"Current tax","es":""},"answer":93600,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CURRENT_TAX","meaning":{"fr":"","en":"Current tax","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable profit","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate enacted at the reporting date (%)","es":""},"value":26,"unit":"PERCENT"}],"result":93600,"unit":"EUR","rationale":{"fr":"","en":"Current tax is measured at the amount expected to be paid, using the rates enacted or substantively enacted by the reporting date (IAS 12, para. 46): 360,000 × 26% = 93,600.","es":""}}],"references":["REF.IAS12.46"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000084","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000084","tested_point":"QST.IAS12.000084","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"Dorvignac reports accounting profit of 500,000. Under tax law (case data), 40,000 of expenses are not deductible. With an enacted rate of 25%, the accountant recognises current tax of 125,000. Where is the error?","es":""},"explanation":{"fr":"","en":"Current tax is levied on taxable profit determined under the tax rules (IAS 12, para. 5): 500,000 + 40,000 = 540,000. At the rate enacted at the reporting date (IAS 12, para. 46): 540,000 × 25% = 135,000. The accountant applied the rate to accounting profit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rate: the rate in force on payment should have been applied.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate used is the one enacted at the reporting date: it is not at issue.","es":""}},{"id":"B","text":{"fr":"","en":"The basis: tax is levied on taxable profit of 540,000, i.e. 135,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The principle: current tax had to be measured on accounting profit, the error lies elsewhere.","es":""},"correct":false,"feedback":{"fr":"","en":"Current tax is not levied on accounting profit.","es":""}},{"id":"D","text":{"fr":"","en":"The amount: the non-deductible expenses should have been subtracted, i.e. 115,000.","es":""},"correct":false,"feedback":{"fr":"","en":"A non-deductible expense is added back, not subtracted.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000085","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000085","tested_point":"QST.IAS12.000085","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §13","IAS 12 §14"],"exercise":{"prompt":{"fr":"","en":"Sermaise incurred a tax loss in 20X5 that can be carried back (law in the case), giving a right to a refund of 64,000, certain in principle and amount. It recognised nothing in 20X5 and recognised income of 64,000 in 20X6, when the refund was received. What is the error?","es":""},"explanation":{"fr":"","en":"The benefit of a tax loss that can be carried back to recover tax of a prior period is recognised as an asset (IAS 12, para. 13) in the period in which the loss occurs, since the benefit is then probable and can be reliably measured (IAS 12, para. 14). The 20X5 financial statements are incomplete and those of 20X6 include income that does not belong to them.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: a tax refund is recognised only when received, for prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 does not wait for receipt: the benefit is recognised in the period of the loss.","es":""}},{"id":"B","text":{"fr":"","en":"The income should have been recognised in equity rather than in 20X6 profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Where the income is recognised is not the issue; the period of recognition is.","es":""}},{"id":"C","text":{"fr":"","en":"The benefit should have been recognised as a deferred tax asset in 20X5.","es":""},"correct":false,"feedback":{"fr":"","en":"The refund relates to current tax of a prior period: it is a current tax asset.","es":""}},{"id":"D","text":{"fr":"","en":"The current tax asset and the income should have been recognised in 20X5, the period of the loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000086","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION","IAS12.PRESENTATION.OFFSETTING"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000086","tested_point":"QST.IAS12.000086","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §12","IAS 12 §71"],"exercise":{"prompt":{"fr":"","en":"Valdérose is taxed in two countries. In country A, its instalments exceed the tax due by 15,000; in country B, it still owes 40,000. No legally enforceable right allows amounts owed to two different tax authorities to be set off (case data). What does it present at the reporting date?","es":""},"explanation":{"fr":"","en":"The excess paid is an asset and the unpaid tax a liability (IAS 12, para. 12). They are offset only if there is a legally enforceable right to set off and an intention to settle net or simultaneously (IAS 12, para. 71): without that right, the asset of 15,000 and the liability of 40,000 are presented separately.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A current tax asset of 15,000 and a current tax liability of 40,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A net current tax liability of 25,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Offsetting requires a legally enforceable right, which is absent here.","es":""}},{"id":"C","text":{"fr":"","en":"A liability of 40,000 and an expense of 15,000 for the excess instalments.","es":""},"correct":false,"feedback":{"fr":"","en":"The excess instalments are an asset, not an expense.","es":""}},{"id":"D","text":{"fr":"","en":"A net current tax liability of 55,000.","es":""},"correct":false,"feedback":{"fr":"","en":"A receivable and a payable are not added together.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000087","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000087","tested_point":"QST.IAS12.000087","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §13","IAS 12 §14"],"exercise":{"prompt":{"fr":"","en":"In 20X5, Quercival incurs a tax loss. The law (case data) allows it to carry the loss back to 20X4 (tax refund) or forward; at the reporting date it elects to carry it back, which gives it a right to a refund of a determined amount. The finance director proposes recognising nothing until the authorities agree. Which analysis should be adopted?","es":""},"explanation":{"fr":"","en":"The benefit of a tax loss carried back to recover current tax of a prior period is recognised as an asset (IAS 12, para. 13) in the period in which the loss occurs, since the benefit is then probable and can be reliably measured (IAS 12, para. 14). The tax election made is case data.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Wait for the authorities' agreement: the asset is recognised only once the refund is accepted in writing.","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 12 links the asset to the period of the loss, without waiting for the authorities' agreement.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise in 20X5 a current tax asset and current tax income for the expected refund.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise a deferred tax asset in 20X5, as the loss is used against another period.","es":""},"correct":false,"feedback":{"fr":"","en":"Recovering tax of a prior period is current tax, not deferred tax.","es":""}},{"id":"D","text":{"fr":"","en":"Disclose the right to the refund in the 20X5 notes without recognising it.","es":""},"correct":false,"feedback":{"fr":"","en":"The benefit is recognised, not merely disclosed in the notes.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000088","standard_id":"IAS12","concept_ids":["IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000088","tested_point":"QST.IAS12.000088","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000004","section_id":"liability-or-asset"},"references":["IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"At the end of 20X5, Antrevel still owes 180,000 of current tax for 20X5. In addition, the final 20X4 return, filed in 20X5, shows additional tax of 10,000 not yet paid. What current tax liability does it present at the end of 20X5?","es":""},"explanation":{"fr":"","en":"Current tax for current and prior periods is recognised as a liability to the extent unpaid (IAS 12, para. 12): 180,000 + 10,000 = 190,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"180,000: the 20X4 additional tax does not relate to the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability also covers unpaid tax of prior periods.","es":""}},{"id":"B","text":{"fr":"","en":"170,000, the 20X4 additional tax being deducted.","es":""},"correct":false,"feedback":{"fr":"","en":"Additional tax increases the liability; it does not reduce it.","es":""}},{"id":"C","text":{"fr":"","en":"190,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"180,000, the 20X4 additional tax being presented as a provision for tax risk.","es":""},"correct":false,"feedback":{"fr":"","en":"A determined, unpaid additional tax is current tax, not a provision.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000089","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000089","tested_point":"QST.IAS12.000089","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §16"],"exercise":{"prompt":{"fr":"","en":"Where the carrying amount of an asset exceeds its tax base, the difference is a taxable temporary difference, and the tax that will be payable on it is a deferred tax liability.","es":""},"explanation":{"fr":"","en":"Recovering the carrying amount of an asset generates taxable benefits; if that amount exceeds the tax base, the taxable benefits exceed the deductions allowed: the difference is a taxable temporary difference and the tax payable is a deferred tax liability (IAS 12, para. 16).","es":""},"common_error":{"fr":"","en":"Reversing the direction of the difference.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000090","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000090","tested_point":"QST.IAS12.000090","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §20"],"exercise":{"prompt":{"fr":"","en":"An entity that revalues land without an equivalent tax adjustment recognises no deferred tax on the difference, provided it does not intend to dispose of the land.","es":""},"explanation":{"fr":"","en":"Where an asset is revalued without an equivalent tax adjustment, the difference between its revalued carrying amount and its tax base is a temporary difference that gives rise to a deferred tax liability or asset, even if the entity does not intend to dispose of the asset (IAS 12, para. 20).","es":""},"common_error":{"fr":"","en":"Recognising no deferred tax on a revaluation because the asset will not be sold.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000091","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000091","tested_point":"QST.IAS12.000091","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §41"],"exercise":{"prompt":{"fr":"","en":"Where non-monetary assets are measured in the entity's functional currency but taxable profit is determined in another currency, exchange rate changes may give rise to temporary differences resulting in deferred tax.","es":""},"explanation":{"fr":"","en":"In that situation, changes in the exchange rate give rise to temporary differences that result in a deferred tax liability or asset (IAS 12, para. 41): the tax base, expressed in the tax currency, moves relative to the carrying amount expressed in the functional currency.","es":""},"common_error":{"fr":"","en":"Ignoring the effect of exchange rates on the tax base of non-monetary assets.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000092","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000092","tested_point":"QST.IAS12.000092","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Which of these situations at Garbellis gives rise to a taxable temporary difference? (Tax treatments: case data.)","es":""},"explanation":{"fr":"","en":"Interest revenue recognised on a time-proportion basis but taxed when received gives rise to a taxable temporary difference (IAS 12, para. 17): the tax will be payable later. The provision and the advance taxed early give deductible differences; the fine creates no temporary difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Accrued interest recognised on a time-proportion basis, taxed only when received.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A warranty provision, deductible for tax only when repairs are made.","es":""},"correct":false,"feedback":{"fr":"","en":"The future deduction of the provision gives a deductible difference, not a taxable one.","es":""}},{"id":"C","text":{"fr":"","en":"A fine recognised as an expense, permanently non-deductible.","es":""},"correct":false,"feedback":{"fr":"","en":"A permanently non-deductible expense creates no temporary difference.","es":""}},{"id":"D","text":{"fr":"","en":"An advance received from a customer, taxed when received but recognised as revenue later.","es":""},"correct":false,"feedback":{"fr":"","en":"Taxed before being recognised as revenue, the advance gives a deductible difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000093","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000093","tested_point":"QST.IAS12.000093","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"A deferred tax liability is recognised for all taxable temporary differences, subject to exceptions. Which ones?","es":""},"explanation":{"fr":"","en":"A deferred tax liability is recognised for all taxable temporary differences, except to the extent that it arises from the initial recognition of goodwill, or from the initial recognition of an asset or liability in a transaction that is not a business combination, affects neither accounting profit nor taxable profit and does not give rise to equal taxable and deductible temporary differences (IAS 12, para. 15).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Differences not expected to reverse within twelve months after the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The timing of the reversal is not a ground for exception.","es":""}},{"id":"B","text":{"fr":"","en":"Those arising from the initial recognition of goodwill or, under certain conditions, of an asset or liability outside a business combination.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Those arising from accelerated tax depreciation of property, plant and equipment.","es":""},"correct":false,"feedback":{"fr":"","en":"Accelerated depreciation is, on the contrary, a typical taxable difference.","es":""}},{"id":"D","text":{"fr":"","en":"None: the standard provides no exception, every taxable difference giving rise to a liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides limited exceptions.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000094","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000094","tested_point":"QST.IAS12.000094","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Ferrantis capitalises development costs, which are then amortised through profit or loss; tax law (case data) deducted them in full in the year they were incurred. What is the consequence under IAS 12?","es":""},"explanation":{"fr":"","en":"Development costs capitalised and then amortised through profit or loss, but deducted for tax in the period in which they were incurred, give rise to a taxable temporary difference (IAS 12, para. 17): positive carrying amount, nil tax base.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No temporary difference, since the expense will eventually go through profit or loss as for tax.","es":""},"correct":false,"feedback":{"fr":"","en":"As long as the asset is recognised with a nil tax base, the difference exists.","es":""}},{"id":"B","text":{"fr":"","en":"A deductible temporary difference giving rise to a deferred tax asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The direction is reversed: the carrying amount exceeds the tax base.","es":""}},{"id":"C","text":{"fr":"","en":"A taxable temporary difference giving rise to a deferred tax liability.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A permanent difference, with no deferred tax, since the tax deduction has already been obtained.","es":""},"correct":false,"feedback":{"fr":"","en":"The deduction is not lost: it is accelerated, the difference is temporary.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000095","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000095","tested_point":"QST.IAS12.000095","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §18"],"exercise":{"prompt":{"fr":"","en":"In a business combination, the Malvenne group measures the identifiable assets acquired at fair value; the legislation (case data) retains their previous tax bases. Which statement is correct?","es":""},"explanation":{"fr":"","en":"Temporary differences arise in particular when the identifiable assets acquired and liabilities assumed in a business combination are recognised at fair value with no equivalent tax adjustment (IAS 12, para. 18). Their deferred tax consequences are studied with business combinations.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No temporary difference: a business combination has no tax consequences.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a tax adjustment precisely creates a gap between carrying amount and tax base.","es":""}},{"id":"B","text":{"fr":"","en":"The differences arise only in the acquiree's separate financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"These differences arise in the consolidated financial statements, which carry the fair values.","es":""}},{"id":"C","text":{"fr":"","en":"The gaps are permanent differences, since fair value is never taxed when the assets are used.","es":""},"correct":false,"feedback":{"fr":"","en":"Recovering the fair value will generate taxable benefits: the gap is temporary.","es":""}},{"id":"D","text":{"fr":"","en":"Temporary differences arise between the fair values used and the unchanged tax bases.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000096","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000096","tested_point":"QST.IAS12.000096","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §16","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Of the following items of Hélvard (tax data from the case), which give rise to a taxable temporary difference?","es":""},"explanation":{"fr":"","en":"A taxable difference arises where the carrying amount of an asset exceeds its tax base (IAS 12, para. 16), for example for interest taxed when received or development costs already deducted (IAS 12, para. 17). The provision deductible on payment and the land whose tax base exceeds its carrying amount give deductible differences.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A machine with a carrying amount of 200,000 and a tax base of 150,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Accrued interest receivable, taxed when received.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A provision of 50,000, deductible only when paid.","es":""},"correct":false,"feedback":{"fr":"","en":"Deductible difference: the deduction will come later.","es":""}},{"id":"D","text":{"fr":"","en":"Capitalised development costs, already deducted in full under tax law.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Land with a carrying amount of 300,000 and a tax base of 340,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax base above carrying amount: deductible difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000097","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000097","tested_point":"QST.IAS12.000097","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §20"],"exercise":{"prompt":{"fr":"","en":"The Thoronde group revalues its owner-occupied buildings under its accounting policy (case data); tax law does not change their tax base. Which statements are correct?","es":""},"explanation":{"fr":"","en":"Where assets are revalued without an equivalent tax adjustment, the difference between the revalued carrying amount and the tax base is a temporary difference that gives rise to a deferred tax liability or asset, even if the entity does not intend to dispose of the asset (IAS 12, para. 20). The revaluation itself follows the entity's accounting policy (case data).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The difference between the revalued carrying amount and the tax base is a temporary difference.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Deferred tax is recognised even if the group does not intend to dispose of the buildings.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No deferred tax is recognised until a disposal is decided.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax does not wait for a disposal decision.","es":""}},{"id":"D","text":{"fr":"","en":"The difference is measured as the revalued carrying amount less the tax base.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"As the revaluation has no immediate tax effect, it creates no temporary difference.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of an immediate tax effect is precisely what creates the temporary difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000098","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000098","tested_point":"QST.IAS12.000098","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §18"],"exercise":{"prompt":{"fr":"","en":"Under IAS 12, which of these situations may give rise to temporary differences?","es":""},"explanation":{"fr":"","en":"Temporary differences arise in particular when assets and liabilities of a business combination are recognised at fair value with no tax adjustment, when assets are revalued with no tax adjustment, when goodwill arises in a combination, or when the carrying amount of an investment differs from its tax base (IAS 12, para. 18). Paying a liability already deducted changes no difference.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Assets acquired in a business combination recognised at fair value with no equivalent tax adjustment.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Assets revalued with no equivalent tax adjustment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Goodwill arising in a business combination.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The cash payment of a trade payable whose expense has already been deducted for tax.","es":""},"correct":false,"feedback":{"fr":"","en":"As the expense has already been deducted, the payment creates no temporary difference.","es":""}},{"id":"E","text":{"fr":"","en":"An investment in a subsidiary whose carrying amount differs from its tax base.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000099","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000010","tested_point":"VG.IAS12.000010","difficulty":"BEGINNER","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §16","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"A machine of Peyrolles, depreciated faster for tax than for accounting, has a carrying amount of {carrying_amount} and a tax base of {tax_base}. The rate expected on reversal, enacted at the reporting date, is {tax_rate}%. Compute the taxable temporary difference and the deferred tax liability.","es":""},"explanation":{"fr":"","en":"The carrying amount exceeds the tax base: taxable difference of 420,000 − 300,000 = 120,000 (IAS 12, para. 16). The liability is measured at the rate expected on reversal, enacted or substantively enacted at the reporting date (IAS 12, para. 47): 120,000 × 25% = 30,000.","es":""},"common_error":{"fr":"","en":"Applying the rate to the carrying amount (105,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"420000","unit":"EUR"},{"id":"tax_base","value":"300000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Carrying amount","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Rate expected on reversal (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"TEMPORARY_DIFFERENCE","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TEMPORARY_DIFFERENCE","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount","es":""},"value":420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base","es":""},"value":300000,"unit":"EUR"}],"result":120000,"unit":"EUR","rationale":{"fr":"","en":"The carrying amount exceeds the tax base: taxable difference of 420,000 − 300,000 = 120,000 (IAS 12, para. 16).","es":""}},{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate expected on reversal (%)","es":""},"value":25,"unit":"PERCENT"}],"result":30000,"unit":"EUR","rationale":{"fr":"","en":"The liability is measured at the rate expected on reversal, enacted or substantively enacted at the reporting date (IAS 12, para. 47): 120,000 × 25% = 30,000.","es":""}}],"references":["REF.IAS12.16","REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000100","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000010","tested_point":"VG.IAS12.000010","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §16","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"The haulier Lirvalle uses declining-balance tax depreciation on its truck fleet: at the reporting date, the fleet has a carrying amount of {carrying_amount} and a tax base of {tax_base}. With an expected rate of {tax_rate}% (enacted at the reporting date), what are the temporary difference and the deferred tax liability?","es":""},"explanation":{"fr":"","en":"Taxable difference (IAS 12, para. 16): 780,000 − 540,000 = 240,000. Liability at the rate expected on reversal, enacted at the reporting date (IAS 12, para. 47): 240,000 × 30% = 72,000.","es":""},"common_error":{"fr":"","en":"Computing the tax on the tax base.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"780000","unit":"EUR"},{"id":"tax_base","value":"540000","unit":"EUR"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Carrying amount of the fleet","es":""},"value":"780000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of the fleet","es":""},"value":"540000","unit":"EUR"},{"label":{"fr":"","en":"Rate expected on reversal (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"TEMPORARY_DIFFERENCE","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":240000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":72000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TEMPORARY_DIFFERENCE","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the fleet","es":""},"value":780000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the fleet","es":""},"value":540000,"unit":"EUR"}],"result":240000,"unit":"EUR"},{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate expected on reversal (%)","es":""},"value":30,"unit":"PERCENT"}],"result":72000,"unit":"EUR","rationale":{"fr":"","en":"Liability at the rate expected on reversal, enacted at the reporting date (IAS 12, para. 47): 240,000 × 30% = 72,000.","es":""}}],"references":["REF.IAS12.16","REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000101","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000012","tested_point":"VG.IAS12.000012","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §20","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Cordelan revalues, under its accounting policy (case data), land whose tax base remains equal to its cost, {tax_base}; the revalued amount is {new_carrying_amount}. Cordelan has no intention of selling the land. With an expected rate of {tax_rate}%, compute the temporary difference and the deferred tax liability.","es":""},"explanation":{"fr":"","en":"The difference between the revalued amount and the tax base is a temporary difference giving rise to deferred tax, even with no intention to sell (IAS 12, para. 20): 1,360,000 − 1,000,000 = 360,000. Liability at the expected rate, enacted at the reporting date (IAS 12, para. 47): 360,000 × 25% = 90,000. Where the other side of the entry goes follows the allocation rules, not this computation.","es":""},"common_error":{"fr":"","en":"Recognising no deferred tax for lack of an intention to sell.","es":""},"format":"CALCULATION","placeholders":[{"id":"tax_base","value":"1000000","unit":"EUR"},{"id":"new_carrying_amount","value":"1360000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Tax base of the land","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Revalued carrying amount","es":""},"value":"1360000","unit":"EUR"},{"label":{"fr":"","en":"Expected rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"TEMPORARY_DIFFERENCE","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":360000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TEMPORARY_DIFFERENCE","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revalued carrying amount","es":""},"value":1360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the land","es":""},"value":1000000,"unit":"EUR"}],"result":360000,"unit":"EUR","rationale":{"fr":"","en":"The difference between the revalued amount and the tax base is a temporary difference giving rise to deferred tax, even with no intention to sell (IAS 12, para. 20): 1,360,000 − 1,000,000 = 360,000.","es":""}},{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":360000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":90000,"unit":"EUR"}],"references":["REF.IAS12.20","REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000102","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000012","tested_point":"VG.IAS12.000012","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §20","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"After revaluation (the group's accounting policy, case data), the office building occupied by the Vantorel group's head office has a carrying amount of {new_carrying_amount}; the legislation ignores the revaluation and its tax base, after tax depreciation, is {tax_base}. The group intends to occupy the building indefinitely. With an expected rate of {tax_rate}%, compute the temporary difference and the deferred tax liability.","es":""},"explanation":{"fr":"","en":"A revaluation with no tax adjustment creates a temporary difference, even with no intention to sell (IAS 12, para. 20): 2,400,000 − 1,650,000 = 750,000. Liability at the expected rate, enacted at the reporting date (IAS 12, para. 47): 750,000 × 28% = 210,000.","es":""},"common_error":{"fr":"","en":"Limiting the difference to the year's revaluation surplus alone.","es":""},"format":"CALCULATION","placeholders":[{"id":"new_carrying_amount","value":"2400000","unit":"EUR"},{"id":"tax_base","value":"1650000","unit":"EUR"},{"id":"tax_rate","value":"28","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Revalued carrying amount","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"1650000","unit":"EUR"},{"label":{"fr":"","en":"Expected rate (%)","es":""},"value":"28","unit":"PERCENT"}],"steps":[{"id":"TEMPORARY_DIFFERENCE","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":750000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":210000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TEMPORARY_DIFFERENCE","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revalued carrying amount","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base","es":""},"value":1650000,"unit":"EUR"}],"result":750000,"unit":"EUR","rationale":{"fr":"","en":"A revaluation with no tax adjustment creates a temporary difference, even with no intention to sell (IAS 12, para. 20): 2,400,000 − 1,650,000 = 750,000.","es":""}},{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected rate (%)","es":""},"value":28,"unit":"PERCENT"}],"result":210000,"unit":"EUR"}],"references":["REF.IAS12.20","REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000103","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000103","tested_point":"QST.IAS12.000103","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Ambrevin has capitalised {capitalised_costs} of development costs, amortised by {amortisation_to_date} at the reporting date. Tax law (case data) deducted them in full in the year they were incurred. With an expected rate of {tax_rate}%, compute the temporary difference and the deferred tax liability.","es":""},"explanation":{"fr":"","en":"Development costs capitalised but already deducted for tax: taxable temporary difference (IAS 12, para. 17). Carrying amount 180,000 − 36,000 = 144,000; nil tax base; difference 144,000. Liability at the expected rate (IAS 12, para. 47): 144,000 × 25% = 36,000.","es":""},"common_error":{"fr":"","en":"Computing the difference on the original cost (180,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"capitalised_costs","value":"180000","unit":"EUR"},{"id":"amortisation_to_date","value":"36000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Capitalised development costs","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated amortisation","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Expected rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"TEMPORARY_DIFFERENCE","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":144000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":36000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TEMPORARY_DIFFERENCE","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Capitalised development costs","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated amortisation","es":""},"value":36000,"unit":"EUR"}],"result":144000,"unit":"EUR"},{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":144000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":36000,"unit":"EUR"}],"rationale":{"fr":"","en":"Development costs capitalised but already deducted for tax: taxable temporary difference (IAS 12, para. 17).","es":""},"references":["REF.IAS12.17","REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000108","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000108","tested_point":"QST.IAS12.000108","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §16","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"A warehouse of Lermantes has a carrying amount of 400,000 and a tax base of 280,000; the expected rate is 25%. The accountant recognises a deferred tax liability of 100,000. What is the error?","es":""},"explanation":{"fr":"","en":"The taxable difference is the gap between carrying amount and tax base: 400,000 − 280,000 = 120,000 (IAS 12, para. 16). The liability is measured at the expected rate (IAS 12, para. 47): 120,000 × 25% = 30,000. The accountant applied the rate to the carrying amount (400,000 × 25%).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: an asset's deferred tax is computed on its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax is computed on the temporary difference, not on the carrying amount.","es":""}},{"id":"B","text":{"fr":"","en":"The rate was applied to the carrying amount; it should have been applied to the difference of 120,000, i.e. 30,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The rate was applied to the tax base; the correct liability is 70,000.","es":""},"correct":false,"feedback":{"fr":"","en":"280,000 × 25% = 70,000 measures nothing: the rate applies to the difference.","es":""}},{"id":"D","text":{"fr":"","en":"A deferred tax asset was required, since the tax base is positive.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount exceeds the tax base: it is a liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000109","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000109","tested_point":"QST.IAS12.000109","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §20"],"exercise":{"prompt":{"fr":"","en":"The Halvignon group revalues a vineyard (the group's accounting policy, case data) from 2,000,000 to 2,600,000; the tax base remains 2,000,000. The controller recognises no deferred tax, writing: 'the estate is strategic, it will never be sold'. What is the error?","es":""},"explanation":{"fr":"","en":"The difference between the revalued carrying amount and the tax base is a temporary difference that gives rise to deferred tax, even if the entity does not intend to dispose of the asset (IAS 12, para. 20): 2,600,000 − 2,000,000 = 600,000. The controller's argument is irrelevant.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: with no intention to sell, the revaluation has no tax consequence.","es":""},"correct":false,"feedback":{"fr":"","en":"An intention to sell is not a condition for deferred tax.","es":""}},{"id":"B","text":{"fr":"","en":"The error relates only to the note, which must mention the absence of deferred tax.","es":""},"correct":false,"feedback":{"fr":"","en":"The error is one of recognition, not merely of disclosure.","es":""}},{"id":"C","text":{"fr":"","en":"The difference of 600,000 gives rise to deferred tax even with no intention to sell the vineyard.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Deferred tax would arise only if the revaluation were taxed immediately by the authorities.","es":""},"correct":false,"feedback":{"fr":"","en":"It is precisely the absence of immediate taxation that creates the temporary difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000110","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000110","tested_point":"QST.IAS12.000110","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §20","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Pélagrine holds listed shares measured at fair value, 860,000 at the reporting date; their cost, 700,000, remains their tax base and the gain will be taxed only on disposal (case data). Pélagrine intends to hold them for the long term. With an expected rate of 25%, which analysis should be adopted?","es":""},"explanation":{"fr":"","en":"An asset measured at fair value with no equivalent tax adjustment gives rise to a temporary difference resulting in deferred tax, even with no intention to sell (IAS 12, para. 20): 860,000 − 700,000 = 160,000, taxable. Liability at the expected rate (IAS 12, para. 47): 160,000 × 25% = 40,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A taxable temporary difference of 160,000 and a deferred tax liability of 40,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No deferred tax: the shares will not be sold in the short term.","es":""},"correct":false,"feedback":{"fr":"","en":"The holding period does not remove the temporary difference.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax liability of 215,000, computed on fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate applies to the difference, not to fair value.","es":""}},{"id":"D","text":{"fr":"","en":"A deferred tax asset of 40,000, as fair value exceeds cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Carrying amount above tax base: it is a liability, not an asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000111","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES","IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000111","tested_point":"QST.IAS12.000111","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §18","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"On acquiring Ternelle, the Sauvigal group recognises a brand in its consolidated financial statements at fair value, 500,000. In Ternelle, taxed separately, the internally created brand has no tax base (case data). The finance director considers that no deferred tax should be recognised, since the transaction 'does not go through profit or loss'. Which analysis should be adopted?","es":""},"explanation":{"fr":"","en":"Temporary differences arise when identifiable assets acquired in a business combination are recognised at fair value with no equivalent tax adjustment (IAS 12, para. 18). The initial recognition exception covers only transactions that are not business combinations (IAS 12, para. 15): a deferred tax liability is recognised on the gap of 500,000. The other side of the entry follows the rules specific to business combinations.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He is right: a business combination always falls under the initial recognition exception.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception precisely covers transactions that are not business combinations.","es":""}},{"id":"B","text":{"fr":"","en":"He is right: as the brand has no tax base, it is not part of the deferred tax computation.","es":""},"correct":false,"feedback":{"fr":"","en":"A nil tax base precisely creates a gap with the fair value recognised.","es":""}},{"id":"C","text":{"fr":"","en":"Deferred tax is recognised only in Ternelle's separate financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"The brand is recognised at fair value only in the consolidated financial statements.","es":""}},{"id":"D","text":{"fr":"","en":"The gap of 500,000 is a taxable temporary difference: the initial recognition exception does not cover business combinations.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000112","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000112","tested_point":"QST.IAS12.000112","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §16","IAS 12","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, Vellouse has: accrued interest receivable of 16,000, taxed when received; a machine with a carrying amount of 250,000 and a tax base of 210,000 (case data). The expected rate is 25%. What total deferred tax liability does it recognise?","es":""},"explanation":{"fr":"","en":"Interest taxed when received has a nil tax base: taxable difference of 16,000 (IAS 12, para. 17). The machine: 250,000 − 210,000 = 40,000 taxable (IAS 12, para. 16). Liability at the expected rate (IAS 12, para. 47): (16,000 + 40,000) × 25% = 14,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"66,500, i.e. 25% of the combined carrying amounts of both assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate applies to the differences, not to carrying amounts.","es":""}},{"id":"B","text":{"fr":"","en":"10,000, only the machine giving rise to a temporary difference.","es":""},"correct":false,"feedback":{"fr":"","en":"The accrued interest also gives rise to a taxable difference.","es":""}},{"id":"C","text":{"fr":"","en":"14,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"4,000, the accrued interest giving rise to a deferred tax asset to be deducted.","es":""},"correct":false,"feedback":{"fr":"","en":"Interest taxed later gives a taxable difference, not a deductible one.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000113","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000113","tested_point":"QST.IAS12.000113","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8","IAS 12","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"A provision that is deductible for tax only when paid gives rise to a deductible temporary difference, which results in a deferred tax asset to the extent that future taxable profit is probable.","es":""},"explanation":{"fr":"","en":"The tax base of the provision is nil (carrying amount less amounts deductible in the future, IAS 12, para. 8). Settling it will reduce future tax payments, which leads to a deferred tax asset (IAS 12, para. 10), recognised to the extent that it is probable that taxable profit will be available against which the deduction can be used (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Omitting the deferred tax asset on a provision deductible when paid.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000114","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000114","tested_point":"QST.IAS12.000114","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Every deductible temporary difference gives rise to a deferred tax asset, with no condition other than the existence of the difference.","es":""},"explanation":{"fr":"","en":"A deferred tax asset is recognised for deductible temporary differences to the extent that it is probable that taxable profit will be available against which they can be used, and subject to the initial recognition exception (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Recognising a deferred tax asset without assessing whether taxable profit is probable.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000115","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000115","tested_point":"QST.IAS12.000115","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §26"],"exercise":{"prompt":{"fr":"","en":"Retirement benefit costs recognised as an expense as service is provided, but deductible for tax only when contributions or benefits are paid, give rise to a deductible temporary difference.","es":""},"explanation":{"fr":"","en":"The standard gives this example of a deductible temporary difference: retirement benefit costs deducted in determining accounting profit as service is provided, but deductible for tax when contributions or benefits are paid (IAS 12, para. 26).","es":""},"common_error":{"fr":"","en":"Treating this time lag as a taxable difference.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000116","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000116","tested_point":"QST.IAS12.000116","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §26"],"exercise":{"prompt":{"fr":"","en":"Which of these situations at Ravenelle gives rise to a deductible temporary difference? (Tax treatments: case data.)","es":""},"explanation":{"fr":"","en":"An asset measured at fair value with no equivalent tax adjustment, whose tax base exceeds its carrying amount, gives rise to a deductible temporary difference (IAS 12, para. 26). Accelerated tax depreciation and interest taxed when received give taxable differences; the fine creates none.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A machine depreciated faster for tax than for accounting.","es":""},"correct":false,"feedback":{"fr":"","en":"Accelerated tax depreciation gives rise to a taxable difference.","es":""}},{"id":"B","text":{"fr":"","en":"Accrued interest receivable, taxed only when received.","es":""},"correct":false,"feedback":{"fr":"","en":"Revenue taxed later gives rise to a taxable difference.","es":""}},{"id":"C","text":{"fr":"","en":"An asset measured at fair value below its tax base, with no tax adjustment.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A fine recognised as an expense, which tax law will never allow to be deducted from profit.","es":""},"correct":false,"feedback":{"fr":"","en":"An expense that is never deductible creates no temporary difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000117","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000117","tested_point":"QST.IAS12.000117","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Gondrecourt has recognised a warranty provision of 80,000, deductible for tax only when repairs are made (case data). What temporary difference results?","es":""},"explanation":{"fr":"","en":"The tax base of the provision is its carrying amount less amounts deductible in the future: 80,000 − 80,000 = 0 (IAS 12, para. 8). Settling it will reduce future tax payments: the gap of 80,000 is a deductible difference, giving rise to a deferred tax asset (IAS 12, para. 10).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A taxable difference of 80,000, as the carrying amount of the liability exceeds its tax base.","es":""},"correct":false,"feedback":{"fr":"","en":"For a liability, a carrying amount above the tax base gives a deductible difference.","es":""}},{"id":"B","text":{"fr":"","en":"A deductible difference of 80,000, as the tax base of the liability is nil.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A deductible difference equal to 80,000 multiplied by the tax rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The temporary difference is measured before applying the rate.","es":""}},{"id":"D","text":{"fr":"","en":"No difference: the provision will eventually be deducted, so there is no gap.","es":""},"correct":false,"feedback":{"fr":"","en":"It is precisely the delayed deduction that creates the temporary difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000118","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000118","tested_point":"QST.IAS12.000118","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Under what main condition is a deferred tax asset recognised for a deductible temporary difference?","es":""},"explanation":{"fr":"","en":"A deferred tax asset is recognised for deductible temporary differences to the extent that it is probable that taxable profit will be available against which they can be used, subject to the initial recognition exception (IAS 12, para. 24). Assessing that probability is a matter of judgement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To the extent that it is probable that taxable profit will be available to use the deduction.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As soon as the difference exists, the asset then being reduced if necessary at the end of the following year.","es":""},"correct":false,"feedback":{"fr":"","en":"The probability is assessed at recognition, not after the event.","es":""}},{"id":"C","text":{"fr":"","en":"Only if the difference will reverse within twelve months after the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The timing of the reversal is not the condition set.","es":""}},{"id":"D","text":{"fr":"","en":"Only if the entity has made a profit in each of the last three years.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no mechanical test based on past results.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000119","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000119","tested_point":"QST.IAS12.000119","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8","IAS 12","IAS 12 §26"],"exercise":{"prompt":{"fr":"","en":"Of the following items of Oustalet (tax treatments: case data), which give rise to a deductible temporary difference?","es":""},"explanation":{"fr":"","en":"The provision and the revenue received in advance already taxed have a nil tax base (IAS 12, para. 8): settling them will reduce future tax payments, which gives deductible differences (IAS 12, para. 10). An asset at fair value whose tax base exceeds its carrying amount also gives one (IAS 12, para. 26). The machine gives a taxable difference; the exempt dividend, none.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A warranty provision, deductible only when repairs are made.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Revenue received in advance, taxed when received.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A machine depreciated faster for tax than for accounting.","es":""},"correct":false,"feedback":{"fr":"","en":"Taxable difference: the carrying amount exceeds the tax base.","es":""}},{"id":"D","text":{"fr":"","en":"A bond held, measured at fair value below its cost, which remains its tax base.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A fully tax-exempt dividend receivable.","es":""},"correct":false,"feedback":{"fr":"","en":"Non-taxable recovery: tax base equal to carrying amount, no difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000120","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000120","tested_point":"QST.IAS12.000120","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §24","IAS 12 §26"],"exercise":{"prompt":{"fr":"","en":"Which statements about deferred tax assets arising from deductible differences are correct?","es":""},"explanation":{"fr":"","en":"A deferred tax asset is recognised for deductible differences to the extent that taxable profit is probable, subject to the initial recognition exception (IAS 12, para. 24); retirement benefit costs deductible when paid are an example of a deductible difference (IAS 12, para. 26). The asset is measured by applying a rate to the difference, not to a liability's carrying amount.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are recognised to the extent that taxable profit against which the deductions can be used is probable.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An exception covers the initial recognition of an asset or liability outside a business combination, with no effect on profits and no equal differences.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They are recognised whatever the entity's future profitability.","es":""},"correct":false,"feedback":{"fr":"","en":"The probability of taxable profit is a condition for recognition.","es":""}},{"id":"D","text":{"fr":"","en":"They are measured at the carrying amount of the liability that gives rise to them.","es":""},"correct":false,"feedback":{"fr":"","en":"The asset is the recoverable tax, not the carrying amount of the liability.","es":""}},{"id":"E","text":{"fr":"","en":"Retirement benefit costs deductible when paid give rise to them.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000121","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000121","tested_point":"QST.IAS12.000121","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §26","IAS 12 §20","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Vesmarin holds a bond measured at fair value, 60,000 below its cost, which remains its tax base (case data). It intends to hold the bond to maturity. Which statements are correct?","es":""},"explanation":{"fr":"","en":"An asset measured at fair value with no tax adjustment, whose tax base exceeds its carrying amount, gives rise to a deductible difference (IAS 12, para. 26); the gap arising from fair value measurement gives rise to deferred tax even with no intention to sell (IAS 12, para. 20). The deferred tax asset is recognised only to the extent that taxable profit is probable (IAS 12, para. 24).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The gap of 60,000 is a deductible temporary difference.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The difference exists even if Vesmarin intends to hold the bond to maturity.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No difference should be recognised, as the loss is expected to disappear at maturity.","es":""},"correct":false,"feedback":{"fr":"","en":"The outcome expected at maturity does not remove the difference at the reporting date.","es":""}},{"id":"D","text":{"fr":"","en":"The deferred tax asset remains subject to taxable profit being probable.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The gap is a taxable difference, as fair value is below cost.","es":""},"correct":false,"feedback":{"fr":"","en":"An asset's tax base above its carrying amount: deductible difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000122","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000013","tested_point":"VG.IAS12.000013","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8","IAS 12 §24","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Castelmure has recognised a warranty provision of {provision}, deductible for tax when repairs are made. Its documented forecasts make sufficient taxable profit probable (case data). The expected rate is {tax_rate}%. Compute the deductible difference and the deferred tax asset.","es":""},"explanation":{"fr":"","en":"Tax base of the provision: 120,000 − 120,000 = 0 (IAS 12, para. 8); deductible difference: 120,000. As taxable profit is probable, the deferred tax asset is recognised (IAS 12, para. 24), at the expected rate (IAS 12, para. 47): 120,000 × 25% = 30,000.","es":""},"common_error":{"fr":"","en":"Forgetting the deferred tax asset on a provision deductible when paid.","es":""},"format":"CALCULATION","placeholders":[{"id":"provision","value":"120000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Warranty provision","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Expected rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEDUCTIBLE_DIFFERENCE","label":{"fr":"","en":"Deductible temporary difference","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Warranty provision","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":30000,"unit":"EUR","rationale":{"fr":"","en":"As taxable profit is probable, the deferred tax asset is recognised (IAS 12, para. 24), at the expected rate (IAS 12, para. 47): 120,000 × 25% = 30,000.","es":""}}],"references":["REF.IAS12.8","REF.IAS12.24","REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000123","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000013","tested_point":"VG.IAS12.000013","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §26","IAS 12 §24","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"The printer Lauzerte has a pension liability of {pension_liability}, built up as service is provided; tax law deducts the costs only when benefits are paid (case data). Sufficient taxable profit is probable. With an expected rate of {tax_rate}%, what are the deductible difference and the deferred tax asset?","es":""},"explanation":{"fr":"","en":"Retirement benefit costs deducted in determining accounting profit as service is provided, but deductible for tax when paid, give rise to a deductible difference (IAS 12, para. 26): 340,000. As taxable profit is probable (IAS 12, para. 24), the asset is measured at the expected rate (IAS 12, para. 47): 340,000 × 28% = 95,200.","es":""},"common_error":{"fr":"","en":"Recognising no asset because the payments are far off.","es":""},"format":"CALCULATION","placeholders":[{"id":"pension_liability","value":"340000","unit":"EUR"},{"id":"tax_rate","value":"28","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Pension liability","es":""},"value":"340000","unit":"EUR"},{"label":{"fr":"","en":"Expected rate (%)","es":""},"value":"28","unit":"PERCENT"}],"steps":[{"id":"DEDUCTIBLE_DIFFERENCE","label":{"fr":"","en":"Deductible temporary difference","es":""},"answer":340000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":95200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Pension liability","es":""},"value":340000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected rate (%)","es":""},"value":28,"unit":"PERCENT"}],"result":95200,"unit":"EUR","rationale":{"fr":"","en":"As taxable profit is probable (IAS 12, para. 24), the asset is measured at the expected rate (IAS 12, para. 47): 340,000 × 28% = 95,200.","es":""}}],"references":["REF.IAS12.26","REF.IAS12.24","REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000124","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000124","tested_point":"QST.IAS12.000124","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8","IAS 12 §24","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, Montbrisac has a litigation provision of {provision}, deductible when paid, and revenue received in advance of {revenue_in_advance}, taxed when received (case data). Sufficient taxable profit is probable; the expected rate is {tax_rate}%. Compute the total deductible differences and the deferred tax asset.","es":""},"explanation":{"fr":"","en":"Both liabilities have a nil tax base (IAS 12, para. 8): deductible differences of 60,000 + 30,000 = 90,000. As taxable profit is probable, the asset is recognised (IAS 12, para. 24) at the expected rate (IAS 12, para. 47): 90,000 × 30% = 27,000.","es":""},"common_error":{"fr":"","en":"Forgetting the revenue received in advance already taxed.","es":""},"format":"CALCULATION","placeholders":[{"id":"provision","value":"60000","unit":"EUR"},{"id":"revenue_in_advance","value":"30000","unit":"EUR"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Litigation provision","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Revenue received in advance","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Expected rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"DEDUCTIBLE_DIFFERENCES","label":{"fr":"","en":"Total deductible differences","es":""},"answer":90000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":27000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEDUCTIBLE_DIFFERENCES","meaning":{"fr":"","en":"Total deductible differences","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Litigation provision","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Revenue received in advance","es":""},"value":30000,"unit":"EUR"}],"result":90000,"unit":"EUR","rationale":{"fr":"","en":"Both liabilities have a nil tax base (IAS 12, para. 8): deductible differences of 60,000 + 30,000 = 90,000.","es":""}},{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total deductible differences","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected rate (%)","es":""},"value":30,"unit":"PERCENT"}],"result":27000,"unit":"EUR","rationale":{"fr":"","en":"As taxable profit is probable, the asset is recognised (IAS 12, para. 24) at the expected rate (IAS 12, para. 47): 90,000 × 30% = 27,000.","es":""}}],"references":["REF.IAS12.8","REF.IAS12.24","REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000125","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES","IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000125","tested_point":"QST.IAS12.000125","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §26","IAS 12 §20","IAS 12 §24","IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"The mutual insurer Saint-Vrain holds a bond portfolio measured at fair value, {fair_value} at the reporting date; its tax base remains cost, {tax_base} (case data). It intends to hold the securities to maturity, and its forecasts make sufficient taxable profit probable. With an expected rate of {tax_rate}%, compute the deductible difference and the deferred tax asset.","es":""},"explanation":{"fr":"","en":"Tax base above the carrying amount of an asset at fair value: deductible difference (IAS 12, para. 26), regardless of the intention to hold (IAS 12, para. 20): 1,000,000 − 940,000 = 60,000. Taxable profit probable (IAS 12, para. 24); asset at the expected rate (IAS 12, para. 47): 60,000 × 25% = 15,000.","es":""},"common_error":{"fr":"","en":"Refusing the asset because the securities will be held to maturity.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"940000","unit":"EUR"},{"id":"tax_base","value":"1000000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value (carrying amount)","es":""},"value":"940000","unit":"EUR"},{"label":{"fr":"","en":"Tax base","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Expected rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEDUCTIBLE_DIFFERENCE","label":{"fr":"","en":"Deductible temporary difference","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEDUCTIBLE_DIFFERENCE","meaning":{"fr":"","en":"Deductible temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax base","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value (carrying amount)","es":""},"value":940000,"unit":"EUR"}],"result":60000,"unit":"EUR","rationale":{"fr":"","en":"Tax base above the carrying amount of an asset at fair value: deductible difference (IAS 12, para. 26), regardless of the intention to hold (IAS 12, para. 20): 1,000,000 − 940,000 = 60,000.","es":""}},{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible temporary difference","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":15000,"unit":"EUR"}],"references":["REF.IAS12.26","REF.IAS12.20","REF.IAS12.24","REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000129","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000129","tested_point":"QST.IAS12.000129","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Ferlandine has recognised a restructuring provision of 150,000, deductible when paid next year (case data). Its future taxable profits are considered probable and sufficient. Its deferred tax schedule does not include this provision, on the grounds that 'the liability is certain'. What is the error?","es":""},"explanation":{"fr":"","en":"The tax base of the provision is nil (IAS 12, para. 8): the deductible difference of 150,000 gives rise to a deferred tax asset, recognised since sufficient taxable profit is probable (IAS 12, para. 24). The certainty of the liability is irrelevant.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: a certain liability does not give rise to deferred tax.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax depends on the gap with the tax base, not on how certain the liability is.","es":""}},{"id":"B","text":{"fr":"","en":"The error relates only to the amount of the provision, not to deferred tax.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount of the provision is not disputed: the omission of deferred tax is.","es":""}},{"id":"C","text":{"fr":"","en":"The provision, with a nil tax base, gives rise to a deductible difference and a deferred tax asset to be recognised.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The provision gives rise to a deferred tax liability, to be added to the schedule.","es":""},"correct":false,"feedback":{"fr":"","en":"For a liability, carrying amount above tax base: deductible difference, hence an asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000130","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000130","tested_point":"QST.IAS12.000130","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §26","IAS 12 §20"],"exercise":{"prompt":{"fr":"","en":"The regional bank Vauzelle holds bonds at fair value, 2,300,000 at the reporting date, with a tax base of 2,500,000 (cost). Sufficient taxable profit is probable (case data). The tax manager rules out any temporary difference: 'we will hold these securities to maturity, the loss will disappear'. What is the error?","es":""},"explanation":{"fr":"","en":"An asset at fair value whose tax base exceeds its carrying amount gives rise to a deductible difference (IAS 12, para. 26), even with no intention to sell (IAS 12, para. 20): 2,500,000 − 2,300,000 = 200,000. The outcome expected at maturity does not remove the difference at the reporting date; the probable taxable profit condition is met according to the case.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: with no planned disposal, the unrealised loss has no tax consequence.","es":""},"correct":false,"feedback":{"fr":"","en":"The intention to hold does not remove the temporary difference.","es":""}},{"id":"B","text":{"fr":"","en":"The deductible difference of 200,000 exists at the reporting date, whatever the intention to hold.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The error lies in fair value, which should have been replaced by amortised cost.","es":""},"correct":false,"feedback":{"fr":"","en":"How the asset is measured is not at issue here.","es":""}},{"id":"D","text":{"fr":"","en":"The difference should have been a taxable difference of 200,000.","es":""},"correct":false,"feedback":{"fr":"","en":"An asset's tax base above its carrying amount: deductible difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000131","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.DEFERRED_RECOGNITION.TAXABLE_DIFFERENCES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000131","tested_point":"QST.IAS12.000131","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000005","section_id":"dtl-rule"},"references":["IAS 12 §26","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Escoulan holds bonds at fair value, 80,000 below their tax base. Based on management's documented analysis (case data), no taxable profit is probable in the periods in which the loss could be deducted, nor from any other source. Which analysis should be adopted?","es":""},"explanation":{"fr":"","en":"An asset at fair value whose tax base exceeds its carrying amount gives rise to a deductible difference (IAS 12, para. 26). The deferred tax asset is recognised only to the extent that it is probable that taxable profit will be available against which the deduction can be used (IAS 12, para. 24): according to the analysis in the case, it is not. Assessing that probability is a judgement to be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise a deferred tax asset on the 80,000, since every deductible difference gives rise to an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The asset is subject to taxable profit being probable.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise no difference: the loss is only unrealised.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference does exist at the reporting date.","es":""}},{"id":"C","text":{"fr":"","en":"Identify a deductible difference of 80,000, but recognise no deferred tax asset, as no taxable profit is probable.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Recognise a deferred tax liability on the 80,000, for prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"A deductible difference does not give rise to a liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000132","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES","IAS12.DEFINITIONS.TAX_BASE"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000132","tested_point":"QST.IAS12.000132","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §8","IAS 12","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"The sports club Valfrimont collected 48,000 of subscriptions for next year, recognised as a liability; tax law (case data) taxed them on receipt. Sufficient taxable profit is probable. The accountant thinks there is 'nothing to do, as the tax has already been paid'. Which analysis should be adopted?","es":""},"explanation":{"fr":"","en":"For revenue received in advance, the tax base is the carrying amount less revenue not taxable in the future: 48,000 − 48,000 = 0 (IAS 12, para. 8). 'Settling' the liability, by recognising the revenue, will no longer give rise to tax: future tax payments will be lower than if the revenue were taxed at that point, hence a deferred tax asset (IAS 12, para. 10), recognised since taxable profit is probable (IAS 12, para. 24).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The accountant is right: revenue already taxed has no further tax consequence.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax paid in advance precisely creates a deductible difference.","es":""}},{"id":"B","text":{"fr":"","en":"The liability has a nil tax base: a deductible difference of 48,000 and a deferred tax asset to be recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The liability gives rise to a taxable difference of 48,000 and a deferred tax liability.","es":""},"correct":false,"feedback":{"fr":"","en":"For a liability, carrying amount above tax base: deductible difference.","es":""}},{"id":"D","text":{"fr":"","en":"The deferred tax asset equals 48,000, the amount of tax already paid.","es":""},"correct":false,"feedback":{"fr":"","en":"The asset is measured by applying a rate to the difference, not by the amount of the difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000133","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000133","tested_point":"QST.IAS12.000133","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Where goodwill arising in a business combination is not tax deductible, the entity recognises a deferred tax liability on the difference between its carrying amount and its nil tax base from initial recognition.","es":""},"explanation":{"fr":"","en":"The difference is indeed a taxable temporary difference, but the standard prohibits recognising the deferred tax liability arising from the initial recognition of goodwill (IAS 12, para. 15). Goodwill being a residual amount, that liability would increase it by the same amount (IAS 12, para. 21).","es":""},"common_error":{"fr":"","en":"Mechanically applying 'taxable difference = liability' without checking the exceptions.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000134","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000134","tested_point":"QST.IAS12.000134","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21A"],"exercise":{"prompt":{"fr":"","en":"In 20X6, Calvoria writes down goodwill that is not tax deductible and whose deferred tax liability was not recognised initially. The resulting decrease in the taxable difference gives rise to no deferred tax income.","es":""},"explanation":{"fr":"","en":"Subsequent reductions in a deferred tax liability that was not recognised because it arose from the initial recognition of goodwill are also regarded as arising from it: they are not recognised (IAS 12, para. 21A). The write-down therefore creates no deferred tax income.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000135","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000135","tested_point":"QST.IAS12.000135","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21B"],"exercise":{"prompt":{"fr":"","en":"The goodwill exception prohibits any deferred tax liability relating to goodwill, including for a taxable difference that arises after the initial recognition of tax-deductible goodwill.","es":""},"explanation":{"fr":"","en":"The exception is limited to the initial recognition of goodwill. Deferred tax liabilities relating to goodwill are recognised to the extent that they do not arise from that initial recognition (IAS 12, para. 21B), for instance when tax amortisation of deductible goodwill reduces its tax base.","es":""},"common_error":{"fr":"","en":"Extending the exception to everything that concerns goodwill.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000136","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000136","tested_point":"QST.IAS12.000136","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21"],"exercise":{"prompt":{"fr":"","en":"Why does the standard prohibit recognising the deferred tax liability arising from the initial recognition of goodwill that is not tax deductible?","es":""},"explanation":{"fr":"","en":"The nil tax base creates a taxable temporary difference, but the standard prohibits recognising the deferred tax liability: goodwill is measured as a residual amount, and that liability would increase it (IAS 12, para. 21).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because goodwill is a residual amount that the liability would increase.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Because intangible assets, including goodwill, are excluded from the scope of IAS 12 as a matter of principle.","es":""},"correct":false,"feedback":{"fr":"","en":"Intangible assets commonly give rise to deferred tax; the exception is specific to initial goodwill.","es":""}},{"id":"C","text":{"fr":"","en":"Because the tax base of goodwill equals its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill that is not deductible has a nil tax base: the difference does exist.","es":""}},{"id":"D","text":{"fr":"","en":"Because that liability would never reverse.","es":""},"correct":false,"feedback":{"fr":"","en":"That is not the reason given by the standard; it lies in the residual nature of goodwill.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000137","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000137","tested_point":"QST.IAS12.000137","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §18","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Dorneval acquires a business, giving rise to goodwill of 420,000 that the tax law does not allow to be deducted. Which analysis is correct at the acquisition date?","es":""},"explanation":{"fr":"","en":"Goodwill arising in a business combination gives rise to a temporary difference (IAS 12, para. 18): here 420,000 − 0 = 420,000, taxable. The deferred tax liability arising from the initial recognition of goodwill is not recognised (IAS 12, para. 15).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A taxable difference of 420,000 exists, but its deferred tax liability is not recognised.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A taxable difference of 420,000 exists and its deferred tax liability is recognised, increasing goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference exists, but the initial goodwill exception applies.","es":""}},{"id":"C","text":{"fr":"","en":"A deductible difference of 420,000 gives rise to a deferred tax asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount exceeds the tax base: the difference is taxable, not deductible.","es":""}},{"id":"D","text":{"fr":"","en":"No temporary difference exists, since there is no tax base.","es":""},"correct":false,"feedback":{"fr":"","en":"A nil tax base against a carrying amount of 420,000 creates a difference of 420,000.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000138","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000138","tested_point":"QST.IAS12.000138","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §32A"],"exercise":{"prompt":{"fr":"","en":"In a business combination, the carrying amount of goodwill is lower than its tax base. What does the standard require?","es":""},"explanation":{"fr":"","en":"Where the carrying amount of goodwill is lower than its tax base, the difference gives rise to a deferred tax asset, recognised as part of the accounting for the business combination to the extent that taxable profit will probably be available to use it (IAS 12, para. 32A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A deferred tax asset recognised in all circumstances, in profit or loss for the period, without any review of recoverability.","es":""},"correct":false,"feedback":{"fr":"","en":"The asset is subject to probable taxable profit and is part of the combination accounting.","es":""}},{"id":"B","text":{"fr":"","en":"A deferred tax liability, since the difference concerns goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"A carrying amount below the tax base creates a deductible difference.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax asset, to the extent that taxable profit will probably allow the difference to be used.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No deferred tax: the goodwill exception works both ways.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception targets only the liability; the reverse gap creates a deductible difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000139","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000139","tested_point":"QST.IAS12.000139","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21","IAS 12 §21A","IAS 12 §21B","IAS 12 §32A"],"exercise":{"prompt":{"fr":"","en":"Which of these statements about deferred tax relating to goodwill are correct?","es":""},"explanation":{"fr":"","en":"No liability on the initial recognition of non-deductible goodwill (IAS 12, para. 21), nor on its subsequent reductions (IAS 12, para. 21A); however, a liability is recognised on the part that does not arise from initial recognition (IAS 12, para. 21B) and an asset may arise where the tax base exceeds the carrying amount (IAS 12, para. 32A).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An impairment of non-deductible goodwill gives rise to deferred tax income.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: this reduction also falls under the initial exception.","es":""}},{"id":"B","text":{"fr":"","en":"A liability is recognised on the difference created by tax amortisation of deductible goodwill.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Goodwill whose tax base exceeds its carrying amount may give rise to a deferred tax asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The liability not recognised initially is caught up once goodwill is impaired.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: no catch-up is provided for.","es":""}},{"id":"E","text":{"fr":"","en":"The deferred tax liability arising from the initial recognition of non-deductible goodwill is not recognised.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000140","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000140","tested_point":"QST.IAS12.000140","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21B","IAS 12 §32A","IAS 12 §21A"],"exercise":{"prompt":{"fr":"","en":"In Estravia's consolidated financial statements at 31 December 20X5, which situations give rise to the recognition of deferred tax?","es":""},"explanation":{"fr":"","en":"The liability is recognised to the extent that it does not arise from the initial recognition of goodwill (IAS 12, para. 21B): this is the case for the difference created by tax amortisation. An asset arises from goodwill whose tax base exceeds its carrying amount, if taxable profit is probable (IAS 12, para. 32A). The impairment of non-deductible goodwill remains covered by the exception (IAS 12, para. 21A).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Non-deductible goodwill acquired in 20X5, carried at its original amount.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the initial recognition of goodwill: exception.","es":""}},{"id":"B","text":{"fr":"","en":"Deductible goodwill whose tax base has been reduced by tax amortisation, its carrying amount being unchanged.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Goodwill acquired in 20X5 whose tax base exceeds its carrying amount, sufficient taxable profit being probable.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The 20X5 impairment of non-deductible goodwill acquired in 20X2.","es":""},"correct":false,"feedback":{"fr":"","en":"The reduction of a liability never recognised is not recognised.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000141","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000141","tested_point":"QST.IAS12.000141","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21B","IAS 12 §21"],"exercise":{"prompt":{"fr":"","en":"To determine the deferred tax relating to a subsidiary's goodwill at the reporting date, which information is needed?","es":""},"explanation":{"fr":"","en":"Deductibility is tax data of the case. The difference is measured between carrying amount and tax base; the part arising from the initial recognition of non-deductible goodwill remains unrecognised (IAS 12, para. 21), whereas the part that does not arise from it gives rise to a liability (IAS 12, para. 21B).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The parent's share price at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Unrelated to the tax base or to the origin of the difference.","es":""}},{"id":"B","text":{"fr":"","en":"Whether the goodwill is deductible under the applicable tax law.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The subsidiary's accounting profit for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The profit for the year does not enter into the goodwill difference.","es":""}},{"id":"D","text":{"fr":"","en":"The tax base of goodwill at the reporting date and its carrying amount.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The part of the difference that arises from the initial recognition of goodwill.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000142","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000016","tested_point":"VG.IAS12.000016","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21B"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X4, Galdrix recognised goodwill of {goodwill_carrying}, whose tax base was equal to that amount. The tax law (case data) allows it to be deducted at {annual_deduction} a year; at 31 December 20X5, {years_deducted} years have been deducted and the carrying amount of goodwill is unchanged. Tax rate: {tax_rate}%. Compute the difference and the deferred tax at the reporting date.","es":""},"explanation":{"fr":"","en":"Initially, carrying amount and tax base were equal: no difference arose from initial recognition. Tax base at the reporting date: 640,000 − 2 × 80,000 = 480,000; taxable difference: 640,000 − 480,000 = 160,000; deferred tax liability: 160,000 × 25% = 40,000, recognised because it does not arise from the initial recognition of goodwill (IAS 12, para. 21B).","es":""},"common_error":{"fr":"","en":"Recognising no liability on the grounds that the asset is goodwill.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_carrying","value":"640000","unit":"EUR"},{"id":"annual_deduction","value":"80000","unit":"EUR"},{"id":"years_deducted","value":"2","unit":"YEARS"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Annual tax amortisation","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Years of tax amortisation elapsed","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"TEMP_DIFFERENCE","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":160000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TEMP_DIFFERENCE","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"expression":"a - (a - b * c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Years of tax amortisation elapsed","es":""},"value":2,"unit":"YEARS"},{"symbol":"c","meaning":{"fr":"","en":"Annual tax amortisation","es":""},"value":80000,"unit":"EUR"}],"result":160000,"unit":"EUR"},{"step":"DEFERRED_TAX","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":160000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":40000,"unit":"EUR","rationale":{"fr":"","en":"deferred tax liability: 160,000 × 25% = 40,000, recognised because it does not arise from the initial recognition of goodwill (IAS 12, para. 21B).","es":""}}],"references":["REF.IAS12.21B"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000143","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000016","tested_point":"VG.IAS12.000016","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21B"],"exercise":{"prompt":{"fr":"","en":"Helvora group acquired a logistics company {years_deducted} years ago; the goodwill of {goodwill_carrying} was then equal to its tax base. Since then, the tax authority has allowed a deduction of {annual_deduction} per year (tax data); no impairment has been recognised. The expected tax rate is {tax_rate}%. Determine the temporary difference and the deferred tax at the reporting date.","es":""},"explanation":{"fr":"","en":"Tax base: 900,000 − 3 × 60,000 = 720,000; taxable difference: 900,000 − 720,000 = 180,000, which arose after initial recognition; deferred tax liability: 180,000 × 30% = 54,000 (IAS 12, para. 21B).","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_carrying","value":"900000","unit":"EUR"},{"id":"annual_deduction","value":"60000","unit":"EUR"},{"id":"years_deducted","value":"3","unit":"YEARS"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Annual tax deduction","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Years of deduction elapsed","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"TEMP_DIFFERENCE","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":54000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TEMP_DIFFERENCE","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"expression":"a - (a - b * c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Years of deduction elapsed","es":""},"value":3,"unit":"YEARS"},{"symbol":"c","meaning":{"fr":"","en":"Annual tax deduction","es":""},"value":60000,"unit":"EUR"}],"result":180000,"unit":"EUR"},{"step":"DEFERRED_TAX","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":30,"unit":"PERCENT"}],"result":54000,"unit":"EUR"}],"references":["REF.IAS12.21B"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000144","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000017","tested_point":"VG.IAS12.000017","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §32A"],"exercise":{"prompt":{"fr":"","en":"On acquiring a business, Isbrand recognises goodwill of {goodwill_carrying}; under the tax law (case data), its tax base is {goodwill_tax_base}. Sufficient taxable profit is probable. Tax rate: {tax_rate}%. Compute the difference and the deferred tax asset.","es":""},"explanation":{"fr":"","en":"Deductible difference: 430,000 − 350,000 = 80,000; deferred tax asset: 80,000 × 25% = 20,000, recognised as part of the accounting for the business combination since taxable profit is probable (IAS 12, para. 32A).","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_carrying","value":"350000","unit":"EUR"},{"id":"goodwill_tax_base","value":"430000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":"350000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of goodwill","es":""},"value":"430000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEDUCTIBLE_DIFF","label":{"fr":"","en":"Deductible temporary difference","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEDUCTIBLE_DIFF","meaning":{"fr":"","en":"Deductible temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax base of goodwill","es":""},"value":430000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":350000,"unit":"EUR"}],"result":80000,"unit":"EUR"},{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible temporary difference","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":20000,"unit":"EUR","rationale":{"fr":"","en":"deferred tax asset: 80,000 × 25% = 20,000, recognised as part of the accounting for the business combination since taxable profit is probable (IAS 12, para. 32A).","es":""}}],"references":["REF.IAS12.32A"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000145","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000017","tested_point":"VG.IAS12.000017","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §32A"],"exercise":{"prompt":{"fr":"","en":"Lumivar acquires a network of veterinary clinics and recognises goodwill of {goodwill_carrying}; its tax base is {goodwill_tax_base} (tax data). The forecasts used (case assumptions) make it probable that only {usable_amount} of the difference will be used. Tax rate: {tax_rate}%. Compute the difference and the deferred tax asset to be recognised in the combination.","es":""},"explanation":{"fr":"","en":"Deductible difference: 600,000 − 520,000 = 80,000. The asset is recognised only to the extent that taxable profit will probably allow the difference to be used (IAS 12, para. 32A): 50,000 × 20% = 10,000. The balance (30,000 of difference) is not recognised; assessing the forecasts is a matter of professional judgement.","es":""},"common_error":{"fr":"","en":"Recognising the asset on the whole difference without regard to probable profit.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_carrying","value":"520000","unit":"EUR"},{"id":"goodwill_tax_base","value":"600000","unit":"EUR"},{"id":"usable_amount","value":"50000","unit":"EUR"},{"id":"tax_rate","value":"20","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of goodwill","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Part of the difference usable against probable profit","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"DEDUCTIBLE_DIFF","label":{"fr":"","en":"Deductible temporary difference","es":""},"answer":80000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":10000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEDUCTIBLE_DIFF","meaning":{"fr":"","en":"Deductible temporary difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax base of goodwill","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of goodwill","es":""},"value":520000,"unit":"EUR"}],"result":80000,"unit":"EUR"},{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Part of the difference usable against probable profit","es":""},"value":50000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":20,"unit":"PERCENT"}],"result":10000,"unit":"EUR","rationale":{"fr":"","en":"The asset is recognised only to the extent that taxable profit will probably allow the difference to be used (IAS 12, para. 32A): 50,000 × 20% = 10,000.","es":""}}],"references":["REF.IAS12.32A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000146","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000146","tested_point":"QST.IAS12.000146","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"In the business combination carried out by Marquelle, goodwill computed before deferred tax amounts to 300,000 and is not tax deductible. The accountant recognised a deferred tax liability of 75,000 (25% rate) and increased goodwill to 375,000. Where is the error?","es":""},"explanation":{"fr":"","en":"The deferred tax liability arising from the initial recognition of goodwill is not recognised (IAS 12, para. 15). Recognising it would increase goodwill, a residual amount, by a tax on itself (IAS 12, para. 21): the liability of 75,000 must be reversed and goodwill brought back to 300,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The liability should have been recognised as deferred tax expense for the year, not as an increase in goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The issue is not the other side of the entry: no liability is recognised.","es":""}},{"id":"B","text":{"fr":"","en":"The liability should have been computed on 375,000.","es":""},"correct":false,"feedback":{"fr":"","en":"This calculation would worsen the circularity instead of removing it.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax asset of 75,000 should have been recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is taxable; no asset arises from a nil tax base.","es":""}},{"id":"D","text":{"fr":"","en":"No deferred tax liability should have been recognised: goodwill stays at 300,000.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000147","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000147","tested_point":"QST.IAS12.000147","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21B"],"exercise":{"prompt":{"fr":"","en":"Norbrey has held tax-deductible goodwill of 500,000 since 20X2; its tax base, originally equal to its carrying amount, has fallen to 300,000 at 31 December 20X5 as a result of tax amortisation. The goodwill is neither amortised nor impaired in the accounts. The controller recognised no deferred tax, citing the goodwill exception. Where is the error?","es":""},"explanation":{"fr":"","en":"The difference of 500,000 − 300,000 = 200,000 arose after initial recognition, through tax amortisation; it does not fall under the exception and its deferred tax liability is recognised (IAS 12, para. 21B).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A deferred tax liability should have been recognised on the taxable difference of 200,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"There is no error: the goodwill exception covers all deferred tax relating to goodwill, at any date.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception is limited to initial recognition.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax asset on 200,000 was needed.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount exceeds the tax base: the difference is taxable.","es":""}},{"id":"D","text":{"fr":"","en":"A liability computed on 500,000 was needed.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is the gap between 500,000 and 300,000, not the whole carrying amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000148","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000148","tested_point":"QST.IAS12.000148","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §21A"],"exercise":{"prompt":{"fr":"","en":"Pellanor writes down by 120,000 goodwill that is not tax deductible (nil tax base since the outset). The accountant records deferred tax income of 30,000 (25% rate) on the grounds that the taxable difference has decreased. Where is the error?","es":""},"explanation":{"fr":"","en":"Subsequent reductions in a deferred tax liability not recognised on the initial recognition of goodwill are regarded as arising from it and are not recognised (IAS 12, para. 21A): the income of 30,000 must be reversed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A deferred tax asset of 30,000 should have been recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The write-down creates no deductible difference: the tax base remains nil.","es":""}},{"id":"B","text":{"fr":"","en":"No income should be recognised: the reduction falls under the initial exception.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The income should have been computed at the rate expected when the difference reverses, not at the current 25% rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is not the issue: no income is recognised.","es":""}},{"id":"D","text":{"fr":"","en":"The income should have been offset against goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"No deferred tax amount is to be recognised, neither in profit or loss nor in goodwill.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000149","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000149","tested_point":"QST.IAS12.000149","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"The initial recognition exception may apply to an asset acquired in a business combination.","es":""},"explanation":{"fr":"","en":"The exception covers only a transaction that is not a business combination, affects neither accounting profit nor taxable profit and does not give rise to equal taxable and deductible differences, for deferred tax liabilities (IAS 12, para. 15) as for deferred tax assets (IAS 12, para. 24).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000150","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000150","tested_point":"QST.IAS12.000150","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §22A"],"exercise":{"prompt":{"fr":"","en":"At the commencement date of a lease, where the tax law gives rise to equal taxable and deductible differences, the lessee recognises both a deferred tax liability and a deferred tax asset.","es":""},"explanation":{"fr":"","en":"The lessee recognises a lease liability and a right-of-use asset with no effect on profit at the time of the transaction; if equal taxable and deductible differences result, the exemption does not apply and the related deferred taxes are recognised (IAS 12, para. 22A).","es":""},"common_error":{"fr":"","en":"Still applying the exception to the lessee's leases.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000151","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000151","tested_point":"QST.IAS12.000151","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"A transaction that changes taxable profit when it occurs may nevertheless fall under the initial recognition exception.","es":""},"explanation":{"fr":"","en":"The exception requires that the transaction affects, at the time it occurs, neither accounting profit nor taxable profit (IAS 12, para. 15). As soon as either is affected, deferred tax is recognised under the general requirements.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000152","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000152","tested_point":"QST.IAS12.000152","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"IAS 12 sets the methods of accounting for government grants and investment tax credits.","es":""},"explanation":{"fr":"","en":"The standard does not deal with the methods of accounting for government grants or investment tax credits; it does, however, deal with the temporary differences that such grants or credits may give rise to (IAS 12, para. 4).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000153","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000153","tested_point":"QST.IAS12.000153","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Which combination of conditions allows the initial recognition exception to be applied to a deferred tax liability?","es":""},"explanation":{"fr":"","en":"The liability arising from the initial recognition of an asset or liability is not recognised if the transaction is not a business combination, affects neither accounting profit nor taxable profit and does not give rise to equal taxable and deductible differences (IAS 12, para. 15).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A transaction outside a business combination with no effect on accounting profit when it occurs, whatever its effect on taxable profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The effect on taxable profit also matters.","es":""}},{"id":"B","text":{"fr":"","en":"A transaction outside a business combination, with no effect on accounting profit or taxable profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The third condition, added in 2021, is missing: no equal differences.","es":""}},{"id":"C","text":{"fr":"","en":"A transaction outside a business combination, with no effect on either profit, and no equal taxable and deductible differences.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A transaction carried out in a business combination, at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"A business combination is precisely excluded from the exception.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000154","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000154","tested_point":"QST.IAS12.000154","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §22"],"exercise":{"prompt":{"fr":"","en":"A temporary difference arises on the initial recognition of an asset part of whose cost will never be deductible. What does its treatment depend on?","es":""},"explanation":{"fr":"","en":"A difference may arise on initial recognition, for example when part of the cost of an asset is not deductible; its treatment depends on the nature of the transaction: business combination or not, effect on accounting and taxable profit, equal differences (IAS 12, para. 22).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of the difference, the exception covering only differences judged immaterial to the financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no amount threshold.","es":""}},{"id":"B","text":{"fr":"","en":"The tax rate in force at the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate measures deferred tax; it does not decide whether it is recognised.","es":""}},{"id":"C","text":{"fr":"","en":"Management's intention to keep or sell the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This is not the criterion of the initial recognition exception.","es":""}},{"id":"D","text":{"fr":"","en":"The nature of the transaction: business combination or not, effect on profits, equal differences.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000155","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000155","tested_point":"QST.IAS12.000155","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Which deferred taxes does the initial recognition exception cover?","es":""},"explanation":{"fr":"","en":"The exception applies to deferred tax liabilities (IAS 12, para. 15) and to deferred tax assets (IAS 12, para. 24) arising from the initial recognition of an asset or liability, under the same three conditions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both deferred tax liabilities and deferred tax assets, under the same conditions.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only deferred tax liabilities, assets always being subject to the general probability rule.","es":""},"correct":false,"feedback":{"fr":"","en":"It also covers assets, under the same conditions.","es":""}},{"id":"C","text":{"fr":"","en":"Only deferred tax assets.","es":""},"correct":false,"feedback":{"fr":"","en":"It covers liabilities first, then assets.","es":""}},{"id":"D","text":{"fr":"","en":"Only goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is subject to a separate exception.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000156","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000156","tested_point":"QST.IAS12.000156","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Which conditions must all be met for the initial recognition exception to apply?","es":""},"explanation":{"fr":"","en":"The three conditions are cumulative and identical for deferred tax liabilities (IAS 12, para. 15) and assets (IAS 12, para. 24): not a business combination, no effect on either profit, no equal differences.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The asset is an item of property, plant and equipment.","es":""},"correct":false,"feedback":{"fr":"","en":"No category of asset is targeted.","es":""}},{"id":"B","text":{"fr":"","en":"The transaction is not a business combination.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At the time of the transaction, neither accounting profit nor taxable profit is affected.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The entity expects to recover the asset by selling it.","es":""},"correct":false,"feedback":{"fr":"","en":"The manner of recovery affects measurement, not the exception.","es":""}},{"id":"E","text":{"fr":"","en":"The transaction does not give rise to equal taxable and deductible differences.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000157","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000157","tested_point":"QST.IAS12.000157","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15","IAS 12 §22A"],"exercise":{"prompt":{"fr":"","en":"In which of these situations does the initial recognition exception not apply?","es":""},"explanation":{"fr":"","en":"The exception does not apply to a business combination, to a transaction that affects taxable profit, or to a transaction that gives rise to equal differences (IAS 12, para. 15). A lease is the typical example (IAS 12, para. 22A). Only the separate purchase of the building meets all three conditions.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Separate purchase of a building whose cost will never be deductible, with no effect on profits.","es":""},"correct":false,"feedback":{"fr":"","en":"All three conditions are met: the exception applies.","es":""}},{"id":"B","text":{"fr":"","en":"A lease whose commencement gives rise to equal differences.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An asset acquired in a business combination.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Costs incurred and deducted for tax in the same year, but capitalised in the accounts.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000158","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000018","tested_point":"VG.IAS12.000018","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §22A","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"On 1 January 20X6, Jassora leases a warehouse: right-of-use asset of {rou_asset} and lease liability of {lease_liability}. Under the tax law (case data), lease payments are deductible when paid: the tax bases of the right-of-use asset and of the liability are nil. Sufficient taxable profit is probable. Tax rate: {tax_rate}%. Compute the deferred tax liability and asset at the commencement date.","es":""},"explanation":{"fr":"","en":"Taxable difference on the right-of-use asset: 400,000 − 0 = 400,000; deductible difference on the liability: 400,000. These equal differences are outside the exception (IAS 12, para. 22A): deferred tax liability 400,000 × 25% = 100,000 and deferred tax asset 100,000, the latter recognised because taxable profit is probable (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Recognising nothing on the grounds that the net is nil.","es":""},"format":"CALCULATION","placeholders":[{"id":"rou_asset","value":"400000","unit":"EUR"},{"id":"lease_liability","value":"400000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Right-of-use asset at commencement","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Lease liability at commencement","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DTL_AMOUNT","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000159","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000018","tested_point":"VG.IAS12.000018","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §22A","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Korvelle leases a fleet of commercial vehicles. At the commencement date, it recognises a right-of-use asset of {rou_asset} and a lease liability of {lease_liability}. The tax law (data) deducts only lease payments made, so both items have a nil tax base. Future taxable profit is probable. With a tax rate of {tax_rate}%, which deferred taxes are recognised at the commencement date?","es":""},"explanation":{"fr":"","en":"Equal differences of 260,000 (taxable on the right-of-use asset, deductible on the liability), outside the exception (IAS 12, para. 22A): deferred tax liability 260,000 × 30% = 78,000; deferred tax asset 78,000, recognised given the probable taxable profit (IAS 12, para. 24).","es":""},"format":"CALCULATION","placeholders":[{"id":"rou_asset","value":"260000","unit":"EUR"},{"id":"lease_liability","value":"260000","unit":"EUR"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Initial right-of-use asset","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Initial lease liability","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"DTL_AMOUNT","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":78000,"tolerance":0,"unit":"EUR"},{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":78000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000162","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000162","tested_point":"QST.IAS12.000162","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §23"],"exercise":{"prompt":{"fr":"","en":"An entity issues a compound financial instrument; in its jurisdiction, the tax base of the liability component equals the total of both components. How does it treat the taxable difference arising from the separation of the equity component?","es":""},"explanation":{"fr":"","en":"The taxable difference arising from the separation of the equity component does not fall under the exception; the deferred tax liability is charged directly to the carrying amount of the equity component, and its subsequent changes are recognised in profit or loss (IAS 12, para. 23).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises the deferred tax liability as an expense for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The initial other side is the equity component, not profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"It recognises a deferred tax liability charged to the equity component; subsequent changes go to profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It recognises a deferred tax asset on the liability component.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base exceeds the carrying amount of the liability: the difference is taxable.","es":""}},{"id":"D","text":{"fr":"","en":"It applies the initial recognition exception, as separating the components affects neither accounting profit nor taxable profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard expressly excludes this difference from the exception.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000163","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000163","tested_point":"QST.IAS12.000163","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §33","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Nestara receives a non-taxable government grant of 90,000 for a machine costing 450,000; under the method used in the case, the grant is deducted from the carrying amount of the machine, but not from its tax base. Which statements are correct at the outset?","es":""},"explanation":{"fr":"","en":"IAS 12 does not set the method of accounting for grants, but deals with the temporary differences they give rise to (IAS 12, para. 4). A non-taxable grant deducted from the carrying amount but not from the tax base gives rise to a deductible difference (IAS 12, para. 33): 450,000 − 360,000 = 90,000.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 12 requires the grant to be deducted from the carrying amount of the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The method of accounting for the grant is not a matter for IAS 12.","es":""}},{"id":"B","text":{"fr":"","en":"The carrying amount of the machine (360,000) is lower than its tax base (450,000).","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A deductible temporary difference of 90,000 arises.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A taxable temporary difference of 90,000 arises.","es":""},"correct":false,"feedback":{"fr":"","en":"The direction is the reverse: the difference is deductible.","es":""}},{"id":"E","text":{"fr":"","en":"IAS 12 deals with the temporary differences that the grant gives rise to.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000164","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000164","tested_point":"QST.IAS12.000164","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §23"],"exercise":{"prompt":{"fr":"","en":"Ostrelle issues convertible bonds for {proceeds}; the liability component is measured at {liability_component}, the balance being classified in equity. In its jurisdiction (case data), the tax base of the liability component equals the total issue proceeds. Tax rate: {tax_rate}%. Compute the difference and the deferred tax liability at issue.","es":""},"explanation":{"fr":"","en":"Tax base of the liability: 2,000,000; carrying amount: 1,850,000; taxable difference: 150,000. It does not fall under the exception; deferred tax liability: 150,000 × 25% = 37,500, charged to the equity component (IAS 12, para. 23).","es":""},"format":"CALCULATION","placeholders":[{"id":"proceeds","value":"2000000","unit":"EUR"},{"id":"liability_component","value":"1850000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Issue proceeds","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Liability component","es":""},"value":"1850000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"TAXABLE_DIFF","label":{"fr":"","en":"Taxable temporary difference","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"DTL_AMOUNT","label":{"fr":"","en":"Deferred tax liability (charged to the equity component)","es":""},"answer":37500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTL_AMOUNT","meaning":{"fr":"","en":"Deferred tax liability (charged to the equity component)","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":37500,"unit":"EUR","rationale":{"fr":"","en":"deferred tax liability: 150,000 × 25% = 37,500, charged to the equity component (IAS 12, para. 23).","es":""}}],"references":["REF.IAS12.23"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000165","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000020","tested_point":"VG.IAS12.000020","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Querval acquires a storage facility for {purchase_cost} and initially recognises a dismantling provision of {dismantling_cost}, included in the cost of the facility (treatment in the case). For tax purposes (data), the purchase price forms the tax base of the facility, the dismantling component is not part of it and the provision is deductible only when paid. Future taxable profit is probable. Tax rate: {tax_rate}%. Compute the liability, the asset and the net deferred tax at the outset.","es":""},"explanation":{"fr":"","en":"Carrying amount of the facility: 1,200,000 + 180,000 = 1,380,000; tax base: 1,200,000; taxable difference: 180,000. Provision: carrying amount 180,000, nil tax base; deductible difference: 180,000. The equal differences rule out the exception (IAS 12, para. 15): liability 180,000 × 25% = 45,000, asset 45,000, net 0.","es":""},"common_error":{"fr":"","en":"Showing only the nil net amount and recognising neither asset nor liability.","es":""},"format":"CALCULATION","placeholders":[{"id":"purchase_cost","value":"1200000","unit":"EUR"},{"id":"dismantling_cost","value":"180000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Purchase price of the facility (deductible through tax depreciation)","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Dismantling component and provision","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DTL_AMOUNT","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"NET_DEFERRED_TAX","label":{"fr":"","en":"Net deferred tax","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTL_AMOUNT","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Dismantling component and provision","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":45000,"unit":"EUR","rationale":{"fr":"","en":"The equal differences rule out the exception (IAS 12, para. 15): liability 180,000 × 25% = 45,000, asset 45,000, net 0.","es":""}}],"references":["REF.IAS12.15"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000166","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000020","tested_point":"VG.IAS12.000020","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Ressane installs a test platform bought for {purchase_cost}. It must restore the site at the end of operations: estimated cost of {dismantling_cost}, provided for and included in the cost of the platform (treatment in the case). The tax law (data) admits neither this component in the tax base nor the provision before payment. Future taxable profit is probable. Tax rate: {tax_rate}%. Compute the deferred taxes at the outset.","es":""},"explanation":{"fr":"","en":"Taxable difference on the platform: 896,000 − 800,000 = 96,000; deductible difference on the provision: 96,000. Equal differences, outside the exception (IAS 12, para. 15): liability 96,000 × 30% = 28,800; asset 28,800; net 0.","es":""},"format":"CALCULATION","placeholders":[{"id":"purchase_cost","value":"800000","unit":"EUR"},{"id":"dismantling_cost","value":"96000","unit":"EUR"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Purchase price of the platform (tax base)","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Estimated restoration cost capitalised and provided for","es":""},"value":"96000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"DTL_AMOUNT","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":28800,"tolerance":0,"unit":"EUR"},{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":28800,"tolerance":0,"unit":"EUR"},{"id":"NET_DEFERRED_TAX","label":{"fr":"","en":"Net deferred tax","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTL_AMOUNT","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated restoration cost capitalised and provided for","es":""},"value":96000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":30,"unit":"PERCENT"}],"result":28800,"unit":"EUR","rationale":{"fr":"","en":"Equal differences, outside the exception (IAS 12, para. 15): liability 96,000 × 30% = 28,800","es":""}}],"references":["REF.IAS12.15"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000169","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000169","tested_point":"QST.IAS12.000169","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §22A"],"exercise":{"prompt":{"fr":"","en":"Tirenne, lessee of a store lease, recognises at the commencement date a right-of-use asset and a lease liability of 540,000 each. Lease payments are deductible only when paid (tax data). Its accountant recognises no deferred tax, citing the initial recognition exception. Where is the error?","es":""},"explanation":{"fr":"","en":"At the commencement date, the lessee recognises an asset and a liability with no effect on profits; here the tax law gives rise to taxable and deductible differences of 540,000 each, of equal amount. The exemption does not apply and the entity recognises the resulting deferred tax liability and asset (IAS 12, para. 22A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only a deferred tax liability should have been recognised: the asset arising on the lease liability remains prohibited by the initial recognition exception.","es":""},"correct":false,"feedback":{"fr":"","en":"Both deferred taxes are recognised, as the exception does not apply.","es":""}},{"id":"B","text":{"fr":"","en":"There is no error: a lease does not affect profit at the commencement date.","es":""},"correct":false,"feedback":{"fr":"","en":"True, but the third condition is not met.","es":""}},{"id":"C","text":{"fr":"","en":"The equal taxable and deductible differences rule out the exception: deferred tax asset and liability are recognised.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A deferred tax expense on 540,000 should have been recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The transaction does not affect profit; asset and liability offset in the entry.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000170","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000170","tested_point":"QST.IAS12.000170","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Valdoris capitalises 300,000 of development costs (accounting treatment in the case), which the tax law (data) allows it to deduct in full in the same year. Its accountant records no deferred tax, citing the initial recognition exception. Where is the error?","es":""},"explanation":{"fr":"","en":"The exception requires that the transaction affects neither accounting profit nor taxable profit (IAS 12, para. 15). The immediate deduction of 300,000 affects taxable profit: the taxable difference (carrying amount 300,000, nil tax base) gives rise to a deferred tax liability.","es":""},"common_error":{"fr":"","en":"Citing the exception for any initial recognition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"There is no error: this is the initial recognition of an asset, which the exception covers whatever the tax treatment of the costs.","es":""},"correct":false,"feedback":{"fr":"","en":"Initial recognition is not enough: all three conditions must be met.","es":""}},{"id":"B","text":{"fr":"","en":"The deferred tax should have been charged directly to equity.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing justifies a charge outside profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax asset was needed, the tax base being higher.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax base is nil after deduction: the difference is taxable.","es":""}},{"id":"D","text":{"fr":"","en":"The immediate deduction affects taxable profit: the exception does not apply and a deferred tax liability is recognised.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000171","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000171","tested_point":"QST.IAS12.000171","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §15","IAS 12 §22"],"exercise":{"prompt":{"fr":"","en":"Aubrisse buys an office building separately, outside any business combination, for 700,000; under the tax law (data), 200,000 of this cost will never be deductible, either through depreciation or on disposal. The purchase affects no profit. The accountant recognises a deferred tax liability of 50,000 (25% rate) as an expense. Where is the error?","es":""},"explanation":{"fr":"","en":"The non-deductible part of the cost creates a taxable difference of 200,000 on initial recognition (IAS 12, para. 22). The transaction is not a business combination, affects no profit and does not give rise to an equal deductible difference: the deferred tax liability is not recognised (IAS 12, para. 15).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"All three conditions of the exception are met: no deferred tax liability is recognised.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The liability was justified, but it should have been added to the cost of the building instead of being expensed.","es":""},"correct":false,"feedback":{"fr":"","en":"No liability is recognised: the question of the other side does not arise.","es":""}},{"id":"C","text":{"fr":"","en":"The liability should have been computed on 700,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is 200,000 and is, in any event, not recognised.","es":""}},{"id":"D","text":{"fr":"","en":"A deferred tax asset of 50,000 was needed.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount exceeds the tax base: the difference is taxable.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000172","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000172","tested_point":"QST.IAS12.000172","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §22A","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Cellaris, a lessee, recognises a right-of-use asset and a lease liability of 210,000 each. In its jurisdiction (case data), the tax authority follows the accounting treatment: it deducts the depreciation of the right-of-use asset and the interest on the liability, so the tax base of each item equals its carrying amount. Which deferred tax is recognised at the commencement date?","es":""},"explanation":{"fr":"","en":"Equal differences arise from a lease only 'depending on the tax law' (IAS 12, para. 22A). Here, each tax base equals the carrying amount: there is no temporary difference, hence nothing to recognise, with no need to invoke the exception (IAS 12, para. 15).","es":""},"common_error":{"fr":"","en":"Assuming equal differences without checking the tax law of the case.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A deferred tax liability and asset each computed on 210,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No difference exists here: there is nothing to compute.","es":""}},{"id":"B","text":{"fr":"","en":"None: the tax bases equal the carrying amounts, no temporary difference arises.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"None, because the initial recognition exception applies.","es":""},"correct":false,"feedback":{"fr":"","en":"The conclusion is right, the reason is wrong: there is simply no difference.","es":""}},{"id":"D","text":{"fr":"","en":"A deferred tax asset only, on the lease liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability has no difference: its tax base equals its carrying amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000173","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000173","tested_point":"QST.IAS12.000173","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §22","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"Dravona separately acquires an operating licence for 650,000. The tax law (data) will never allow 150,000 of this cost to be deducted; the acquisition affects neither accounting profit nor taxable profit, and no deductible difference arises. Tax rate: 25%. Which treatment applies at acquisition?","es":""},"explanation":{"fr":"","en":"Tax base: 650,000 − 150,000 = 500,000; taxable difference of 150,000 arising on initial recognition (IAS 12, para. 22). A separate transaction, with no effect on profits and no equal deductible difference: the liability of 150,000 × 25% = 37,500 is not recognised (IAS 12, para. 15).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deferred tax liability of 37,500 as an expense for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The conditions of the exception are met: no liability.","es":""}},{"id":"B","text":{"fr":"","en":"Deferred tax liability of 37,500 added to the cost of the licence, as the transaction does not affect profit for the year.","es":""},"correct":false,"feedback":{"fr":"","en":"Increasing the cost by an unrecognisable deferred tax has no basis.","es":""}},{"id":"C","text":{"fr":"","en":"No deferred tax on the difference of 150,000: the initial recognition exception applies.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Deferred tax asset of 37,500.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is taxable, not deductible.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000174","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_RECOGNITION.INITIAL_RECOGNITION_EXCEPTION","IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000174","tested_point":"QST.IAS12.000174","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000008","section_id":"exception-conditions"},"references":["IAS 12 §22A","IAS 12 §24","IAS 12 §28"],"exercise":{"prompt":{"fr":"","en":"Elmorra, which has recent tax losses, leases a logistics site: right-of-use asset and lease liability of 380,000 each. Lease payments are deductible only when paid (tax data); according to the schedule prepared (case assumption), the taxable difference on the right-of-use asset will reverse in the same periods, and for the same tax authority and entity, as the deductible difference on the liability. Tax rate: 25%. What is recognised at the commencement date?","es":""},"explanation":{"fr":"","en":"The equal differences rule out the exemption (IAS 12, para. 22A): liability 380,000 × 25% = 95,000. The asset requires probable taxable profit (IAS 12, para. 24); it is probable where sufficient taxable differences of the same authority and entity reverse in the same periods (IAS 12, para. 28): asset of 95,000. The reversal schedule is a matter of judgement and must be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A deferred tax asset of 95,000 only.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability on the right-of-use asset is always recognised.","es":""}},{"id":"B","text":{"fr":"","en":"Nothing: the initial recognition exception applies to leases.","es":""},"correct":false,"feedback":{"fr":"","en":"The equal differences rule out the exception.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax liability of 95,000 only: the recent tax losses prevent any deferred tax asset from being recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal of the taxable difference provides the profit needed for the asset.","es":""}},{"id":"D","text":{"fr":"","en":"A deferred tax liability and asset of 95,000 each, the asset being supported by the reversal of the taxable difference.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000177","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000177","tested_point":"QST.IAS12.000177","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §28"],"exercise":{"prompt":{"fr":"","en":"To support a deferred tax asset, an entity may count the taxable temporary differences of a sister company that is a separate taxable entity.","es":""},"explanation":{"fr":"","en":"Only taxable differences relating to the same taxation authority and the same taxable entity, reversing in the appropriate periods, count (IAS 12, para. 28).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000178","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000178","tested_point":"QST.IAS12.000178","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"When assessing whether future taxable profit is sufficient, the entity considers it excluding the deductions that will result from the reversal of the deductible temporary differences themselves.","es":""},"explanation":{"fr":"","en":"Future taxable profit is assessed excluding the deductions resulting from the reversal of deductible temporary differences (IAS 12, para. 29): otherwise these deductions would be counted twice.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000179","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000179","tested_point":"QST.IAS12.000179","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §30"],"exercise":{"prompt":{"fr":"","en":"An action that merely causes existing deductible temporary differences to reverse is a tax planning opportunity.","es":""},"explanation":{"fr":"","en":"A tax planning opportunity is an action the entity would take to create or increase taxable profit in a particular period; an action that merely reverses existing deductible differences neither creates nor increases taxable profit, so it does not meet that definition (IAS 12, para. 30).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000180","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000180","tested_point":"QST.IAS12.000180","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §29A"],"exercise":{"prompt":{"fr":"","en":"The estimate of future taxable profit may include the recovery of some assets for more than their carrying amount, if sufficient evidence makes it probable.","es":""},"explanation":{"fr":"","en":"Recovery of assets above their carrying amount may be included in the estimate where sufficient evidence makes it probable, taking into account all facts and circumstances (IAS 12, para. 29A).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000181","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000181","tested_point":"QST.IAS12.000181","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §28"],"exercise":{"prompt":{"fr":"","en":"Which taxable temporary differences make probable the taxable profit needed for a deferred tax asset?","es":""},"explanation":{"fr":"","en":"Taxable profit is probable where sufficient taxable differences, relating to the same authority and the same taxable entity, reverse in the same period as the deductible difference or in the periods into which the resulting loss can be carried back or forward (IAS 12, para. 28).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Those of the same authority and taxable entity that reverse in the relevant periods.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Those that have already given rise to current tax.","es":""},"correct":false,"feedback":{"fr":"","en":"A difference already taxed will no longer provide future profit.","es":""}},{"id":"C","text":{"fr":"","en":"All those of the consolidated group, whatever the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The same taxable entity and authority are needed.","es":""}},{"id":"D","text":{"fr":"","en":"Those of the same taxable entity, whatever their reversal date, since they will always reverse eventually.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal timing also matters.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000182","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000182","tested_point":"QST.IAS12.000182","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"Without sufficient taxable differences, on what other bases may a deferred tax asset be recognised?","es":""},"explanation":{"fr":"","en":"Without sufficient taxable differences, the asset is recognised to the extent that sufficient taxable profit is probable in the appropriate periods, or to the extent that tax planning opportunities allow such profit to be created (IAS 12, para. 29).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On probable future taxable profit and on tax planning opportunities.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"On the average historical accounting profit of the last five years.","es":""},"correct":false,"feedback":{"fr":"","en":"What counts is probable future taxable profit, not a historical average.","es":""}},{"id":"C","text":{"fr":"","en":"Solely on the group's financial capacity to absorb the loss, evidenced by a letter of support from the parent.","es":""},"correct":false,"feedback":{"fr":"","en":"Financial strength does not create taxable profit for the entity.","es":""}},{"id":"D","text":{"fr":"","en":"On no other basis: without taxable differences, no asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for two other sources.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000183","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT","IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000183","tested_point":"QST.IAS12.000183","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"To what extent is a deferred tax asset recognised for deductible temporary differences?","es":""},"explanation":{"fr":"","en":"A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which they can be used, unless the initial recognition exception applies (IAS 12, para. 24).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In full, unconditionally.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognition depends on probable taxable profit.","es":""}},{"id":"B","text":{"fr":"","en":"Only up to the deferred tax liabilities already recognised by the entity, whatever their reversal date.","es":""},"correct":false,"feedback":{"fr":"","en":"Taxable differences are one source among others.","es":""}},{"id":"C","text":{"fr":"","en":"To the extent that taxable profit against which they can be used will probably be available.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Only if the entity has never had a tax loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Past losses make the analysis more demanding, without prohibiting it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000184","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000184","tested_point":"QST.IAS12.000184","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §28","IAS 12 §29","IAS 12 §30"],"exercise":{"prompt":{"fr":"","en":"Arnavelle is assessing its deferred tax asset. Which sources of taxable profit may it take into account?","es":""},"explanation":{"fr":"","en":"Three sources: taxable differences of the same authority and entity (IAS 12, para. 28), probable future profit excluding reversal deductions, and tax planning opportunities (IAS 12, para. 29). The reversal of existing deductible differences is not a planning opportunity (IAS 12, para. 30).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its own taxable differences, with the same authority, reversing in the same period.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The taxable differences of a foreign subsidiary taxed in another country.","es":""},"correct":false,"feedback":{"fr":"","en":"Another authority, another entity: excluded.","es":""}},{"id":"C","text":{"fr":"","en":"Its probable future taxable profit, assessed excluding deductions from the reversal of deductible differences.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An action it would take to create taxable profit in the appropriate period.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The mere future reversal of its existing deductible differences.","es":""},"correct":false,"feedback":{"fr":"","en":"This is not a tax planning opportunity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000185","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000185","tested_point":"QST.IAS12.000185","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §29A"],"exercise":{"prompt":{"fr":"","en":"In which of these situations is the recovery of an asset for more than its carrying amount least likely to be included in future taxable profit?","es":""},"explanation":{"fr":"","en":"All facts and circumstances are taken into account; recovery above the carrying amount is unlikely for a recently impaired asset and more likely for an asset measured at cost and used in a profitable business (IAS 12, para. 29A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Land at cost whose market value, documented by several appraisals, is significantly higher.","es":""},"correct":false,"feedback":{"fr":"","en":"Strong evidence may make this recovery probable.","es":""}},{"id":"B","text":{"fr":"","en":"A patent at cost generating rising royalties.","es":""},"correct":false,"feedback":{"fr":"","en":"Documented profitable flows support a higher recovery.","es":""}},{"id":"C","text":{"fr":"","en":"A warehouse measured at cost, used in a profitable business.","es":""},"correct":false,"feedback":{"fr":"","en":"This is, on the contrary, the situation in which such recovery is more likely.","es":""}},{"id":"D","text":{"fr":"","en":"A plant impaired at the previous reporting date.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000186","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000186","tested_point":"QST.IAS12.000186","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §27A"],"exercise":{"prompt":{"fr":"","en":"In Belgrane's jurisdiction (case data), capital losses on securities can be offset only against capital gains of the same kind. Which statements are correct when assessing the deferred tax asset relating to an unrealised capital loss on securities?","es":""},"explanation":{"fr":"","en":"The entity considers whether the tax law restricts the sources of profit: without restriction, the difference is assessed with all other deductible differences; if the law restricts offset to one type of income, it is assessed only with items of the same type (IAS 12, para. 27A).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Future operating profits may support the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The law restricts offset to capital gains of the same kind.","es":""}},{"id":"B","text":{"fr":"","en":"The deductible difference is assessed only together with differences and income of the same kind.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Probable future capital gains on securities are an admissible source of profit.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The legal restriction has no effect, the assessment always being global.","es":""},"correct":false,"feedback":{"fr":"","en":"A global assessment applies only absent a restriction.","es":""}},{"id":"E","text":{"fr":"","en":"Without a legal restriction, the difference would be assessed with all other deductible differences.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000187","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000187","tested_point":"QST.IAS12.000187","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §30","IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"Which statements about tax planning opportunities are correct?","es":""},"explanation":{"fr":"","en":"A tax planning opportunity is an action the entity would take to create or increase taxable profit; the mere reversal of deductible differences creates no taxable profit and so does not meet that definition (IAS 12, para. 30). It must create that profit in the appropriate periods (IAS 12, para. 29). Whether the action is realistic is a matter of judgement.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are actions the entity would take to create or increase taxable profit.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An action that merely reverses existing deductible differences is not one.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Any forecast increase in revenue is a tax planning opportunity.","es":""},"correct":false,"feedback":{"fr":"","en":"A business forecast relates to future profit, not to planning.","es":""}},{"id":"D","text":{"fr":"","en":"They must create taxable profit in the appropriate periods.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"They may be counted even if the entity does not intend to implement them.","es":""},"correct":false,"feedback":{"fr":"","en":"They are actions the entity would take: their realism is a matter of judgement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000188","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT","IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000021","tested_point":"VG.IAS12.000021","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §28","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X5, Cortessa has deductible temporary differences of {deductible_diff}. Its taxable differences, with the same authority and entity, that will reverse in the same periods amount to {taxable_diff}. No other source of taxable profit is probable (case assumption). Tax rate: {tax_rate}%. Compute the deferred tax asset recognised and the uncovered deductible difference.","es":""},"explanation":{"fr":"","en":"The asset is recognised only to the extent of probable taxable profit (IAS 12, para. 24), here provided only by the eligible taxable differences (IAS 12, para. 28): 250,000 × 25% = 62,500. Uncovered difference: 600,000 − 250,000 = 350,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"deductible_diff","value":"600000","unit":"EUR"},{"id":"taxable_diff","value":"250000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Deductible temporary differences","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Taxable differences of the same entity and period","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DTA_RECOGNISED","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":62500,"tolerance":0,"unit":"EUR"},{"id":"UNCOVERED_DIFF","label":{"fr":"","en":"Deductible difference not covered (no asset)","es":""},"answer":350000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTA_RECOGNISED","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable differences of the same entity and period","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":62500,"unit":"EUR","rationale":{"fr":"","en":"The asset is recognised only to the extent of probable taxable profit (IAS 12, para. 24), here provided only by the eligible taxable differences (IAS 12, para. 28): 250,000 × 25% = 62,500.","es":""}},{"step":"UNCOVERED_DIFF","meaning":{"fr":"","en":"Deductible difference not covered (no asset)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible temporary differences","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Taxable differences of the same entity and period","es":""},"value":250000,"unit":"EUR"}],"result":350000,"unit":"EUR"}],"references":["REF.IAS12.28","REF.IAS12.24"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000189","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT","IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000021","tested_point":"VG.IAS12.000021","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §28","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"The subsidiary Delmarre has deductible differences of {deductible_diff}. Its own taxable differences, which will reverse in the same periods, amount to {own_taxable_diff}; a sister company, a separate taxable entity with no group tax regime (tax data), has taxable differences of {sister_taxable_diff}. No other source is probable. Tax rate: {tax_rate}%. Compute Delmarre's deferred tax asset and the uncovered difference.","es":""},"explanation":{"fr":"","en":"Only differences of the same taxable entity count (IAS 12, para. 28): the sister company's 200,000 is excluded. Asset recognised to the extent of probable profit (IAS 12, para. 24): 180,000 × 30% = 54,000; uncovered difference: 500,000 − 180,000 = 320,000.","es":""},"common_error":{"fr":"","en":"Adding up the taxable differences of all group companies.","es":""},"format":"CALCULATION","placeholders":[{"id":"deductible_diff","value":"500000","unit":"EUR"},{"id":"own_taxable_diff","value":"180000","unit":"EUR"},{"id":"sister_taxable_diff","value":"200000","unit":"EUR"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Deductible differences of the subsidiary","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Own taxable differences (same period)","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Taxable differences of the sister company","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"DTA_RECOGNISED","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":54000,"tolerance":0,"unit":"EUR"},{"id":"UNCOVERED_DIFF","label":{"fr":"","en":"Deductible difference not covered (no asset)","es":""},"answer":320000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTA_RECOGNISED","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Own taxable differences (same period)","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":30,"unit":"PERCENT"}],"result":54000,"unit":"EUR"},{"step":"UNCOVERED_DIFF","meaning":{"fr":"","en":"Deductible difference not covered (no asset)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible differences of the subsidiary","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Own taxable differences (same period)","es":""},"value":180000,"unit":"EUR"}],"result":320000,"unit":"EUR"}],"rationale":{"fr":"","en":"Only differences of the same taxable entity count (IAS 12, para. 28): the sister company's 200,000 is excluded.","es":""},"references":["REF.IAS12.28","REF.IAS12.24"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000190","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000022","tested_point":"VG.IAS12.000022","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"Elvarine has deductible differences of {deductible_diff}, which will reverse between 20X6 and 20X8; it has no taxable differences. Its tax budgets (case assumptions) forecast for these three years cumulative taxable profit of {forecast_after}, computed after deducting these reversals. Tax rate: {tax_rate}%. Compute the taxable profit to be compared with the differences and the deferred tax asset.","es":""},"explanation":{"fr":"","en":"Profit is assessed excluding the deductions resulting from the reversal of deductible differences (IAS 12, para. 29): 150,000 + 400,000 = 550,000. It covers the 400,000 of differences: asset of 400,000 × 25% = 100,000. Using 150,000 would have counted the deductions twice.","es":""},"common_error":{"fr":"","en":"Capping the asset at the forecast profit after deductions (150,000).","es":""},"format":"CALCULATION","placeholders":[{"id":"deductible_diff","value":"400000","unit":"EUR"},{"id":"forecast_after","value":"150000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Deductible differences reversing in 20X6-20X8","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Forecast taxable profit, after the reversal deductions","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"PROFIT_EXCL_REVERSALS","label":{"fr":"","en":"Taxable profit excluding reversal deductions","es":""},"answer":550000,"tolerance":0,"unit":"EUR"},{"id":"DTA_RECOGNISED","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PROFIT_EXCL_REVERSALS","meaning":{"fr":"","en":"Taxable profit excluding reversal deductions","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Forecast taxable profit, after the reversal deductions","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deductible differences reversing in 20X6-20X8","es":""},"value":400000,"unit":"EUR"}],"result":550000,"unit":"EUR","rationale":{"fr":"","en":"Profit is assessed excluding the deductions resulting from the reversal of deductible differences (IAS 12, para. 29): 150,000 + 400,000 = 550,000.","es":""}},{"step":"DTA_RECOGNISED","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible differences reversing in 20X6-20X8","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":100000,"unit":"EUR"}],"references":["REF.IAS12.29"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000191","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000022","tested_point":"VG.IAS12.000022","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §28","IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"Faronde has deductible differences of {deductible_diff}. Taxable differences of {taxable_diff} (same authority, same entity) will reverse in the same periods. Its probable future taxable profit, excluding reversal deductions and taxable reversals, is estimated at {forecast_excl} (case assumption). Tax rate: {tax_rate}%. Compute the available profit and the deferred tax asset.","es":""},"explanation":{"fr":"","en":"Eligible sources: taxable reversals of the same entity (IAS 12, para. 28) and future profit excluding reversal deductions (IAS 12, para. 29): 200,000 + 500,000 = 700,000, lower than the 900,000 of differences. Asset: 700,000 × 20% = 140,000; 200,000 of differences remain without an asset.","es":""},"format":"CALCULATION","placeholders":[{"id":"deductible_diff","value":"900000","unit":"EUR"},{"id":"taxable_diff","value":"200000","unit":"EUR"},{"id":"forecast_excl","value":"500000","unit":"EUR"},{"id":"tax_rate","value":"20","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Deductible differences","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Taxable differences reversing in the same periods","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Future taxable profit excluding reversal deductions and taxable reversals","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"AVAILABLE_PROFIT","label":{"fr":"","en":"Available taxable profit","es":""},"answer":700000,"tolerance":0,"unit":"EUR"},{"id":"DTA_RECOGNISED","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":140000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"AVAILABLE_PROFIT","meaning":{"fr":"","en":"Available taxable profit","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable differences reversing in the same periods","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Future taxable profit excluding reversal deductions and taxable reversals","es":""},"value":500000,"unit":"EUR"}],"result":700000,"unit":"EUR","rationale":{"fr":"","en":"Eligible sources: taxable reversals of the same entity (IAS 12, para. 28) and future profit excluding reversal deductions (IAS 12, para. 29): 200,000 + 500,000 = 700,000, lower than the 900,000 of differences.","es":""}},{"step":"DTA_RECOGNISED","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Available taxable profit","es":""},"value":700000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":20,"unit":"PERCENT"}],"result":140000,"unit":"EUR"}],"references":["REF.IAS12.28","REF.IAS12.29"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000192","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000192","tested_point":"QST.IAS12.000192","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §27A"],"exercise":{"prompt":{"fr":"","en":"Grisolde holds a financial investment whose future disposal will generate a capital loss for tax; the related deductible difference is {capital_diff}. Its tax law (case data) offsets such losses only against capital gains; probable future capital gains are estimated at {expected_gains}, while its operating profits are more than sufficient. Tax rate: {tax_rate}%. Compute the deferred tax asset on this difference and the uncovered part.","es":""},"explanation":{"fr":"","en":"As the law restricts offset to one type of income, the difference is assessed only with income of the same type (IAS 12, para. 27A): operating profits do not count. Asset: 120,000 × 25% = 30,000; uncovered part: 300,000 − 120,000 = 180,000.","es":""},"common_error":{"fr":"","en":"Supporting the asset with operating profits.","es":""},"format":"CALCULATION","placeholders":[{"id":"capital_diff","value":"300000","unit":"EUR"},{"id":"expected_gains","value":"120000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Deductible difference of a capital nature","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Probable future taxable capital gains","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DTA_RECOGNISED","label":{"fr":"","en":"Deferred tax asset recognised on this difference","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"UNCOVERED_DIFF","label":{"fr":"","en":"Deductible difference not covered (no asset)","es":""},"answer":180000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTA_RECOGNISED","meaning":{"fr":"","en":"Deferred tax asset recognised on this difference","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Probable future taxable capital gains","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":30000,"unit":"EUR"},{"step":"UNCOVERED_DIFF","meaning":{"fr":"","en":"Deductible difference not covered (no asset)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible difference of a capital nature","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Probable future taxable capital gains","es":""},"value":120000,"unit":"EUR"}],"result":180000,"unit":"EUR"}],"rationale":{"fr":"","en":"As the law restricts offset to one type of income, the difference is assessed only with income of the same type (IAS 12, para. 27A): operating profits do not count.","es":""},"references":["REF.IAS12.27A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000193","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000193","tested_point":"QST.IAS12.000193","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"Harmont has 400,000 of deductible differences; its tax budget forecasts taxable profit of 250,000 after deducting these reversals (case assumption). It caps the deferred tax asset at 250,000 × 25% = 62,500. Where is the error?","es":""},"explanation":{"fr":"","en":"Future taxable profit is assessed excluding the deductions resulting from the reversal of deductible differences (IAS 12, para. 29): 250,000 + 400,000 = 650,000 ≥ 400,000. The asset covers the whole amount: 400,000 × 25% = 100,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Profit should have been assessed excluding reversal deductions (650,000): the asset covers the 400,000, i.e. 100,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The 25% rate cannot apply to a deferred tax asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is not the issue.","es":""}},{"id":"C","text":{"fr":"","en":"Any asset should have been dropped: the forecast profit of 250,000 being lower than the 400,000 of differences, the condition fails.","es":""},"correct":false,"feedback":{"fr":"","en":"The profit to use is not 250,000; it covers the differences.","es":""}},{"id":"D","text":{"fr":"","en":"The asset should have been computed on 250,000 − 400,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal deductions must be added back, not subtracted.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000194","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000194","tested_point":"QST.IAS12.000194","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §28"],"exercise":{"prompt":{"fr":"","en":"Ilvaren, taxed in France, supports a deferred tax asset of 75,000 with the taxable differences of 300,000 of its subsidiary taxed in Italy, which will reverse in the same periods. Ilvaren has no other source of taxable profit. Where is the error?","es":""},"explanation":{"fr":"","en":"The taxable differences used must relate to the same taxation authority and the same taxable entity (IAS 12, para. 28). Those of the Italian subsidiary are excluded; without another source, the asset of 75,000 is not supported.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount should have been computed at the Italian rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is not the problem: the source is not eligible.","es":""}},{"id":"B","text":{"fr":"","en":"Differences of another authority and another taxable entity cannot support the asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"There is no error: the consolidated group is a single entity, whose taxable differences offset freely.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is the taxable entity, not the consolidation scope.","es":""}},{"id":"D","text":{"fr":"","en":"The asset should have been offset against the subsidiary's liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The issue is the recognition of the asset, not its presentation.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000195","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000195","tested_point":"QST.IAS12.000195","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §30"],"exercise":{"prompt":{"fr":"","en":"Jarvelle supports a deferred tax asset with a 'tax planning opportunity': in 20X6, it will pay the termination benefits provided for, which will make the related provision deductible. No other action is planned. Where is the error?","es":""},"explanation":{"fr":"","en":"A tax planning opportunity creates or increases taxable profit; an action that merely reverses existing deductible differences neither creates nor increases taxable profit, so it does not meet that definition (IAS 12, para. 30). Paying the benefits generates a deduction: it does not support the asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Planning is allowed only for tax losses.","es":""},"correct":false,"feedback":{"fr":"","en":"That is not the limit set by the standard.","es":""}},{"id":"B","text":{"fr":"","en":"There is no error: any action decided by management and documented in the budget is a tax planning opportunity.","es":""},"correct":false,"feedback":{"fr":"","en":"The action must create or increase taxable profit.","es":""}},{"id":"C","text":{"fr":"","en":"The payment merely reverses an existing deductible difference: it is not a planning opportunity.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The only error is planning the payment in 20X6 rather than 20X7.","es":""},"correct":false,"feedback":{"fr":"","en":"The date does not change the nature of the action.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000196","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000023","tested_point":"VG.IAS12.000023","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §27A"],"exercise":{"prompt":{"fr":"","en":"Kerlanvel has a deductible difference of 240,000 on listed securities, the loss on which, under its tax law (case data), can be offset only against gains on disposals of securities. No gain is expected within the carry-forward period; its future operating profits are very high. Tax rate: 25%. What is recognised for this difference?","es":""},"explanation":{"fr":"","en":"Where the law restricts the offset of a loss to one type of income, the difference is assessed only with items of the same type (IAS 12, para. 27A). As no gain on securities is expected, no asset is recognised despite operating profits.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An asset of 30,000, halfway, for prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing supports this amount.","es":""}},{"id":"B","text":{"fr":"","en":"A deferred tax liability of 60,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is deductible, not taxable.","es":""}},{"id":"C","text":{"fr":"","en":"An asset of 60,000, supported by operating profits.","es":""},"correct":false,"feedback":{"fr":"","en":"The law prohibits offsetting this loss against those profits.","es":""}},{"id":"D","text":{"fr":"","en":"No deferred tax asset, in the absence of income of the same type.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000197","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000023","tested_point":"VG.IAS12.000023","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §27A"],"exercise":{"prompt":{"fr":"","en":"In Lormian's jurisdiction (case data), financial losses can be offset only against financial income. Lormian has a deductible difference of a financial nature of 200,000 and probably expects 80,000 of taxable financial income within the carry-forward period. Tax rate: 25%. Which deferred tax asset is recognised on this difference?","es":""},"explanation":{"fr":"","en":"The difference is assessed only with income of the same type (IAS 12, para. 27A): 80,000 of probable financial income covers 80,000 of the difference; asset: 80,000 × 25% = 20,000; 120,000 remains without an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"20,000, i.e. 80,000 × 25%.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"30,000, i.e. (200,000 − 80,000) × 25%.","es":""},"correct":false,"feedback":{"fr":"","en":"This is the uncovered part, not the asset.","es":""}},{"id":"C","text":{"fr":"","en":"50,000, on the whole difference.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is covered only up to the financial income.","es":""}},{"id":"D","text":{"fr":"","en":"None, a legal restriction prohibiting any asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The restriction limits the asset, it does not prohibit it.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000198","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000198","tested_point":"QST.IAS12.000198","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §29A","IAS 12 §29"],"exercise":{"prompt":{"fr":"","en":"Morlaine has 500,000 of deductible differences. Its future taxable profit, excluding reversal deductions, is estimated at 300,000. It holds a building measured at cost (carrying amount equal to tax base, 1,000,000), used in a profitable business; three consistent appraisals put its disposal value at 1,400,000, and management documents probable recovery at that amount. What may it take into account for the deferred tax asset (rate: 25%)?","es":""},"explanation":{"fr":"","en":"Future profit is assessed excluding reversal deductions (IAS 12, para. 29) and may include recovering assets above their carrying amount where sufficient evidence makes it probable, more likely for an asset at cost used in a profitable business (IAS 12, para. 29A). Sources: 300,000 + 400,000 = 700,000 ≥ 500,000; asset: 125,000. Whether the appraisals are sufficient is a matter of judgement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only 300,000: an asset can never be counted above its carrying amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard allows it with sufficient evidence.","es":""}},{"id":"B","text":{"fr":"","en":"300,000 + 400,000 of probable excess recovery, i.e. an asset of 500,000 × 25% = 125,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An asset of 175,000, i.e. 700,000 × 25%.","es":""},"correct":false,"feedback":{"fr":"","en":"The asset cannot exceed the tax on the existing differences.","es":""}},{"id":"D","text":{"fr":"","en":"An asset of 75,000, i.e. 300,000 × 25%.","es":""},"correct":false,"feedback":{"fr":"","en":"This ignores the documented excess recovery.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000199","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.PROBABLE_TAXABLE_PROFIT"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000199","tested_point":"QST.IAS12.000199","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000009","section_id":"taxable-differences-source"},"references":["IAS 12 §29","IAS 12 §30"],"exercise":{"prompt":{"fr":"","en":"Nervalle has 800,000 of deductible differences and probable future taxable profit of 200,000 (excluding reversal deductions). Management presents two actions: (1) transferring to Nervalle, by a decision already approved by the board, the profitable maintenance business of a sister company, which would generate 350,000 of taxable profit in Nervalle during the reversal period; (2) settling in 20X6 accrued expenses already provided for, of 250,000. Tax rate: 25%. Which deferred tax asset is best supported?","es":""},"explanation":{"fr":"","en":"Transferring the profitable business creates taxable profit in Nervalle during the period: a tax planning opportunity (IAS 12, para. 29). Settling accrued expenses merely reverses an existing deductible difference: it neither creates nor increases taxable profit, so it does not meet the definition of a tax planning opportunity (IAS 12, para. 30). Sources: 200,000 + 350,000 = 550,000 < 800,000; asset: 137,500. The board's approval supports the realism of the action (judgement).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"112,500, i.e. (200,000 + 250,000) × 25%.","es":""},"correct":false,"feedback":{"fr":"","en":"The actions are reversed: the second is not a planning opportunity.","es":""}},{"id":"B","text":{"fr":"","en":"50,000, i.e. the future profit of 200,000 only.","es":""},"correct":false,"feedback":{"fr":"","en":"This ignores an action that really creates taxable profit.","es":""}},{"id":"C","text":{"fr":"","en":"137,500, i.e. (200,000 + 350,000) × 25%.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"200,000, i.e. (200,000 + 350,000 + 250,000) × 25%.","es":""},"correct":false,"feedback":{"fr":"","en":"Settling the accrued expenses merely reverses a deductible difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000202","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000202","tested_point":"QST.IAS12.000202","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §34"],"exercise":{"prompt":{"fr":"","en":"A deferred tax asset is recognised for the carryforward of unused tax losses to the extent that it is probable that future taxable profit will be available against which they can be used.","es":""},"explanation":{"fr":"","en":"This is the recognition requirement for deferred tax assets on unused tax losses and credits (IAS 12, para. 34): recognition depends on the probability of future taxable profit.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000203","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000203","tested_point":"QST.IAS12.000203","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §35"],"exercise":{"prompt":{"fr":"","en":"The existence of unused tax losses is strong evidence that future taxable profit may not be available.","es":""},"explanation":{"fr":"","en":"The criteria are those for deductible differences, but the existence of unused losses is strong evidence to the contrary; with a history of recent losses, the asset requires sufficient taxable differences or other convincing evidence (IAS 12, para. 35).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000204","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000204","tested_point":"QST.IAS12.000204","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §35"],"exercise":{"prompt":{"fr":"","en":"An entity that has incurred tax losses in each of the last three years may recognise a deferred tax asset on those losses solely on the basis of a budget forecasting a return to profit.","es":""},"explanation":{"fr":"","en":"With a history of recent losses, the asset is recognised only to the extent of sufficient taxable differences or if there is other convincing evidence that sufficient taxable profit will be available (IAS 12, para. 35). A budget alone is not, in itself, convincing evidence: assessing it is a matter of judgement.","es":""},"common_error":{"fr":"","en":"Recognising losses on the basis of an optimistic budget.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000205","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000205","tested_point":"QST.IAS12.000205","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §34"],"exercise":{"prompt":{"fr":"","en":"Only tax losses carried forward can give rise to a deferred tax asset; unused tax credits are excluded.","es":""},"explanation":{"fr":"","en":"The requirement covers both the carryforward of unused tax losses and that of unused tax credits, to the extent that future taxable profit will probably allow them to be used (IAS 12, para. 34).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000206","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000206","tested_point":"QST.IAS12.000206","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §35"],"exercise":{"prompt":{"fr":"","en":"An entity has a history of recent losses. To what extent does it recognise a deferred tax asset on its losses carried forward?","es":""},"explanation":{"fr":"","en":"With a history of recent losses, the asset is recognised only to the extent of sufficient taxable differences or if there is other convincing evidence that sufficient taxable profit will be available (IAS 12, para. 35).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To the extent of the profits forecast in its strategic plan.","es":""},"correct":false,"feedback":{"fr":"","en":"A plan is not enough without convincing evidence.","es":""}},{"id":"B","text":{"fr":"","en":"For all the losses, provided the tax law does not limit their carry-forward period and a return to profit is envisaged.","es":""},"correct":false,"feedback":{"fr":"","en":"No expiry does not remove the need to demonstrate profit.","es":""}},{"id":"C","text":{"fr":"","en":"Never, until it has returned to profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not prohibit the asset; it raises the evidence threshold.","es":""}},{"id":"D","text":{"fr":"","en":"To the extent of sufficient taxable differences or other convincing evidence of sufficient taxable profit.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000207","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000207","tested_point":"QST.IAS12.000207","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §36"],"exercise":{"prompt":{"fr":"","en":"When assessing the asset on time-limited losses, which taxable temporary differences does the entity take into account?","es":""},"explanation":{"fr":"","en":"The entity considers, among other criteria, whether it has sufficient taxable differences, relating to the same authority and the same taxable entity, that will result in taxable amounts before the losses or credits expire (IAS 12, para. 36).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Those of the same authority and entity that will produce taxable amounts before the losses expire.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"None: only profit forecasts count for losses.","es":""},"correct":false,"feedback":{"fr":"","en":"Taxable differences are, on the contrary, the first criterion.","es":""}},{"id":"C","text":{"fr":"","en":"All its taxable differences with the same authority and entity, whatever their reversal date relative to expiry.","es":""},"correct":false,"feedback":{"fr":"","en":"A reversal after expiry is of no use.","es":""}},{"id":"D","text":{"fr":"","en":"Those of all companies in the consolidated group.","es":""},"correct":false,"feedback":{"fr":"","en":"The same authority and taxable entity are required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000208","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000024","tested_point":"VG.IAS12.000024","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §34"],"exercise":{"prompt":{"fr":"","en":"Saulvane has {unused_losses} of tax losses carried forward. According to the forecasts used (case assumptions, judged probable), its taxable profit before these losses expire will reach {probable_profit}. Tax rate: {tax_rate}%. Compute the usable losses and the deferred tax asset.","es":""},"explanation":{"fr":"","en":"The asset is recognised only to the extent of probable future taxable profit (IAS 12, para. 34): usable losses = lower of 1,000,000 and 600,000, i.e. 600,000; asset: 600,000 × 25% = 150,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"unused_losses","value":"1000000","unit":"EUR"},{"id":"probable_profit","value":"600000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Unused tax losses","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Probable taxable profit before expiry","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"USABLE_LOSSES","label":{"fr":"","en":"Usable tax losses","es":""},"answer":600000,"tolerance":0,"unit":"EUR"},{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTA_AMOUNT","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Probable taxable profit before expiry","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":150000,"unit":"EUR"}],"rationale":{"fr":"","en":"The asset is recognised only to the extent of probable future taxable profit (IAS 12, para. 34): usable losses = lower of 1,000,000 and 600,000, i.e. 600,000","es":""},"references":["REF.IAS12.34"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000209","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000024","tested_point":"VG.IAS12.000024","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §34"],"exercise":{"prompt":{"fr":"","en":"Tavernique has {unused_losses} of tax losses carried forward. Its forecasts, documented and judged probable (case assumptions), show {probable_profit} of taxable profit within the carry-forward period. Expected tax rate: {tax_rate}%. Which deferred tax asset is recognised?","es":""},"explanation":{"fr":"","en":"The probable profit (900,000) exceeds the losses: all are usable, i.e. 750,000 (IAS 12, para. 34). Asset: 750,000 × 28% = 210,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"unused_losses","value":"750000","unit":"EUR"},{"id":"probable_profit","value":"900000","unit":"EUR"},{"id":"tax_rate","value":"28","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Tax losses carried forward","es":""},"value":"750000","unit":"EUR"},{"label":{"fr":"","en":"Probable taxable profit within the carry-forward period","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"28","unit":"PERCENT"}],"steps":[{"id":"USABLE_LOSSES","label":{"fr":"","en":"Usable tax losses","es":""},"answer":750000,"tolerance":0,"unit":"EUR"},{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":210000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTA_AMOUNT","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax losses carried forward","es":""},"value":750000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":28,"unit":"PERCENT"}],"result":210000,"unit":"EUR"}],"rationale":{"fr":"","en":"The probable profit (900,000) exceeds the losses: all are usable, i.e. 750,000 (IAS 12, para. 34).","es":""},"references":["REF.IAS12.34"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000213","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000213","tested_point":"QST.IAS12.000213","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Arvidonne recognises an asset for only part of its tax losses carried forward. What information must its notes give on the losses not recognised?","es":""},"explanation":{"fr":"","en":"The disclosures include the amount of deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax asset is recognised (IAS 12, para. 81).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: only the recognised asset is described.","es":""},"correct":false,"feedback":{"fr":"","en":"Losses with no asset are subject to a specific disclosure.","es":""}},{"id":"B","text":{"fr":"","en":"The amount of unused tax losses for which no deferred tax asset is recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only the deferred tax that would have been recognised on these losses, without disclosing the amount of the losses themselves.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure concerns the amount of the unused losses.","es":""}},{"id":"D","text":{"fr":"","en":"The detail of profit forecasts over ten years.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not require forecasts to be published.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000214","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000214","tested_point":"QST.IAS12.000214","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"In which case must the entity disclose the amount of a deferred tax asset and the nature of the evidence supporting its recognition?","es":""},"explanation":{"fr":"","en":"The entity discloses the amount of the asset and the nature of the evidence when its use depends on future taxable profits in excess of those arising from the reversal of existing taxable differences, or when it has suffered a loss in the current or preceding period in the tax jurisdiction concerned (IAS 12, para. 82).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only when the asset exceeds 10% of equity.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no threshold of this kind.","es":""}},{"id":"B","text":{"fr":"","en":"Only when the asset arises from a business combination or from an internal restructuring approved during the period.","es":""},"correct":false,"feedback":{"fr":"","en":"This is not the disclosure criterion.","es":""}},{"id":"C","text":{"fr":"","en":"If its use requires profits beyond taxable reversals, or after a loss in the current or preceding period.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"In all cases, for every deferred tax asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure targets risk situations.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000215","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000215","tested_point":"QST.IAS12.000215","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §35","IAS 12 §36"],"exercise":{"prompt":{"fr":"","en":"After three loss-making years, Bellirane wants to recognise an asset for its losses carried forward. Which elements can support the asset?","es":""},"explanation":{"fr":"","en":"With recent losses, the asset is recognised only to the extent of sufficient taxable differences or other convincing evidence (IAS 12, para. 35); the differences used relate to the same authority and entity and produce taxable amounts before expiry (IAS 12, para. 36).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Sufficient taxable differences of the same authority and entity, reversing before the losses expire.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An ambitious, unsupported budget prepared by the new management.","es":""},"correct":false,"feedback":{"fr":"","en":"Without convincing evidence, a budget is not enough.","es":""}},{"id":"C","text":{"fr":"","en":"Other convincing evidence that sufficient taxable profit will be available.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The financial strength of the parent, which would cover the losses.","es":""},"correct":false,"feedback":{"fr":"","en":"It creates no taxable profit for Bellirane.","es":""}},{"id":"E","text":{"fr":"","en":"The very size of the accumulated losses.","es":""},"correct":false,"feedback":{"fr":"","en":"The losses are strong evidence against recognition.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000216","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000216","tested_point":"QST.IAS12.000216","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §81","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Cadranne incurred a tax loss in 20X5 and recognises a deferred tax asset on part of its losses. Which information must its notes contain?","es":""},"explanation":{"fr":"","en":"The amount of unused losses with no asset must be disclosed and, for each type of difference and of losses, the asset recognised and the deferred tax in profit or loss (IAS 12, para. 81); after a loss in the period, the amount of the asset and the nature of the evidence (IAS 12, para. 82).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The detail of each tax planning opportunity considered.","es":""},"correct":false,"feedback":{"fr":"","en":"This detail is not required as such.","es":""}},{"id":"B","text":{"fr":"","en":"The amount of unused tax losses with no asset recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The amount of the asset and the nature of the evidence supporting its recognition.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Its taxable profit forecasts year by year.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks for the nature of the evidence, not detailed forecasts.","es":""}},{"id":"E","text":{"fr":"","en":"For unused losses, the deferred tax asset recognised and the deferred tax recognised in profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000217","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000217","tested_point":"QST.IAS12.000217","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §34","IAS 12 §36"],"exercise":{"prompt":{"fr":"","en":"Which elements determine the amount of usable losses carried forward used for the deferred tax asset?","es":""},"explanation":{"fr":"","en":"The asset is limited to the probable future taxable profit against which the losses can be used (IAS 12, para. 34); the taxable differences used must produce taxable amounts before the losses expire (IAS 12, para. 36). Expiry periods are tax data of the case.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expiry dates of the losses set by the tax law of the case.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The reversal schedule of taxable differences relative to those dates.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The entity's share price.","es":""},"correct":false,"feedback":{"fr":"","en":"Unrelated to the tax use of the losses.","es":""}},{"id":"D","text":{"fr":"","en":"The amount of dividends paid last year.","es":""},"correct":false,"feedback":{"fr":"","en":"Distributions do not create future taxable profit.","es":""}},{"id":"E","text":{"fr":"","en":"The probable taxable profit before expiry.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000218","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000026","tested_point":"VG.IAS12.000026","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §36","IAS 12 §34"],"exercise":{"prompt":{"fr":"","en":"Dunevaux has {unused_losses} of losses carried forward, which will expire at the end of 20X8 (tax data). Its taxable differences with the same authority and entity will reverse by {ttd_before} before that date and by {ttd_after} afterwards. It also expects {probable_profit} of probable taxable profit before expiry (case assumption). Tax rate: {tax_rate}%. Compute the usable losses and the deferred tax asset.","es":""},"explanation":{"fr":"","en":"Only reversals before expiry count (IAS 12, para. 36): 300,000; with the probable profit, sources reach 300,000 + 250,000 = 550,000 < 900,000. Usable losses: 550,000; asset (IAS 12, para. 34): 550,000 × 25% = 137,500. The 200,000 reversing after 20X8 is excluded.","es":""},"common_error":{"fr":"","en":"Using all taxable differences without looking at the expiry date.","es":""},"format":"CALCULATION","placeholders":[{"id":"unused_losses","value":"900000","unit":"EUR"},{"id":"ttd_before","value":"300000","unit":"EUR"},{"id":"ttd_after","value":"200000","unit":"EUR"},{"id":"probable_profit","value":"250000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Losses carried forward expiring end of 20X8","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Taxable differences reversing before expiry","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Taxable differences reversing after expiry","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Other probable taxable profit before expiry","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"USABLE_LOSSES","label":{"fr":"","en":"Usable tax losses","es":""},"answer":550000,"tolerance":0,"unit":"EUR"},{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":137500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"USABLE_LOSSES","meaning":{"fr":"","en":"Usable tax losses","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable differences reversing before expiry","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Other probable taxable profit before expiry","es":""},"value":250000,"unit":"EUR"}],"result":550000,"unit":"EUR"},{"step":"DTA_AMOUNT","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Usable tax losses","es":""},"value":550000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":137500,"unit":"EUR"}],"rationale":{"fr":"","en":"Only reversals before expiry count (IAS 12, para. 36): 300,000","es":""},"references":["REF.IAS12.36","REF.IAS12.34"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000219","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000026","tested_point":"VG.IAS12.000026","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §36","IAS 12 §34"],"exercise":{"prompt":{"fr":"","en":"The subsidiary Escarvelle has {unused_losses} of losses, which may be carried forward for five years under its tax law (data). Within that period, {ttd_before} of taxable differences (same authority, same entity) will reverse; {ttd_after} will reverse later. Probable taxable profit within the period is {probable_profit}. Tax rate: {tax_rate}%. Compute the usable losses and the asset.","es":""},"explanation":{"fr":"","en":"Sources before expiry (IAS 12, para. 36): 180,000 + 140,000 = 320,000 < 600,000; usable losses: 320,000; asset (IAS 12, para. 34): 320,000 × 30% = 96,000. The 120,000 reversing after the period does not count.","es":""},"format":"CALCULATION","placeholders":[{"id":"unused_losses","value":"600000","unit":"EUR"},{"id":"ttd_before","value":"180000","unit":"EUR"},{"id":"ttd_after","value":"120000","unit":"EUR"},{"id":"probable_profit","value":"140000","unit":"EUR"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Losses carried forward (five-year period)","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Taxable reversals within the period","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Taxable reversals after the period","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Probable taxable profit within the period","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"USABLE_LOSSES","label":{"fr":"","en":"Usable tax losses","es":""},"answer":320000,"tolerance":0,"unit":"EUR"},{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":96000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"USABLE_LOSSES","meaning":{"fr":"","en":"Usable tax losses","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable reversals within the period","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Probable taxable profit within the period","es":""},"value":140000,"unit":"EUR"}],"result":320000,"unit":"EUR"},{"step":"DTA_AMOUNT","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Usable tax losses","es":""},"value":320000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":30,"unit":"PERCENT"}],"result":96000,"unit":"EUR"}],"references":["REF.IAS12.36","REF.IAS12.34"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000220","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000220","tested_point":"QST.IAS12.000220","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §34"],"exercise":{"prompt":{"fr":"","en":"Fontagne has an unused research tax credit of {unused_credit}, which can be offset against tax payable in subsequent years before it expires (tax data). Its probable taxable profit before that date is {probable_profit} (case assumption). Tax rate: {tax_rate}%. Compute the deferred tax asset and the credit not recognised.","es":""},"explanation":{"fr":"","en":"The credit is usable only up to the tax payable on the probable profit: 200,000 × 25% = 50,000; the asset is recognised to that extent (IAS 12, para. 34). Credit not recognised: 80,000 − 50,000 = 30,000.","es":""},"common_error":{"fr":"","en":"Multiplying the credit by the tax rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"unused_credit","value":"80000","unit":"EUR"},{"id":"probable_profit","value":"200000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Unused tax credit","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Probable taxable profit before the credit expires","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"CREDIT_NOT_RECOGNISED","label":{"fr":"","en":"Credit with no asset recognised","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTA_AMOUNT","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Probable taxable profit before the credit expires","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":50000,"unit":"EUR"},{"step":"CREDIT_NOT_RECOGNISED","meaning":{"fr":"","en":"Credit with no asset recognised","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Unused tax credit","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"value":50000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"references":["REF.IAS12.34"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000221","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000221","tested_point":"QST.IAS12.000221","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §35","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Garvenne has recorded tax losses over the last three years; it has {unused_losses} of losses carried forward. Its taxable differences with the same authority and entity, which will reverse before expiry, amount to {ttd_before}. Its budget forecasts a strong recovery, but management concludes, after a documented analysis (judgement in the case), that it is not convincing evidence. Tax rate: {tax_rate}%. Compute the asset and the losses to be disclosed with no asset.","es":""},"explanation":{"fr":"","en":"With a history of recent losses and no convincing evidence, the asset is limited to sufficient taxable differences (IAS 12, para. 35): 220,000 × 25% = 55,000. The 800,000 − 220,000 = 580,000 of losses with no asset is disclosed in the notes (IAS 12, para. 81).","es":""},"format":"CALCULATION","placeholders":[{"id":"unused_losses","value":"800000","unit":"EUR"},{"id":"ttd_before","value":"220000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Losses carried forward","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Taxable differences reversing before expiry","es":""},"value":"220000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":55000,"tolerance":0,"unit":"EUR"},{"id":"LOSSES_NOT_RECOGNISED","label":{"fr":"","en":"Losses with no asset, to be disclosed in the notes","es":""},"answer":580000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTA_AMOUNT","meaning":{"fr":"","en":"Deferred tax asset recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable differences reversing before expiry","es":""},"value":220000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":55000,"unit":"EUR","rationale":{"fr":"","en":"With a history of recent losses and no convincing evidence, the asset is limited to sufficient taxable differences (IAS 12, para. 35): 220,000 × 25% = 55,000.","es":""}},{"step":"LOSSES_NOT_RECOGNISED","meaning":{"fr":"","en":"Losses with no asset, to be disclosed in the notes","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Losses carried forward","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Taxable differences reversing before expiry","es":""},"value":220000,"unit":"EUR"}],"result":580000,"unit":"EUR","rationale":{"fr":"","en":"The 800,000 − 220,000 = 580,000 of losses with no asset is disclosed in the notes (IAS 12, para. 81).","es":""}}],"references":["REF.IAS12.35","REF.IAS12.81"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000222","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000222","tested_point":"QST.IAS12.000222","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §35"],"exercise":{"prompt":{"fr":"","en":"Hautbrise has four years of tax losses (1,400,000 carried forward with no time limit, data). It has no taxable differences. A new strategic plan, not yet under way, forecasts profits from 20X7; no contract or structural change supports it. Management wishes to recognise 350,000 (25% rate). What do you conclude?","es":""},"explanation":{"fr":"","en":"Unused losses are strong evidence to the contrary; with a history of recent losses, the asset is recognised only to the extent of sufficient taxable differences or convincing evidence (IAS 12, para. 35). Here there is neither: no asset; the conclusion rests on documented judgement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise a provision for future losses.","es":""},"correct":false,"feedback":{"fr":"","en":"Off the point: the issue is the deferred tax asset.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise 350,000: as the losses do not expire, they will be used one day.","es":""},"correct":false,"feedback":{"fr":"","en":"No expiry does not replace convincing evidence.","es":""}},{"id":"C","text":{"fr":"","en":"Recognise half as a prudent measure.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing supports an intermediate amount.","es":""}},{"id":"D","text":{"fr":"","en":"Do not recognise the losses: neither taxable differences nor convincing evidence.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000223","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000223","tested_point":"QST.IAS12.000223","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §34","IAS 12 §36"],"exercise":{"prompt":{"fr":"","en":"Isquerelle has 500,000 of losses carried forward: 200,000 expire at the end of 20X6, the balance at the end of 20X9 (tax data). Its probable taxable profit is nil in 20X6 and will reach 400,000 over 20X7-20X9 (case assumptions). It has no taxable differences. Tax rate: 25%. Which deferred tax asset is recognised?","es":""},"explanation":{"fr":"","en":"The losses expiring at the end of 20X6 will find no profit before they expire (IAS 12, para. 36). The 300,000 expiring at the end of 20X9 is covered by the 400,000 of probable profit: asset (IAS 12, para. 34) of 300,000 × 25% = 75,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"75,000, i.e. 300,000 × 25%.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"None, as part of the losses will expire.","es":""},"correct":false,"feedback":{"fr":"","en":"The expiry of one tranche does not prevent recognising the other.","es":""}},{"id":"C","text":{"fr":"","en":"100,000, i.e. 400,000 × 25%.","es":""},"correct":false,"feedback":{"fr":"","en":"The 400,000 of profit can absorb only the 300,000 still available.","es":""}},{"id":"D","text":{"fr":"","en":"125,000, i.e. 500,000 × 25%.","es":""},"correct":false,"feedback":{"fr":"","en":"The losses expiring at the end of 20X6 will not be used.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000224","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000224","tested_point":"QST.IAS12.000224","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §81","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Jouvenelle incurred a tax loss in 20X5; it recognises an asset for 300,000 of its 1,100,000 of losses carried forward, based on future profits exceeding the reversals of taxable differences. Its tax note shows only the amount of the deferred tax asset. What is missing at a minimum?","es":""},"explanation":{"fr":"","en":"The amount of unused losses with no asset must be disclosed: 1,100,000 − 300,000 = 800,000 (IAS 12, para. 81), and, as the asset depends on future profits after a loss in the period, the nature of the evidence (IAS 12, para. 82).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of 800,000 of losses not recognised and the nature of the evidence supporting the asset.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only the amount of 800,000 of losses not recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The nature of the evidence is also missing.","es":""}},{"id":"C","text":{"fr":"","en":"The detailed business plan and annual budgets.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks for the nature of the evidence, not its full publication.","es":""}},{"id":"D","text":{"fr":"","en":"Nothing: the amount of the asset is enough.","es":""},"correct":false,"feedback":{"fr":"","en":"Two required disclosures are missing.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000225","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000225","tested_point":"QST.IAS12.000225","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §35","IAS 12 §36"],"exercise":{"prompt":{"fr":"","en":"Kervalan is emerging from three loss-making years and has 1,200,000 of losses carried forward (five-year period, data). Documented evidence: 200,000 of taxable differences reversing within the period; signed firm contracts that will generate 500,000 of taxable profit within the period; an uncontracted budget adding 700,000. Management and the auditor judge the contracts convincing, but not the budget (judgement in the case). Tax rate: 25%. Which asset is recognised?","es":""},"explanation":{"fr":"","en":"After recent losses, the asset is limited to sufficient taxable differences and other convincing evidence (IAS 12, para. 35); the differences used reverse before expiry (IAS 12, para. 36). Sources: 200,000 + 500,000 = 700,000 < 1,200,000; asset: 175,000. Whether evidence is convincing is a matter of judgement and must be documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, recent losses prohibiting any asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Losses raise the threshold, they do not prohibit the asset.","es":""}},{"id":"B","text":{"fr":"","en":"50,000, i.e. the taxable differences only.","es":""},"correct":false,"feedback":{"fr":"","en":"The contracts are judged convincing: they count.","es":""}},{"id":"C","text":{"fr":"","en":"175,000, i.e. (200,000 + 500,000) × 25%.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"300,000, i.e. all the losses.","es":""},"correct":false,"feedback":{"fr":"","en":"The unconvincing budget cannot be used.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000228","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000228","tested_point":"QST.IAS12.000228","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"At each reporting date, the entity reassesses the deferred tax assets it had not recognised.","es":""},"explanation":{"fr":"","en":"At each reporting date, the entity reassesses unrecognised deferred tax assets and recognises a previously unrecognised asset to the extent that it has become probable that future taxable profit will allow it to be recovered (IAS 12, para. 37).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000229","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000229","tested_point":"QST.IAS12.000229","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"A reduction in the carrying amount of a deferred tax asset is final: it cannot be reversed later.","es":""},"explanation":{"fr":"","en":"The carrying amount of a deferred tax asset is reviewed at each reporting date and reduced to the extent that sufficient taxable profit is no longer probable; the reduction is reversed to the extent that such profit becomes probable again (IAS 12, para. 56).","es":""},"common_error":{"fr":"","en":"Considering that a reduced asset can no longer be reinstated.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000230","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000230","tested_point":"QST.IAS12.000230","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §67"],"exercise":{"prompt":{"fr":"","en":"Where a business combination makes recoverable a previously unrecognised deferred tax asset of the acquirer, the change is included in the accounting for the combination and reduces goodwill.","es":""},"explanation":{"fr":"","en":"The combination may change the probability of realising a pre-acquisition deferred tax asset of the acquirer; the acquirer recognises that change in the period of the combination, without including it in the accounting for the combination (IAS 12, para. 67).","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000231","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000231","tested_point":"QST.IAS12.000231","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"When must the carrying amount of a deferred tax asset already recognised be reduced?","es":""},"explanation":{"fr":"","en":"The carrying amount is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will allow all or part of it to be used (IAS 12, para. 56).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As soon as the entity records an accounting loss for the year, whatever the prospect of future profits.","es":""},"correct":false,"feedback":{"fr":"","en":"An accounting loss is an indicator, not an automatic criterion.","es":""}},{"id":"B","text":{"fr":"","en":"Only when the tax rate falls.","es":""},"correct":false,"feedback":{"fr":"","en":"A rate decrease changes measurement; the reduction concerns recoverability.","es":""}},{"id":"C","text":{"fr":"","en":"Every three years, during an in-depth review.","es":""},"correct":false,"feedback":{"fr":"","en":"The review takes place at each reporting date.","es":""}},{"id":"D","text":{"fr":"","en":"To the extent that it is no longer probable that sufficient taxable profit will allow it to be used.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000232","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000232","tested_point":"QST.IAS12.000232","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Ambrelle had not recognised an asset for its tax losses. This year, it signed profitable contracts that make probable taxable profit covering part of these losses. What does it do at the reporting date?","es":""},"explanation":{"fr":"","en":"At each reporting date, the entity reassesses unrecognised assets and recognises a previously unrecognised asset to the extent that it has become probable that future taxable profit will allow its recovery (IAS 12, para. 37).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises an asset to the extent that future taxable profit has become probable.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It recognises all the losses, since the situation is improving.","es":""},"correct":false,"feedback":{"fr":"","en":"Only the part covered by probable profit is recognised.","es":""}},{"id":"C","text":{"fr":"","en":"It restates prior years retrospectively.","es":""},"correct":false,"feedback":{"fr":"","en":"The reassessment reflects new facts and is recognised at the reporting date of the period.","es":""}},{"id":"D","text":{"fr":"","en":"Nothing: an asset not recognised initially can no longer be recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The reassessment at each reporting date allows it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000233","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000027","tested_point":"VG.IAS12.000027","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"Brisvane carries a deferred tax asset of {carrying_dta}. At the reporting date, the closure of a plant reduces expected taxable profits: only an asset of {recoverable_dta} remains probably recoverable (case assumption). Compute the reduction and the asset at the reporting date.","es":""},"explanation":{"fr":"","en":"The carrying amount is reduced to the extent that sufficient taxable profit is no longer probable (IAS 12, para. 56): 180,000 − 110,000 = 70,000 reduction; asset at the reporting date: 110,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_dta","value":"180000","unit":"EUR"},{"id":"recoverable_dta","value":"110000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Deferred tax asset before review","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Amount whose recovery remains probable","es":""},"value":"110000","unit":"EUR"}],"steps":[{"id":"WRITE_DOWN","label":{"fr":"","en":"Reduction of the asset (deferred tax expense)","es":""},"answer":70000,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_DTA","label":{"fr":"","en":"Deferred tax asset at the reporting date","es":""},"answer":110000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WRITE_DOWN","meaning":{"fr":"","en":"Reduction of the asset (deferred tax expense)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deferred tax asset before review","es":""},"value":180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Amount whose recovery remains probable","es":""},"value":110000,"unit":"EUR"}],"result":70000,"unit":"EUR","rationale":{"fr":"","en":"The carrying amount is reduced to the extent that sufficient taxable profit is no longer probable (IAS 12, para. 56): 180,000 − 110,000 = 70,000 reduction","es":""}}],"references":["REF.IAS12.56"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000234","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000027","tested_point":"VG.IAS12.000027","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"At Corlavine, the deferred tax asset amounted to {carrying_dta}. The revision of the budgets (case assumptions) brings the probably recoverable asset down to {recoverable_dta}. Compute the reduction and the closing balance.","es":""},"explanation":{"fr":"","en":"Reduction to the extent that profit is no longer probable (IAS 12, para. 56): 240,000 − 195,000 = 45,000; balance: 195,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_dta","value":"240000","unit":"EUR"},{"id":"recoverable_dta","value":"195000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Deferred tax asset at the start","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Asset probably recoverable at the reporting date","es":""},"value":"195000","unit":"EUR"}],"steps":[{"id":"WRITE_DOWN","label":{"fr":"","en":"Reduction of the asset","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"CLOSING_DTA","label":{"fr":"","en":"Asset at the reporting date","es":""},"answer":195000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WRITE_DOWN","meaning":{"fr":"","en":"Reduction of the asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deferred tax asset at the start","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Asset probably recoverable at the reporting date","es":""},"value":195000,"unit":"EUR"}],"result":45000,"unit":"EUR"}],"rationale":{"fr":"","en":"Reduction to the extent that profit is no longer probable (IAS 12, para. 56): 240,000 − 195,000 = 45,000","es":""},"references":["REF.IAS12.56"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000237","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT","IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000237","tested_point":"QST.IAS12.000237","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §67","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Fréjac, which had not recognised an asset for its losses, acquires a business whose future profits, under the tax law of the case, will be able to absorb those losses. How does it account for the deferred tax asset that has become recoverable?","es":""},"explanation":{"fr":"","en":"The acquirer recognises the change in its deferred tax asset in the period of the combination, without including it in the accounting for the combination (IAS 12, para. 67); deferred tax is recognised in profit or loss unless it arises from an item outside profit or loss or from a combination (IAS 12, para. 58), which is not the case for this asset of the acquirer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a reduction of the goodwill of the combination, since it is the acquisition itself that makes the asset recoverable.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquirer's asset is excluded from the accounting for the combination.","es":""}},{"id":"B","text":{"fr":"","en":"In the period of the combination, as deferred tax income, outside the accounting for the combination.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Directly in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing links this asset to an item recognised in equity.","es":""}},{"id":"D","text":{"fr":"","en":"It is not recognised until the following year.","es":""},"correct":false,"feedback":{"fr":"","en":"The change is recognised in the period of the combination.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000238","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000238","tested_point":"QST.IAS12.000238","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"At the end of 20X5, Gimelane carries a deferred tax asset on all of its {unused_losses} of losses carried forward. At the end of 20X6, only {usable_y2} are probably usable; at the end of 20X7, after a recovery, {usable_y3} become so (case assumptions; losses not used in the meantime). Tax rate: {tax_rate}%. Compute the 20X6 reduction and the 20X7 reversal.","es":""},"explanation":{"fr":"","en":"Asset at the end of 20X5: 800,000 × 25% = 200,000. End of 20X6: 320,000 × 25% = 80,000, i.e. a reduction of 120,000 (IAS 12, para. 56). End of 20X7: 600,000 × 25% = 150,000, i.e. a reversal of 70,000, the reduction being reversed to the extent that profit becomes probable again.","es":""},"format":"CALCULATION","placeholders":[{"id":"unused_losses","value":"800000","unit":"EUR"},{"id":"usable_y2","value":"320000","unit":"EUR"},{"id":"usable_y3","value":"600000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Losses carried forward (unchanged)","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Losses probably usable at end of 20X6","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"Losses probably usable at end of 20X7","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"WRITE_DOWN_Y2","label":{"fr":"","en":"20X6 reduction","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"REVERSAL_Y3","label":{"fr":"","en":"20X7 reversal","es":""},"answer":70000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000239","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000239","tested_point":"QST.IAS12.000239","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Hérisvane had recognised no asset on {unrecognised_dtd} of deductible differences and {unrecognised_losses} of losses carried forward. At the reporting date, winning a multi-year contract makes probable taxable profit of {probable_profit} (excluding reversal deductions) within the relevant periods (case assumption). Tax rate: {tax_rate}%. Compute the asset to be recognised and the amount still with no asset.","es":""},"explanation":{"fr":"","en":"The previously unrecognised asset is recognised to the extent that profit has become probable (IAS 12, para. 37): bases 800,000, probable profit 650,000; asset: 650,000 × 25% = 162,500; 800,000 − 650,000 = 150,000 remains with no asset.","es":""},"format":"CALCULATION","placeholders":[{"id":"unrecognised_dtd","value":"500000","unit":"EUR"},{"id":"unrecognised_losses","value":"300000","unit":"EUR"},{"id":"probable_profit","value":"650000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Unrecognised deductible differences","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Unrecognised losses carried forward","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Taxable profit now probable","es":""},"value":"650000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DTA_RECOGNISED","label":{"fr":"","en":"Asset recognised at the reporting date","es":""},"answer":162500,"tolerance":0,"unit":"EUR"},{"id":"STILL_UNRECOGNISED","label":{"fr":"","en":"Amount still with no asset","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTA_RECOGNISED","meaning":{"fr":"","en":"Asset recognised at the reporting date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable profit now probable","es":""},"value":650000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":162500,"unit":"EUR"}],"rationale":{"fr":"","en":"The previously unrecognised asset is recognised to the extent that profit has become probable (IAS 12, para. 37): bases 800,000, probable profit 650,000","es":""},"references":["REF.IAS12.37"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000242","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000242","tested_point":"QST.IAS12.000242","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Kerdouvan did not recognise an asset for 900,000 of losses carried forward in 20X2. Since then, it has made taxable profit every year, signed multi-year contracts and its documented forecasts cover 600,000 of remaining losses. Its accountant keeps recognising no asset 'for consistency with 20X2'. What do you conclude (25% rate)?","es":""},"explanation":{"fr":"","en":"At each reporting date, the entity reassesses unrecognised assets and recognises them to the extent that future taxable profit has become probable (IAS 12, para. 37): 600,000 × 25% = 150,000. Freezing the 20X2 decision amounts to omitting this reassessment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The position is correct: the 20X2 decision is binding.","es":""},"correct":false,"feedback":{"fr":"","en":"Probability must be reassessed at each reporting date.","es":""}},{"id":"B","text":{"fr":"","en":"225,000 must be recognised, on the full 900,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Only losses covered by probable profit are recognised.","es":""}},{"id":"C","text":{"fr":"","en":"The asset must be reassessed and 150,000 recognised, i.e. 600,000 × 25%, as deferred tax income.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"20X2 must be restated as an error.","es":""},"correct":false,"feedback":{"fr":"","en":"The 20X2 decision reflected the facts at that time; the reassessment is made at the reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000243","standard_id":"IAS12","concept_ids":["IAS12.DEFERRED_ASSETS.REASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000243","tested_point":"QST.IAS12.000243","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"reassessment"},"references":["IAS 12 §56"],"exercise":{"prompt":{"fr":"","en":"In 20X5, Lescurane reduced its deferred tax asset from 200,000 to 50,000. In 20X6, evidence makes it probable again that an asset of 170,000 will be recovered (case assumption). The CFO considers the 20X5 reduction 'final'. What is recognised in 20X6?","es":""},"explanation":{"fr":"","en":"The reduction is reversed to the extent that sufficient taxable profit becomes probable again (IAS 12, para. 56): 170,000 − 50,000 = 120,000 reversal; the asset does not go back to 200,000, as only 170,000 is probable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A reversal of 150,000, to return to 200,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal is limited to the amount that has become probable again.","es":""}},{"id":"B","text":{"fr":"","en":"A reversal of 120,000 directly in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing links this asset to an item recognised in equity.","es":""}},{"id":"C","text":{"fr":"","en":"Nothing: a reduction is never reversed.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal is provided for by the standard.","es":""}},{"id":"D","text":{"fr":"","en":"A reversal of 120,000 as deferred tax income, the asset rising to 170,000.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000244","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000244","tested_point":"QST.IAS12.000244","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"The deferred tax liability relating to an investment in a subsidiary is not recognised only if the parent can control the timing of the reversal of the difference and it is probable that the difference will not reverse in the foreseeable future.","es":""},"explanation":{"fr":"","en":"A deferred tax liability is recognised for all taxable differences associated with investments, unless both conditions are met: control over the timing of reversal and reversal not probable in the foreseeable future (IAS 12, para. 39).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000245","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000245","tested_point":"QST.IAS12.000245","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"As long as the parent can control the timing of reversal, no deferred tax liability is recognised on its investment, even if it has decided to have the subsidiary distribute its reserves next year.","es":""},"explanation":{"fr":"","en":"Control over timing is not enough: reversal must also not be probable in the foreseeable future (IAS 12, para. 39). A decided distribution makes reversal probable: the liability is recognised for that part.","es":""},"common_error":{"fr":"","en":"Forgetting the tax on dividends the parent has decided to bring up.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000246","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000246","tested_point":"QST.IAS12.000246","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §44"],"exercise":{"prompt":{"fr":"","en":"A deferred tax asset relating to an investment is recognised only to the extent that it is probable that the deductible difference will reverse in the foreseeable future and that taxable profit will be available against which it can be used.","es":""},"explanation":{"fr":"","en":"For deductible differences associated with investments, the asset is recognised to the extent, and only to the extent, that both reversal in the foreseeable future and taxable profit are probable (IAS 12, para. 44).","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000247","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000247","tested_point":"QST.IAS12.000247","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §18"],"exercise":{"prompt":{"fr":"","en":"When does a temporary difference associated with an investment in a subsidiary, branch, associate or joint arrangement arise?","es":""},"explanation":{"fr":"","en":"Temporary differences arise when the carrying amount of investments in subsidiaries, branches, associates or joint arrangements differs from their tax base (IAS 12, para. 18).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When the carrying amount of the investment differs from its tax base.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"When the subsidiary pays a dividend.","es":""},"correct":false,"feedback":{"fr":"","en":"A dividend may reverse the difference, it does not define it.","es":""}},{"id":"C","text":{"fr":"","en":"When the subsidiary has its own temporary differences.","es":""},"correct":false,"feedback":{"fr":"","en":"These are separate differences, specific to the subsidiary's assets and liabilities.","es":""}},{"id":"D","text":{"fr":"","en":"Only when the investment is disposed of.","es":""},"correct":false,"feedback":{"fr":"","en":"Disposal reverses the difference; it does not create it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000248","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000248","tested_point":"QST.IAS12.000248","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"Brunevale holds 30% of an associate; on the facts of the case, no agreement allows it to control the associate's distribution policy, and therefore the timing of reversal of the taxable difference associated with its investment. What does it recognise?","es":""},"explanation":{"fr":"","en":"The exception requires the investor to be able to control the timing of reversal and reversal to be improbable in the foreseeable future (IAS 12, para. 39). As the facts of the case rule out such control, the deferred tax liability is recognised; the lack of control is case data here, assessed in the light of the agreements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No liability, as for a subsidiary.","es":""},"correct":false,"feedback":{"fr":"","en":"Without control over timing, the exception cannot apply.","es":""}},{"id":"B","text":{"fr":"","en":"A deferred tax liability on the taxable difference associated with the investment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A deferred tax asset, the investment being a minority one.","es":""},"correct":false,"feedback":{"fr":"","en":"The percentage held does not change the direction of the difference.","es":""}},{"id":"D","text":{"fr":"","en":"A liability, but only if the associate has already announced a dividend.","es":""},"correct":false,"feedback":{"fr":"","en":"Without control over timing, the liability is recognised without waiting for an announcement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000249","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000249","tested_point":"QST.IAS12.000249","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §81","IAS 12"],"exercise":{"prompt":{"fr":"","en":"A parent has recognised no deferred tax liability on its investments, the conditions of the exception being met. What information must it disclose?","es":""},"explanation":{"fr":"","en":"The entity discloses the aggregate amount of temporary differences associated with investments for which no liability is recognised (IAS 12, para. 81). As calculating the unrecognised liabilities is often impracticable, the standard requires the amount of the differences and merely encourages that of the liabilities (IAS 12, para. 87).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, since nothing is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The lack of recognition precisely calls for disclosure.","es":""}},{"id":"B","text":{"fr":"","en":"Necessarily the amount of the unrecognised deferred tax liabilities, computed investment by investment.","es":""},"correct":false,"feedback":{"fr":"","en":"That amount is only encouraged, its calculation often being impracticable.","es":""}},{"id":"C","text":{"fr":"","en":"The aggregate amount of temporary differences associated with investments with no liability recognised.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The list of subsidiaries that will never pay dividends.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not ask for this list.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000250","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000250","tested_point":"QST.IAS12.000250","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"In which of these situations is the deferred tax liability relating to the investment not recognised?","es":""},"explanation":{"fr":"","en":"The exception applies to the parent, investor, joint venturer or joint operator that can control the timing of reversal when reversal is improbable in the foreseeable future (IAS 12, para. 39). A decided disposal or a lack of control means the liability is recognised. Control and probability are assessed on the facts (judgement).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A subsidiary whose parent controls the timing of reversal and plans no distribution or disposal in the foreseeable future.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A subsidiary whose parent controls timing but has decided to sell it next year.","es":""},"correct":false,"feedback":{"fr":"","en":"Reversal becomes probable: liability recognised.","es":""}},{"id":"C","text":{"fr":"","en":"An associate whose investor cannot control the timing of reversal (facts of the case).","es":""},"correct":false,"feedback":{"fr":"","en":"Without control over timing, the liability is recognised.","es":""}},{"id":"D","text":{"fr":"","en":"A joint venture whose joint venturer can, under the agreement, control timing, with no foreseeable reversal.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A foreign branch whose repatriation the entity controls and whose profits it intends to reinvest locally.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000251","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000251","tested_point":"QST.IAS12.000251","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §81","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Which statements about disclosures on differences associated with investments are correct?","es":""},"explanation":{"fr":"","en":"The aggregate amount of differences associated with investments with no liability recognised is disclosed (IAS 12, para. 81); as calculating the unrecognised liabilities is often impracticable, disclosing them is only encouraged (IAS 12, para. 87).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The aggregate amount of differences with no liability recognised is disclosed.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The amount of unrecognised liabilities is mandatory in all cases.","es":""},"correct":false,"feedback":{"fr":"","en":"It is encouraged where practicable, not required.","es":""}},{"id":"C","text":{"fr":"","en":"Disclosure of unrecognised liabilities is encouraged where practicable.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No disclosure is due if no liability is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"That is precisely when disclosure is due.","es":""}},{"id":"E","text":{"fr":"","en":"The disclosure concerns only subsidiaries, not associates.","es":""},"correct":false,"feedback":{"fr":"","en":"It covers all investments concerned.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000252","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000029","tested_point":"VG.IAS12.000029","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"In Castelvane's consolidated financial statements, the investment in its subsidiary has a carrying amount of {investment_carrying} and a tax base of {investment_tax_base}; the gap comes from undistributed profits. Castelvane controls the timing of reversal; it has decided on a distribution of {planned_distribution} next year and plans nothing else in the foreseeable future. Under the tax law (data), the dividend received is taxed at {distribution_tax}%. Compute the difference, the deferred tax liability and the difference remaining with no liability.","es":""},"explanation":{"fr":"","en":"Difference: 4,600,000 − 3,400,000 = 1,200,000. The part whose reversal is probable (500,000) gives rise to a liability: 500,000 × 5% = 25,000; for the balance of 700,000, control over timing and no foreseeable reversal: no liability (IAS 12, para. 39), but disclosure of that amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"investment_carrying","value":"4600000","unit":"EUR"},{"id":"investment_tax_base","value":"3400000","unit":"EUR"},{"id":"planned_distribution","value":"500000","unit":"EUR"},{"id":"distribution_tax","value":"5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Consolidated carrying amount of the investment","es":""},"value":"4600000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of the investment","es":""},"value":"3400000","unit":"EUR"},{"label":{"fr":"","en":"Distribution decided for next year","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Tax on the distribution in the parent (%)","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"OUTSIDE_DIFFERENCE","label":{"fr":"","en":"Taxable difference associated with the investment","es":""},"answer":1200000,"tolerance":0,"unit":"EUR"},{"id":"DTL_AMOUNT","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":25000,"tolerance":0,"unit":"EUR"},{"id":"DIFF_WITHOUT_DTL","label":{"fr":"","en":"Difference with no liability (to be disclosed)","es":""},"answer":700000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"OUTSIDE_DIFFERENCE","meaning":{"fr":"","en":"Taxable difference associated with the investment","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consolidated carrying amount of the investment","es":""},"value":4600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the investment","es":""},"value":3400000,"unit":"EUR"}],"result":1200000,"unit":"EUR"},{"step":"DTL_AMOUNT","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Distribution decided for next year","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax on the distribution in the parent (%)","es":""},"value":5,"unit":"PERCENT"}],"result":25000,"unit":"EUR"}],"references":["REF.IAS12.39"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000253","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000029","tested_point":"VG.IAS12.000029","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"Dalvine group holds an industrial subsidiary: consolidated carrying amount of the investment {investment_carrying}, tax base {investment_tax_base}, the gap coming from profits retained in reserves. The parent, which controls distributions, has decided to bring up {planned_distribution} and to leave the rest reinvested indefinitely. The dividend will be taxed at {distribution_tax}% in the parent (data). Compute the difference, the deferred tax liability and the difference with no liability.","es":""},"explanation":{"fr":"","en":"Difference: 2,900,000 − 2,100,000 = 800,000; liability on the part that will reverse: 300,000 × 8% = 24,000; 500,000 with no liability, both conditions of the exception being met for that balance (IAS 12, para. 39).","es":""},"format":"CALCULATION","placeholders":[{"id":"investment_carrying","value":"2900000","unit":"EUR"},{"id":"investment_tax_base","value":"2100000","unit":"EUR"},{"id":"planned_distribution","value":"300000","unit":"EUR"},{"id":"distribution_tax","value":"8","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Consolidated carrying amount","es":""},"value":"2900000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of the shares","es":""},"value":"2100000","unit":"EUR"},{"label":{"fr":"","en":"Dividend the parent has decided to bring up","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Tax on the distribution in the parent (%)","es":""},"value":"8","unit":"PERCENT"}],"steps":[{"id":"OUTSIDE_DIFFERENCE","label":{"fr":"","en":"Difference associated with the investment","es":""},"answer":800000,"tolerance":0,"unit":"EUR"},{"id":"DTL_AMOUNT","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":24000,"tolerance":0,"unit":"EUR"},{"id":"DIFF_WITHOUT_DTL","label":{"fr":"","en":"Difference with no liability","es":""},"answer":500000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"OUTSIDE_DIFFERENCE","meaning":{"fr":"","en":"Difference associated with the investment","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consolidated carrying amount","es":""},"value":2900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the shares","es":""},"value":2100000,"unit":"EUR"}],"result":800000,"unit":"EUR"},{"step":"DTL_AMOUNT","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Dividend the parent has decided to bring up","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax on the distribution in the parent (%)","es":""},"value":8,"unit":"PERCENT"}],"result":24000,"unit":"EUR"}],"references":["REF.IAS12.39"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000254","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000254","tested_point":"QST.IAS12.000254","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"Esparvel holds 25% of an associate: carrying amount of the investment {investment_carrying}, tax base {investment_tax_base}. On the facts of the case, Esparvel cannot control the associate's distribution policy; it expects to recover the gap as dividends, taxed at {dividend_tax}% (data). Compute the difference and the deferred tax liability.","es":""},"explanation":{"fr":"","en":"Difference: 1,500,000 − 1,100,000 = 400,000. As Esparvel does not control the timing of reversal, the exception does not apply (IAS 12, para. 39): liability of 400,000 × 10% = 40,000, at the rate attached to the expected manner of recovery (case data).","es":""},"common_error":{"fr":"","en":"Recognising no tax on an associate's undistributed profits.","es":""},"format":"CALCULATION","placeholders":[{"id":"investment_carrying","value":"1500000","unit":"EUR"},{"id":"investment_tax_base","value":"1100000","unit":"EUR"},{"id":"dividend_tax","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Carrying amount of the investment in the associate","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of the investment","es":""},"value":"1100000","unit":"EUR"},{"label":{"fr":"","en":"Expected tax on dividends (%)","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"OUTSIDE_DIFFERENCE","label":{"fr":"","en":"Taxable difference","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"DTL_AMOUNT","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"OUTSIDE_DIFFERENCE","meaning":{"fr":"","en":"Taxable difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the investment in the associate","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the investment","es":""},"value":1100000,"unit":"EUR"}],"result":400000,"unit":"EUR"},{"step":"DTL_AMOUNT","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable difference","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected tax on dividends (%)","es":""},"value":10,"unit":"PERCENT"}],"result":40000,"unit":"EUR","rationale":{"fr":"","en":"As Esparvel does not control the timing of reversal, the exception does not apply (IAS 12, para. 39): liability of 400,000 × 10% = 40,000, at the rate attached to the expected manner of recovery (case data).","es":""}}],"references":["REF.IAS12.39"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000257","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000257","tested_point":"QST.IAS12.000257","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"Hyvrelle controls a foreign subsidiary whose investment shows a taxable difference of 900,000. In November 20X6, its board approves the repatriation of 400,000 of reserves in 20X7 to fund an investment; the rest remains reinvested indefinitely. The dividend will be taxed at 5% (data). What is recognised at 31 December 20X6?","es":""},"explanation":{"fr":"","en":"For the part whose repatriation is decided, reversal is probable in the foreseeable future: the exception does not apply (IAS 12, para. 39); liability: 400,000 × 5% = 20,000. For 900,000 − 400,000 = 500,000, both conditions remain: no liability.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A liability of 45,000 on the whole difference.","es":""},"correct":false,"feedback":{"fr":"","en":"The reinvested balance still meets both conditions.","es":""}},{"id":"B","text":{"fr":"","en":"A liability of 20,000, but only when paid in 20X7.","es":""},"correct":false,"feedback":{"fr":"","en":"Reversal is probable from the decision: the liability is recognised in 20X6.","es":""}},{"id":"C","text":{"fr":"","en":"Nothing, as Hyvrelle controls the timing of reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"Reversal of 400,000 has become probable.","es":""}},{"id":"D","text":{"fr":"","en":"A liability of 20,000 on the 400,000 repatriated; 500,000 remains with no liability.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000258","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000258","tested_point":"QST.IAS12.000258","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39"],"exercise":{"prompt":{"fr":"","en":"Istrane holds 35% of Jonquelle, an associate. No agreement provides that Jonquelle' profits will not be distributed; distribution decisions rest with the majority shareholder (facts of the case). Istrane' accountant recognises no deferred tax on the taxable difference of 300,000, 'Istrane having no intention to sell'. What do you conclude?","es":""},"explanation":{"fr":"","en":"The exception requires both control over the timing of reversal and reversal being improbable (IAS 12, para. 39). As distributions depend on the majority shareholder, Istrane does not control the timing: the liability on the difference of 300,000 is recognised, whatever its intention to keep the shares.","es":""},"common_error":{"fr":"","en":"Applying the exception to an associate with no agreement restricting distributions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The position is wrong: without control over timing, a deferred tax liability is recognised.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is enough to disclose the difference in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosure does not replace required recognition.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax asset is needed, Istrane being a minority holder.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is taxable: it is a liability.","es":""}},{"id":"D","text":{"fr":"","en":"The position is correct: with no intention to sell the shares, no reversal of the difference is foreseeable.","es":""},"correct":false,"feedback":{"fr":"","en":"Istrane does not control the timing: intention is not enough.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000259","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000259","tested_point":"QST.IAS12.000259","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §44"],"exercise":{"prompt":{"fr":"","en":"Laurisse has decided to sell its distribution subsidiary in the first half of 20X7; in the consolidated financial statements, the investment has a carrying amount of {investment_carrying} for a tax base of {investment_tax_base}. The capital loss will be deductible at {loss_tax_rate}% (data) and Laurisse has sufficient taxable profit to use it (case assumption). Compute the difference and the deferred tax asset at 31 December 20X6.","es":""},"explanation":{"fr":"","en":"Deductible difference: 2,300,000 − 1,800,000 = 500,000. The decided sale makes reversal probable in the foreseeable future and taxable profit is available: the asset is recognised (IAS 12, para. 44), i.e. 500,000 × 25% = 125,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"investment_carrying","value":"1800000","unit":"EUR"},{"id":"investment_tax_base","value":"2300000","unit":"EUR"},{"id":"loss_tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Consolidated carrying amount of the investment","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of the investment","es":""},"value":"2300000","unit":"EUR"},{"label":{"fr":"","en":"Rate at which the capital loss is deductible (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEDUCTIBLE_DIFF","label":{"fr":"","en":"Deductible difference associated with the investment","es":""},"answer":500000,"tolerance":0,"unit":"EUR"},{"id":"DTA_AMOUNT","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":125000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEDUCTIBLE_DIFF","meaning":{"fr":"","en":"Deductible difference associated with the investment","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Tax base of the investment","es":""},"value":2300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Consolidated carrying amount of the investment","es":""},"value":1800000,"unit":"EUR"}],"result":500000,"unit":"EUR"},{"step":"DTA_AMOUNT","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible difference associated with the investment","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate at which the capital loss is deductible (%)","es":""},"value":25,"unit":"PERCENT"}],"result":125000,"unit":"EUR","rationale":{"fr":"","en":"The decided sale makes reversal probable in the foreseeable future and taxable profit is available: the asset is recognised (IAS 12, para. 44), i.e. 500,000 × 25% = 125,000.","es":""}}],"references":["REF.IAS12.44"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000260","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000260","tested_point":"QST.IAS12.000260","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39","IAS 12 §44","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Mazelane controls three subsidiaries and the timing of reversal for each. A: taxable difference of {diff_a}, profits reinvested indefinitely. B: taxable difference of {diff_b}, sale decided for 20X7. C: deductible difference of {diff_c}, no foreseeable sale or liquidation. Gains and losses are taxed at {gain_tax}% (data); taxable profit is sufficient. Compute the liability, the asset and the amount of taxable differences to be disclosed with no liability.","es":""},"explanation":{"fr":"","en":"A: control and reversal improbable, no liability (IAS 12, para. 39). B: reversal probable, liability 400,000 × 25% = 100,000. C: no foreseeable reversal, no asset (IAS 12, para. 44). The notes disclose A's 900,000 of taxable differences and C's 300,000 of deductible difference, with no deferred tax (IAS 12, para. 81).","es":""},"format":"CALCULATION","placeholders":[{"id":"diff_a","value":"900000","unit":"EUR"},{"id":"diff_b","value":"400000","unit":"EUR"},{"id":"diff_c","value":"300000","unit":"EUR"},{"id":"gain_tax","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Subsidiary A: taxable difference (no reversal planned)","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Subsidiary B: taxable difference (sale decided)","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Subsidiary C: deductible difference (no foreseeable sale)","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Rate applicable to gains and losses on disposal (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DTL_TOTAL","label":{"fr":"","en":"Deferred tax liability recognised","es":""},"answer":100000,"tolerance":0,"unit":"EUR"},{"id":"DTA_TOTAL","label":{"fr":"","en":"Deferred tax asset recognised","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"AGGREGATE_UNRECOGNISED","label":{"fr":"","en":"Taxable differences with no liability (notes)","es":""},"answer":900000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTL_TOTAL","meaning":{"fr":"","en":"Deferred tax liability recognised","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Subsidiary B: taxable difference (sale decided)","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate applicable to gains and losses on disposal (%)","es":""},"value":25,"unit":"PERCENT"}],"result":100000,"unit":"EUR"}],"rationale":{"fr":"","en":"A: control and reversal improbable, no liability (IAS 12, para. 39).","es":""},"references":["REF.IAS12.39","REF.IAS12.44","REF.IAS12.81"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000262","standard_id":"IAS12","concept_ids":["IAS12.INVESTMENTS.OUTSIDE_BASIS_DIFFERENCES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000262","tested_point":"QST.IAS12.000262","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000011","section_id":"outside-basis-sources"},"references":["IAS 12 §39","IAS 12 §81","IAS 12"],"exercise":{"prompt":{"fr":"","en":"Orgevane group controls its subsidiaries and reinvests their profits on a lasting basis: their aggregate taxable differences reach 6,400,000 and no distribution is foreseeable. Calculating the latent tax would be very complex (multiple dividend regimes). Management proposes to recognise nothing and disclose nothing. Which position should be adopted?","es":""},"explanation":{"fr":"","en":"Control over timing and reversal improbable: no liability (IAS 12, para. 39). The aggregate amount of the differences, 6,400,000, is disclosed (IAS 12, para. 81); the latent liability is only encouraged where its calculation is practicable (IAS 12, para. 87).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise an estimated liability on 6,400,000, since it cannot be computed precisely.","es":""},"correct":false,"feedback":{"fr":"","en":"The conditions of the exception are met: no liability.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise no liability, disclose the 6,400,000 of differences and, if practicable, the latent liability.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Necessarily disclose the exact amount of the latent liability.","es":""},"correct":false,"feedback":{"fr":"","en":"That amount is only encouraged, its calculation often being impracticable.","es":""}},{"id":"D","text":{"fr":"","en":"Approve the proposal: nothing is recognised, nothing needs disclosing.","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosure of the differences is still due.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000264","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000264","tested_point":"QST.IAS12.000264","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"The current tax liability for the period is measured at the amount the entity expects to pay, applying the tax rates and tax laws enacted or substantively enacted by the reporting date.","es":""},"explanation":{"fr":"","en":"Current tax (for the current and prior periods) is measured at the amount expected to be paid to, or recovered from, the taxation authorities, using the tax rates and laws enacted or substantively enacted by the reporting date (IAS 12, para. 46).","es":""},"common_error":{"fr":"","en":"Measuring current tax at the rate of a reform that is only being considered.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000265","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000265","tested_point":"QST.IAS12.000265","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"A deferred tax liability is always measured at the tax rate of the current period, even if a law enacted before the reporting date sets another rate for the year in which the difference will reverse.","es":""},"explanation":{"fr":"","en":"Deferred tax assets and liabilities are measured at the rates expected to apply to the period when the asset is realised or the liability is settled, based on rates enacted or substantively enacted by the reporting date (IAS 12, para. 47). If a law already enacted sets another rate for the year of reversal, that rate is used, not the rate of the current period.","es":""},"common_error":{"fr":"","en":"Mechanically applying the current rate to every temporary difference.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000266","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000266","tested_point":"QST.IAS12.000266","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §48"],"exercise":{"prompt":{"fr":"","en":"A tax rate merely announced by the government can never be used to measure tax assets and liabilities: only the official publication of the law counts.","es":""},"explanation":{"fr":"","en":"Enacted rates are generally used. However, in some jurisdictions the announcement of rates by the government has the substantive effect of actual enactment, even if the law only follows several months later; tax assets and liabilities are then measured using the announced rates (IAS 12, para. 48). Whether an announcement has that effect is a judgement based on the jurisdiction's procedure.","es":""},"common_error":{"fr":"","en":"Always waiting for the law to be published, even when the rest of the procedure cannot affect the rate.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000267","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000267","tested_point":"QST.IAS12.000267","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Velmoriac's reporting date is 31 December 20X5. A law lowering the tax rate from 20X6 is enacted on 20 January 20X6, before the financial statements are authorised for issue; it was neither enacted nor substantively enacted at 31 December. Velmoriac must measure its deferred tax liability at 31 December 20X5 at the new rate.","es":""},"explanation":{"fr":"","en":"The rate used is the one expected on reversal, but based on rates enacted or substantively enacted by the reporting date (IAS 12, para. 47). A law enacted on 20 January 20X6 does not meet that condition at 31 December 20X5: the liability is still measured at the rate under the legislation enacted at the reporting date.","es":""},"common_error":{"fr":"","en":"Confusing the date of authorisation for issue with the reporting date when assessing enactment.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000268","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000268","tested_point":"QST.IAS12.000268","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Which rate is used to measure a deferred tax liability?","es":""},"explanation":{"fr":"","en":"Deferred tax liabilities are measured at the rates expected to apply when the liability is settled, based on rates enacted or substantively enacted by the reporting date (IAS 12, para. 47).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rate in force in the year the temporary difference arose.","es":""},"correct":false,"feedback":{"fr":"","en":"The historical rate is not used: deferred tax reflects the tax that will be payable on reversal.","es":""}},{"id":"B","text":{"fr":"","en":"The average rate of the last five years.","es":""},"correct":false,"feedback":{"fr":"","en":"A historical average does not reflect the tax expected on reversal.","es":""}},{"id":"C","text":{"fr":"","en":"The highest rate in the reform proposals known at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"A reform proposal that is neither enacted nor substantively enacted is not used, even out of prudence.","es":""}},{"id":"D","text":{"fr":"","en":"The rate expected when the difference reverses, based on rates enacted or substantively enacted by the reporting date.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000269","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000269","tested_point":"QST.IAS12.000269","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §46"],"exercise":{"prompt":{"fr":"","en":"How is the current tax liability for a period already ended, for which the tax return has not yet been filed, measured?","es":""},"explanation":{"fr":"","en":"Current tax liabilities for the current and prior periods are measured at the amount the entity expects to pay to the taxation authorities, using the tax rates and laws enacted or substantively enacted by the reporting date (IAS 12, para. 46).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At its present value, as payment occurs after the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement rule for current tax refers to the expected amount, with no reference to discounting.","es":""}},{"id":"B","text":{"fr":"","en":"At the amount of the last return filed, as there is no return for the period yet.","es":""},"correct":false,"feedback":{"fr":"","en":"The return for another period does not measure the tax for the period ended.","es":""}},{"id":"C","text":{"fr":"","en":"At the amount the entity expects to pay, using the rates and laws enacted or substantively enacted by the reporting date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At the amount shown in the tax assessment, once received.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity does not wait for the assessment: it estimates the expected amount at the reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000270","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000270","tested_point":"QST.IAS12.000270","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"In Marquenne's jurisdiction, the tax rate depends on the level of taxable profit (graduated rate scale). Which rate does it apply to its temporary differences?","es":""},"explanation":{"fr":"","en":"When different tax rates apply to different levels of taxable income, deferred tax assets and liabilities are measured using the average rates expected to apply to the taxable profit of the periods in which the differences are expected to reverse (IAS 12, para. 49).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The average rate expected on the taxable profit of the periods of reversal.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The marginal rate of the highest band of the scale.","es":""},"correct":false,"feedback":{"fr":"","en":"The highest marginal rate overstates the tax when profit spreads over several bands.","es":""}},{"id":"C","text":{"fr":"","en":"The rate of the first band, as the difference is small.","es":""},"correct":false,"feedback":{"fr":"","en":"The size of the difference is irrelevant: the expected profit of the periods of reversal determines the average rate.","es":""}},{"id":"D","text":{"fr":"","en":"The average rate actually borne on the profit of the period ended.","es":""},"correct":false,"feedback":{"fr":"","en":"The period ended is not necessarily representative of the periods of reversal.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000271","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000271","tested_point":"QST.IAS12.000271","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §52A"],"exercise":{"prompt":{"fr":"","en":"In Tessavel's jurisdiction, retained profits are taxed at a higher rate than distributed profits. At the reporting date, no dividend is recognised as a liability. Which rate does Tessavel use for its current and deferred tax?","es":""},"explanation":{"fr":"","en":"Where income taxes depend on whether all or part of the profit is distributed, current and deferred tax are measured at the rate applicable to undistributed profits (IAS 12, para. 52A). The effect of a future distribution is not anticipated.","es":""},"common_error":{"fr":"","en":"Measuring tax at the distribution rate before the dividend is recognised.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rate for distributed profits, as a distribution is planned for next year.","es":""},"correct":false,"feedback":{"fr":"","en":"A distribution that is only planned is not anticipated in the measurement.","es":""}},{"id":"B","text":{"fr":"","en":"An average of both rates weighted by the historical payout ratio.","es":""},"correct":false,"feedback":{"fr":"","en":"No weighting by the payout policy is provided for: it is the rate for undistributed profits.","es":""}},{"id":"C","text":{"fr":"","en":"The rate applicable to undistributed profits.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The lower rate, out of tax prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice is not based on prudence but on the rate for undistributed profits.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000272","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000272","tested_point":"QST.IAS12.000272","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Corbrival has a taxable temporary difference that will reverse half in 20X6 and half in 20X7. The law enacted before the reporting date sets the rate at 27% in 20X6 and then at 25% from 20X7. How does it measure the deferred tax liability?","es":""},"explanation":{"fr":"","en":"Deferred tax is measured at the rates expected to apply on reversal, based on rates enacted by the reporting date (IAS 12, para. 47): each portion of the difference is measured at the rate of its year of reversal, 27% for the 20X6 portion and 25% for the 20X7 portion.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The whole difference at the 20X6 rate, the first year of reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"The portion reversing in 20X7 will bear the 20X7 rate, not the 20X6 rate.","es":""}},{"id":"B","text":{"fr":"","en":"The whole difference at the rate of the period ended, as the law is not yet applied.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate of the period ended is not used when an enacted law sets the rates for the years of reversal.","es":""}},{"id":"C","text":{"fr":"","en":"The whole difference at the 20X7 rate, the most recent rate enacted.","es":""},"correct":false,"feedback":{"fr":"","en":"The 20X7 rate does not apply to the portion reversing in 20X6.","es":""}},{"id":"D","text":{"fr":"","en":"Each portion at the rate enacted for its year of reversal.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000273","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000273","tested_point":"QST.IAS12.000273","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §46","IAS 12 §47","IAS 12 §48"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the tax rates to be used are correct?","es":""},"explanation":{"fr":"","en":"Current tax is measured using the rates enacted or substantively enacted by the reporting date (IAS 12, para. 46); deferred tax at the rates expected on reversal, on the same basis (IAS 12, para. 47); a government announcement with the substantive effect of actual enactment allows the announced rate to be used (IAS 12, para. 48). Historical rates and mere intentions are not used.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deferred tax is frozen at the rate of the year in which the difference arose.","es":""},"correct":false,"feedback":{"fr":"","en":"False: the balance is remeasured when the rates expected on reversal change.","es":""}},{"id":"B","text":{"fr":"","en":"Current tax is based on the rates enacted or substantively enacted by the reporting date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Deferred tax is based on the rates expected on reversal, enacted or substantively enacted by the reporting date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An intention to cut the rate expressed in an election speech is enough to change the measurement.","es":""},"correct":false,"feedback":{"fr":"","en":"False: a mere intention is neither enactment nor substantive enactment.","es":""}},{"id":"E","text":{"fr":"","en":"An announcement with the substantive effect of actual enactment allows the announced rate to be used.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000274","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000274","tested_point":"QST.IAS12.000274","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47","IAS 12","IAS 12 §52A"],"exercise":{"prompt":{"fr":"","en":"Lunoria is determining the rate applicable to its temporary differences. Which factors must it take into account?","es":""},"explanation":{"fr":"","en":"The rate is the one expected on reversal, based on legislation enacted or substantively enacted by the reporting date (IAS 12, para. 47); with a graduated scale, it is the average rate expected on the taxable profit of the periods of reversal (IAS 12, para. 49); where the rate depends on distribution, it is the rate for undistributed profits (IAS 12, para. 52A). The accounting effective rate of the period ended is not a criterion.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The expected timing of reversal of the differences.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The effective rate derived from the tax expense of the period ended.","es":""},"correct":false,"feedback":{"fr":"","en":"The effective rate of the period ended mixes items unrelated to the future reversal.","es":""}},{"id":"C","text":{"fr":"","en":"The expected taxable profit of the periods of reversal, if the scale is graduated.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The rate applicable to undistributed profits, if the rate depends on distribution.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The rates in a preparatory parliamentary report with no bill.","es":""},"correct":false,"feedback":{"fr":"","en":"A preparatory report is neither enactment nor substantive enactment.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000275","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000275","tested_point":"QST.IAS12.000275","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47","IAS 12 §48"],"exercise":{"prompt":{"fr":"","en":"At the reporting date of 31 December 20X5, in which of the following situations may Drevanne measure its deferred tax at a new rate? (The facts on the legislative procedure are case data.)","es":""},"explanation":{"fr":"","en":"The new rate is used if it is enacted or substantively enacted by the reporting date (IAS 12, para. 47). A government announcement that, in the jurisdiction, has the substantive effect of actual enactment is enough (IAS 12, para. 48). An election manifesto or a law passed after the reporting date does not meet the condition at the reporting date.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The new rate is in the manifesto of the party favoured to win the March 20X6 election.","es":""},"correct":false,"feedback":{"fr":"","en":"An election promise is neither enacted nor substantively enacted.","es":""}},{"id":"B","text":{"fr":"","en":"The law setting the new rate was enacted in November 20X5.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The law setting the new rate was passed on 15 January 20X6.","es":""},"correct":false,"feedback":{"fr":"","en":"Enactment occurs after the reporting date: it is not taken into account at 31 December 20X5.","es":""}},{"id":"D","text":{"fr":"","en":"The rate was announced in December 20X5 and, in this jurisdiction, the announcement has the substantive effect of actual enactment.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000276","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000031","tested_point":"VG.IAS12.000031","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X5, Aubriset has a taxable temporary difference of {taxable_difference}, arising from accelerated tax depreciation, which will reverse in full in 20X6. The 20X5 rate is {current_rate}%; a law enacted in October 20X5 sets the rate at {enacted_rate}% from 20X6. Compute the deferred tax liability at 31 December 20X5.","es":""},"explanation":{"fr":"","en":"The liability is measured at the rate expected on reversal, enacted by the reporting date (IAS 12, para. 47): 400,000 × 25% = 100,000. The 20X5 rate (28%) does not apply, as the difference reverses in 20X6.","es":""},"common_error":{"fr":"","en":"Applying the 20X5 rate: 112,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"taxable_difference","value":"400000","unit":"EUR"},{"id":"current_rate","value":"28","unit":"PERCENT"},{"id":"enacted_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Taxable temporary difference","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"20X5 rate (%)","es":""},"value":"28","unit":"PERCENT"},{"label":{"fr":"","en":"Rate enacted for 20X6 onwards (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability at 31 December 20X5","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability at 31 December 20X5","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate enacted for 20X6 onwards (%)","es":""},"value":25,"unit":"PERCENT"}],"result":100000,"unit":"EUR","rationale":{"fr":"","en":"The liability is measured at the rate expected on reversal, enacted by the reporting date (IAS 12, para. 47): 400,000 × 25% = 100,000.","es":""}}],"references":["REF.IAS12.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000277","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000031","tested_point":"VG.IAS12.000031","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Tauvrelle has capitalised development costs of {difference}, deducted for tax purposes when incurred (tax data of the case); they will be amortised in the accounts by thirds in 20X6, 20X7 and 20X8. A law enacted in 20X5 provides for a gradual rate cut: {rate_x6}% in 20X6, {rate_x7}% in 20X7 and {rate_x8}% in 20X8. Compute the deferred tax liability at 31 December 20X5.","es":""},"explanation":{"fr":"","en":"The taxable difference reverses in thirds of 200,000; each third is measured at the rate enacted for its year of reversal (IAS 12, para. 47): 200,000 × 26% + 200,000 × 25% + 200,000 × 24% = 52,000 + 50,000 + 48,000 = 150,000.","es":""},"common_error":{"fr":"","en":"Applying only the 20X6 rate to the whole difference: 156,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"difference","value":"600000","unit":"EUR"},{"id":"rate_x6","value":"26","unit":"PERCENT"},{"id":"rate_x7","value":"25","unit":"PERCENT"},{"id":"rate_x8","value":"24","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Capitalised development costs (tax base nil)","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"20X6 rate (%)","es":""},"value":"26","unit":"PERCENT"},{"label":{"fr":"","en":"20X7 rate (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"20X8 rate (%)","es":""},"value":"24","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability at 31 December 20X5","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000278","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES","IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000032","tested_point":"VG.IAS12.000032","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47","IAS 12 §58","IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Sivrance carries a deferred tax liability computed at {old_rate}% on a taxable temporary difference of {difference}, arising from accelerated tax depreciation recognised in profit or loss. In November 20X5, an enacted law sets the rate applicable on reversal at {new_rate}%. The difference is unchanged at 31 December 20X5. Compute the liability at the reporting date and the deferred tax income from the rate change.","es":""},"explanation":{"fr":"","en":"The liability is remeasured at the rate expected on reversal, enacted by the reporting date (IAS 12, para. 47): 300,000 × 25% = 75,000, compared with 90,000 before, a decrease of 15,000. As the differences arose from an item recognised in profit or loss, this effect is deferred tax income in profit or loss (IAS 12, paras 58 and 60).","es":""},"common_error":{"fr":"","en":"Leaving the liability at the previous rate until reversal.","es":""},"format":"CALCULATION","placeholders":[{"id":"difference","value":"300000","unit":"EUR"},{"id":"old_rate","value":"30","unit":"PERCENT"},{"id":"new_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Taxable temporary difference","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Previous rate (%)","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Rate enacted for the reversal (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"CLOSING_DTL","label":{"fr":"","en":"Deferred tax liability at the reporting date","es":""},"answer":75000,"tolerance":0,"unit":"EUR"},{"id":"RATE_EFFECT_INCOME","label":{"fr":"","en":"Deferred tax income from the rate change","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_DTL","meaning":{"fr":"","en":"Deferred tax liability at the reporting date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate enacted for the reversal (%)","es":""},"value":25,"unit":"PERCENT"}],"result":75000,"unit":"EUR","rationale":{"fr":"","en":"The liability is remeasured at the rate expected on reversal, enacted by the reporting date (IAS 12, para. 47): 300,000 × 25% = 75,000, compared with 90,000 before, a decrease of 15,000.","es":""}}],"references":["REF.IAS12.47","REF.IAS12.58","REF.IAS12.60"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000279","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES","IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000032","tested_point":"VG.IAS12.000032","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47","IAS 12 §58","IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Pellonde has deductible temporary differences (provisions deductible when paid, recognised in profit or loss) of {opening_difference} at the start of the year, for which a deferred tax asset is recognised at {old_rate}%. A law enacted in 20X5 raises the rate applicable on reversal to {new_rate}%. At the reporting date, the differences amount to {closing_difference}; the asset remains fully recoverable. Compute the asset at the reporting date and the part of its change due to the rate change alone, measured on the opening differences (breakdown convention of the case).","es":""},"explanation":{"fr":"","en":"The asset is measured at the rate expected on reversal, enacted by the reporting date (IAS 12, para. 47): 260,000 × 27% = 70,200, compared with 48,000 at the start of the year. Under the convention of the case, the rate effect is measured on the opening differences: 200,000 × (27% − 24%) = 6,000; the rest (16,200) comes from the increase in the differences. Both effects are deferred tax income in profit or loss, as the provisions were recognised in profit or loss (IAS 12, paras 58 and 60).","es":""},"common_error":{"fr":"","en":"Computing the rate effect on the closing differences (7,800) when the case uses the opening differences.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_difference","value":"200000","unit":"EUR"},{"id":"closing_difference","value":"260000","unit":"EUR"},{"id":"old_rate","value":"24","unit":"PERCENT"},{"id":"new_rate","value":"27","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Deductible differences at the start of the year","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Deductible differences at the reporting date","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Previous rate (%)","es":""},"value":"24","unit":"PERCENT"},{"label":{"fr":"","en":"Rate enacted for the reversal (%)","es":""},"value":"27","unit":"PERCENT"}],"steps":[{"id":"CLOSING_DTA","label":{"fr":"","en":"Deferred tax asset at the reporting date","es":""},"answer":70200,"tolerance":0,"unit":"EUR"},{"id":"RATE_EFFECT","label":{"fr":"","en":"Effect of the rate change","es":""},"answer":6000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_DTA","meaning":{"fr":"","en":"Deferred tax asset at the reporting date","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible differences at the reporting date","es":""},"value":260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate enacted for the reversal (%)","es":""},"value":27,"unit":"PERCENT"}],"result":70200,"unit":"EUR","rationale":{"fr":"","en":"The asset is measured at the rate expected on reversal, enacted by the reporting date (IAS 12, para. 47): 260,000 × 27% = 70,200, compared with 48,000 at the start of the year.","es":""}},{"step":"RATE_EFFECT","meaning":{"fr":"","en":"Effect of the rate change","es":""},"expression":"a * (b - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible differences at the start of the year","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate enacted for the reversal (%)","es":""},"value":27,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Previous rate (%)","es":""},"value":24,"unit":"PERCENT"}],"result":6000,"unit":"EUR"}],"references":["REF.IAS12.47","REF.IAS12.58","REF.IAS12.60"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000280","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000034","tested_point":"VG.IAS12.000034","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Trazmont is taxed under a graduated scale (case data): 15% up to 200,000 of taxable profit, 25% from 200,000 to 600,000 and 30% above. Its expected taxable profit for the year of reversal is {expected_profit}. It has a taxable temporary difference of {difference} that will reverse in that year. Compute the expected average rate and the deferred tax liability.","es":""},"explanation":{"fr":"","en":"The liability is measured at the average rate expected on the taxable profit of the period of reversal (IAS 12, para. 49). Expected tax: 200,000 × 15% + 400,000 × 25% + 200,000 × 30% = 30,000 + 100,000 + 60,000 = 190,000; average rate: 190,000 / 800,000 = 23.75%; liability: 120,000 × 23.75% = 28,500.","es":""},"common_error":{"fr":"","en":"Applying the 30% marginal rate: 36,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"expected_profit","value":"800000","unit":"EUR"},{"id":"difference","value":"120000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Expected taxable profit of the year of reversal","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Taxable temporary difference","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"AVERAGE_RATE","label":{"fr":"","en":"Expected average rate (%)","es":""},"answer":23.75,"tolerance":0,"unit":"PERCENT"},{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":28500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable temporary difference","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected average rate (%)","es":""},"value":23.75,"unit":"PERCENT"}],"result":28500,"unit":"EUR"}],"rationale":{"fr":"","en":"The liability is measured at the average rate expected on the taxable profit of the period of reversal (IAS 12, para. 49).","es":""},"references":["REF.IAS12.49"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000281","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000034","tested_point":"VG.IAS12.000034","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Halverine is subject to a graduated scale (case data): 10% up to 100,000 of taxable profit, 20% from 100,000 to 300,000 and 28% above. It has a deductible temporary difference of {difference} that will reverse next year, for which it expects taxable profit of {expected_profit}; the asset is recoverable. Compute the expected average rate and the deferred tax asset.","es":""},"explanation":{"fr":"","en":"The asset is measured at the average rate expected on the taxable profit of the year of reversal (IAS 12, para. 49). Expected tax: 100,000 × 10% + 200,000 × 20% + 200,000 × 28% = 10,000 + 40,000 + 56,000 = 106,000; average rate: 106,000 / 500,000 = 21.2%; asset: 75,000 × 21.2% = 15,900.","es":""},"common_error":{"fr":"","en":"Applying the rate of the highest band: 21,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"expected_profit","value":"500000","unit":"EUR"},{"id":"difference","value":"75000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Expected taxable profit of the year of reversal","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Deductible temporary difference","es":""},"value":"75000","unit":"EUR"}],"steps":[{"id":"AVERAGE_RATE","label":{"fr":"","en":"Expected average rate (%)","es":""},"answer":21.2,"tolerance":0,"unit":"PERCENT"},{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":15900,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Deductible temporary difference","es":""},"value":75000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected average rate (%)","es":""},"value":21.2,"unit":"PERCENT"}],"result":15900,"unit":"EUR"}],"rationale":{"fr":"","en":"The asset is measured at the average rate expected on the taxable profit of the year of reversal (IAS 12, para. 49).","es":""},"references":["REF.IAS12.49"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000285","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000285","tested_point":"QST.IAS12.000285","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47","IAS 12 §48"],"exercise":{"prompt":{"fr":"","en":"Glanvire has a taxable difference of 500,000. The rate enacted for the year of reversal is 26%. The leading candidate in next year's election promises to bring it down to 20%; no bill has been tabled. The accountant measured the deferred tax liability at 100,000 (500,000 × 20%). Where is the error?","es":""},"explanation":{"fr":"","en":"Deferred tax is based on the rates enacted or substantively enacted by the reporting date (IAS 12, para. 47); an announcement only counts if it has the substantive effect of actual enactment (IAS 12, para. 48), which an election promise without a bill does not. The liability should be 500,000 × 26% = 130,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the difference: it should have been discounted before applying the rate.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax assets and liabilities are not discounted; this is not the error.","es":""}},{"id":"B","text":{"fr":"","en":"In the choice of a liability: a promised cut turns the difference into an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The nature of the difference (taxable) does not depend on the rate.","es":""}},{"id":"C","text":{"fr":"","en":"In the rate: an election promise is neither enacted nor substantively enacted; the liability is 130,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"In the arithmetic: 500,000 × 20% gives 120,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The arithmetic is right; it is the rate that is wrong.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000286","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000286","tested_point":"QST.IAS12.000286","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Ruvenac has deductible differences of 240,000 that will reverse in 20X7. The rate is 30% in 20X5; a law enacted in 20X5 sets it at 32% from 20X7. The recoverable deferred tax asset was recognised at 72,000. Where is the error?","es":""},"explanation":{"fr":"","en":"The asset is measured at the rate expected to apply on reversal, enacted by the reporting date (IAS 12, para. 47): 240,000 × 32% = 76,800. The accountant applied the current 30% rate (72,000), understating the asset by 4,800.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rate: 32%, enacted for the year of reversal, should have been used; the asset is 76,800.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The principle: a deferred tax asset is never remeasured after initial recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"The asset is remeasured when the rates expected on reversal change.","es":""}},{"id":"C","text":{"fr":"","en":"The amount: the asset should have been computed at the 31% average of the two years.","es":""},"correct":false,"feedback":{"fr":"","en":"No averaging between the current and future rate is provided for.","es":""}},{"id":"D","text":{"fr":"","en":"The date: the asset can only be recognised in 20X7, the year of reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"The asset is recognised at the reporting date; the future reversal only sets the rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000287","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000033","tested_point":"VG.IAS12.000033","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §48"],"exercise":{"prompt":{"fr":"","en":"Saltiere operates in a jurisdiction where, according to the case data, the rates announced by the government when presenting the budget are binding in practice: the parliamentary vote, held several months later, has never changed an announced rate. On 15 November 20X5, the government announces a rate cut from 28% to 24% from 20X6. Which rate does Saltiere use at 31 December 20X5 for its differences reversing from 20X6?","es":""},"explanation":{"fr":"","en":"In some jurisdictions, the announcement of tax rates by the government has the substantive effect of actual enactment, even if formal enactment follows several months later; tax assets and liabilities are then measured using the announced rates (IAS 12, para. 48). The facts of the case lead to the judgement that the 24% rate is substantively enacted at the reporting date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"24%, as the announcement here has the substantive effect of actual enactment.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"28%, until parliament passes the law.","es":""},"correct":false,"feedback":{"fr":"","en":"In this jurisdiction, the vote is not decisive: the announcement amounts to substantive enactment.","es":""}},{"id":"C","text":{"fr":"","en":"26%, the average of both rates pending the vote.","es":""},"correct":false,"feedback":{"fr":"","en":"No averaging is provided for: the substantively enacted rate is used.","es":""}},{"id":"D","text":{"fr":"","en":"28%, with a mere mention of the new rate in the notes.","es":""},"correct":false,"feedback":{"fr":"","en":"The announced rate is substantively enacted; it is used in the measurement, not merely mentioned.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000288","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000033","tested_point":"VG.IAS12.000033","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47","IAS 12 §48"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X5, a bill raising the rate from 25% to 29% is at first reading in the parliament of Vendrasse's jurisdiction. According to the case data, the opposition has tabled amendments on the rate, the final vote is scheduled for May 20X6 and, in this jurisdiction, only that vote makes the rate applicable. Vendrasse has deductible differences for which the deferred tax asset is recoverable. Which rate does it use?","es":""},"explanation":{"fr":"","en":"Deferred tax assets are measured based on the rates enacted or substantively enacted by the reporting date (IAS 12, para. 47). An announcement only allows a new rate to be used if it has the substantive effect of actual enactment (IAS 12, para. 48); here the bill can still be amended and only the final vote makes the rate applicable: the 25% rate is retained.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"25%, as the new rate is neither enacted nor substantively enacted at the reporting date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"29%, as the bill was tabled before the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"Tabling a bill is not enough when the procedure can still change the rate.","es":""}},{"id":"C","text":{"fr":"","en":"29%, out of prudence, as the higher rate increases the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Prudence does not justify using a rate that is not enacted, least of all to increase an asset.","es":""}},{"id":"D","text":{"fr":"","en":"27%, the average of the current rate and the bill's rate.","es":""},"correct":false,"feedback":{"fr":"","en":"No averaging is provided for.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000289","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000033","tested_point":"VG.IAS12.000033","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §47"],"exercise":{"prompt":{"fr":"","en":"Zephalon's reporting date is 31 March 20X6. A law cutting the rate from 30% to 27% for financial years beginning on or after 1 April 20X6 is debated throughout the winter; according to the case data, the rate was neither enacted nor substantively enacted at 31 March 20X6 and the law is finally enacted on 10 May 20X6, before the financial statements are authorised for issue. Which rate does Zephalon use for its taxable differences at 31 March 20X6?","es":""},"explanation":{"fr":"","en":"Deferred tax is measured based on the rates enacted or substantively enacted by the reporting date (IAS 12, para. 47). At 31 March 20X6, the 27% rate was not: Zephalon uses 30%, even though the law is enacted before the financial statements are authorised for issue.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"27%, as the law is enacted before the financial statements are authorised for issue.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is assessed at the reporting date, not at authorisation for issue.","es":""}},{"id":"B","text":{"fr":"","en":"27%, because the differences will reverse after 1 April 20X6.","es":""},"correct":false,"feedback":{"fr":"","en":"The reversal schedule is not enough: the 27% rate must be enacted or substantively enacted by the reporting date.","es":""}},{"id":"C","text":{"fr":"","en":"30%, the rate enacted at the reporting date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No deferred tax while the rate is uncertain.","es":""},"correct":false,"feedback":{"fr":"","en":"Uncertainty about the rate does not prevent recognising the liability at the enacted rate.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000290","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.TAX_RATES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000290","tested_point":"QST.IAS12.000290","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"current-rate"},"references":["IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"As long as the amount of the temporary differences does not change, the enactment of a new tax rate has no effect on the deferred tax assets and liabilities recognised.","es":""},"explanation":{"fr":"","en":"The carrying amount of deferred tax assets and liabilities may change even though the temporary differences do not, for example because of a change in tax rates or laws; the resulting deferred tax is recognised in profit or loss, except to the extent that it relates to items previously recognised outside profit or loss (IAS 12, para. 60).","es":""},"common_error":{"fr":"","en":"Only remeasuring balances when the temporary differences change.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000291","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000291","tested_point":"QST.IAS12.000291","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51"],"exercise":{"prompt":{"fr":"","en":"The measurement of deferred tax assets and liabilities reflects the tax consequences of the manner in which the entity expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.","es":""},"explanation":{"fr":"","en":"This is the general principle: deferred tax reflects the tax consequences of the manner of recovery or settlement expected at the reporting date (IAS 12, para. 51). That expected manner is a judgement based on the facts at the reporting date.","es":""},"common_error":{"fr":"","en":"Ignoring the entity's expectations and always using the consequences of use.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000292","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000292","tested_point":"QST.IAS12.000292","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"For an investment property measured using the fair value model, the presumption that its carrying amount will be recovered through sale is irrebuttable.","es":""},"explanation":{"fr":"","en":"There is a presumption that the carrying amount of an investment property measured at fair value (IAS 40) will be recovered through sale, but that presumption is rebuttable (IAS 12, para. 51C).","es":""},"common_error":{"fr":"","en":"Believing that the sale presumption applies in every case.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000293","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000293","tested_point":"QST.IAS12.000293","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51A"],"exercise":{"prompt":{"fr":"","en":"In Arvelune's jurisdiction, the disposal of an asset is taxed at a rate and on a base that differ from those that apply to its use. How does Arvelune measure the deferred tax on this asset?","es":""},"explanation":{"fr":"","en":"When the manner of recovery affects the applicable rate, the tax base or both, deferred tax is measured using the rate and tax base consistent with the expected manner of recovery (IAS 12, para. 51A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Using the lower rate and tax base of the two manners.","es":""},"correct":false,"feedback":{"fr":"","en":"It is not about picking the most favourable parameters but those of the expected manner.","es":""}},{"id":"B","text":{"fr":"","en":"Using the rate for use and the tax base for disposal, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"Combining the parameters of two different manners is inconsistent.","es":""}},{"id":"C","text":{"fr":"","en":"Using the rate and tax base consistent with the expected manner of recovery.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Always under the disposal rules, which are easier to document.","es":""},"correct":false,"feedback":{"fr":"","en":"The disposal rules only apply if disposal is the expected manner.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000294","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000294","tested_point":"QST.IAS12.000294","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51B"],"exercise":{"prompt":{"fr":"","en":"Borlance measures land (a non-depreciable asset) using the IAS 16 revaluation model. Which tax consequences does its deferred tax reflect?","es":""},"explanation":{"fr":"","en":"For a non-depreciable asset revalued under IAS 16, deferred tax reflects the tax consequences of recovering its carrying amount through sale, no part of it being recovered through use (IAS 12, para. 51B).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Those of use, as the land is used in operations.","es":""},"correct":false,"feedback":{"fr":"","en":"A non-depreciable asset is not recovered through use: the consequences are those of sale.","es":""}},{"id":"B","text":{"fr":"","en":"Those of sale, whatever the intention to keep the land.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Those of use as long as no sale has been decided.","es":""},"correct":false,"feedback":{"fr":"","en":"The intention to keep the land does not change the rule for revalued non-depreciable assets.","es":""}},{"id":"D","text":{"fr":"","en":"None: non-depreciable land gives rise to no deferred tax.","es":""},"correct":false,"feedback":{"fr":"","en":"A revaluation without a tax adjustment creates a temporary difference and therefore deferred tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000295","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000295","tested_point":"QST.IAS12.000295","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"When is the presumption that an investment property measured at fair value will be recovered through sale rebutted?","es":""},"explanation":{"fr":"","en":"The presumption is rebutted when the property is depreciable and held within a business model whose objective is to consume substantially all of its economic benefits over time rather than through sale; paragraphs 51 and 51A then apply (IAS 12, para. 51C).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As soon as management states that it has no intention of selling.","es":""},"correct":false,"feedback":{"fr":"","en":"A mere intention to keep is not enough: a depreciable asset and a business model of consumption are needed.","es":""}},{"id":"B","text":{"fr":"","en":"When the property is land held for an indefinite period.","es":""},"correct":false,"feedback":{"fr":"","en":"Land is not depreciable: this rebuttal condition is not met.","es":""}},{"id":"C","text":{"fr":"","en":"When a sale would be taxed at a higher rate than rental income.","es":""},"correct":false,"feedback":{"fr":"","en":"The level of the rate is not a rebuttal criterion.","es":""}},{"id":"D","text":{"fr":"","en":"When the property is depreciable and held to consume substantially all of its benefits over time.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000296","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000296","tested_point":"QST.IAS12.000296","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51A"],"exercise":{"prompt":{"fr":"","en":"Under the legislation in the case, Cassiver would be taxed differently depending on whether it uses or disposes of a warehouse. Which deferred tax parameters may depend on the expected manner of recovery?","es":""},"explanation":{"fr":"","en":"The manner of recovery may affect the applicable rate, the tax base, or both (IAS 12, para. 51A). The carrying amount, for its part, results from the accounting standards applicable to the asset and does not depend on the tax assumption.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The carrying amount of the warehouse.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount does not change with the tax assumption about recovery.","es":""}},{"id":"B","text":{"fr":"","en":"The applicable tax rate.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The reporting date used for the measurement.","es":""},"correct":false,"feedback":{"fr":"","en":"The reporting date is not a parameter affected by the manner of recovery.","es":""}},{"id":"D","text":{"fr":"","en":"The tax base of the warehouse.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000297","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000297","tested_point":"QST.IAS12.000297","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51","IAS 12 §51A"],"exercise":{"prompt":{"fr":"","en":"Dumovelle holds a press with a carrying amount of {carrying_amount}. Under the legislation in the case, if it is used, its tax base is {tax_base_use} and the income is taxed at {rate_use}%; if it is sold, the tax base (indexed cost) is {tax_base_sale} and the gain is taxed at {rate_sale}%. At the reporting date, Dumovelle expects to use the press until the end of its useful life. Compute the deferred tax liability to be recognised, then the one that would have resulted from an expected sale.","es":""},"explanation":{"fr":"","en":"Deferred tax reflects the manner of recovery expected at the reporting date (IAS 12, para. 51), using the rate and tax base consistent with that manner (IAS 12, para. 51A). Use: (800,000 − 500,000) × 25% = 75,000, the amount recognised. Had a sale been expected: (800,000 − 650,000) × 20% = 30,000.","es":""},"common_error":{"fr":"","en":"Combining the sale tax base with the use rate: 37,500.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"800000","unit":"EUR"},{"id":"tax_base_use","value":"500000","unit":"EUR"},{"id":"rate_use","value":"25","unit":"PERCENT"},{"id":"tax_base_sale","value":"650000","unit":"EUR"},{"id":"rate_sale","value":"20","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Carrying amount of the press","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Tax base if used","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Rate if used (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Tax base if sold","es":""},"value":"650000","unit":"EUR"},{"label":{"fr":"","en":"Rate on the gain on sale (%)","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"DTL_USE","label":{"fr":"","en":"Deferred tax liability recognised (use expected)","es":""},"answer":75000,"tolerance":0,"unit":"EUR"},{"id":"DTL_SALE","label":{"fr":"","en":"Liability that would have resulted from an expected sale","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTL_USE","meaning":{"fr":"","en":"Deferred tax liability recognised (use expected)","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the press","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base if used","es":""},"value":500000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Rate if used (%)","es":""},"value":25,"unit":"PERCENT"}],"result":75000,"unit":"EUR"},{"step":"DTL_SALE","meaning":{"fr":"","en":"Liability that would have resulted from an expected sale","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Carrying amount of the press","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base if sold","es":""},"value":650000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Rate on the gain on sale (%)","es":""},"value":20,"unit":"PERCENT"}],"result":30000,"unit":"EUR"}],"rationale":{"fr":"","en":"Deferred tax reflects the manner of recovery expected at the reporting date (IAS 12, para. 51), using the rate and tax base consistent with that manner (IAS 12, para. 51A).","es":""},"references":["REF.IAS12.51","REF.IAS12.51A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000298","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000036","tested_point":"VG.IAS12.000036","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51B"],"exercise":{"prompt":{"fr":"","en":"Estrabel revalues the land of its head office to {revalued_amount} under the IAS 16 revaluation model; its tax base, equal to its cost, is {tax_base}. Under the legislation in the case, operating profits are taxed at {income_rate}% and gains on disposal of real estate at {sale_rate}%. Estrabel has no intention of selling. Compute the deferred tax liability.","es":""},"explanation":{"fr":"","en":"For a revalued non-depreciable asset, deferred tax reflects the consequences of sale (IAS 12, para. 51B), even without an intention to sell: (1,200,000 − 700,000) × 19% = 95,000.","es":""},"common_error":{"fr":"","en":"Using the operating rate: 125,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"revalued_amount","value":"1200000","unit":"EUR"},{"id":"tax_base","value":"700000","unit":"EUR"},{"id":"income_rate","value":"25","unit":"PERCENT"},{"id":"sale_rate","value":"19","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Revalued amount of the land","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of the land","es":""},"value":"700000","unit":"EUR"},{"label":{"fr":"","en":"Rate on operating profits (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Rate on gains on disposal (%)","es":""},"value":"19","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":95000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revalued amount of the land","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the land","es":""},"value":700000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Rate on gains on disposal (%)","es":""},"value":19,"unit":"PERCENT"}],"result":95000,"unit":"EUR","rationale":{"fr":"","en":"For a revalued non-depreciable asset, deferred tax reflects the consequences of sale (IAS 12, para. 51B), even without an intention to sell: (1,200,000 − 700,000) × 19% = 95,000.","es":""}}],"references":["REF.IAS12.51B"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000299","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000036","tested_point":"VG.IAS12.000036","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51B"],"exercise":{"prompt":{"fr":"","en":"Fennoric operates a vineyard whose bare land, which is not depreciable, is measured under the IAS 16 revaluation model at {revalued_amount}; the tax base recognised on disposal is {tax_base}. Under the legislation in the case, tax is {income_rate}% on operating income and {sale_rate}% on gains on land. Compute the deferred tax liability relating to the land.","es":""},"explanation":{"fr":"","en":"As the land is non-depreciable and revalued, deferred tax reflects recovery through sale (IAS 12, para. 51B): (2,100,000 − 1,500,000) × 16% = 96,000. The operating rate does not apply, no part of the amount being recovered through use.","es":""},"common_error":{"fr":"","en":"Applying the operating rate because the vineyard is operated: 180,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"revalued_amount","value":"2100000","unit":"EUR"},{"id":"tax_base","value":"1500000","unit":"EUR"},{"id":"income_rate","value":"30","unit":"PERCENT"},{"id":"sale_rate","value":"16","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Revalued amount of the land","es":""},"value":"2100000","unit":"EUR"},{"label":{"fr":"","en":"Tax base on disposal","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Rate on operating income (%)","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Rate on gains (%)","es":""},"value":"16","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":96000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Revalued amount of the land","es":""},"value":2100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base on disposal","es":""},"value":1500000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Rate on gains (%)","es":""},"value":16,"unit":"PERCENT"}],"result":96000,"unit":"EUR","rationale":{"fr":"","en":"As the land is non-depreciable and revalued, deferred tax reflects recovery through sale (IAS 12, para. 51B): (2,100,000 − 1,500,000) × 16% = 96,000.","es":""}}],"references":["REF.IAS12.51B"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000300","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000035","tested_point":"VG.IAS12.000035","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"Gorsalis measures an office building let to third parties under the IAS 40 fair value model: {fair_value} at the reporting date. Under the legislation in the case, rents are taxed at {rent_rate}% and a disposal is taxed at {sale_rate}% on the difference between the price and a tax base of {tax_base_sale}. Nothing allows the sale presumption to be rebutted. Compute the deferred tax liability.","es":""},"explanation":{"fr":"","en":"The carrying amount of an investment property measured at fair value is presumed to be recovered through sale (IAS 12, para. 51C); as the presumption is not rebutted, deferred tax is measured under the disposal rules: (3,000,000 − 2,200,000) × 20% = 160,000.","es":""},"common_error":{"fr":"","en":"Using the rate on rents: 240,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"3000000","unit":"EUR"},{"id":"tax_base_sale","value":"2200000","unit":"EUR"},{"id":"rent_rate","value":"30","unit":"PERCENT"},{"id":"sale_rate","value":"20","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value (carrying amount)","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Tax base on disposal","es":""},"value":"2200000","unit":"EUR"},{"label":{"fr":"","en":"Rate on rents (%)","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Rate on disposal (%)","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":160000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value (carrying amount)","es":""},"value":3000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base on disposal","es":""},"value":2200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Rate on disposal (%)","es":""},"value":20,"unit":"PERCENT"}],"result":160000,"unit":"EUR"}],"rationale":{"fr":"","en":"The carrying amount of an investment property measured at fair value is presumed to be recovered through sale (IAS 12, para. 51C)","es":""},"references":["REF.IAS12.51C"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000301","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000035","tested_point":"VG.IAS12.000035","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"Heliodane holds a logistics warehouse classified as investment property and measured at fair value ({fair_value} at the reporting date). Management says it wants to 'keep it for a long time' and mainly expects a capital gain from it; no business model of consuming substantially all of its benefits over time is documented (case data). On disposal, the tax base would be {tax_base_sale} and the rate {sale_rate}%. Compute the deferred tax liability.","es":""},"explanation":{"fr":"","en":"The sale presumption applies (IAS 12, para. 51C): it is only rebutted for a depreciable property held to consume substantially all of its benefits over time (IAS 12, para. 51C), which a mere intention to keep the property does not show. Liability: (2,600,000 − 1,850,000) × 22% = 165,000.","es":""},"common_error":{"fr":"","en":"Rebutting the presumption on the mere intention to keep the property.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"2600000","unit":"EUR"},{"id":"tax_base_sale","value":"1850000","unit":"EUR"},{"id":"sale_rate","value":"22","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value (carrying amount)","es":""},"value":"2600000","unit":"EUR"},{"label":{"fr":"","en":"Tax base on disposal","es":""},"value":"1850000","unit":"EUR"},{"label":{"fr":"","en":"Rate on disposal (%)","es":""},"value":"22","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":165000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value (carrying amount)","es":""},"value":2600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base on disposal","es":""},"value":1850000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Rate on disposal (%)","es":""},"value":22,"unit":"PERCENT"}],"result":165000,"unit":"EUR"}],"rationale":{"fr":"","en":"The sale presumption applies (IAS 12, para. 51C): it is only rebutted for a depreciable property held to consume substantially all of its benefits over time (IAS 12, para. 51C), which a mere intention to keep the property does not show.","es":""},"references":["REF.IAS12.51C"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000302","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000302","tested_point":"QST.IAS12.000302","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51B"],"exercise":{"prompt":{"fr":"","en":"Ivranne revalued land under IAS 16, giving rise to a taxable difference of 400,000. Under the legislation in the case, operating income is taxed at 28% and gains on land at 15%. The accountant recognised a deferred tax liability of 112,000, on the ground that the land is used in operations. What is the error?","es":""},"explanation":{"fr":"","en":"For a revalued non-depreciable asset, deferred tax reflects the consequences of sale (IAS 12, para. 51B): 400,000 × 15% = 60,000. The accountant applied the operating rate, overstating the liability by 52,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The liability should have been computed on the total revalued amount, not on the difference.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax is based on the difference between carrying amount and tax base, not on the total amount.","es":""}},{"id":"B","text":{"fr":"","en":"No deferred tax should have been recognised, as the land is not held for sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The revaluation creates a temporary difference even without an intention to sell.","es":""}},{"id":"C","text":{"fr":"","en":"The liability should have been discounted, as a sale is distant.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax assets and liabilities are not discounted.","es":""}},{"id":"D","text":{"fr":"","en":"The rate: the consequences of sale were required, i.e. 60,000.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000303","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000303","tested_point":"QST.IAS12.000303","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"Jasmolde holds bare land let as a car park, classified as investment property and measured at fair value. It measured deferred tax under the rules for taxing rents, rebutting the sale presumption on the ground that it has 'no intention of disposing of the land'. What is the error?","es":""},"explanation":{"fr":"","en":"The sale presumption (IAS 12, para. 51C) is only rebutted for a depreciable property held within a business model of consuming substantially all of its benefits over time (IAS 12, para. 51C). As bare land is not depreciable, the presumption cannot be rebutted: deferred tax follows the disposal rules.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rebuttal: non-depreciable land does not allow the sale presumption to be rebutted.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The classification: let land cannot be investment property.","es":""},"correct":false,"feedback":{"fr":"","en":"The classification as investment property is not at issue in the question.","es":""}},{"id":"C","text":{"fr":"","en":"The principle: investment property at fair value never gives rise to deferred tax.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference between fair value and tax base is a temporary difference giving rise to deferred tax.","es":""}},{"id":"D","text":{"fr":"","en":"The calculation: deferred tax should have been computed on the total fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax is based on the temporary difference, not on the total fair value.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000304","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000304","tested_point":"QST.IAS12.000304","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51C","IAS 12 §51D"],"exercise":{"prompt":{"fr":"","en":"Korvelin holds a data centre as investment property measured at fair value; the building is depreciated for tax purposes and has a useful life of twenty years (case data). Its business model, documented by the board, is to let the building under successive leases until the end of its useful life and then demolish it; no sale is contemplated. How does Korvelin measure the deferred tax on the building?","es":""},"explanation":{"fr":"","en":"The sale presumption is rebutted (IAS 12, para. 51C): the building is depreciable and held within a business model whose objective is to consume substantially all of its benefits over time rather than through sale. Deferred tax is then measured according to the expected manner, here use (paragraphs 51 and 51A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Under the disposal rules, as the presumption is irrebuttable.","es":""},"correct":false,"feedback":{"fr":"","en":"The presumption is rebuttable.","es":""}},{"id":"B","text":{"fr":"","en":"Under the disposal rules, as no buyer has been identified.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a buyer is not the criterion; the business model of consumption is what counts.","es":""}},{"id":"C","text":{"fr":"","en":"With no deferred tax, as fair value already reflects taxation.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value does not remove the need to recognise deferred tax on the difference from the tax base.","es":""}},{"id":"D","text":{"fr":"","en":"Under the consequences of use, as the presumption is rebutted.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000305","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000305","tested_point":"QST.IAS12.000305","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51","IAS 12 §51A"],"exercise":{"prompt":{"fr":"","en":"Until now, Lormeval measured the deferred tax on a production line under the rules for its use. In December 20X5, the board approves its sale to a competitor, signed in February 20X6; at the reporting date of 31 December 20X5, sale is the expected manner of recovery. Under the legislation in the case, a disposal is taxed at a different rate and on a different base from use. What does Lormeval do at 31 December 20X5?","es":""},"explanation":{"fr":"","en":"Deferred tax reflects the manner of recovery expected at the reporting date (IAS 12, para. 51), using the rate and tax base consistent with that manner (IAS 12, para. 51A). As sale is expected at the reporting date, Lormeval measures deferred tax under the disposal rules from 31 December 20X5.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It keeps the rules for use until the sale is signed.","es":""},"correct":false,"feedback":{"fr":"","en":"The expected manner is assessed at the reporting date: the later signature is not required here.","es":""}},{"id":"B","text":{"fr":"","en":"It measures deferred tax under the disposal rules from the reporting date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It uses the higher rate of the two manners, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice is not based on prudence but on the expected manner.","es":""}},{"id":"D","text":{"fr":"","en":"It no longer recognises deferred tax on an asset to be sold.","es":""},"correct":false,"feedback":{"fr":"","en":"The temporary difference remains; only the rate and tax base change.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000308","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000308","tested_point":"QST.IAS12.000308","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"Deferred tax assets and liabilities are not discounted.","es":""},"explanation":{"fr":"","en":"The rule has no exception: deferred tax assets and liabilities are not discounted (IAS 12, para. 53), whatever the timing of reversal of the differences.","es":""},"common_error":{"fr":"","en":"Discounting a deferred tax liability that will reverse far in the future.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000309","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000309","tested_point":"QST.IAS12.000309","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §54"],"exercise":{"prompt":{"fr":"","en":"An entity with a reliable schedule of reversal of its temporary differences may choose to discount its deferred tax liabilities.","es":""},"explanation":{"fr":"","en":"Reliable discounting would require a detailed schedule of the reversal of each difference, often impracticable or highly complex, and permitting it without requiring it would harm comparability: the standard neither requires nor permits discounting (IAS 12, para. 54). No choice is therefore available, even with a reliable schedule.","es":""},"common_error":{"fr":"","en":"Believing that discounting is an accounting option.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000310","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000310","tested_point":"QST.IAS12.000310","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §55"],"exercise":{"prompt":{"fr":"","en":"The amount of a temporary difference is determined from the carrying amount of the asset or liability concerned, not from a discounted estimate of future tax cash flows.","es":""},"explanation":{"fr":"","en":"Temporary differences are determined by reference to the carrying amount of the asset or liability (IAS 12, para. 55), compared with its tax base; the resulting deferred tax is not discounted (para. 53).","es":""},"common_error":{"fr":"","en":"Replacing the carrying amount with a discounted value of the expected tax savings.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000311","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000311","tested_point":"QST.IAS12.000311","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"Orvalde has a taxable temporary difference that will only reverse in fifteen years. How is the related deferred tax liability measured?","es":""},"explanation":{"fr":"","en":"Deferred tax assets and liabilities are not discounted (IAS 12, para. 53): the fifteen-year horizon makes no difference; the liability is measured at the nominal amount of the expected tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At its present value at Orvalde's incremental borrowing rate.","es":""},"correct":false,"feedback":{"fr":"","en":"No discounting is permitted, whatever the rate.","es":""}},{"id":"B","text":{"fr":"","en":"At the amount of the expected tax, without discounting.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At its present value at the risk-free rate, as the horizon exceeds five years.","es":""},"correct":false,"feedback":{"fr":"","en":"No horizon threshold triggers discounting.","es":""}},{"id":"D","text":{"fr":"","en":"It is not recognised before the year of reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is recognised as soon as the taxable difference exists.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000312","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000312","tested_point":"QST.IAS12.000312","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §54"],"exercise":{"prompt":{"fr":"","en":"What justification does the standard give for not discounting deferred tax?","es":""},"explanation":{"fr":"","en":"Reliable discounting would require a detailed schedule of the reversal of each temporary difference, often impracticable or highly complex; permitting it without requiring it would harm comparability (IAS 12, para. 54).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Future tax rates are too uncertain to be used.","es":""},"correct":false,"feedback":{"fr":"","en":"Enacted future rates are in fact used (para. 47): this is not the reason given.","es":""}},{"id":"B","text":{"fr":"","en":"Deferred tax balances are always short term.","es":""},"correct":false,"feedback":{"fr":"","en":"Reversals can spread over long periods; this is not the reason given.","es":""}},{"id":"C","text":{"fr":"","en":"Deferred tax is not an asset or a liability as defined in the conceptual framework.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax is indeed recognised as an asset or a liability.","es":""}},{"id":"D","text":{"fr":"","en":"Reliable discounting would require a detailed schedule, often impracticable, and an option would harm comparability.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000313","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS12.000037","tested_point":"VG.IAS12.000037","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"Plemara computes a deferred tax liability of 200,000 on a taxable difference that will reverse in ten years. Its finance director proposes discounting it at 5% a year, giving about 122,783. What amount does Plemara recognise?","es":""},"explanation":{"fr":"","en":"Deferred tax assets and liabilities are not discounted (IAS 12, para. 53): Plemara recognises 200,000, whatever the timing of reversal.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"200,000, the undiscounted amount.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"100,000, i.e. 200,000 less ten years of simple interest at 5%.","es":""},"correct":false,"feedback":{"fr":"","en":"No form of discounting, simple or compound, is allowed.","es":""}},{"id":"C","text":{"fr":"","en":"About 122,783, the present value over ten years.","es":""},"correct":false,"feedback":{"fr":"","en":"The proposed discounting is not permitted.","es":""}},{"id":"D","text":{"fr":"","en":"No amount before the year of reversal.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is recognised at the reporting date.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000314","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IAS12.000037","tested_point":"VG.IAS12.000037","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"Brasquine has deductible differences giving a recoverable deferred tax asset of 90,000, which will reverse in six years. Its internal auditor suggests discounting it at 4%, giving about 71,128, 'for consistency with provisions'. What asset does Brasquine recognise?","es":""},"explanation":{"fr":"","en":"Deferred tax assets, like liabilities, are not discounted (IAS 12, para. 53): Brasquine recognises 90,000. Any discounting of other items in the statement of financial position does not extend to deferred tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"90,000, without discounting.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"About 71,128, for consistency with discounted provisions.","es":""},"correct":false,"feedback":{"fr":"","en":"The consistency argument does not allow deferred tax to be discounted.","es":""}},{"id":"C","text":{"fr":"","en":"86,400, i.e. 90,000 less a flat 4% reduction.","es":""},"correct":false,"feedback":{"fr":"","en":"A flat reduction is not permitted either: the amount remains nominal.","es":""}},{"id":"D","text":{"fr":"","en":"No asset, as reversal in six years is too distant.","es":""},"correct":false,"feedback":{"fr":"","en":"The timing of reversal does not prevent recognising a recoverable asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000315","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000315","tested_point":"QST.IAS12.000315","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §53"],"exercise":{"prompt":{"fr":"","en":"In Quervane's financial statements, the deferred tax liability relating to accelerated tax depreciation (360,000 of expected tax, reversing over twelve years) is shown at 241,000, an amount discounted at the group's borrowing rate. Where is the error?","es":""},"explanation":{"fr":"","en":"Deferred tax assets and liabilities are not discounted (IAS 12, para. 53). The liability must be shown at 360,000; discounting understated it by 119,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In the classification: the liability should have been presented as current.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification is not the issue raised.","es":""}},{"id":"B","text":{"fr":"","en":"In the rate: the risk-free rate should have been used rather than the borrowing rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice of rate is irrelevant: no discounting is permitted.","es":""}},{"id":"C","text":{"fr":"","en":"In the discounting: the liability must be shown at 360,000, without discounting.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"In the existence of the liability: accelerated tax depreciation creates no temporary difference.","es":""},"correct":false,"feedback":{"fr":"","en":"Accelerated tax depreciation does create a taxable temporary difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000316","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.NO_DISCOUNTING"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000316","tested_point":"QST.IAS12.000316","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000012","section_id":"no-discounting"},"references":["IAS 12 §53","IAS 12 §54"],"exercise":{"prompt":{"fr":"","en":"Ursenac's accounting policy note states: 'Deferred taxes expected to reverse after more than five years are discounted when a reliable schedule is available; the others are not.' What is the problem?","es":""},"explanation":{"fr":"","en":"Deferred tax assets and liabilities are not discounted (IAS 12, para. 53): the standard neither requires nor permits discounting, in particular to preserve comparability (IAS 12, para. 54). A partial discounting policy, however framed, does not comply.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The five-year threshold is too short: it should be ten years.","es":""},"correct":false,"feedback":{"fr":"","en":"No threshold allows discounting.","es":""}},{"id":"B","text":{"fr":"","en":"Only deferred tax assets may be discounted, not liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule applies to assets as well as liabilities.","es":""}},{"id":"C","text":{"fr":"","en":"The note should state the discount rate used.","es":""},"correct":false,"feedback":{"fr":"","en":"Stating the rate would not make the policy compliant.","es":""}},{"id":"D","text":{"fr":"","en":"The policy itself: no discounting of deferred tax is permitted.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000317","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000317","tested_point":"QST.IAS12.000317","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Deferred tax is recognised as income or an expense in profit or loss for the period, except to the extent that it arises from a transaction or event recognised outside profit or loss or from a business combination.","es":""},"explanation":{"fr":"","en":"This is the general allocation rule: current and deferred tax go through profit or loss, except when they arise from items recognised in other comprehensive income or directly in equity, or from a business combination (IAS 12, para. 58).","es":""},"common_error":{"fr":"","en":"Systematically taking deferred tax to equity.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000318","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000318","tested_point":"QST.IAS12.000318","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"The tax expense presented in profit or loss is limited to the current tax of the period.","es":""},"explanation":{"fr":"","en":"Tax expense (tax income) comprises current tax expense (income) and deferred tax expense (income) (IAS 12, para. 6).","es":""},"common_error":{"fr":"","en":"Equating tax expense with the tax payable to the authorities.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000319","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000319","tested_point":"QST.IAS12.000319","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"The deferred tax liability recognised in a business combination on acquired assets remeasured to fair value is charged to deferred tax expense in the acquirer's profit or loss.","es":""},"explanation":{"fr":"","en":"Deferred tax arising from a business combination is an exception to recognition in profit or loss (IAS 12, para. 58): it is recognised as part of the business combination, not as an expense of the period.","es":""},"common_error":{"fr":"","en":"Including the deferred tax of the combination in the period's deferred tax expense.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000320","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000320","tested_point":"QST.IAS12.000320","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Xantrel claims accelerated tax depreciation on its machines, which are depreciated on a straight-line basis in the accounts; its deferred tax liability increases by 18,000 over the year. Where is this increase recognised?","es":""},"explanation":{"fr":"","en":"Accounting depreciation is recognised in profit or loss; the resulting deferred tax follows the same path: deferred tax expense in profit or loss (IAS 12, para. 58).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"No part of the transaction is recognised in other comprehensive income.","es":""}},{"id":"B","text":{"fr":"","en":"Directly in equity, in reserves.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing justifies charging equity directly.","es":""}},{"id":"C","text":{"fr":"","en":"As a reduction of the cost of the machines.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax does not change the cost of the assets.","es":""}},{"id":"D","text":{"fr":"","en":"As deferred tax expense in profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000321","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000321","tested_point":"QST.IAS12.000321","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Which of the following deferred tax movements of Amberlac is not part of the deferred tax expense in profit or loss?","es":""},"explanation":{"fr":"","en":"Deferred tax is recognised in profit or loss, except when it arises from an item recognised outside profit or loss or from a business combination (IAS 12, para. 58). The revaluation recognised in other comprehensive income leads to deferred tax recognised outside profit or loss; the other three movements originate in profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The reversal of a liability arising from accelerated tax depreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"Depreciation is in profit or loss: so is the reversal of the liability.","es":""}},{"id":"B","text":{"fr":"","en":"The asset arising from a warranty provision deductible when paid.","es":""},"correct":false,"feedback":{"fr":"","en":"The provision is recognised in profit or loss: so is the asset.","es":""}},{"id":"C","text":{"fr":"","en":"The liability arising from the revaluation of a building recognised in other comprehensive income.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The asset arising from accrued interest expense, deductible when paid.","es":""},"correct":false,"feedback":{"fr":"","en":"Interest is an expense in profit or loss: so is the asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000322","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000322","tested_point":"QST.IAS12.000322","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §6","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"For the year, Belvize recognises current tax of 300,000, deferred tax expense of 40,000 arising from items in profit or loss and a deferred tax liability of 25,000 on a revaluation recognised in other comprehensive income. What tax expense does it present in profit or loss?","es":""},"explanation":{"fr":"","en":"Tax expense comprises current and deferred tax (IAS 12, para. 6), but tax relating to an item recognised outside profit or loss is itself recognised outside profit or loss (IAS 12, para. 58): 300,000 + 40,000 = 340,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"365,000, all components combined.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax on the revaluation is recognised outside profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"300,000, as deferred tax is not an expense.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax is part of the tax expense.","es":""}},{"id":"C","text":{"fr":"","en":"325,000, current tax and the tax on the revaluation.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the reverse: deferred tax from profit or loss is included, that on the revaluation excluded.","es":""}},{"id":"D","text":{"fr":"","en":"340,000, current tax and deferred tax arising in profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000323","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000038","tested_point":"VG.IAS12.000038","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Cendrolle's deferred tax liability moves from {opening_dtl} at the start of the year to {closing_dtl} at the reporting date. During the year, {dtl_in_oci} of this increase is the tax on a building revaluation recognised in other comprehensive income. Compute the deferred tax expense in profit or loss.","es":""},"explanation":{"fr":"","en":"Deferred tax expense in profit or loss excludes the tax relating to items recognised outside profit or loss (IAS 12, para. 58): (165,000 − 120,000) − 30,000 = 15,000.","es":""},"common_error":{"fr":"","en":"Taking the whole change: 45,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_dtl","value":"120000","unit":"EUR"},{"id":"closing_dtl","value":"165000","unit":"EUR"},{"id":"dtl_in_oci","value":"30000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening deferred tax liability","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Closing deferred tax liability","es":""},"value":"165000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax recognised in other comprehensive income","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"DEFERRED_TAX_EXPENSE","label":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_EXPENSE","meaning":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing deferred tax liability","es":""},"value":165000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening deferred tax liability","es":""},"value":120000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Deferred tax recognised in other comprehensive income","es":""},"value":30000,"unit":"EUR"}],"result":15000,"unit":"EUR","rationale":{"fr":"","en":"Deferred tax expense in profit or loss excludes the tax relating to items recognised outside profit or loss (IAS 12, para. 58): (165,000 − 120,000) − 30,000 = 15,000.","es":""}}],"references":["REF.IAS12.58"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000324","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000038","tested_point":"VG.IAS12.000038","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Ermitane has an opening deferred tax liability of {opening_dtl} and an opening asset of {opening_dta}; at the reporting date, {closing_dtl} and {closing_dta}. During the year, it issued a convertible loan: a deferred tax liability of {dtl_in_equity} was charged directly to the equity component. Compute the deferred tax income in profit or loss.","es":""},"explanation":{"fr":"","en":"Net position: a liability of 80,000 at the start of the year (140,000 − 60,000) and 55,000 at the reporting date (150,000 − 95,000), a decrease of 25,000. The tax charged to equity is not part of profit or loss (IAS 12, para. 58): without it, the net liability would have fallen by 25,000 + 12,000 = 37,000, the deferred tax income in profit or loss.","es":""},"common_error":{"fr":"","en":"Taking only the net change in the balance: income of 25,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_dtl","value":"140000","unit":"EUR"},{"id":"opening_dta","value":"60000","unit":"EUR"},{"id":"closing_dtl","value":"150000","unit":"EUR"},{"id":"closing_dta","value":"95000","unit":"EUR"},{"id":"dtl_in_equity","value":"12000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening deferred tax liability","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Opening deferred tax asset","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Closing deferred tax liability","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Closing deferred tax asset","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax liability charged to equity","es":""},"value":"12000","unit":"EUR"}],"steps":[{"id":"DEFERRED_TAX_INCOME","label":{"fr":"","en":"Deferred tax income in profit or loss","es":""},"answer":37000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000325","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000038","tested_point":"VG.IAS12.000038","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"In the Folgare group's consolidated financial statements, the net deferred tax liability moves from {opening_net_dtl} to {closing_net_dtl}. During the year, the group acquired a subsidiary in a business combination that gave rise to a deferred tax liability of {acquired_dtl}, and recognised {oci_dtl} of deferred tax on a revaluation in other comprehensive income. Compute the deferred tax expense in consolidated profit or loss.","es":""},"explanation":{"fr":"","en":"Deferred tax arising from a business combination and that on items recognised outside profit or loss are not part of the expense in profit or loss (IAS 12, para. 58): (310,000 − 200,000) − 70,000 − 25,000 = 15,000.","es":""},"common_error":{"fr":"","en":"Forgetting to remove the deferred tax of the combination: 85,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_net_dtl","value":"200000","unit":"EUR"},{"id":"closing_net_dtl","value":"310000","unit":"EUR"},{"id":"acquired_dtl","value":"70000","unit":"EUR"},{"id":"oci_dtl","value":"25000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening net deferred tax liability","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Closing net deferred tax liability","es":""},"value":"310000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax liability arising from the combination","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax recognised in other comprehensive income","es":""},"value":"25000","unit":"EUR"}],"steps":[{"id":"DEFERRED_TAX_EXPENSE","label":{"fr":"","en":"Deferred tax expense in consolidated profit or loss","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_EXPENSE","meaning":{"fr":"","en":"Deferred tax expense in consolidated profit or loss","es":""},"expression":"(a - b) - c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing net deferred tax liability","es":""},"value":310000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening net deferred tax liability","es":""},"value":200000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Deferred tax liability arising from the combination","es":""},"value":70000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Deferred tax recognised in other comprehensive income","es":""},"value":25000,"unit":"EUR"}],"result":15000,"unit":"EUR","rationale":{"fr":"","en":"Deferred tax arising from a business combination and that on items recognised outside profit or loss are not part of the expense in profit or loss (IAS 12, para. 58): (310,000 − 200,000) − 70,000 − 25,000 = 15,000.","es":""}}],"references":["REF.IAS12.58"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000326","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS","IAS12.DEFINITIONS.KEY_TERMS","IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000326","tested_point":"QST.IAS12.000326","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §6","IAS 12 §46","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Gavrance has taxable profit of {taxable_profit}, taxed at the enacted rate of {rate}%. During the year, its deferred tax liability increases by {dtl_increase} and its deferred tax asset by {dta_increase}, both movements arising from items recognised in profit or loss. Compute current tax and the total tax expense in profit or loss.","es":""},"explanation":{"fr":"","en":"Current tax at the enacted rate (IAS 12, para. 46): 1,500,000 × 25% = 375,000. Deferred tax movements arising in profit or loss are recognised there (IAS 12, para. 58): the increase in the liability is an expense (20,000), the increase in the asset income (8,000). Total tax expense (IAS 12, para. 6): 375,000 + 20,000 − 8,000 = 387,000.","es":""},"common_error":{"fr":"","en":"Adding the increase in the asset to the expense: 403,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"taxable_profit","value":"1500000","unit":"EUR"},{"id":"rate","value":"25","unit":"PERCENT"},{"id":"dtl_increase","value":"20000","unit":"EUR"},{"id":"dta_increase","value":"8000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Taxable profit","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Enacted rate (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Increase in deferred tax liability","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Increase in deferred tax asset","es":""},"value":"8000","unit":"EUR"}],"steps":[{"id":"CURRENT_TAX","label":{"fr":"","en":"Current tax","es":""},"answer":375000,"tolerance":0,"unit":"EUR"},{"id":"TAX_EXPENSE","label":{"fr":"","en":"Total tax expense in profit or loss","es":""},"answer":387000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CURRENT_TAX","meaning":{"fr":"","en":"Current tax","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable profit","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Enacted rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":375000,"unit":"EUR"},{"step":"TAX_EXPENSE","meaning":{"fr":"","en":"Total tax expense in profit or loss","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax","es":""},"value":375000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Increase in deferred tax liability","es":""},"value":20000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Increase in deferred tax asset","es":""},"value":8000,"unit":"EUR"}],"result":387000,"unit":"EUR"}],"rationale":{"fr":"","en":"Deferred tax movements arising in profit or loss are recognised there (IAS 12, para. 58): the increase in the liability is an expense (20,000), the increase in the asset income (8,000).","es":""},"references":["REF.IAS12.6","REF.IAS12.46","REF.IAS12.58"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000327","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS","IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION","IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000327","tested_point":"QST.IAS12.000327","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §15","IAS 12 §24","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Hastrane, whose temporary differences all arise from items in profit or loss, has taxable differences of {opening_taxable} at the start of the year and {closing_taxable} at the reporting date, and deductible differences of {opening_deductible} and {closing_deductible}. The rate, unchanged, is {rate}%; the deferred tax assets are recoverable. Compute the deferred tax expense for the year.","es":""},"explanation":{"fr":"","en":"A liability is recognised for taxable differences (IAS 12, para. 15) and an asset for recoverable deductible differences (IAS 12, para. 24). The liability increases by (620,000 − 500,000) × 25% = 30,000; the asset decreases by (150,000 − 130,000) × 25% = 5,000. Both movements go through profit or loss (IAS 12, para. 58): an expense of 30,000 + 5,000 = 35,000.","es":""},"common_error":{"fr":"","en":"Deducting the decrease in the asset instead of adding it: 25,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_taxable","value":"500000","unit":"EUR"},{"id":"closing_taxable","value":"620000","unit":"EUR"},{"id":"opening_deductible","value":"150000","unit":"EUR"},{"id":"closing_deductible","value":"130000","unit":"EUR"},{"id":"rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Opening taxable differences","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Closing taxable differences","es":""},"value":"620000","unit":"EUR"},{"label":{"fr":"","en":"Opening deductible differences","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Closing deductible differences","es":""},"value":"130000","unit":"EUR"},{"label":{"fr":"","en":"Rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_EXPENSE","label":{"fr":"","en":"Deferred tax expense","es":""},"answer":35000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_EXPENSE","meaning":{"fr":"","en":"Deferred tax expense","es":""},"expression":"((a - b) * c) + ((d - e) * c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing taxable differences","es":""},"value":620000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening taxable differences","es":""},"value":500000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Rate (%)","es":""},"value":25,"unit":"PERCENT"},{"symbol":"d","meaning":{"fr":"","en":"Opening deductible differences","es":""},"value":150000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Closing deductible differences","es":""},"value":130000,"unit":"EUR"}],"result":35000,"unit":"EUR","rationale":{"fr":"","en":"Both movements go through profit or loss (IAS 12, para. 58): an expense of 30,000 + 5,000 = 35,000.","es":""}}],"references":["REF.IAS12.15","REF.IAS12.24","REF.IAS12.58"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000332","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000332","tested_point":"QST.IAS12.000332","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Nectaval's deferred tax liability increased by 70,000: 40,000 from accelerated tax depreciation and 30,000 from a land revaluation recognised in other comprehensive income. The accountant recorded a single entry: deferred tax expense 70,000 / deferred tax liability 70,000. Where is the error?","es":""},"explanation":{"fr":"","en":"Deferred tax relating to an item recognised outside profit or loss is itself recognised outside profit or loss (IAS 12, para. 58): only 40,000 is an expense in profit or loss; the 30,000 relating to the revaluation is recognised in other comprehensive income.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The liability should not have increased: a land revaluation creates no temporary difference.","es":""},"correct":false,"feedback":{"fr":"","en":"A revaluation without a tax adjustment does create a temporary difference.","es":""}},{"id":"B","text":{"fr":"","en":"The expense should have been 40,000 and the liability only 40,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability does increase by 70,000; only the split of the other side is wrong.","es":""}},{"id":"C","text":{"fr":"","en":"The liability should have been deducted from the carrying amount of the land.","es":""},"correct":false,"feedback":{"fr":"","en":"The deferred tax liability is a separate liability, not a reduction of the asset.","es":""}},{"id":"D","text":{"fr":"","en":"The expense in profit or loss is overstated: 30,000 belongs in other comprehensive income.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000333","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000333","tested_point":"QST.IAS12.000333","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"The Quintaris group's net deferred tax liability increases by 90,000 over the year. The increase includes 50,000 arising from the acquisition of a subsidiary (business combination) and 10,000 of tax on actuarial gains and losses recognised in other comprehensive income (accounting treatment given by the case). The rest arises from items in profit or loss. What deferred tax expense does the group present in profit or loss?","es":""},"explanation":{"fr":"","en":"Neither deferred tax arising from a business combination nor that on items recognised outside profit or loss is part of the expense in profit or loss (IAS 12, para. 58): 90,000 − 50,000 − 10,000 = 30,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"90,000, the total change in the net liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The total change includes two movements that do not go through profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"40,000, excluding the business combination only.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax on actuarial gains and losses is also outside profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"30,000, excluding the business combination and other comprehensive income.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No expense: a group's deferred tax is charged to consolidated reserves.","es":""},"correct":false,"feedback":{"fr":"","en":"The allocation rules also apply to consolidated financial statements.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000334","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS","IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000334","tested_point":"QST.IAS12.000334","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §24","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Sorbanel writes down a production line measured at cost by 160,000; the loss is recognised in profit or loss. Under the legislation in the case, the loss will only be deductible on disposal, which creates a deductible temporary difference. The rate is 25% and sufficient taxable profits are expected. What deferred tax effect does Sorbanel recognise?","es":""},"explanation":{"fr":"","en":"The deductible difference gives rise to a deferred tax asset to the extent that taxable profit is probable (IAS 12, para. 24): 160,000 × 25% = 40,000. As the impairment loss is recognised in profit or loss, the other side of the asset is deferred tax income in profit or loss (IAS 12, para. 58).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An asset of 40,000 against other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"The impairment loss on an asset at cost is in profit or loss: so is the deferred tax.","es":""}},{"id":"B","text":{"fr":"","en":"An asset of 40,000 against deferred tax income in profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A liability of 40,000 against deferred tax expense.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount falls below the tax base: this is a deductible difference, hence an asset.","es":""}},{"id":"D","text":{"fr":"","en":"No deferred tax until the line is sold.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference exists at the reporting date; the future disposal is only when the deduction occurs.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000335","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000335","tested_point":"QST.IAS12.000335","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Ondravel reduces, for lack of sufficient future taxable profits, the deferred tax asset relating to provisions recognised in profit or loss; the deductible differences are unchanged. As the differences have not changed, this reduction does not affect profit or loss.","es":""},"explanation":{"fr":"","en":"The carrying amount of a deferred tax asset may change without any change in temporary differences, for example after a reassessment of its recoverability; the effect is recognised in profit or loss, except to the extent that it relates to items previously recognised outside profit or loss (IAS 12, para. 60). As the provisions were recognised in profit or loss, the reduction is deferred tax expense.","es":""},"common_error":{"fr":"","en":"Taking the reduction of the asset to equity.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000336","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000336","tested_point":"QST.IAS12.000336","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"Which of the following situations of Squirelle changes its deferred tax balances without any change in the amount of its temporary differences?","es":""},"explanation":{"fr":"","en":"Deferred tax balances may change with constant differences because of a change in tax rates or laws, a reassessment of the recoverability of an asset or a change in the expected manner of recovery of an asset (IAS 12, para. 60). The other situations change the differences themselves.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The acquisition of a machine with accelerated tax depreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"Accelerated depreciation creates a new difference.","es":""}},{"id":"B","text":{"fr":"","en":"The payment of part of a provision deductible when paid.","es":""},"correct":false,"feedback":{"fr":"","en":"The payment reduces the deductible difference.","es":""}},{"id":"C","text":{"fr":"","en":"Recognising a new provision that is not deductible until paid.","es":""},"correct":false,"feedback":{"fr":"","en":"The new provision creates a new deductible difference.","es":""}},{"id":"D","text":{"fr":"","en":"The decision, at the reporting date, to sell an asset rather than use it, a sale being taxed differently.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000337","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000337","tested_point":"QST.IAS12.000337","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58","IAS 12 §60"],"exercise":{"prompt":{"fr":"","en":"After a lower rate is enacted, Vauclarde reduces by 24,000 its deferred tax liability, which arises solely from accelerated tax depreciation. It recorded: debit deferred tax liability 24,000, credit reserves (equity) 24,000. Where is the error?","es":""},"explanation":{"fr":"","en":"The effect of a rate change with constant differences is recognised in profit or loss, except to the extent that it relates to items previously recognised outside profit or loss (IAS 12, para. 60). As the differences arose from depreciation recognised in profit or loss (IAS 12, para. 58), the other side is deferred tax income of 24,000.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The other side of the entry: deferred tax income in profit or loss was required.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The amount: the effect should have been spread until the differences reverse.","es":""},"correct":false,"feedback":{"fr":"","en":"The effect is recognised when the rate is enacted, without spreading.","es":""}},{"id":"C","text":{"fr":"","en":"The principle: a rate change does not alter a liability already recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is remeasured at the new rate.","es":""}},{"id":"D","text":{"fr":"","en":"The account debited: current tax should have been debited.","es":""},"correct":false,"feedback":{"fr":"","en":"It is indeed the deferred tax liability that decreases.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000338","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000338","tested_point":"QST.IAS12.000338","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Current or deferred tax relating to an item recognised in other comprehensive income is also recognised in other comprehensive income, whether the item was recognised in the same period or in a different period.","es":""},"explanation":{"fr":"","en":"Tax relating to items recognised outside profit or loss, in the same or a different period, is recognised outside profit or loss: in other comprehensive income for items recognised there, directly in equity for items recognised directly in equity (IAS 12, para. 61A).","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the tax on an item recognised in OCI in an earlier period.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000339","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000339","tested_point":"QST.IAS12.000339","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §61A","IAS 12 §62A"],"exercise":{"prompt":{"fr":"","en":"When a change in accounting policy applied retrospectively adjusts the opening balance of retained earnings, the related deferred tax is recognised in profit or loss of the period of the change.","es":""},"explanation":{"fr":"","en":"The adjustment to the opening balance of retained earnings arising from a retrospective change in policy is an item recognised directly in equity (IAS 12, para. 62A); the tax relating to it is therefore also recognised directly in equity (IAS 12, para. 61A).","es":""},"common_error":{"fr":"","en":"Passing through profit or loss the tax on an opening restatement.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000340","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000340","tested_point":"QST.IAS12.000340","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §57"],"exercise":{"prompt":{"fr":"","en":"The current and deferred tax effects of a transaction are accounted for consistently with the accounting for the transaction itself.","es":""},"explanation":{"fr":"","en":"This is the guiding principle for allocating tax (IAS 12, para. 57): profit or loss, other comprehensive income or equity depending on where the transaction is recognised; the following paragraphs of the standard implement it.","es":""},"common_error":{"fr":"","en":"Recognising all tax in profit or loss whatever the transaction.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000341","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000341","tested_point":"QST.IAS12.000341","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §63"],"exercise":{"prompt":{"fr":"","en":"When it is exceptionally difficult to determine the share of tax that relates to items recognised outside profit or loss, the entity determines it by a reasonable pro rata allocation of its tax in the jurisdiction concerned, or by another method that achieves a more appropriate allocation in the circumstances.","es":""},"explanation":{"fr":"","en":"This is the method provided for such exceptional circumstances, for example graduated rates or a rate change affecting a balance that relates partly to an item previously recognised outside profit or loss (IAS 12, para. 63). The choice of key is a reasoned judgement.","es":""},"common_error":{"fr":"","en":"Taking everything to profit or loss as soon as the allocation is difficult.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000342","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000342","tested_point":"QST.IAS12.000342","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §20","IAS 12 §61A","IAS 12 §62"],"exercise":{"prompt":{"fr":"","en":"Tarvalis revalues an owner-occupied building under IAS 16; the increase is recognised in other comprehensive income, with no adjustment to the tax base. Where does it recognise the resulting deferred tax liability?","es":""},"explanation":{"fr":"","en":"A revaluation without a tax adjustment creates a temporary difference (IAS 12, para. 20). The revaluation of property, plant and equipment is cited among the items recognised in other comprehensive income (IAS 12, para. 62); the related tax is therefore recognised there (IAS 12, para. 61A), reducing the revaluation surplus.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As deferred tax expense in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The revaluation is not in profit or loss: nor is its tax.","es":""}},{"id":"B","text":{"fr":"","en":"In other comprehensive income.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a reduction of the revalued amount of the building.","es":""},"correct":false,"feedback":{"fr":"","en":"The deferred tax liability is a liability separate from the asset.","es":""}},{"id":"D","text":{"fr":"","en":"Nowhere: no difference exists without an intention to sell.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference exists even without an intention to dispose of the asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000343","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000343","tested_point":"QST.IAS12.000343","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §23"],"exercise":{"prompt":{"fr":"","en":"Ulvaride issues a convertible loan; under the legislation in the case, the tax base of the liability component equals the total of the liability and equity components, giving rise to a taxable difference. How is the related deferred tax liability recognised?","es":""},"explanation":{"fr":"","en":"The difference arising from separating the equity component is not covered by the initial recognition exception; the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (IAS 12, para. 23).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is not recognised, under the initial recognition exception.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard expressly excludes the exception for this difference.","es":""}},{"id":"B","text":{"fr":"","en":"As deferred tax expense in profit or loss at issue.","es":""},"correct":false,"feedback":{"fr":"","en":"The issue does not affect profit or loss: the tax is charged to the equity component.","es":""}},{"id":"C","text":{"fr":"","en":"In other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"A compound instrument does not belong in other comprehensive income.","es":""}},{"id":"D","text":{"fr":"","en":"Directly as a reduction of the equity component.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000344","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000344","tested_point":"QST.IAS12.000344","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §61A","IAS 12 §62A"],"exercise":{"prompt":{"fr":"","en":"Valmorce corrects a prior period error by restating the opening balance of its retained earnings. Where does it recognise the tax effect of this correction?","es":""},"explanation":{"fr":"","en":"Correcting an error by adjusting the opening balance of retained earnings is an item recognised directly in equity (IAS 12, para. 62A); the tax relating to it receives the same treatment (IAS 12, para. 61A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Directly in equity, with the correction.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In profit or loss of the period of the correction.","es":""},"correct":false,"feedback":{"fr":"","en":"The correction does not go through profit or loss: nor does its tax.","es":""}},{"id":"C","text":{"fr":"","en":"In other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"The correction is not an item of other comprehensive income.","es":""}},{"id":"D","text":{"fr":"","en":"It is not recognised, as the error relates to a closed period.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax effect exists and must be recognised with the correction.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000345","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000345","tested_point":"QST.IAS12.000345","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §23"],"exercise":{"prompt":{"fr":"","en":"The deferred tax liability relating to the equity component of Wendrolle's convertible loan decreases as the liability component unwinds. Where is this decrease recognised?","es":""},"explanation":{"fr":"","en":"The initial deferred tax liability is charged to the equity component, but subsequent changes in it are recognised in profit or loss as deferred tax income (IAS 12, para. 23).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an increase in the equity component.","es":""},"correct":false,"feedback":{"fr":"","en":"Only the initial charge is made to the equity component.","es":""}},{"id":"B","text":{"fr":"","en":"In other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"No part of the instrument goes through other comprehensive income.","es":""}},{"id":"C","text":{"fr":"","en":"As deferred tax income in profit or loss.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is not recognised before conversion.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is remeasured at each reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000346","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000346","tested_point":"QST.IAS12.000346","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §60","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Yslande's only deferred tax liability arose from a land revaluation recognised in other comprehensive income three years ago. A lower rate is enacted this year. Where is the decrease in the liability recognised?","es":""},"explanation":{"fr":"","en":"The effect of a rate change is recognised in profit or loss, except to the extent that it relates to items previously recognised outside profit or loss (IAS 12, para. 60); tax on an item recognised in OCI, even in an earlier period, is recognised in OCI (IAS 12, para. 61A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As deferred tax income in profit or loss, the rate change being an event of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"The underlying item is outside profit or loss: so is the rate effect.","es":""}},{"id":"B","text":{"fr":"","en":"In other comprehensive income.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Directly in retained earnings.","es":""},"correct":false,"feedback":{"fr":"","en":"The underlying item belongs to other comprehensive income, not to retained earnings.","es":""}},{"id":"D","text":{"fr":"","en":"It is only recognised when the land is sold.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is remeasured as soon as the new rate is enacted.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000347","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS","IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000347","tested_point":"QST.IAS12.000347","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §58","IAS 12 §61A","IAS 12 §62","IAS 12 §62A"],"exercise":{"prompt":{"fr":"","en":"For which of the following items of Zarvenne is deferred tax recognised outside profit or loss?","es":""},"explanation":{"fr":"","en":"Tax follows the item: outside profit or loss for items recognised outside profit or loss (IAS 12, para. 61A). These include the revaluation of property, plant and equipment in OCI (IAS 12, para. 62), the opening adjustment from a retrospective change in policy and the equity component of a compound instrument (IAS 12, para. 62A). Impairment losses and provisions recognised in profit or loss belong in profit or loss (IAS 12, para. 58).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An impairment loss on an asset measured at cost.","es":""},"correct":false,"feedback":{"fr":"","en":"The impairment loss is in profit or loss: so is its tax.","es":""}},{"id":"B","text":{"fr":"","en":"A land revaluation recognised in other comprehensive income.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The opening adjustment to retained earnings from a retrospective change in policy.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A litigation provision deductible when paid.","es":""},"correct":false,"feedback":{"fr":"","en":"The provision is in profit or loss: so is its tax.","es":""}},{"id":"E","text":{"fr":"","en":"The equity component of a convertible loan issued.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000348","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000348","tested_point":"QST.IAS12.000348","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"In Alvrenne's jurisdiction, the law allows a tax revaluation that increases the tax base of certain assets. Which statements about the tax effect of this tax revaluation are correct?","es":""},"explanation":{"fr":"","en":"The tax effect of a tax revaluation is recognised in other comprehensive income only to the extent that a related accounting revaluation has been or will be recognised there (IAS 12, para. 65). Without a related accounting revaluation, recognition in OCI is not justified.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The effect is always recognised in other comprehensive income, as the revaluation is for tax purposes.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax nature of the revaluation is not enough.","es":""}},{"id":"B","text":{"fr":"","en":"The effect is recognised in OCI to the extent that a related accounting revaluation has been recognised there.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The effect is recognised in OCI even if the asset is measured at cost with no accounting revaluation.","es":""},"correct":false,"feedback":{"fr":"","en":"Without a related accounting revaluation, OCI is not justified.","es":""}},{"id":"D","text":{"fr":"","en":"The effect is recognised in OCI to the extent that a related accounting revaluation will be recognised there.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000349","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000040","tested_point":"VG.IAS12.000040","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §20","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Brevonne revalues a building under IAS 16; the increase of {revaluation_increase} is recognised in other comprehensive income, with no effect on the tax base. The expected rate is {rate}%. Compute the deferred tax recognised in OCI and the revaluation surplus net of tax.","es":""},"explanation":{"fr":"","en":"A revaluation without a tax adjustment creates a taxable difference (IAS 12, para. 20); the related tax is recognised in OCI with the item (IAS 12, para. 61A): 600,000 × 25% = 150,000; net surplus: 600,000 − 150,000 = 450,000.","es":""},"common_error":{"fr":"","en":"Recognising the tax in profit or loss and leaving the gross surplus of 600,000.","es":""},"format":"CALCULATION","placeholders":[{"id":"revaluation_increase","value":"600000","unit":"EUR"},{"id":"rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Increase in value recognised in OCI","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_OCI","label":{"fr":"","en":"Deferred tax recognised in OCI","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"NET_SURPLUS","label":{"fr":"","en":"Net revaluation surplus","es":""},"answer":450000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_OCI","meaning":{"fr":"","en":"Deferred tax recognised in OCI","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Increase in value recognised in OCI","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":150000,"unit":"EUR","rationale":{"fr":"","en":"the related tax is recognised in OCI with the item (IAS 12, para. 61A): 600,000 × 25% = 150,000","es":""}},{"step":"NET_SURPLUS","meaning":{"fr":"","en":"Net revaluation surplus","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Increase in value recognised in OCI","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax recognised in OCI","es":""},"value":150000,"unit":"EUR"}],"result":450000,"unit":"EUR"}],"references":["REF.IAS12.20","REF.IAS12.61A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000350","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000040","tested_point":"VG.IAS12.000040","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §20","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Corvianne applies the revaluation model to its port facilities. At the reporting date, their revalued amount exceeds the previous carrying amount by {revaluation_increase}; the increase is recognised in OCI and the tax base is unchanged. With a rate of {rate}%, compute the deferred tax recognised in OCI and the net revaluation surplus.","es":""},"explanation":{"fr":"","en":"The increase creates a taxable difference with no tax adjustment (IAS 12, para. 20); its tax is recognised in OCI (IAS 12, para. 61A): 380,000 × 22% = 83,600; net surplus: 380,000 − 83,600 = 296,400.","es":""},"common_error":{"fr":"","en":"Computing the tax on the total revalued amount instead of the increase.","es":""},"format":"CALCULATION","placeholders":[{"id":"revaluation_increase","value":"380000","unit":"EUR"},{"id":"rate","value":"22","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Increase in value recognised in OCI","es":""},"value":"380000","unit":"EUR"},{"label":{"fr":"","en":"Rate (%)","es":""},"value":"22","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_OCI","label":{"fr":"","en":"Deferred tax recognised in OCI","es":""},"answer":83600,"tolerance":0,"unit":"EUR"},{"id":"NET_SURPLUS","label":{"fr":"","en":"Net revaluation surplus","es":""},"answer":296400,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_OCI","meaning":{"fr":"","en":"Deferred tax recognised in OCI","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Increase in value recognised in OCI","es":""},"value":380000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate (%)","es":""},"value":22,"unit":"PERCENT"}],"result":83600,"unit":"EUR"},{"step":"NET_SURPLUS","meaning":{"fr":"","en":"Net revaluation surplus","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Increase in value recognised in OCI","es":""},"value":380000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax recognised in OCI","es":""},"value":83600,"unit":"EUR"}],"result":296400,"unit":"EUR"}],"rationale":{"fr":"","en":"The increase creates a taxable difference with no tax adjustment (IAS 12, para. 20)","es":""},"references":["REF.IAS12.20","REF.IAS12.61A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000351","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000041","tested_point":"VG.IAS12.000041","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §60","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Dravelin has taxable differences identified by origin: {pl_differences} arising from accelerated tax depreciation (profit or loss) and {oci_differences} arising from a revaluation recognised in OCI. The rate falls from {old_rate}% to {new_rate}%; the differences are unchanged. Compute the decrease in the liability recognised in profit or loss and the decrease recognised in OCI.","es":""},"explanation":{"fr":"","en":"The rate effect is recognised in profit or loss, except for the part relating to items previously recognised outside profit or loss (IAS 12, para. 60), which follows the item into OCI (IAS 12, para. 61A). Profit or loss: 200,000 × 5% = 10,000; OCI: 100,000 × 5% = 5,000.","es":""},"common_error":{"fr":"","en":"Recognising the full 15,000 in profit or loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"pl_differences","value":"200000","unit":"EUR"},{"id":"oci_differences","value":"100000","unit":"EUR"},{"id":"old_rate","value":"30","unit":"PERCENT"},{"id":"new_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Differences arising in profit or loss","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Differences arising in OCI","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Previous rate (%)","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"New rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"PL_EFFECT","label":{"fr":"","en":"Deferred tax income in profit or loss","es":""},"answer":10000,"tolerance":0,"unit":"EUR"},{"id":"OCI_EFFECT","label":{"fr":"","en":"Effect recognised in OCI","es":""},"answer":5000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000352","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000041","tested_point":"VG.IAS12.000041","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §60","IAS 12 §63"],"exercise":{"prompt":{"fr":"","en":"A rate cut reduces Esquerlle's net deferred tax liability by {rate_effect}. The differences, arising partly from revaluations recognised in OCI and partly from items in profit or loss, can no longer be tracked individually. After a documented analysis, management judges that {oci_share}% of the net liability relates to the revaluations and uses this pro rata key. Compute the effects in OCI and in profit or loss.","es":""},"explanation":{"fr":"","en":"The rate effect relating to items previously recognised outside profit or loss does not go through profit or loss (IAS 12, para. 60). When that share is exceptionally difficult to determine, it is determined by a reasonable pro rata allocation or a more appropriate method (IAS 12, para. 63); the 40% key is management's reasoned judgement. OCI: 36,000 × 40% = 14,400; profit or loss: 36,000 − 14,400 = 21,600.","es":""},"common_error":{"fr":"","en":"Recognising everything in profit or loss for lack of direct identification.","es":""},"format":"CALCULATION","placeholders":[{"id":"rate_effect","value":"36000","unit":"EUR"},{"id":"oci_share","value":"40","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Decrease in the net liability due to the rate","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Share relating to revaluations (%)","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"OCI_EFFECT","label":{"fr":"","en":"Effect recognised in OCI","es":""},"answer":14400,"tolerance":0,"unit":"EUR"},{"id":"PL_EFFECT","label":{"fr":"","en":"Effect recognised in profit or loss","es":""},"answer":21600,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"OCI_EFFECT","meaning":{"fr":"","en":"Effect recognised in OCI","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Decrease in the net liability due to the rate","es":""},"value":36000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share relating to revaluations (%)","es":""},"value":40,"unit":"PERCENT"}],"result":14400,"unit":"EUR"},{"step":"PL_EFFECT","meaning":{"fr":"","en":"Effect recognised in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Decrease in the net liability due to the rate","es":""},"value":36000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effect recognised in OCI","es":""},"value":14400,"unit":"EUR"}],"result":21600,"unit":"EUR"}],"rationale":{"fr":"","en":"The rate effect relating to items previously recognised outside profit or loss does not go through profit or loss (IAS 12, para. 60).","es":""},"references":["REF.IAS12.60","REF.IAS12.63"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000353","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000353","tested_point":"QST.IAS12.000353","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §23","IAS 12 §62A"],"exercise":{"prompt":{"fr":"","en":"Fauvrenne issues a convertible loan for {proceeds}; the liability component is measured at {liability_component}, the balance being the equity component. Under the legislation in the case, the tax base of the liability component equals the total issue proceeds. At a rate of {rate}%, compute the deferred tax liability and the equity component net of tax.","es":""},"explanation":{"fr":"","en":"The taxable difference of 1,000,000 − 880,000 = 120,000 is not covered by the initial recognition exception; the deferred tax liability (120,000 × 25% = 30,000) is charged directly to the equity component (IAS 12, para. 23), an item recognised in equity (IAS 12, para. 62A): 120,000 − 30,000 = 90,000.","es":""},"common_error":{"fr":"","en":"Applying the initial recognition exception and recognising nothing.","es":""},"format":"CALCULATION","placeholders":[{"id":"proceeds","value":"1000000","unit":"EUR"},{"id":"liability_component","value":"880000","unit":"EUR"},{"id":"rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Issue proceeds","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Liability component","es":""},"value":"880000","unit":"EUR"},{"label":{"fr":"","en":"Rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":30000,"tolerance":0,"unit":"EUR"},{"id":"NET_EQUITY_COMPONENT","label":{"fr":"","en":"Equity component net of tax","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Issue proceeds","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Liability component","es":""},"value":880000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":30000,"unit":"EUR","rationale":{"fr":"","en":"the deferred tax liability (120,000 × 25% = 30,000) is charged directly to the equity component (IAS 12, para. 23), an item recognised in equity (IAS 12, para. 62A): 120,000 − 30,000 = 90,000.","es":""}},{"step":"NET_EQUITY_COMPONENT","meaning":{"fr":"","en":"Equity component net of tax","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Issue proceeds","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Liability component","es":""},"value":880000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Deferred tax liability","es":""},"value":30000,"unit":"EUR"}],"result":90000,"unit":"EUR","rationale":{"fr":"","en":"the deferred tax liability (120,000 × 25% = 30,000) is charged directly to the equity component (IAS 12, para. 23), an item recognised in equity (IAS 12, para. 62A): 120,000 − 30,000 = 90,000.","es":""}}],"references":["REF.IAS12.23","REF.IAS12.62A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000354","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000354","tested_point":"QST.IAS12.000354","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §61A","IAS 12 §62A"],"exercise":{"prompt":{"fr":"","en":"Gaudrisse discovers that a restoration provision of {understated_expense} should have been recognised in a prior period; it corrects the error by restating the opening balance of retained earnings. Under the legislation in the case, the expense will be deductible when the restoration is carried out, and the related deferred tax asset is recoverable at a rate of {rate}%. Compute the tax effect and the net adjustment to the opening balance.","es":""},"explanation":{"fr":"","en":"Correcting an error by adjusting the opening balance is an item recognised directly in equity (IAS 12, para. 62A); its tax effect is recognised there too (IAS 12, para. 61A): 200,000 × 25% = 50,000; net adjustment: 200,000 − 50,000 = 150,000 decrease in opening retained earnings.","es":""},"common_error":{"fr":"","en":"Recognising the deferred tax asset as income of the period.","es":""},"format":"CALCULATION","placeholders":[{"id":"understated_expense","value":"200000","unit":"EUR"},{"id":"rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Provision omitted in a prior period","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"TAX_EFFECT","label":{"fr":"","en":"Tax effect recognised in equity","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"NET_OPENING_ADJUSTMENT","label":{"fr":"","en":"Net decrease in opening retained earnings","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAX_EFFECT","meaning":{"fr":"","en":"Tax effect recognised in equity","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Provision omitted in a prior period","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":50000,"unit":"EUR"},{"step":"NET_OPENING_ADJUSTMENT","meaning":{"fr":"","en":"Net decrease in opening retained earnings","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Provision omitted in a prior period","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax effect recognised in equity","es":""},"value":50000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"rationale":{"fr":"","en":"Correcting an error by adjusting the opening balance is an item recognised directly in equity (IAS 12, para. 62A)","es":""},"references":["REF.IAS12.61A","REF.IAS12.62A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000360","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000360","tested_point":"QST.IAS12.000360","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §61A","IAS 12 §62"],"exercise":{"prompt":{"fr":"","en":"Morlance recognised an IAS 16 revaluation of 300,000 in OCI and, for deferred tax (rate 25%): deferred tax expense in profit or loss 75,000 / deferred tax liability 75,000. Where is the error?","es":""},"explanation":{"fr":"","en":"The revaluation is an item recognised in OCI (IAS 12, para. 62); the related tax is recognised in OCI (IAS 12, para. 61A). The amount of 75,000 is right, but it must reduce the revaluation surplus, not profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount: the tax should have been computed on the total revalued amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The tax relates to the difference arising from the revaluation.","es":""}},{"id":"B","text":{"fr":"","en":"The arithmetic: 300,000 × 25% gives 60,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The 75,000 computation is right.","es":""}},{"id":"C","text":{"fr":"","en":"The principle: a revaluation creates no deferred tax until the asset is sold.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference exists even without an intention to sell.","es":""}},{"id":"D","text":{"fr":"","en":"The other side: the tax had to be recognised in OCI, not in profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000361","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000361","tested_point":"QST.IAS12.000361","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §60","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Nastrelle's deferred tax liability includes 90,000 relating to revaluations recognised in OCI and 60,000 relating to accelerated tax depreciation. A rate cut reduces these amounts by 15,000 and 10,000 respectively. The accountant recognised 25,000 as deferred tax income in profit or loss. Where is the error?","es":""},"explanation":{"fr":"","en":"The effect of a rate change is recognised in profit or loss, except to the extent that it relates to items previously recognised outside profit or loss (IAS 12, para. 60); that part follows the item into OCI (IAS 12, para. 61A). Only 10,000 goes to profit or loss; 15,000 goes to OCI.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None: a rate change is an event of the period, recognised in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The part relating to items previously recognised in OCI is an exception.","es":""}},{"id":"B","text":{"fr":"","en":"The effect should have been deferred until the differences reverse.","es":""},"correct":false,"feedback":{"fr":"","en":"The effect is recognised when the rate is enacted.","es":""}},{"id":"C","text":{"fr":"","en":"The amount: the decrease should have been computed on the depreciation differences only.","es":""},"correct":false,"feedback":{"fr":"","en":"The whole liability is remeasured; it is the allocation that is at issue.","es":""}},{"id":"D","text":{"fr":"","en":"The allocation: 15,000 had to be recognised in OCI, only 10,000 in profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000362","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000362","tested_point":"QST.IAS12.000362","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"Oberlance measures its machines at cost, with no accounting revaluation. It opts for a tax revaluation that increases their tax base and recognised the related deferred tax effect in other comprehensive income. Where is the error?","es":""},"explanation":{"fr":"","en":"The effect of a tax revaluation is recognised in OCI only to the extent that a related accounting revaluation has been or will be recognised there (IAS 12, para. 65). Without a related accounting revaluation, recognition in OCI is not justified.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The recognition in OCI: no related accounting revaluation justifies it.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The principle: a tax revaluation never affects deferred tax.","es":""},"correct":false,"feedback":{"fr":"","en":"The increase in the tax base changes the temporary difference and therefore deferred tax.","es":""}},{"id":"C","text":{"fr":"","en":"The classification: the machines should have been revalued in the accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice of measurement model is not at issue.","es":""}},{"id":"D","text":{"fr":"","en":"The amount: the effect should have been discounted.","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax is never discounted; this is not the error in question.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000363","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS","IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000363","tested_point":"QST.IAS12.000363","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51B","IAS 12 §60","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Pavrelle carries a deferred tax liability of 57,000 on revalued land (revaluation in OCI), measured at the 19% rate for gains on land in line with the consequences of sale. An enacted law lowers that rate to 16%; the 300,000 difference is unchanged. Which treatment applies?","es":""},"explanation":{"fr":"","en":"For revalued land, deferred tax reflects the consequences of sale (IAS 12, para. 51B): the new liability is 300,000 × 16% = 48,000. The 9,000 decrease relates to an item previously recognised in OCI (IAS 12, para. 60): it is recognised in OCI (IAS 12, para. 61A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A 9,000 decrease in other comprehensive income.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A 9,000 decrease as deferred tax income in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The underlying item is in OCI: so is the rate effect.","es":""}},{"id":"C","text":{"fr":"","en":"A 9,000 decrease directly in retained earnings.","es":""},"correct":false,"feedback":{"fr":"","en":"The underlying item belongs to other comprehensive income.","es":""}},{"id":"D","text":{"fr":"","en":"No adjustment, as the land is not held for sale.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability reflects the consequences of sale and is remeasured at the new rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000364","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000364","tested_point":"QST.IAS12.000364","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §63"],"exercise":{"prompt":{"fr":"","en":"Quelvaine is taxed under a graduated scale; part of its taxable profit comes from gains recognised in OCI, and it is exceptionally difficult to determine the current tax relating to them. How does it determine the share of tax to be recognised in OCI?","es":""},"explanation":{"fr":"","en":"In such exceptional circumstances (for example graduated rates), the tax relating to items recognised outside profit or loss is determined by a reasonable pro rata allocation of the entity's tax in the jurisdiction concerned, or by another method that achieves a more appropriate allocation in the circumstances (IAS 12, para. 63). The choice and its justification are documented.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises all current tax in profit or loss, as allocation is impossible.","es":""},"correct":false,"feedback":{"fr":"","en":"The difficulty does not remove the need to allocate.","es":""}},{"id":"B","text":{"fr":"","en":"It charges the OCI gains at the highest marginal rate, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"Prudence is not the criterion: a reasonable allocation is required.","es":""}},{"id":"C","text":{"fr":"","en":"It recognises all current tax in OCI, as the difficult item is in OCI.","es":""},"correct":false,"feedback":{"fr":"","en":"Tax on items in profit or loss stays in profit or loss.","es":""}},{"id":"D","text":{"fr":"","en":"It uses a reasonable pro rata allocation, or a more appropriate method that it justifies.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000365","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS","IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000365","tested_point":"QST.IAS12.000365","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §24","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Rauvelle holds bonds whose fair value changes are recognised in OCI (accounting treatment given by the case). An unrealised loss of 120,000 is recognised in OCI; for tax purposes, it will only be deductible on disposal. The rate is 25% and the deferred tax asset is recoverable. Which treatment applies?","es":""},"explanation":{"fr":"","en":"The deductible difference gives rise to a recoverable deferred tax asset (IAS 12, para. 24) of 120,000 × 25% = 30,000. As the loss is recognised in OCI, the related tax is recognised there too (IAS 12, para. 61A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An asset of 30,000 against other comprehensive income.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An asset of 30,000 as deferred tax income in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The loss is not in profit or loss: nor is its tax.","es":""}},{"id":"C","text":{"fr":"","en":"A liability of 30,000 against other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"A deductible loss creates an asset, not a liability.","es":""}},{"id":"D","text":{"fr":"","en":"No deferred tax before the bonds are sold.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference exists at the reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000368","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000368","tested_point":"QST.IAS12.000368","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"The tax consequences of a dividend for the entity paying it are recognised when it recognises the liability to pay the dividend.","es":""},"explanation":{"fr":"","en":"The entity recognises the income tax consequences of dividends when it recognises the dividend liability (IAS 12, para. 57A); they are recognised in profit or loss, OCI or equity according to where the past transactions that generated the distributable profits were recognised.","es":""},"common_error":{"fr":"","en":"Anticipating the tax consequence of a dividend that is merely planned.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000369","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000369","tested_point":"QST.IAS12.000369","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §65A"],"exercise":{"prompt":{"fr":"","en":"The withholding tax that the entity pays to the tax authorities on behalf of its shareholders, when it pays a dividend, is recognised as the entity's tax expense.","es":""},"explanation":{"fr":"","en":"The amount paid or payable to the tax authorities on behalf of the shareholders is charged to equity as part of the dividends (IAS 12, para. 65A): it is not a tax expense of the entity.","es":""},"common_error":{"fr":"","en":"Presenting the shareholders' withholding in the tax expense.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000370","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000370","tested_point":"QST.IAS12.000370","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §82A","IAS 12 §87B"],"exercise":{"prompt":{"fr":"","en":"An entity whose tax depends on the distribution of its profits, and for which it is impracticable to compute the total amount of the potential tax consequences of a dividend, has nothing to disclose on the matter in its notes.","es":""},"explanation":{"fr":"","en":"In the situations of paragraph 52A, the entity discloses the nature of the potential tax consequences of paying dividends, the amounts of those that are practicably determinable and whether there are potential consequences that are not (IAS 12, para. 82A). Even if the total is impracticable to compute, some portions may be easily determinable and are then disclosed (IAS 12, para. 87B).","es":""},"common_error":{"fr":"","en":"Disclosing nothing because the total cannot be computed.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000371","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000371","tested_point":"QST.IAS12.000371","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §52A","IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"In Ulmerac's jurisdiction, distributed profits are taxed at a lower rate than retained profits. The board proposes a dividend in February 20X6, after the reporting date of 31 December 20X5; no dividend liability exists at the reporting date. Which rate does Ulmerac use at 31 December 20X5?","es":""},"explanation":{"fr":"","en":"Tax is measured at the rate applicable to undistributed profits (IAS 12, para. 52A); the tax consequence of the dividend is only recognised when the dividend liability is recognised (IAS 12, para. 57A), which is not the case at the reporting date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rate for distributed profits on the portion proposed in February.","es":""},"correct":false,"feedback":{"fr":"","en":"A dividend proposed after the reporting date is not a liability at the reporting date.","es":""}},{"id":"B","text":{"fr":"","en":"The rate for undistributed profits on the whole amount.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The rate for distributed profits on the whole amount, as distributions are customary.","es":""},"correct":false,"feedback":{"fr":"","en":"A practice of distributing does not replace recognition of the liability.","es":""}},{"id":"D","text":{"fr":"","en":"An average of both rates weighted by the proposed dividend.","es":""},"correct":false,"feedback":{"fr":"","en":"No averaging is provided for.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000372","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000372","tested_point":"QST.IAS12.000372","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"Valquerne declares a dividend, recognised as a liability; the legislation in the case imposes on it additional tax on distributed profits. Those profits come from its ordinary sales and production. Where does it recognise this additional tax?","es":""},"explanation":{"fr":"","en":"The tax consequences of dividends are linked more directly to the past transactions that generated distributable profits than to distributions to owners: they are recognised where those transactions were recognised (IAS 12, para. 57A), here in profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In equity, with the dividend.","es":""},"correct":false,"feedback":{"fr":"","en":"The additional tax is borne by the entity and follows the origin of the profits, not the distribution.","es":""}},{"id":"B","text":{"fr":"","en":"In other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"The profits do not come from items recognised in OCI.","es":""}},{"id":"C","text":{"fr":"","en":"As a reduction of the dividend liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The additional tax is owed by the entity; it does not reduce the dividend due to shareholders.","es":""}},{"id":"D","text":{"fr":"","en":"In profit or loss, where the distributed profits were generated.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000373","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000373","tested_point":"QST.IAS12.000373","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §82A","IAS 12 §87A"],"exercise":{"prompt":{"fr":"","en":"Wiltrane is subject to a regime in which tax depends on the distribution of profits. What information does it provide about the potential tax consequences of paying dividends?","es":""},"explanation":{"fr":"","en":"The entity discloses the nature of those consequences, the amounts of those that are practicably determinable and whether there are consequences that are not (IAS 12, para. 82A); it describes the main features of the income tax systems and the factors that will affect their amount (IAS 12, para. 87A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only the rate applicable to distributed profits.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate alone describes neither the nature nor the amounts.","es":""}},{"id":"B","text":{"fr":"","en":"Their nature, the practicably determinable amounts, the existence of non-determinable amounts, and the features of the regime.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No information as long as no dividend is declared.","es":""},"correct":false,"feedback":{"fr":"","en":"The disclosure concerns potential consequences, before any declaration.","es":""}},{"id":"D","text":{"fr":"","en":"The total amount, which must be computed even if impracticable.","es":""},"correct":false,"feedback":{"fr":"","en":"The total is not required when impracticable; the existence of non-determinable amounts is disclosed.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000374","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS","IAS12.DEFERRED_ASSETS.UNUSED_LOSSES_CREDITS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000374","tested_point":"QST.IAS12.000374","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000010","section_id":"losses-rule"},"references":["IAS 12 §81","IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"Xaviole proposes a dividend after the reporting date, before the financial statements are authorised for issue; it is not recognised as a liability. Under the legislation in the case, the dividend will give rise to additional tax. What does Xaviole do?","es":""},"explanation":{"fr":"","en":"The tax consequences of a dividend are recognised with the dividend liability (IAS 12, para. 57A): nothing is recognised here. The entity does, however, disclose the tax consequences of dividends proposed or declared before the financial statements were authorised for issue but not recognised as a liability (IAS 12, para. 81).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises the additional tax at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no dividend liability at the reporting date: nothing is recognised.","es":""}},{"id":"B","text":{"fr":"","en":"It recognises a deferred tax liability for the expected additional tax.","es":""},"correct":false,"feedback":{"fr":"","en":"The additional tax depends on a distribution not recognised: it is not anticipated.","es":""}},{"id":"C","text":{"fr":"","en":"It recognises nothing and discloses these tax consequences.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It recognises nothing and discloses nothing, as the dividend is not a liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosure of the tax consequences of these dividends is required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000375","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000375","tested_point":"QST.IAS12.000375","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §57A","IAS 12 §65A"],"exercise":{"prompt":{"fr":"","en":"When paying a dividend, Yvrelac bears two levies set by the legislation in the case: (a) a 15% withholding deducted from the dividend and paid over on behalf of the shareholders; (b) additional tax of 4% owed by Yvrelac itself, the distributed profits arising from its ordinary activity. Which statements are correct?","es":""},"explanation":{"fr":"","en":"Withholding on behalf of shareholders is charged to equity as part of the dividends (IAS 12, para. 65A). The additional tax owed by the entity is a tax consequence of the dividend, recognised according to the origin of the profits (IAS 12, para. 57A), here in profit or loss.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Withholding (a) is a tax expense of Yvrelac.","es":""},"correct":false,"feedback":{"fr":"","en":"The withholding is paid on behalf of shareholders: it is not an expense of the entity.","es":""}},{"id":"B","text":{"fr":"","en":"Withholding (a) is charged to equity with the dividend.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Additional tax (b) is recognised in profit or loss.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Additional tax (b) is charged to equity, like any levy linked to the dividend.","es":""},"correct":false,"feedback":{"fr":"","en":"The additional tax is borne by the entity and follows the origin of the profits.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000376","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS","IAS12.SCOPE.GENERAL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000376","tested_point":"QST.IAS12.000376","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000001","section_id":"income-taxes"},"references":["IAS 12 §2","IAS 12 §57A","IAS 12 §65A"],"exercise":{"prompt":{"fr":"","en":"Which statements about levies relating to dividends are correct?","es":""},"explanation":{"fr":"","en":"Income taxes include withholding taxes payable by a subsidiary, associate or joint arrangement on distributions to the reporting entity (IAS 12, para. 2). Withholding that the entity pays on behalf of its own shareholders is charged to equity (IAS 12, para. 65A). The tax consequences of a dividend are recognised with the dividend liability, not before (IAS 12, para. 57A).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Withholding tax payable by a subsidiary on dividends paid to its parent is part of income taxes.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Withholding paid on behalf of the entity's own shareholders is a tax expense of the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"False: it is charged to equity.","es":""}},{"id":"C","text":{"fr":"","en":"Withholding paid on behalf of shareholders reduces equity as part of the dividend.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The tax consequences of a dividend are recognised as soon as the board considers a distribution.","es":""},"correct":false,"feedback":{"fr":"","en":"False: they are recognised with the dividend liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000377","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000044","tested_point":"VG.IAS12.000044","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §52A","IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"Zelmonde has been taxed at the higher rate for undistributed profits. Under the legislation in the case, a distribution entitles it to a refund equal to {refund_rate}% of the dividend. It declares a dividend of {dividend}, recognised as a liability; the distributed profits arise from its ordinary activity. Compute the tax income to be recognised.","es":""},"explanation":{"fr":"","en":"Tax had been measured at the rate for undistributed profits (IAS 12, para. 52A). The tax consequence of the dividend is recognised with the dividend liability, in profit or loss as the profits were generated there (IAS 12, para. 57A): 400,000 × 10% = 40,000.","es":""},"common_error":{"fr":"","en":"Taking the refund to equity with the dividend.","es":""},"format":"CALCULATION","placeholders":[{"id":"dividend","value":"400000","unit":"EUR"},{"id":"refund_rate","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Dividend recognised as a liability","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Refund (% of the dividend)","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"TAX_INCOME","label":{"fr":"","en":"Current tax income in profit or loss","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAX_INCOME","meaning":{"fr":"","en":"Current tax income in profit or loss","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Dividend recognised as a liability","es":""},"value":400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Refund (% of the dividend)","es":""},"value":10,"unit":"PERCENT"}],"result":40000,"unit":"EUR","rationale":{"fr":"","en":"The tax consequence of the dividend is recognised with the dividend liability, in profit or loss as the profits were generated there (IAS 12, para. 57A): 400,000 × 10% = 40,000.","es":""}}],"references":["REF.IAS12.52A","REF.IAS12.57A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000378","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000044","tested_point":"VG.IAS12.000044","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"Amorvelle declares a dividend of {dividend}, recognised as a liability. Under the legislation in the case, the distribution triggers additional tax of {extra_rate}% of the dividend, borne by Amorvelle. According to the analysis in the case, {pl_origin_share}% of the distributed profits were generated by transactions recognised in profit or loss and the rest by gains recognised in OCI. Compute the additional tax and its allocation.","es":""},"explanation":{"fr":"","en":"The tax consequences of a dividend are recognised in profit or loss, OCI or equity according to where the transactions that generated the distributable profits were recognised (IAS 12, para. 57A). Additional tax: 900,000 × 5% = 45,000; profit or loss: 45,000 × 80% = 36,000; OCI: 9,000.","es":""},"common_error":{"fr":"","en":"Taking the whole additional tax to equity with the dividend.","es":""},"format":"CALCULATION","placeholders":[{"id":"dividend","value":"900000","unit":"EUR"},{"id":"extra_rate","value":"5","unit":"PERCENT"},{"id":"pl_origin_share","value":"80","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Dividend recognised as a liability","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Additional tax (% of the dividend)","es":""},"value":"5","unit":"PERCENT"},{"label":{"fr":"","en":"Share of profits generated in profit or loss (%)","es":""},"value":"80","unit":"PERCENT"}],"steps":[{"id":"ADDITIONAL_TAX","label":{"fr":"","en":"Additional tax","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Part recognised in profit or loss","es":""},"answer":36000,"tolerance":0,"unit":"EUR"},{"id":"IN_OCI","label":{"fr":"","en":"Part recognised in OCI","es":""},"answer":9000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ADDITIONAL_TAX","meaning":{"fr":"","en":"Additional tax","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Dividend recognised as a liability","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Additional tax (% of the dividend)","es":""},"value":5,"unit":"PERCENT"}],"result":45000,"unit":"EUR"},{"step":"IN_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Part recognised in profit or loss","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Additional tax","es":""},"value":45000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of profits generated in profit or loss (%)","es":""},"value":80,"unit":"PERCENT"}],"result":36000,"unit":"EUR"}],"rationale":{"fr":"","en":"The tax consequences of a dividend are recognised in profit or loss, OCI or equity according to where the transactions that generated the distributable profits were recognised (IAS 12, para. 57A).","es":""},"references":["REF.IAS12.57A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000379","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000379","tested_point":"QST.IAS12.000379","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §65A"],"exercise":{"prompt":{"fr":"","en":"Brontelle declares a gross dividend of {dividend}. Under the legislation in the case, it must withhold {withholding_rate}% of the dividend and pay it to the authorities on behalf of the shareholders. Compute the withholding, the net amount due to shareholders and the effect on Brontelle's tax expense.","es":""},"explanation":{"fr":"","en":"The withholding (600,000 × 15% = 90,000) is charged to equity as part of the dividend (IAS 12, para. 65A); the shareholders receive 510,000. Brontelle's tax expense is not affected: nil effect.","es":""},"common_error":{"fr":"","en":"Adding 90,000 to the tax expense.","es":""},"format":"CALCULATION","placeholders":[{"id":"dividend","value":"600000","unit":"EUR"},{"id":"withholding_rate","value":"15","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Gross dividend declared","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Withholding rate (%)","es":""},"value":"15","unit":"PERCENT"}],"steps":[{"id":"WITHHOLDING","label":{"fr":"","en":"Withholding to be paid over","es":""},"answer":90000,"tolerance":0,"unit":"EUR"},{"id":"NET_TO_SHAREHOLDERS","label":{"fr":"","en":"Net amount due to shareholders","es":""},"answer":510000,"tolerance":0,"unit":"EUR"},{"id":"TAX_EXPENSE_EFFECT","label":{"fr":"","en":"Effect on Brontelle's tax expense","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WITHHOLDING","meaning":{"fr":"","en":"Withholding to be paid over","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross dividend declared","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Withholding rate (%)","es":""},"value":15,"unit":"PERCENT"}],"result":90000,"unit":"EUR","rationale":{"fr":"","en":"The withholding (600,000 × 15% = 90,000) is charged to equity as part of the dividend (IAS 12, para. 65A)","es":""}}],"references":["REF.IAS12.65A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000382","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"ANALYSIS","context":"V1_VG.IAS12.000043","tested_point":"VG.IAS12.000043","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §57A","IAS 12 §65A"],"exercise":{"prompt":{"fr":"","en":"Estravane declares a dividend of 300,000. Under the legislation in the case, it must itself pay a 7% distribution tax (21,000); its profits come from its operations. The accountant charged the 21,000 to equity with the dividend. Where is the error?","es":""},"explanation":{"fr":"","en":"Only withholding paid on behalf of shareholders is charged to equity (IAS 12, para. 65A). A tax borne by the entity is a tax consequence of the dividend, recognised according to the origin of the profits (IAS 12, para. 57A): here a tax expense of 21,000 in profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount: the tax should have been based on the year's profit, not on the dividend.","es":""},"correct":false,"feedback":{"fr":"","en":"The base is set by the legislation in the case; this is not the error.","es":""}},{"id":"B","text":{"fr":"","en":"The timing: the tax should only have been recognised when the dividend is paid.","es":""},"correct":false,"feedback":{"fr":"","en":"The consequence is recognised with the dividend liability.","es":""}},{"id":"C","text":{"fr":"","en":"The allocation: tax borne by the entity goes to profit or loss, according to the origin of the profits.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The arithmetic: 300,000 × 7% gives 2,100.","es":""},"correct":false,"feedback":{"fr":"","en":"The 21,000 computation is right.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000383","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"ANALYSIS","context":"V1_VG.IAS12.000043","tested_point":"VG.IAS12.000043","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §65A"],"exercise":{"prompt":{"fr":"","en":"Fervalde declares a gross dividend of 800,000 and withholds 10% (80,000) on behalf of its shareholders, as required by the legislation in the case. The accountant recognised the 80,000 as current tax expense and charged only 720,000 to equity. Where is the error?","es":""},"explanation":{"fr":"","en":"Withholding paid on behalf of shareholders is charged to equity as part of the dividends (IAS 12, para. 65A): the gross 800,000 is charged to equity and Fervalde's tax expense is not affected.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The withholding is part of the dividend: 800,000 in equity, no tax expense.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The withholding should have been recognised in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"Other comprehensive income is not concerned.","es":""}},{"id":"C","text":{"fr":"","en":"The withholding should only have been recognised when paid over to the authorities.","es":""},"correct":false,"feedback":{"fr":"","en":"The withholding is a liability from the declaration of the dividend.","es":""}},{"id":"D","text":{"fr":"","en":"The withholding should have been 72,000, computed on the net dividend.","es":""},"correct":false,"feedback":{"fr":"","en":"The withholding is computed on the gross dividend under the case.","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IAS12.000384","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.DIVIDENDS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000384","tested_point":"QST.IAS12.000384","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §52A","IAS 12 §57A"],"exercise":{"prompt":{"fr":"","en":"In Gorvanne's jurisdiction, distributed profits are taxed at 20% and retained profits at 30% (case data). At 31 December 20X5, the shareholders have not yet decided on any distribution; a dividend will be declared in April 20X6. How does Gorvanne measure its current and deferred tax at 31 December 20X5?","es":""},"explanation":{"fr":"","en":"Current and deferred tax are measured at the rate for undistributed profits, 30% (IAS 12, para. 52A). The effect of the distribution will be recognised in April 20X6, when the dividend liability is recognised (IAS 12, para. 57A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At 20%, as the distribution is certain.","es":""},"correct":false,"feedback":{"fr":"","en":"The distribution is not recognised at the reporting date: its effect is not anticipated.","es":""}},{"id":"B","text":{"fr":"","en":"At 25%, the average of both rates.","es":""},"correct":false,"feedback":{"fr":"","en":"No averaging is provided for.","es":""}},{"id":"C","text":{"fr":"","en":"At 20% for deferred tax and 30% for current tax.","es":""},"correct":false,"feedback":{"fr":"","en":"The same rate, the one for undistributed profits, applies to both components.","es":""}},{"id":"D","text":{"fr":"","en":"At 30%, the effect of the distribution being recognised with the dividend liability in 20X6.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000385","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000385","tested_point":"QST.IAS12.000385","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §4"],"exercise":{"prompt":{"fr":"","en":"The tax consequences of a change in the tax status of an entity or its shareholders are recognised in profit or loss, unless they relate to transactions or events recognised directly in equity or in other comprehensive income.","es":""},"explanation":{"fr":"","en":"The current and deferred tax consequences of a change in tax status are included in profit or loss for the period, unless they relate to items charged directly to equity or recognised in other comprehensive income, in which case they follow the same treatment (SIC-25, para. 4).","es":""},"common_error":{"fr":"","en":"Taking the effect of a change in status to equity because it concerns the shareholders.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000386","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000386","tested_point":"QST.IAS12.000386","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §2"],"exercise":{"prompt":{"fr":"","en":"A change in tax status can only alter deferred tax assets and liabilities, never current tax.","es":""},"explanation":{"fr":"","en":"A change in tax status may have an immediate effect on current tax liabilities or assets; it may also increase or decrease deferred tax assets and liabilities, depending on its effect on the tax consequences of recovering or settling carrying amounts (SIC-25, para. 2).","es":""},"common_error":{"fr":"","en":"Restricting the analysis of a change in status to deferred tax balances.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000387","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000387","tested_point":"QST.IAS12.000387","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §1"],"exercise":{"prompt":{"fr":"","en":"Which of the following events is an example of a change in tax status covered by SIC-25?","es":""},"explanation":{"fr":"","en":"A change in tax status may result, for example, from an initial public offering, a restructuring of equity or the move abroad of a controlling shareholder; the entity may then be taxed differently, gain or lose tax incentives or become subject to a different rate (SIC-25, para. 1).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A change in the depreciation method of a machine.","es":""},"correct":false,"feedback":{"fr":"","en":"This is an accounting matter specific to the asset, with no effect on the entity's tax status.","es":""}},{"id":"B","text":{"fr":"","en":"A general increase in the tax rate enacted for all companies.","es":""},"correct":false,"feedback":{"fr":"","en":"A general rate increase is a change in rate, not a change in the entity's own status.","es":""}},{"id":"C","text":{"fr":"","en":"An initial public offering that makes the entity lose a tax regime reserved for unlisted companies.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The recognition of a litigation provision.","es":""},"correct":false,"feedback":{"fr":"","en":"A provision does not change the entity's tax status.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000388","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000388","tested_point":"QST.IAS12.000388","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §4"],"exercise":{"prompt":{"fr":"","en":"Its initial public offering makes Hublande lose a favourable tax regime; its deferred tax liability, arising from accelerated tax depreciation, increases. Where does Hublande recognise this increase?","es":""},"explanation":{"fr":"","en":"The consequences of a change in tax status are recognised in profit or loss, unless they relate to items recognised outside profit or loss (SIC-25, para. 4). Depreciation is in profit or loss: the increase is deferred tax expense, even though the triggering event is a capital transaction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In equity, with the share issue costs.","es":""},"correct":false,"feedback":{"fr":"","en":"The cause of the effect (the capital transaction) does not determine its allocation.","es":""}},{"id":"B","text":{"fr":"","en":"As a reduction of share premium, as the offering is the cause.","es":""},"correct":false,"feedback":{"fr":"","en":"The effect of the change in status is not a cost of the issue.","es":""}},{"id":"C","text":{"fr":"","en":"In other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"None of the differences arose from items recognised in OCI.","es":""}},{"id":"D","text":{"fr":"","en":"As deferred tax expense in profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000389","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000045","tested_point":"VG.IAS12.000045","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §2","SIC 25 §4"],"exercise":{"prompt":{"fr":"","en":"Itravelle enjoyed a reduced rate of {old_rate}% reserved for unlisted companies. After its initial public offering, its differences will be taxed at {new_rate}% (legislation in the case). Its taxable differences of {difference} all arise from accelerated tax depreciation. Compute the deferred tax liability after the change and the expense recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"The change in status increases the deferred tax liability (SIC-25, para. 2): 800,000 × 25% = 200,000, compared with 800,000 × 15% = 120,000 before. As the differences arose in profit or loss, the 80,000 increase is an expense in profit or loss (SIC-25, para. 4).","es":""},"common_error":{"fr":"","en":"Taking the 80,000 to equity with the costs of the offering.","es":""},"format":"CALCULATION","placeholders":[{"id":"difference","value":"800000","unit":"EUR"},{"id":"old_rate","value":"15","unit":"PERCENT"},{"id":"new_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Taxable differences","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Rate before the change (%)","es":""},"value":"15","unit":"PERCENT"},{"label":{"fr":"","en":"Rate after the change (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"CLOSING_DTL","label":{"fr":"","en":"Deferred tax liability after the change","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"PL_EFFECT","label":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"answer":80000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_DTL","meaning":{"fr":"","en":"Deferred tax liability after the change","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Taxable differences","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate after the change (%)","es":""},"value":25,"unit":"PERCENT"}],"result":200000,"unit":"EUR"}],"references":["REF.SIC25.2","REF.SIC25.4"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000390","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000045","tested_point":"VG.IAS12.000045","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §4"],"exercise":{"prompt":{"fr":"","en":"Jessonne's controlling shareholder moves its head office abroad; Jessonne loses a group tax regime and its differences will be taxed at {new_rate}% instead of {old_rate}% (legislation in the case). Its taxable differences comprise {pl_differences} arising from accelerated tax depreciation and {oci_differences} arising from a revaluation recognised in OCI. Compute the effect in profit or loss and the effect in OCI.","es":""},"explanation":{"fr":"","en":"The consequences of a change in status are recognised in profit or loss, except for the part relating to items recognised in OCI, which follows the same treatment (SIC-25, para. 4). Profit or loss: 350,000 × 8% = 28,000 of expense; OCI: 150,000 × 8% = 12,000.","es":""},"common_error":{"fr":"","en":"Recognising the full 40,000 in profit or loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"pl_differences","value":"350000","unit":"EUR"},{"id":"oci_differences","value":"150000","unit":"EUR"},{"id":"old_rate","value":"20","unit":"PERCENT"},{"id":"new_rate","value":"28","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Differences arising in profit or loss","es":""},"value":"350000","unit":"EUR"},{"label":{"fr":"","en":"Differences arising in OCI","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Rate before the change (%)","es":""},"value":"20","unit":"PERCENT"},{"label":{"fr":"","en":"Rate after the change (%)","es":""},"value":"28","unit":"PERCENT"}],"steps":[{"id":"PL_EFFECT","label":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"answer":28000,"tolerance":0,"unit":"EUR"},{"id":"OCI_EFFECT","label":{"fr":"","en":"Effect recognised in OCI","es":""},"answer":12000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000392","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000392","tested_point":"QST.IAS12.000392","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §2","SIC 25 §4"],"exercise":{"prompt":{"fr":"","en":"In October 20X5, following the listing of its shares, Lauvrine becomes eligible for a more favourable tax regime (legislation in the case): its 20X5 current tax decreases immediately and its deferred tax assets, arising from provisions recognised in profit or loss, are remeasured downwards at the new rate. How does it recognise these two effects?","es":""},"explanation":{"fr":"","en":"A change in status may affect current tax immediately and alter deferred tax balances (SIC-25, para. 2). These consequences are recognised in profit or loss, unless they relate to items recognised outside profit or loss (SIC-25, para. 4): here the decrease in current tax and the decrease in the assets both go through profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The decrease in current tax in profit or loss, the decrease in the assets in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"The assets arose from provisions recognised in profit or loss: so does their decrease.","es":""}},{"id":"B","text":{"fr":"","en":"Both effects in equity, as the listing is a capital transaction.","es":""},"correct":false,"feedback":{"fr":"","en":"The triggering transaction does not determine the allocation.","es":""}},{"id":"C","text":{"fr":"","en":"No effect before the following year, as the change occurs during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"The effects are recognised when the change in status occurs.","es":""}},{"id":"D","text":{"fr":"","en":"Both effects in profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000393","standard_id":"IAS12","concept_ids":["IAS12.ALLOCATION.CHANGE_IN_TAX_STATUS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000393","tested_point":"QST.IAS12.000393","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"tax-status-change"},"references":["SIC 25 §4"],"exercise":{"prompt":{"fr":"","en":"Mergance's only deferred tax liability relates to a building revaluation recognised in OCI (difference of 600,000). A restructuring of its equity makes it lose a favourable regime: the applicable rate rises from 20% to 25% (legislation in the case). How is the 30,000 increase recognised?","es":""},"explanation":{"fr":"","en":"The consequences of a change in status that relate to amounts previously recognised in other comprehensive income follow the same treatment (SIC-25, para. 4): the increase of 600,000 × 5% = 30,000 is recognised in OCI.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As deferred tax expense in profit or loss, like any effect of a change in status.","es":""},"correct":false,"feedback":{"fr":"","en":"Profit or loss is the rule, but not for items previously in OCI.","es":""}},{"id":"B","text":{"fr":"","en":"In other comprehensive income, as the difference arose from a revaluation in OCI.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In equity, with the costs of the restructuring.","es":""},"correct":false,"feedback":{"fr":"","en":"The restructuring triggers the effect without determining its allocation.","es":""}},{"id":"D","text":{"fr":"","en":"It is not recognised until the building is sold.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is remeasured as soon as the status changes.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000394","standard_id":"IAS12","concept_ids":["IAS12.MEASUREMENT.MANNER_OF_RECOVERY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000394","tested_point":"QST.IAS12.000394","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000013","section_id":"manner-rule"},"references":["IAS 12 §51","IAS 12 §51B","IAS 12 §51C"],"exercise":{"prompt":{"fr":"","en":"The Ostrevane group holds land revalued under IAS 16 and an investment property measured at fair value under IAS 40; the legislation in the case taxes use and disposal differently. Which statements on the measurement of deferred tax are correct?","es":""},"explanation":{"fr":"","en":"A non-depreciable asset revalued under IAS 16 is measured on the assumption of recovery through sale (IAS 12, para. 51B). For an investment property at fair value, sale is presumed (para. 51C); the presumption is rebutted when the property is depreciable and held within a business model whose objective is to consume substantially all of its economic benefits over time (para. 51C): that criterion, not the disposal horizon, is what is examined. Measurement reflects the manner of recovery expected at the reporting date (para. 51), not at acquisition.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The presumption is rebutted as soon as the group does not intend to sell the property in the short term.","es":""},"correct":false,"feedback":{"fr":"","en":"Rebuttal rests on the asset being depreciable and on the business model, not on the disposal horizon.","es":""}},{"id":"B","text":{"fr":"","en":"For the revalued land, which is not depreciated, deferred tax reflects recovery of its carrying amount through sale.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The manner of recovery used is the one the group expected when it acquired the assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The expectation is assessed at the reporting date.","es":""}},{"id":"D","text":{"fr":"","en":"For the investment property, recovery through sale is presumed, unless that presumption is rebutted.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000395","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000395","tested_point":"QST.IAS12.000395","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §19"],"exercise":{"prompt":{"fr":"","en":"In a business combination, if the tax base of an acquired identifiable asset is not changed while the asset is recognised at its fair value at the acquisition date, a temporary difference arises.","es":""},"explanation":{"fr":"","en":"Identifiable assets acquired and liabilities assumed are recognised at their fair values at the acquisition date; where their tax bases are unaffected by the combination (or affected differently), temporary differences arise (IAS 12, para. 19).","es":""},"common_error":{"fr":"","en":"Assuming that the fair value of the combination also binds the taxation authority.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000396","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000396","tested_point":"QST.IAS12.000396","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §58","IAS 12 §66"],"exercise":{"prompt":{"fr":"","en":"The deferred tax liability arising from the fair value adjustments of a business combination is recognised as deferred tax expense in consolidated profit or loss for the period of acquisition.","es":""},"explanation":{"fr":"","en":"Tax arising from a business combination is excluded from recognition in profit or loss (IAS 12, para. 58): deferred tax assets and liabilities arising from the combination are part of its accounting and affect goodwill or the bargain purchase gain (IAS 12, para. 66).","es":""},"common_error":{"fr":"","en":"Charging the deferred tax on fair value adjustments to profit or loss for the period.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000397","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000397","tested_point":"QST.IAS12.000397","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §67"],"exercise":{"prompt":{"fr":"","en":"When the acquisition of a profitable subsidiary makes the use of the acquirer's past tax losses probable, the deferred tax asset thus recognised by the acquirer reduces the goodwill on the acquisition.","es":""},"explanation":{"fr":"","en":"A business combination may change the probability of realising a pre-acquisition deferred tax asset of the acquirer; the acquirer then recognises the change in that asset in the period of the combination, without including it in the accounting for the combination (IAS 12, para. 67): goodwill is unchanged.","es":""},"common_error":{"fr":"","en":"Offsetting the acquirer's own deferred tax asset against goodwill.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000398","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000398","tested_point":"QST.IAS12.000398","difficulty":"EXPERT","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"A deferred tax benefit acquired in a business combination, not recognised at the acquisition date, is recognised eighteen months later, after the measurement period has closed, following an increase in the subsidiary's profits: it is recognised in profit or loss and not as a reduction of goodwill.","es":""},"explanation":{"fr":"","en":"Only acquired benefits recognised within the measurement period that result from new information about facts existing at the acquisition date reduce goodwill; the others are recognised in profit or loss (or outside profit or loss where the standard so requires) (IAS 12, para. 68). Here the measurement period has closed: the income goes to profit or loss.","es":""},"common_error":{"fr":"","en":"Reducing goodwill for an acquired benefit recognised after the measurement period.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000399","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS","IAS12.DEFERRED_RECOGNITION.GOODWILL_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000399","tested_point":"QST.IAS12.000399","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000007","section_id":"goodwill-exception"},"references":["IAS 12 §66","IAS 12 §15"],"exercise":{"prompt":{"fr":"","en":"In the acquirer's consolidated financial statements, what is the effect of recognising the deferred tax liabilities arising from the fair value adjustments of a business combination?","es":""},"explanation":{"fr":"","en":"Recognising deferred tax assets and liabilities arising from a business combination affects the amount of goodwill or of the bargain purchase gain (IAS 12, para. 66): an additional liability reduces identifiable net assets and therefore increases goodwill. The initial recognition exception only covers transactions that are not business combinations (IAS 12, para. 15).","es":""},"common_error":{"fr":"","en":"Applying the initial recognition exception to business combinations.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They increase goodwill (or reduce the bargain purchase gain).","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They increase the acquirer's deferred tax expense in the period of acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"No: tax arising from a business combination does not go through profit or loss; it is part of the combination.","es":""}},{"id":"C","text":{"fr":"","en":"They are recognised in the acquirer's other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"No: nothing is recognised in other comprehensive income; the other side is goodwill.","es":""}},{"id":"D","text":{"fr":"","en":"They are not recognised, under the initial recognition exception for an asset or a liability.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the initial recognition exception expressly excludes business combinations.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000400","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000400","tested_point":"QST.IAS12.000400","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §32A"],"exercise":{"prompt":{"fr":"","en":"In a business combination, the goodwill recognised by the Ferondil group amounts to 1,000,000, whereas local tax law (case data) gives it an amortisable tax base of 1,300,000. What does IAS 12 provide for the difference of 300,000?","es":""},"explanation":{"fr":"","en":"Where the carrying amount of goodwill arising in a business combination is less than its tax base, the difference gives rise to a deferred tax asset, recognised as part of the accounting for the combination to the extent that it is probable that taxable profit will be available against which the deductible difference can be used (IAS 12, para. 32A).","es":""},"common_error":{"fr":"","en":"Extending to a deferred tax asset the exception that applies to the liability on goodwill.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No deferred tax: the goodwill exception prohibits any deferred tax, asset or liability, on goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the goodwill exception covers a deferred tax liability; a deductible difference gives an asset.","es":""}},{"id":"B","text":{"fr":"","en":"A deferred tax asset recognised as income in profit or loss for the period of acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the asset is part of the accounting for the combination; it does not go through profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax asset recognised within the combination, to the extent that its use is probable.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A deferred tax liability, since goodwill is a residual amount.","es":""},"correct":false,"feedback":{"fr":"","en":"No: a carrying amount below the tax base produces a deductible difference, hence an asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000401","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000401","tested_point":"QST.IAS12.000401","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §66","IAS 12 §67","IAS 12","IAS 12 §32A"],"exercise":{"prompt":{"fr":"","en":"The Halquentin group acquires Pruvenza. Which items are part of the accounting for the combination and therefore change goodwill at the acquisition date?","es":""},"explanation":{"fr":"","en":"Deferred tax assets and liabilities arising from the combination affect goodwill (IAS 12, para. 66): the liability on the remeasured brand, the asset on the provision assumed, the asset on goodwill whose tax base exceeds its carrying amount (IAS 12, para. 32A). The acquirer's own asset that becomes recoverable is recognised outside the combination (IAS 12, para. 67); an acquired benefit recognised after the measurement period goes to profit or loss (IAS 12, para. 68).","es":""},"common_error":{"fr":"","en":"Running every acquisition-related change in deferred tax through goodwill.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Halquentin's deferred tax asset on its own losses, which has become recoverable thanks to Pruvenza's profits.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the acquirer's own asset is recognised outside the combination, in profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"The deferred tax liability on the fair value remeasurement of Pruvenza's brand, with no tax adjustment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The deferred tax asset on a litigation provision assumed, deductible when paid and judged recoverable.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The deferred tax asset on the excess of the tax base of goodwill over its carrying amount, to the extent recoverable.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The deferred tax asset on Pruvenza's losses, recognised two years after the acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"No: recognised after the measurement period, this acquired benefit is recognised in profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000402","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000402","tested_point":"QST.IAS12.000402","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"A deferred tax benefit acquired in a business combination was not recognised at the acquisition date. Which statements about its subsequent recognition are correct?","es":""},"explanation":{"fr":"","en":"Recognised within the measurement period on the basis of new information about facts existing at the acquisition date, the benefit reduces the related goodwill; any excess beyond goodwill reduced to zero is recognised in profit or loss; in all other cases it is recognised in profit or loss (or outside profit or loss where the standard so requires) (IAS 12, para. 68). Goodwill never becomes negative.","es":""},"common_error":{"fr":"","en":"Adjusting goodwill for any acquired benefit, at any date.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It always reduces goodwill, whenever it is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"No: only the combination of measurement period and facts existing at the acquisition date affects goodwill.","es":""}},{"id":"B","text":{"fr":"","en":"It reduces goodwill if it is recognised within the measurement period on the basis of new information about facts existing at the acquisition date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"If it exceeds goodwill, the excess is presented as negative goodwill in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"No: goodwill is reduced to zero at most; the excess goes to profit or loss.","es":""}},{"id":"D","text":{"fr":"","en":"If it exceeds goodwill, the excess is recognised in profit or loss, goodwill being reduced to zero.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Recognised after the measurement period, it is recognised in profit or loss, unless the standard requires recognition outside profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000403","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000046","tested_point":"VG.IAS12.000046","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §19","IAS 12 §66"],"exercise":{"prompt":{"fr":"","en":"The Brezolan group acquires Quessaro. At the acquisition date, a warehouse is recognised at its fair value of {building_fair_value}, its tax base remaining {building_tax_base}; a customer list not recognised by Quessaro is recognised at {customer_list_fair_value}, with a nil tax base. The applicable tax rate is {tax_rate}%. Compute the deferred tax liability arising from these adjustments.","es":""},"explanation":{"fr":"","en":"As the tax bases are unaffected by the combination, taxable temporary differences arise (IAS 12, para. 19): warehouse 4,600,000 − 3,400,000 = 1,200,000; customer list 900,000 − 0 = 900,000; total 2,100,000 × 25% = 525,000. This liability is part of the accounting for the combination and increases goodwill (IAS 12, para. 66). The rate is case data.","es":""},"common_error":{"fr":"","en":"Omitting deferred tax on fair value adjustments, which understates goodwill.","es":""},"format":"CALCULATION","placeholders":[{"id":"building_fair_value","value":"4600000","unit":"EUR"},{"id":"building_tax_base","value":"3400000","unit":"EUR"},{"id":"customer_list_fair_value","value":"900000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value of the warehouse","es":""},"value":"4600000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of the warehouse","es":""},"value":"3400000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the customer list","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":525000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"((a - b) + c) * d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the warehouse","es":""},"value":4600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the warehouse","es":""},"value":3400000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Fair value of the customer list","es":""},"value":900000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":525000,"unit":"EUR"}],"references":["REF.IAS12.19","REF.IAS12.66"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000404","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS","IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000046","tested_point":"VG.IAS12.000046","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §19","IAS 12 §66","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"On acquiring Morliandre, the Taldrix group recognises: inventories at their fair value of {inventory_fair_value} (tax base {inventory_tax_base}); patents at {patents_fair_value} (nil tax base); a litigation liability assumed of {litigation_liability}, tax deductible when paid (nil tax base). The group's future taxable profits allow the deductible difference to be used. Tax rate: {tax_rate}%. Compute the deferred tax liability and asset arising from the combination.","es":""},"explanation":{"fr":"","en":"Taxable differences arising from the combination (IAS 12, para. 19): inventories 1,300,000 − 1,000,000 = 300,000; patents 1,100,000; total 1,400,000 × 30% = 420,000 of liability. The litigation liability (carrying amount 200,000, nil tax base) creates a deductible difference: asset 200,000 × 30% = 60,000, recognised to the extent that taxable profit is probable (IAS 12, para. 24), which the case establishes. Both affect goodwill (IAS 12, para. 66).","es":""},"common_error":{"fr":"","en":"Ignoring the deductible difference arising from the liability assumed.","es":""},"format":"CALCULATION","placeholders":[{"id":"inventory_fair_value","value":"1300000","unit":"EUR"},{"id":"inventory_tax_base","value":"1000000","unit":"EUR"},{"id":"patents_fair_value","value":"1100000","unit":"EUR"},{"id":"litigation_liability","value":"200000","unit":"EUR"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value of inventories","es":""},"value":"1300000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of inventories","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of patents","es":""},"value":"1100000","unit":"EUR"},{"label":{"fr":"","en":"Litigation liability assumed","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":420000,"tolerance":0,"unit":"EUR"},{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Litigation liability assumed","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":30,"unit":"PERCENT"}],"result":60000,"unit":"EUR","rationale":{"fr":"","en":"The litigation liability (carrying amount 200,000, nil tax base) creates a deductible difference: asset 200,000 × 30% = 60,000, recognised to the extent that taxable profit is probable (IAS 12, para. 24), which the case establishes.","es":""}}],"references":["REF.IAS12.19","REF.IAS12.66","REF.IAS12.24"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000405","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000047","tested_point":"VG.IAS12.000047","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §66","IAS 12 §19"],"exercise":{"prompt":{"fr":"","en":"The Vasquel group acquires 100% of Obrevain for consideration of {consideration}. The identifiable assets acquired and liabilities assumed, measured at fair value, represent net assets of {net_assets_before_tax} before deferred tax; the fair value adjustments create taxable temporary differences of {taxable_differences}, the tax bases being unchanged. Tax rate: {tax_rate}%. Teaching assumption: goodwill = consideration − identifiable net assets (no non-controlling interests). Compute goodwill.","es":""},"explanation":{"fr":"","en":"The taxable differences arising from the combination (IAS 12, para. 19) give a deferred tax liability of 1,600,000 × 25% = 400,000, which is part of the accounting for the combination (IAS 12, para. 66). Identifiable net assets: 9,800,000 − 400,000 = 9,400,000; goodwill: 12,000,000 − 9,400,000 = 2,600,000. The goodwill formula is a teaching assumption based on IFRS 3 (a standard not produced here).","es":""},"common_error":{"fr":"","en":"Computing goodwill on net assets before deferred tax (goodwill understated).","es":""},"format":"CALCULATION","placeholders":[{"id":"consideration","value":"12000000","unit":"EUR"},{"id":"net_assets_before_tax","value":"9800000","unit":"EUR"},{"id":"taxable_differences","value":"1600000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Consideration transferred","es":""},"value":"12000000","unit":"EUR"},{"label":{"fr":"","en":"Net assets at fair value before deferred tax","es":""},"value":"9800000","unit":"EUR"},{"label":{"fr":"","en":"Taxable temporary differences","es":""},"value":"1600000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"GOODWILL","label":{"fr":"","en":"Goodwill","es":""},"answer":2600000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL","meaning":{"fr":"","en":"Goodwill","es":""},"expression":"a - (b - (c * d))","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"value":12000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net assets at fair value before deferred tax","es":""},"value":9800000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Taxable temporary differences","es":""},"value":1600000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":2600000,"unit":"EUR"}],"references":["REF.IAS12.66","REF.IAS12.19"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000406","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS","IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000047","tested_point":"VG.IAS12.000047","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000006","section_id":"dta-rule"},"references":["IAS 12 §66","IAS 12 §19","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Jaskova is 100% acquired by the Pellorix group for {consideration}. Before deferred tax, identifiable net assets at fair value are {net_assets_before_tax}. The combination gives rise to taxable differences of {taxable_differences} and deductible differences of {deductible_differences}, whose use is judged probable. Tax rate: {tax_rate}%. Using the teaching assumption goodwill = consideration − identifiable net assets, compute goodwill.","es":""},"explanation":{"fr":"","en":"The differences arising from the combination (IAS 12, para. 19) give a liability of 1,000,000 × 30% = 300,000 and an asset of 400,000 × 30% = 120,000, recognised since its use is probable (IAS 12, para. 24). Both are part of the accounting for the combination (IAS 12, para. 66): net assets 6,900,000 − 300,000 + 120,000 = 6,720,000; goodwill 7,500,000 − 6,720,000 = 780,000.","es":""},"common_error":{"fr":"","en":"Taking only the deferred tax liability and forgetting the asset arising from the combination.","es":""},"format":"CALCULATION","placeholders":[{"id":"consideration","value":"7500000","unit":"EUR"},{"id":"net_assets_before_tax","value":"6900000","unit":"EUR"},{"id":"taxable_differences","value":"1000000","unit":"EUR"},{"id":"deductible_differences","value":"400000","unit":"EUR"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Consideration transferred","es":""},"value":"7500000","unit":"EUR"},{"label":{"fr":"","en":"Net assets at fair value before deferred tax","es":""},"value":"6900000","unit":"EUR"},{"label":{"fr":"","en":"Taxable temporary differences","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Deductible temporary differences","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"GOODWILL","label":{"fr":"","en":"Goodwill","es":""},"answer":780000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL","meaning":{"fr":"","en":"Goodwill","es":""},"expression":"a - (b - (c * d) + (e * d))","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"value":7500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net assets at fair value before deferred tax","es":""},"value":6900000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Taxable temporary differences","es":""},"value":1000000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":30,"unit":"PERCENT"},{"symbol":"e","meaning":{"fr":"","en":"Deductible temporary differences","es":""},"value":400000,"unit":"EUR"}],"result":780000,"unit":"EUR"}],"references":["REF.IAS12.66","REF.IAS12.19","REF.IAS12.24"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000411","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000411","tested_point":"QST.IAS12.000411","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The Belcastor group acquired Calvidra in March 20X5 (twelve-month measurement period, case data). Two acquired deferred tax benefits, not recognised at the acquisition, are recognised later: {benefit_in_period} in November 20X5, following new information about losses that existed at the acquisition date; {benefit_after_period} in June 20X6, following higher taxable profits than expected. The related goodwill amounts to {goodwill_carrying_amount}. Compute the total reduction in goodwill and the income recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"The first benefit meets both conditions (measurement period, facts existing at the acquisition date): it reduces goodwill by 180,000, less than goodwill of 1,500,000. The second is recognised after the measurement period: 95,000 in profit or loss (IAS 12, para. 68).","es":""},"common_error":{"fr":"","en":"Offsetting both benefits against goodwill.","es":""},"format":"CALCULATION","placeholders":[{"id":"benefit_in_period","value":"180000","unit":"EUR"},{"id":"benefit_after_period","value":"95000","unit":"EUR"},{"id":"goodwill_carrying_amount","value":"1500000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Benefit recognised in November 20X5","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Benefit recognised in June 20X6","es":""},"value":"95000","unit":"EUR"},{"label":{"fr":"","en":"Related goodwill","es":""},"value":"1500000","unit":"EUR"}],"steps":[{"id":"GOODWILL_REDUCTION","label":{"fr":"","en":"Reduction in goodwill","es":""},"answer":180000,"tolerance":0,"unit":"EUR"},{"id":"INCOME_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Income in profit or loss","es":""},"answer":95000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000412","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000412","tested_point":"QST.IAS12.000412","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §66","IAS 12 §19"],"exercise":{"prompt":{"fr":"","en":"For the acquisition of Dorvenne, the Estriva group's consolidation file shows: identifiable net assets at fair value 5,200,000; consideration 6,000,000; goodwill 800,000. A note states that the deferred tax liability of 240,000 on the remeasurement of Dorvenne's assets 'will be charged to profit or loss at year-end'. Where is the error?","es":""},"explanation":{"fr":"","en":"Fair value remeasurements without a tax adjustment create temporary differences (IAS 12, para. 19); the related deferred tax liability is part of the accounting for the combination and affects goodwill (IAS 12, para. 66). Identifiable net assets are 5,200,000 − 240,000 = 4,960,000 and goodwill 6,000,000 − 4,960,000 = 1,040,000; nothing is charged to profit or loss.","es":""},"common_error":{"fr":"","en":"Deferring the deferred tax of the combination to an expense for the year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The consideration transferred should have been reduced by the deferred tax liability of 240,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the consideration transferred is not changed by the acquiree's deferred tax.","es":""}},{"id":"B","text":{"fr":"","en":"The deferred tax liability should have reduced identifiable net assets: goodwill of 1,040,000, with no expense.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No deferred tax is due, the initial recognition exception also covering business combinations.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the initial recognition exception does not cover business combinations.","es":""}},{"id":"D","text":{"fr":"","en":"Goodwill should have been reduced by 240,000, to 560,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No: an additional liability increases goodwill; it does not reduce it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000413","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000413","tested_point":"QST.IAS12.000413","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §67"],"exercise":{"prompt":{"fr":"","en":"The Falquenne group acquires Gernasse, whose future profits at last make probable the use of Falquenne's own tax losses carried forward (potential asset 700,000). The financial controller recorded: debit deferred tax asset 700,000, credit Gernasse goodwill 700,000. Where is the error?","es":""},"explanation":{"fr":"","en":"The losses belong to the acquirer: the combination only changes the probability of realising its pre-acquisition deferred tax asset. The change is recognised in the period of the combination, outside the accounting for the combination (IAS 12, para. 67): credit deferred tax income 700,000, goodwill unchanged.","es":""},"common_error":{"fr":"","en":"Reducing goodwill for the acquirer's deferred tax asset that has become recoverable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No asset could be recognised: an acquirer's losses are never recoverable.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the combination may make the use of the acquirer's losses probable; the asset is then recognised.","es":""}},{"id":"B","text":{"fr":"","en":"The amount: the asset should have been capped at Gernasse's goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no goodwill cap applies to the acquirer's own asset.","es":""}},{"id":"C","text":{"fr":"","en":"The other side: Falquenne's own asset is recognised as deferred tax income, goodwill remaining unchanged.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The date: the asset could only be recognised when the measurement period expired.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the change is recognised in the period of the combination.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000414","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000414","tested_point":"QST.IAS12.000414","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The Hollivane group acquired Jorvella in January 20X4 (twelve-month measurement period, case data). In September 20X6, the recovery in Jorvella's profits makes recoverable acquired losses not recognised until then: benefit 320,000. Hollivane debited the deferred tax asset and credited Jorvella's goodwill by 320,000. Where is the error?","es":""},"explanation":{"fr":"","en":"Recognition occurs well after the end of the measurement period and results from a change in profits, not from information about facts existing at the acquisition date: the acquired benefit is recognised in profit or loss, without adjusting goodwill (IAS 12, para. 68).","es":""},"common_error":{"fr":"","en":"Adjusting goodwill for an acquired benefit recognised after the measurement period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The other side: outside the measurement period, the acquired benefit is deferred tax income in profit or loss.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The principle: an acquired benefit not recognised at the acquisition date can never be recognised later, in goodwill or in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the benefit may be recognised later; only its other side is in question.","es":""}},{"id":"C","text":{"fr":"","en":"The amount: only half of the benefit could reduce goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no such split exists; goodwill is not adjusted at all.","es":""}},{"id":"D","text":{"fr":"","en":"The account: the benefit should have been taken directly to equity.","es":""},"correct":false,"feedback":{"fr":"","en":"No: nothing here justifies direct recognition in equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000415","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000415","tested_point":"QST.IAS12.000415","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The Mercadine group acquires Norvaline on 1 April 20X5; goodwill amounts to 4,000,000. In October 20X5, still within the measurement period, a review of Norvaline's past tax returns reveals tax losses carried forward that existed at the acquisition date; the corresponding deferred tax benefit, judged recoverable, is 600,000. Which treatment applies?","es":""},"explanation":{"fr":"","en":"The benefit is recognised within the measurement period on the basis of new information about facts existing at the acquisition date: it reduces the related goodwill (IAS 12, para. 68). Goodwill falls from 4,000,000 to 3,400,000; no excess goes to profit or loss. The recoverability of the asset is a matter of judgement, established here by the case data.","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss an acquired benefit that meets the conditions for adjusting goodwill.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deferred tax income of 600,000 in profit or loss, goodwill being frozen at the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"No: both conditions for adjusting goodwill are met; profit or loss is not the right other side.","es":""}},{"id":"B","text":{"fr":"","en":"No recognition: a benefit not recognised at the acquisition can only be recognised after the measurement period.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the benefit is recognised as soon as it becomes recoverable; no waiting is required.","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax asset of 600,000 against a reduction of goodwill, which falls to 3,400,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A deferred tax asset of 600,000 against group equity.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no recognition in equity is provided for this situation.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000416","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000416","tested_point":"QST.IAS12.000416","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The Quorvane group acquires Rastelle on 1 February 20X5; Rastelle's tax losses carried forward (potential benefit 250,000) are not recognised, for lack of probable profits. In August 20X5, within the measurement period, Quorvane awards Rastelle a subcontracting contract signed after the acquisition, which makes those losses recoverable. Which treatment applies?","es":""},"explanation":{"fr":"","en":"The acquired benefit is recognised within the measurement period, but it does not result from new information about facts existing at the acquisition date: it stems from a later event (the contract signed after the acquisition). It is therefore recognised in profit or loss, without reducing goodwill (IAS 12, para. 68). Assessing the source of the information is a matter of judgement.","es":""},"common_error":{"fr":"","en":"Reducing goodwill merely because the measurement period is still open.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deferred tax income of 250,000 in profit or loss, without adjusting goodwill.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A reduction of goodwill by 250,000, since recognition occurs within the measurement period.","es":""},"correct":false,"feedback":{"fr":"","en":"No: being within the measurement period is not enough; the information must relate to facts existing at the acquisition date.","es":""}},{"id":"C","text":{"fr":"","en":"No asset: the acquiree's losses are lost on the business combination.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the case provides for no forfeiture of the losses; the benefit becomes recoverable and is recognised.","es":""}},{"id":"D","text":{"fr":"","en":"A deferred tax asset of 250,000 against other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"No: nothing links this benefit to an item recognised in other comprehensive income.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000418","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.BUSINESS_COMBINATIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000418","tested_point":"QST.IAS12.000418","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000017","section_id":"bc-differences"},"references":["IAS 12 §18","IAS 12 §19"],"exercise":{"prompt":{"fr":"","en":"The Uvrelac group acquires Valquessa. In which of these situations does the combination give rise to a temporary difference on an acquired identifiable asset?","es":""},"explanation":{"fr":"","en":"A business combination creates temporary differences when the assets acquired are recognised at fair value without an equivalent tax adjustment (IAS 12, para. 18), that is, when their tax base is unaffected by the combination or affected differently (IAS 12, para. 19). If the tax base is aligned on fair value, no difference arises.","es":""},"common_error":{"fr":"","en":"Believing that a remeasurement within the combination automatically changes the tax base.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Tax law (case data) aligns the tax base of a machine on its fair value of 900,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No: tax base and carrying amount are equal; no temporary difference.","es":""}},{"id":"B","text":{"fr":"","en":"A machine is recognised at its fair value of 900,000, its tax base remaining 550,000.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A trade receivable is recognised at 300,000, an amount equal to its tax base.","es":""},"correct":false,"feedback":{"fr":"","en":"No: identical carrying amount and tax base; no difference.","es":""}},{"id":"D","text":{"fr":"","en":"A machine is recognised at 900,000 and the acquirer does not intend to sell it.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the intention to sell is irrelevant; only the comparison with the tax base matters, and it is not given here.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000419","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000419","tested_point":"QST.IAS12.000419","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68B"],"exercise":{"prompt":{"fr":"","en":"When the amount of the future tax deduction for services remunerated in share options is not known at the reporting date, the entity estimates it on the basis of information available at that date.","es":""},"explanation":{"fr":"","en":"If the future tax deduction for the services received is not known at the end of the period, it is estimated on the basis of information available at the end of the period (IAS 12, para. 68B): for example, if the tax law in the case bases the deduction on intrinsic value at exercise, the share price at the reporting date.","es":""},"common_error":{"fr":"","en":"Waiting for the options to be exercised before taking the deduction into account.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000420","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000420","tested_point":"QST.IAS12.000420","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"When the estimated future tax deduction of a share option plan exceeds the cumulative remuneration expense recognised, the whole of the related tax benefit is recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"If the deduction (or estimated future deduction) exceeds the cumulative remuneration expense, the deduction also relates to an equity item: the tax on the excess is recognised directly in equity, the remainder in profit or loss (IAS 12, para. 68C).","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the tax on the excess deduction.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000421","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000421","tested_point":"QST.IAS12.000421","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68B"],"exercise":{"prompt":{"fr":"","en":"In Wenlandor's country, the tax deduction for a share option plan equals the intrinsic value of the options at the exercise date (case data). On what basis does Wenlandor estimate the future deduction at the reporting date?","es":""},"explanation":{"fr":"","en":"The future deduction, unknown at the reporting date, is estimated on the basis of information available at that date (IAS 12, para. 68B). As the tax law in the case uses intrinsic value at exercise, the available information is the intrinsic value at the reporting date (share price at the reporting date less exercise price), not the grant-date fair value used for the expense.","es":""},"common_error":{"fr":"","en":"Estimating the deduction from grant-date fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value of the options at grant date, the basis of the remuneration expense.","es":""},"correct":false,"feedback":{"fr":"","en":"No: grant-date fair value is used for the expense, not for estimating the tax deduction.","es":""}},{"id":"B","text":{"fr":"","en":"The intrinsic value of the options at the reporting date, the information available at that date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No estimate: the deduction is only taken into account when the options are exercised.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the future deduction is estimated at the reporting date, without waiting for exercise.","es":""}},{"id":"D","text":{"fr":"","en":"The cumulative remuneration expense recognised at the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the cumulative expense is used to split the tax effect, not to estimate the deduction.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000422","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT","IAS12.DEFINITIONS.TAX_BASE","IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000049","tested_point":"VG.IAS12.000049","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §68B","IAS 12 §9","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"Yspala granted {options} options to its managers, subject to {service_period} years of service. The tax law in the case grants, on exercise, a deduction equal to the intrinsic value of the options, spread over the service period for the services received. At the reporting date, {years_elapsed} years of service have been rendered and the intrinsic value is {intrinsic_value} per option; all beneficiaries are expected to stay. Tax rate: {tax_rate}%. Future taxable profit is probable. Compute the deferred tax asset at the reporting date.","es":""},"explanation":{"fr":"","en":"The future deduction, unknown, is estimated with the information at the reporting date (IAS 12, para. 68B): 40,000 × 12 × 2 / 3 = 320,000 for the services received. The services expensed have no carrying amount but a tax base equal to that deduction: a deductible difference (IAS 12, para. 9), hence an asset of 320,000 × 25% = 80,000, recognised because taxable profit is probable (IAS 12, para. 24). The deduction rule is case data.","es":""},"common_error":{"fr":"","en":"Using grant-date fair value instead of intrinsic value at the reporting date.","es":""},"format":"CALCULATION","placeholders":[{"id":"options","value":"40000","unit":"UNITS"},{"id":"intrinsic_value","value":"12","unit":"EUR"},{"id":"years_elapsed","value":"2","unit":"YEARS"},{"id":"service_period","value":"3","unit":"YEARS"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Options granted","es":""},"value":"40000","unit":"UNITS"},{"label":{"fr":"","en":"Intrinsic value per option at the reporting date","es":""},"value":"12","unit":"EUR"},{"label":{"fr":"","en":"Years of service rendered","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Required service period (years)","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":80000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"(a * b * c / d) * e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Options granted","es":""},"value":40000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Intrinsic value per option at the reporting date","es":""},"value":12,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Years of service rendered","es":""},"value":2,"unit":"YEARS"},{"symbol":"d","meaning":{"fr":"","en":"Required service period (years)","es":""},"value":3,"unit":"YEARS"},{"symbol":"e","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":80000,"unit":"EUR","rationale":{"fr":"","en":"The services expensed have no carrying amount but a tax base equal to that deduction: a deductible difference (IAS 12, para. 9), hence an asset of 320,000 × 25% = 80,000, recognised because taxable profit is probable (IAS 12, para. 24).","es":""}}],"references":["REF.IAS12.68B","REF.IAS12.9","REF.IAS12.24"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000423","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT","IAS12.DEFINITIONS.TAX_BASE","IAS12.DEFERRED_RECOGNITION.DEDUCTIBLE_DIFFERENCES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000049","tested_point":"VG.IAS12.000049","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000003","section_id":"tax-base-asset"},"references":["IAS 12 §68B","IAS 12 §9","IAS 12 §24"],"exercise":{"prompt":{"fr":"","en":"One year after granting {options} options exercisable after {service_period} years of service, Zarnovel prepares its year-end: {years_elapsed} year of service has been rendered, the share price shows an intrinsic value of {intrinsic_value} per option, and the tax law in the case will deduct the intrinsic value on exercise, allocated to services in proportion to the period elapsed. Tax rate: {tax_rate}%; sufficient future profits. What deferred tax asset does Zarnovel recognise?","es":""},"explanation":{"fr":"","en":"Future deduction estimated at the reporting date with the information available (IAS 12, para. 68B): 25,000 × 18 × 1 / 4 = 112,500. Tax base of the services received with no carrying amount: a deductible difference (IAS 12, para. 9); asset 112,500 × 30% = 33,750, recognised since taxable profit is probable (IAS 12, para. 24).","es":""},"common_error":{"fr":"","en":"Taking the full estimated deduction without regard to the services still to be rendered.","es":""},"format":"CALCULATION","placeholders":[{"id":"options","value":"25000","unit":"UNITS"},{"id":"intrinsic_value","value":"18","unit":"EUR"},{"id":"years_elapsed","value":"1","unit":"YEARS"},{"id":"service_period","value":"4","unit":"YEARS"},{"id":"tax_rate","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Options granted","es":""},"value":"25000","unit":"UNITS"},{"label":{"fr":"","en":"Intrinsic value per option at the reporting date","es":""},"value":"18","unit":"EUR"},{"label":{"fr":"","en":"Years of service rendered","es":""},"value":"1","unit":"YEARS"},{"label":{"fr":"","en":"Required service period (years)","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_ASSET","label":{"fr":"","en":"Deferred tax asset","es":""},"answer":33750,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_ASSET","meaning":{"fr":"","en":"Deferred tax asset","es":""},"expression":"(a * b * c / d) * e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Options granted","es":""},"value":25000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Intrinsic value per option at the reporting date","es":""},"value":18,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Years of service rendered","es":""},"value":1,"unit":"YEARS"},{"symbol":"d","meaning":{"fr":"","en":"Required service period (years)","es":""},"value":4,"unit":"YEARS"},{"symbol":"e","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":30,"unit":"PERCENT"}],"result":33750,"unit":"EUR","rationale":{"fr":"","en":"asset 112,500 × 30% = 33,750, recognised since taxable profit is probable (IAS 12, para. 24).","es":""}}],"references":["REF.IAS12.68B","REF.IAS12.9","REF.IAS12.24"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000424","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000050","tested_point":"VG.IAS12.000050","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, the estimated future tax deduction of Arquevin's share option plan is {estimated_deduction}, against a cumulative remuneration expense recognised of {cumulative_expense}. Tax rate: {tax_rate}%; the deferred tax asset is recoverable. Split the tax effect between profit or loss and equity.","es":""},"explanation":{"fr":"","en":"Total tax effect: 320,000 × 25% = 80,000. The deduction exceeds the cumulative expense by 60,000: the tax on that excess, 60,000 × 25% = 15,000, goes directly to equity; the remainder, 260,000 × 25% = 65,000, to profit or loss (IAS 12, para. 68C).","es":""},"common_error":{"fr":"","en":"Recognising the 80,000 in profit or loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"estimated_deduction","value":"320000","unit":"EUR"},{"id":"cumulative_expense","value":"260000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Estimated future deduction","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative remuneration expense","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"PROFIT_OR_LOSS_PART","label":{"fr":"","en":"Part in profit or loss","es":""},"answer":65000,"tolerance":0,"unit":"EUR"},{"id":"EQUITY_PART","label":{"fr":"","en":"Part in equity","es":""},"answer":15000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PROFIT_OR_LOSS_PART","meaning":{"fr":"","en":"Part in profit or loss","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cumulative remuneration expense","es":""},"value":260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":65000,"unit":"EUR"}],"references":["REF.IAS12.68C"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000425","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000050","tested_point":"VG.IAS12.000050","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"After a fall in the share price, the estimated future deduction of Belcastor's free share plan is now only {estimated_deduction}, whereas the cumulative remuneration expense reaches {cumulative_expense}. Tax rate: {tax_rate}%; the asset is recoverable. What part of the tax effect goes to profit or loss, and what part to equity?","es":""},"explanation":{"fr":"","en":"Tax effect: 500,000 × 22% = 110,000. The estimated deduction does not exceed the cumulative expense of 540,000: no excess relates to equity; the whole effect goes to profit or loss (IAS 12, para. 68C). Part in equity: 0.","es":""},"common_error":{"fr":"","en":"Taking the negative gap between deduction and expense to equity.","es":""},"format":"CALCULATION","placeholders":[{"id":"estimated_deduction","value":"500000","unit":"EUR"},{"id":"cumulative_expense","value":"540000","unit":"EUR"},{"id":"tax_rate","value":"22","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Estimated future deduction","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative remuneration expense","es":""},"value":"540000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"22","unit":"PERCENT"}],"steps":[{"id":"PROFIT_OR_LOSS_PART","label":{"fr":"","en":"Part in profit or loss","es":""},"answer":110000,"tolerance":0,"unit":"EUR"},{"id":"EQUITY_PART","label":{"fr":"","en":"Part in equity","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PROFIT_OR_LOSS_PART","meaning":{"fr":"","en":"Part in profit or loss","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Estimated future deduction","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":22,"unit":"PERCENT"}],"result":110000,"unit":"EUR"}],"references":["REF.IAS12.68C"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000428","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000428","tested_point":"QST.IAS12.000428","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"For its share option plan, Estriva recorded at the reporting date: debit deferred tax asset 96,000, credit deferred tax income 96,000. Data: estimated future deduction 480,000, cumulative remuneration expense 400,000, rate 20%, recoverable asset. Where is the error?","es":""},"explanation":{"fr":"","en":"The asset of 480,000 × 20% = 96,000 is correct. But the deduction exceeds the cumulative expense by 80,000: the tax on that excess, 16,000, must be recognised directly in equity, and only 80,000 in profit or loss (IAS 12, para. 68C).","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the tax on the excess deduction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of the asset: it should have been 400,000 × 20% = 80,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the asset is measured on the estimated deduction, not capped at the cumulative expense.","es":""}},{"id":"B","text":{"fr":"","en":"The principle: no asset is recognised before the options are exercised.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the future deduction is estimated at the reporting date.","es":""}},{"id":"C","text":{"fr":"","en":"The rate: the deduction must be taken at 100%, with no tax rate.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the asset is the tax effect of the deduction, at the applicable rate.","es":""}},{"id":"D","text":{"fr":"","en":"The split: 16,000 relating to the excess should have gone to equity, only 80,000 to profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000429","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000429","tested_point":"QST.IAS12.000429","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68B"],"exercise":{"prompt":{"fr":"","en":"Falquenne estimates the future tax deduction of its share option plan from the grant-date fair value of the options (6 per option), whereas the tax law in the case will deduct intrinsic value on exercise and the intrinsic value at the reporting date is 15 per option. Where is the error?","es":""},"explanation":{"fr":"","en":"The unknown future deduction is estimated on the basis of information available at the reporting date (IAS 12, para. 68B). As the tax law in the case uses intrinsic value at exercise, the relevant information is the intrinsic value at the reporting date (15), not grant-date fair value (6), which is used only for the remuneration expense.","es":""},"common_error":{"fr":"","en":"Estimating the future deduction on grant-date fair value instead of information available at the reporting date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The basis of the estimate: intrinsic value at the reporting date (15) should have been used, not grant-date fair value.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Falquenne should have recognised no deferred tax before the options are exercised.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the future deduction is estimated at the reporting date.","es":""}},{"id":"C","text":{"fr":"","en":"The number of options: only options already exercisable count for estimating the deduction.","es":""},"correct":false,"feedback":{"fr":"","en":"No: nothing in the case limits the estimate to exercisable options.","es":""}},{"id":"D","text":{"fr":"","en":"The rate: the deduction must be estimated at the tax rate in force at grant date.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the question concerns the basis of the deduction, not the rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000430","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000430","tested_point":"QST.IAS12.000430","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68B","IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"At the end of 20X5, Gernasse carried a deferred tax asset of 50,000 on its share option plan (deduction equal to intrinsic value on exercise, under the tax law in the case). At 31 December 20X6, the share price has fallen below the exercise price: the intrinsic value is nil and no recovery can be anticipated from the information available. Which treatment applies at the 20X6 reporting date?","es":""},"explanation":{"fr":"","en":"The future deduction is estimated on the information available at the reporting date (IAS 12, para. 68B): a nil intrinsic value leads to a nil estimated deduction, hence a nil asset; the asset of 50,000 is reversed. Having been recognised in profit or loss (no excess over the cumulative expense), it is reversed in profit or loss (IAS 12, para. 68C). Anticipating a recovery in the share price would be an unsupported assumption.","es":""},"common_error":{"fr":"","en":"Keeping an asset based on an estimate that has become obsolete.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Keep the asset at 50,000, computed on grant-date fair value, which does not change.","es":""},"correct":false,"feedback":{"fr":"","en":"No: grant-date fair value is not the basis of the deduction; the estimate follows the information at the reporting date.","es":""}},{"id":"B","text":{"fr":"","en":"Reduce the asset to nil, the deduction estimated at the reporting date being nil.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Set the asset at the tax effect of the cumulative expense, the floor of the estimate.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the cumulative expense sets no floor for the estimated deduction.","es":""}},{"id":"D","text":{"fr":"","en":"Keep the asset until the plan expires, a recovery in the share price remaining possible.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the estimate is made on the information available, not on hope of a recovery.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000431","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000431","tested_point":"QST.IAS12.000431","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68C"],"exercise":{"prompt":{"fr":"","en":"In Hollivane's country, the tax law (case data) caps the tax deduction for a share plan at the remuneration expense recognised. At the reporting date, the estimated future deduction is therefore equal to the cumulative expense of 300,000; rate 25%, recoverable asset. Where does Hollivane recognise the tax effect of 75,000?","es":""},"explanation":{"fr":"","en":"Only the part of the deduction that exceeds the cumulative remuneration expense relates to an equity item (IAS 12, para. 68C). Here, the deduction equals the cumulative expense: there is no excess, and the tax effect of 75,000 is recognised entirely in profit or loss.","es":""},"common_error":{"fr":"","en":"Recognising in equity the tax on an equity-settled plan, whatever the amount.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Entirely in equity, the plan being settled in equity instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the settlement method is not enough; only the excess over the cumulative expense goes to equity.","es":""}},{"id":"B","text":{"fr":"","en":"Half in profit or loss and half in equity, by convention.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no flat-rate split is provided.","es":""}},{"id":"C","text":{"fr":"","en":"Entirely in profit or loss, for lack of any excess of the deduction over the cumulative expense.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"In other comprehensive income, until the options are exercised.","es":""},"correct":false,"feedback":{"fr":"","en":"No: nothing is recognised in other comprehensive income in this case.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000432","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000432","tested_point":"QST.IAS12.000432","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68A"],"exercise":{"prompt":{"fr":"","en":"In some jurisdictions, the tax deduction for remuneration paid in share options may differ in amount from the cumulative remuneration expense and arise in a later accounting period.","es":""},"explanation":{"fr":"","en":"IAS 12 notes that, in some jurisdictions, an entity receives a tax deduction for remuneration paid in shares or share options, whose amount may differ from the cumulative expense and which may arise in a later period (IAS 12, para. 68A): this is the origin of the deferred tax on such plans.","es":""},"common_error":{"fr":"","en":"Assuming the tax deduction always equals the accounting expense for the period.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000433","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000433","tested_point":"QST.IAS12.000433","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000018","section_id":"deduction-estimate"},"references":["IAS 12 §68A","IAS 12 §68B"],"exercise":{"prompt":{"fr":"","en":"Kervadin recognises an expense each year for its share option plan; the tax law in the case grants the deduction only when the options are exercised, for their intrinsic value at that date. Why does deferred tax arise at the reporting date?","es":""},"explanation":{"fr":"","en":"The deduction arises in a later period and for an amount that may differ from the cumulative expense (IAS 12, para. 68A); at the reporting date, this future deduction, still unknown, is estimated on the basis of the information available (IAS 12, para. 68B). The timing gap between expense and deduction creates the deferred tax.","es":""},"common_error":{"fr":"","en":"Ignoring deferred tax because the deduction has not yet been obtained.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because the remuneration expense is always non-deductible.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the tax law in the case does grant a deduction, a deferred one.","es":""}},{"id":"B","text":{"fr":"","en":"Because the taxation authority requires deferred tax to be recognised at the date the options are granted to managers.","es":""},"correct":false,"feedback":{"fr":"","en":"No: recognition is governed by IAS 12, not by a requirement of the authority.","es":""}},{"id":"C","text":{"fr":"","en":"Because the deduction arises later than the expense and for an amount to be estimated at the reporting date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Because equity must always be reduced by the tax relating to options.","es":""},"correct":false,"feedback":{"fr":"","en":"No: only the excess of the deduction over the cumulative expense affects equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000434","standard_id":"IAS12","concept_ids":["IAS12.SPECIFIC.SHARE_BASED_PAYMENT","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000434","tested_point":"QST.IAS12.000434","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §68A","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"The Lumbrac group has two subsidiaries, each with an identical share option plan. Country A (case data): the expense recognised is deductible in the same period in which it is recognised, for the same amount. Country B: the deduction arises only when the options are exercised, for their intrinsic value. Which subsidiary recognises a deferred tax asset for the plan (future profits probable)?","es":""},"explanation":{"fr":"","en":"A temporary difference is a difference between carrying amount and tax base (IAS 12, para. 5). In country A, the deduction follows the expense in amount and timing: only current tax is affected, with no temporary difference. In country B, the deduction arises later and for an amount different from the cumulative expense (IAS 12, para. 68A): the tax base of the services received creates a deductible difference and a deferred tax asset.","es":""},"common_error":{"fr":"","en":"Recognising deferred tax although the deduction exactly follows the expense.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both subsidiaries, since the plans are identical.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the treatment depends on tax law, not on the plan.","es":""}},{"id":"B","text":{"fr":"","en":"Only the subsidiary in country B, whose deduction is deferred.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only the subsidiary in country A, whose deduction is immediate.","es":""},"correct":false,"feedback":{"fr":"","en":"No: an immediate deduction equal to the expense only has a current tax effect.","es":""}},{"id":"D","text":{"fr":"","en":"Neither, tax relating to share-based payments always being recognised in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"No: only the excess of the deduction over the cumulative expense goes to equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000435","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000435","tested_point":"QST.IAS12.000435","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §71"],"exercise":{"prompt":{"fr":"","en":"An entity offsets a current tax asset and a current tax liability if, and only if, it has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.","es":""},"explanation":{"fr":"","en":"The two conditions are cumulative: a legally enforceable right of set-off and an intention to settle net or to realise the asset and settle the liability simultaneously (IAS 12, para. 71).","es":""},"common_error":{"fr":"","en":"Offsetting on the basis of a right of set-off alone, with no intention to settle net.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000436","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000436","tested_point":"QST.IAS12.000436","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §71"],"exercise":{"prompt":{"fr":"","en":"Ostravelle holds a current tax receivable (overpaid instalments) and a current tax payable to the same authority, which grants it a right of set-off; Ostravelle has nevertheless decided to pay the liability in March and to obtain the refund in October. It may present only the net amount in its statement of financial position.","es":""},"explanation":{"fr":"","en":"Offsetting requires both a legally enforceable right and an intention to settle net or to realise and settle simultaneously (IAS 12, para. 71). Paying and collecting separately, on different dates, shows the absence of that intention: gross presentation.","es":""},"common_error":{"fr":"","en":"Offsetting as soon as a right of set-off exists.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000437","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000437","tested_point":"QST.IAS12.000437","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"In its consolidated financial statements, a group may offset the deferred tax asset of a subsidiary taxed in one country against the deferred tax liability of another subsidiary taxed in another country, since both balances belong to the same group.","es":""},"explanation":{"fr":"","en":"Offsetting deferred taxes requires, among other things, that they relate to taxes levied by the same taxation authority, on the same taxable entity or on different taxable entities intending to settle net (IAS 12, para. 74). Two countries mean two authorities: no offsetting.","es":""},"common_error":{"fr":"","en":"Offsetting deferred taxes relating to different taxation authorities.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000438","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000438","tested_point":"QST.IAS12.000438","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"Which conditions allow a deferred tax asset and a deferred tax liability to be offset?","es":""},"explanation":{"fr":"","en":"There must be (a) a legally enforceable right to set off current tax assets against current tax liabilities and (b) the deferred taxes must relate to the same taxation authority, on the same taxable entity or on different taxable entities that intend to settle net or to realise and settle simultaneously in each future period in which significant amounts are expected to be recovered or settled (IAS 12, para. 74).","es":""},"common_error":{"fr":"","en":"Treating offsetting as a presentation option.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both balances belong to companies of the same consolidated group, whatever the country.","es":""},"correct":false,"feedback":{"fr":"","en":"No: belonging to the group creates neither a right of set-off nor a common authority.","es":""}},{"id":"B","text":{"fr":"","en":"Both balances must reverse in the same year, whatever the authority.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the condition concerns the authority and the right of set-off, not a common year of reversal.","es":""}},{"id":"C","text":{"fr":"","en":"The entity freely chooses net presentation when it considers it clearer.","es":""},"correct":false,"feedback":{"fr":"","en":"No: offsetting is not a presentation choice; it is required if, and only if, the conditions are met.","es":""}},{"id":"D","text":{"fr":"","en":"A right to set off current tax and the same taxation authority, for the same taxable entity or entities settling net.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000439","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000439","tested_point":"QST.IAS12.000439","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §75"],"exercise":{"prompt":{"fr":"","en":"Why does IAS 12 require the deferred tax asset and liability of the same taxable entity, relating to the same authority, to be offset when current tax can be set off, without requiring a schedule?","es":""},"explanation":{"fr":"","en":"The standard requires this offsetting to avoid the need for a detailed schedule of the timing of the reversal of each temporary difference (IAS 12, para. 75): since the same taxable entity relates to the same authority and has a right to set off current tax, the reversals will be absorbed in its tax returns.","es":""},"common_error":{"fr":"","en":"Believing that offsetting deferred taxes requires demonstrated simultaneous reversals.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To reduce total assets, a presentation goal pursued by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"No: reducing total assets is not the reason given.","es":""}},{"id":"B","text":{"fr":"","en":"To avoid a detailed schedule of the reversal of each temporary difference.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Because the deferred taxes of a single entity always reverse in the same year.","es":""},"correct":false,"feedback":{"fr":"","en":"No: reversals may occur at different dates; that is precisely the schedule being avoided.","es":""}},{"id":"D","text":{"fr":"","en":"Because discounting deferred taxes requires a single net position.","es":""},"correct":false,"feedback":{"fr":"","en":"No: deferred taxes are not discounted; this reason is irrelevant.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000440","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000440","tested_point":"QST.IAS12.000440","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"The Pelvanor group reviews its deferred tax balances at 31 December 20X5. Which pairs of deferred tax assets and liabilities must be offset?","es":""},"explanation":{"fr":"","en":"Offsetting is required for deferred taxes relating to the same authority, on the same taxable entity, or on different taxable entities that intend to settle net (or to realise and settle simultaneously) in each significant future period, provided there is a right to set off current tax (IAS 12, para. 74). Two countries or the absence of a right rule out offsetting.","es":""},"common_error":{"fr":"","en":"Offsetting balances from different countries at group level.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The asset of a subsidiary in country M and the liability of a subsidiary in country N, both profitable.","es":""},"correct":false,"feedback":{"fr":"","en":"No: two different taxation authorities.","es":""}},{"id":"B","text":{"fr":"","en":"The asset and liability of a single subsidiary, taxed by a single authority that allows current tax to be set off.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The asset and liability of a single subsidiary, whereas local law prohibits any set-off of current tax.","es":""},"correct":false,"feedback":{"fr":"","en":"No: without a legally enforceable right to set off current tax, condition (a) is not met.","es":""}},{"id":"D","text":{"fr":"","en":"The balances of two subsidiaries in country M, separate taxable entities intending to settle net each year, with a right of set-off.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000441","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000051","tested_point":"VG.IAS12.000051","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"The Quessaro group consolidates three subsidiaries. A (country X): deferred tax asset {a_dta} and deferred tax liability {a_dtl}, with a right to set off its current tax. B (country X, a taxable entity separate from A, with no intention of settling net with A): asset {b_dta}. C (country Y): liability {c_dtl}. Compute total deferred tax assets and total deferred tax liabilities presented in the consolidated statement of financial position.","es":""},"explanation":{"fr":"","en":"A: same taxable entity, same authority, right of set-off: net position, liability 1,000,000 − 300,000 = 700,000 (IAS 12, para. 74). B: separate taxable entity with no intention of settling net: no offsetting with A; asset 450,000 presented gross. C: another authority: liability 200,000 gross. Assets presented 450,000; liabilities 700,000 + 200,000 = 900,000.","es":""},"common_error":{"fr":"","en":"Offsetting B's asset against A's or C's liability.","es":""},"format":"CALCULATION","placeholders":[{"id":"a_dta","value":"300000","unit":"EUR"},{"id":"a_dtl","value":"1000000","unit":"EUR"},{"id":"b_dta","value":"450000","unit":"EUR"},{"id":"c_dtl","value":"200000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"A's deferred tax asset","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"A's deferred tax liability","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"B's deferred tax asset","es":""},"value":"450000","unit":"EUR"},{"label":{"fr":"","en":"C's deferred tax liability","es":""},"value":"200000","unit":"EUR"}],"steps":[{"id":"DTA_PRESENTED","label":{"fr":"","en":"Deferred tax assets presented","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"DTL_PRESENTED","label":{"fr":"","en":"Deferred tax liabilities presented","es":""},"answer":900000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTL_PRESENTED","meaning":{"fr":"","en":"Deferred tax liabilities presented","es":""},"expression":"(a - b) + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"A's deferred tax liability","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"A's deferred tax asset","es":""},"value":300000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"C's deferred tax liability","es":""},"value":200000,"unit":"EUR"}],"result":900000,"unit":"EUR"}],"rationale":{"fr":"","en":"A: same taxable entity, same authority, right of set-off: net position, liability 1,000,000 − 300,000 = 700,000 (IAS 12, para. 74).","es":""},"references":["REF.IAS12.74"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000442","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000051","tested_point":"VG.IAS12.000051","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"Silvadore group. P and Q (country M) are separate taxable entities that have a right of set-off and intend to settle net in each future period: P's liability {p_dtl}, Q's asset {q_dta}. R (country M, outside this arrangement, with no right or intention to settle net with P or Q): asset {r_dta}. S (country N): asset {s_dta} and liability {s_dtl}, same taxable entity, right of set-off. What totals of deferred tax assets and liabilities does the group present?","es":""},"explanation":{"fr":"","en":"P and Q: different taxable entities, same authority, intention to settle net in each period: offset, net liability 820,000 − 260,000 = 560,000 (IAS 12, para. 74). R: no offsetting, asset 140,000. S: same entity, same authority, right: net asset 90,000 − 30,000 = 60,000. Assets 140,000 + 60,000 = 200,000; liabilities 560,000.","es":""},"common_error":{"fr":"","en":"Offsetting R's asset against P's liability because both relate to country M.","es":""},"format":"CALCULATION","placeholders":[{"id":"p_dtl","value":"820000","unit":"EUR"},{"id":"q_dta","value":"260000","unit":"EUR"},{"id":"r_dta","value":"140000","unit":"EUR"},{"id":"s_dta","value":"90000","unit":"EUR"},{"id":"s_dtl","value":"30000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"P's deferred tax liability","es":""},"value":"820000","unit":"EUR"},{"label":{"fr":"","en":"Q's deferred tax asset","es":""},"value":"260000","unit":"EUR"},{"label":{"fr":"","en":"R's deferred tax asset","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"S's deferred tax asset","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"S's deferred tax liability","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"DTA_PRESENTED","label":{"fr":"","en":"Deferred tax assets presented","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"DTL_PRESENTED","label":{"fr":"","en":"Deferred tax liabilities presented","es":""},"answer":560000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DTA_PRESENTED","meaning":{"fr":"","en":"Deferred tax assets presented","es":""},"expression":"a + (b - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"R's deferred tax asset","es":""},"value":140000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"S's deferred tax asset","es":""},"value":90000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"S's deferred tax liability","es":""},"value":30000,"unit":"EUR"}],"result":200000,"unit":"EUR"},{"step":"DTL_PRESENTED","meaning":{"fr":"","en":"Deferred tax liabilities presented","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"P's deferred tax liability","es":""},"value":820000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Q's deferred tax asset","es":""},"value":260000,"unit":"EUR"}],"result":560000,"unit":"EUR","rationale":{"fr":"","en":"P and Q: different taxable entities, same authority, intention to settle net in each period: offset, net liability 820,000 − 260,000 = 560,000 (IAS 12, para. 74).","es":""}}],"references":["REF.IAS12.74"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000443","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000443","tested_point":"QST.IAS12.000443","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"The Trelmont group presents a net deferred tax liability of 380,000 in its consolidated statement of financial position, obtained by offsetting the 600,000 liability of its subsidiary in country X against the 220,000 asset of its subsidiary in country Y, 'both subsidiaries being 100% owned'. Where is the error?","es":""},"explanation":{"fr":"","en":"Offsetting deferred taxes requires that they relate to the same taxation authority (same taxable entity or entities intending to settle net) and a right to set off current tax (IAS 12, para. 74). Two countries, so two authorities: the group must present a liability of 600,000 and an asset of 220,000.","es":""},"common_error":{"fr":"","en":"Offsetting deferred taxes relating to different taxation authorities.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount: offsetting should have applied to current taxes, not deferred taxes.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the question does concern deferred taxes; the problem is the authority.","es":""}},{"id":"B","text":{"fr":"","en":"Ownership: offsetting is only allowed after two consecutive years of 100% ownership.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the ownership percentage is not an offsetting criterion.","es":""}},{"id":"C","text":{"fr":"","en":"The principle: different taxation authorities prohibit offsetting; gross presentation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The calculation: the correct net amount is 820,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No: adding the two balances makes no sense; they must be presented separately.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000444","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000444","tested_point":"QST.IAS12.000444","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §74","IAS 12 §75"],"exercise":{"prompt":{"fr":"","en":"Uvrelac, a single taxable entity relating to a single authority that allows current tax to be set off, presents separately a deferred tax asset of 120,000 and a deferred tax liability of 410,000, 'for lack of a schedule showing that the reversals will be simultaneous'. Where is the error?","es":""},"explanation":{"fr":"","en":"For the same taxable entity relating to the same authority, with a right to set off current tax, offsetting is required (IAS 12, para. 74), precisely to avoid a detailed reversal schedule (IAS 12, para. 75). Uvrelac must present a net liability of 290,000.","es":""},"common_error":{"fr":"","en":"Failing to offset balances of a single taxable entity that meet the conditions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The conditions being met, offsetting is required: net liability of 290,000, with no schedule.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No error: without a reversal schedule, gross presentation is required.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the standard does not require a schedule in this case; it requires offsetting.","es":""}},{"id":"C","text":{"fr":"","en":"The asset should have been offset against a current tax, not against the deferred liability.","es":""},"correct":false,"feedback":{"fr":"","en":"No: deferred tax assets and liabilities are offset against each other when the conditions are met.","es":""}},{"id":"D","text":{"fr":"","en":"Offsetting is only possible at consolidated group level, never in Uvrelac's separate financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"No: offsetting also applies to the financial statements of a taxable entity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000445","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000445","tested_point":"QST.IAS12.000445","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §76","IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"In country Z, Valquessa (deferred tax liability 500,000) and Wenlandor (deferred tax asset 180,000), separate taxable entities, settle their tax net under a group regime which, under the tax law in the case, will end after 20X7. Reversals of Wenlandor's asset are expected in 20X6 and 20X9, those of Valquessa's liability in 20X8 and 20X9. How should the presentation be determined?","es":""},"explanation":{"fr":"","en":"For different taxable entities, offsetting requires an intention to settle net in each future period in which significant amounts are expected to be recovered or settled (IAS 12, para. 74). In the rare cases where the right and the intention exist only for certain periods, a detailed schedule may be needed to establish whether the liability of one entity will increase tax payments in the period in which the asset of the other will reduce them (IAS 12, para. 76). The outcome of this analysis is a matter of judgement, documented on the case data.","es":""},"common_error":{"fr":"","en":"Offsetting on the sole basis of the current year's situation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Offset in full, since both companies currently settle their tax net.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the intention to settle net must exist for each significant future period; the regime ends after 20X7.","es":""}},{"id":"B","text":{"fr":"","en":"Draw up a schedule of reversals to check, period by period, whether offsetting is justified.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Never offset separate taxable entities, whatever the situation.","es":""},"correct":false,"feedback":{"fr":"","en":"No: offsetting between separate entities is possible if they intend to settle net.","es":""}},{"id":"D","text":{"fr":"","en":"Offset only the 20X9 reversals, a year not covered by the group regime.","es":""},"correct":false,"feedback":{"fr":"","en":"No: 20X9 is precisely outside the group regime; the proposal reverses the logic.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000446","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000446","tested_point":"QST.IAS12.000446","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §73","IAS 12 §71"],"exercise":{"prompt":{"fr":"","en":"In the Nimbrage group's consolidated financial statements, the subsidiary Orsavel has a current tax receivable of 150,000 and the subsidiary Pruvenza a current tax payable of 400,000 to the same authority. Each files and pays separately; no mechanism allows them to make a single net payment. How should these balances be presented?","es":""},"explanation":{"fr":"","en":"In consolidated financial statements, a current tax asset of one group entity is offset against a current tax liability of another only if they have a legally enforceable right to make or receive a single net payment and intend to do so, or to realise and settle simultaneously (IAS 12, para. 73), in line with the general logic of offsetting current tax (IAS 12, para. 71). Here there is neither right nor intention: receivable 150,000 and payable 400,000 presented separately.","es":""},"common_error":{"fr":"","en":"Offsetting on consolidation the current taxes of separate entities with no right to a single net payment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A net payable of 250,000, both subsidiaries belonging to the same group.","es":""},"correct":false,"feedback":{"fr":"","en":"No: belonging to the group does not create a right of set-off.","es":""}},{"id":"B","text":{"fr":"","en":"A net payable of 250,000, since the authority is the same.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the same authority is not enough; a right and intention to make a single net payment are needed.","es":""}},{"id":"C","text":{"fr":"","en":"A receivable of 150,000 and a payable of 400,000, for lack of a right to a single net payment.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A payable of 400,000 only, the receivable being eliminated on consolidation.","es":""},"correct":false,"feedback":{"fr":"","en":"No: a receivable from the authority is not an intragroup balance to be eliminated.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000447","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.OFFSETTING"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000447","tested_point":"QST.IAS12.000447","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"current-offsetting"},"references":["IAS 12 §74"],"exercise":{"prompt":{"fr":"","en":"In country M, the subsidiaries Arquevin (deferred tax liability 700,000) and Belcastor (deferred tax asset 260,000) are separate taxable entities that each file and pay their tax, with no group regime or intention to settle net. The group presents a net liability of 440,000, 'both taxes being levied by the same authority'. Where is the error?","es":""},"explanation":{"fr":"","en":"For different taxable entities, the same authority is not enough: they must also intend to settle net or to realise and settle simultaneously in each significant future period, with a right to set off current tax (IAS 12, para. 74). Here each pays separately: liability 700,000 and asset 260,000 presented separately.","es":""},"common_error":{"fr":"","en":"Offsetting the balances of separate taxable entities merely because the authority is the same.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No error: a common taxation authority is enough to justify offsetting.","es":""},"correct":false,"feedback":{"fr":"","en":"No: for separate entities, the intention to settle net is also required.","es":""}},{"id":"B","text":{"fr":"","en":"Separate taxable entities with no intention to settle net cannot offset their balances.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Offsetting should have applied to the current tax of the two subsidiaries, not to deferred tax.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the same intention condition would apply; the nature of the tax is not the problem.","es":""}},{"id":"D","text":{"fr":"","en":"The correct net liability is 960,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No: adding the balances makes no sense.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000448","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000448","tested_point":"QST.IAS12.000448","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §77"],"exercise":{"prompt":{"fr":"","en":"The tax expense (income) related to profit or loss from ordinary activities is presented in profit or loss, in the statement(s) of profit or loss and other comprehensive income.","es":""},"explanation":{"fr":"","en":"IAS 12 provides that the tax expense (income) related to profit or loss from ordinary activities is presented in profit or loss (IAS 12, para. 77, wording prior to the consequential amendments of IFRS 18, not studied here).","es":""},"common_error":{"fr":"","en":"Presenting tax expense outside profit or loss.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000449","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE","IAS12.ALLOCATION.PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000449","tested_point":"QST.IAS12.000449","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000014","section_id":"pl-rule"},"references":["IAS 12 §77","IAS 12 §58"],"exercise":{"prompt":{"fr":"","en":"Arquevin takes the current tax on its operating profit directly to equity, so as not to reduce reported profit.","es":""},"explanation":{"fr":"","en":"Current and deferred tax are recognised in profit or loss, unless they arise from a transaction recognised outside profit or loss or from a business combination (IAS 12, para. 58); the expense related to profit or loss from ordinary activities is presented in profit or loss (IAS 12, para. 77, wording before IFRS 18). Tax on operating profit cannot be taken to equity.","es":""},"common_error":{"fr":"","en":"Taking to equity a tax relating to items of profit or loss.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000450","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000450","tested_point":"QST.IAS12.000450","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §78"],"exercise":{"prompt":{"fr":"","en":"Exchange differences on a foreign deferred tax liability recognised in profit or loss may be classified as deferred tax expense (income) if that presentation is considered the most useful to users.","es":""},"explanation":{"fr":"","en":"IAS 21 requires certain exchange differences to be recognised as income or expense without specifying where to present them; differences on foreign deferred tax assets or liabilities recognised in profit or loss may therefore be classified as deferred tax expense (income) if that presentation is considered the most useful (IAS 12, para. 78, wording before IFRS 18).","es":""},"common_error":{"fr":"","en":"Believing this classification is prohibited, or on the contrary mandatory.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000451","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000451","tested_point":"QST.IAS12.000451","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §78"],"exercise":{"prompt":{"fr":"","en":"IAS 21 specifies that exchange differences on foreign deferred tax assets and liabilities must always be presented within finance income and expenses.","es":""},"explanation":{"fr":"","en":"IAS 21 requires certain exchange differences to be recognised as income or expense, but without specifying where to present them; this is why IAS 12 permits those on foreign deferred taxes to be classified as deferred tax expense (income), where considered the most useful (IAS 12, para. 78, wording before IFRS 18).","es":""},"common_error":{"fr":"","en":"Attributing to IAS 21 a presentation rule it does not contain.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000452","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000452","tested_point":"QST.IAS12.000452","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §5","IAS 12 §77"],"exercise":{"prompt":{"fr":"","en":"The tax expense presented in profit or loss is the aggregate amount included in profit or loss in respect of current tax and deferred tax.","es":""},"explanation":{"fr":"","en":"Tax expense (income) is defined as the aggregate amount included in profit or loss in respect of current tax and deferred tax (IAS 12, para. 5); the expense related to profit or loss from ordinary activities is presented in profit or loss (IAS 12, para. 77, wording before IFRS 18).","es":""},"common_error":{"fr":"","en":"Presenting only current tax as tax expense.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000453","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000453","tested_point":"QST.IAS12.000453","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §77"],"exercise":{"prompt":{"fr":"","en":"Where does Belcastor present the tax expense related to profit or loss from its ordinary activities?","es":""},"explanation":{"fr":"","en":"The tax expense (income) related to profit or loss from ordinary activities is presented in profit or loss, in the statement(s) of profit or loss and other comprehensive income (IAS 12, para. 77, wording before IFRS 18).","es":""},"common_error":{"fr":"","en":"Presenting tax expense outside profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In other comprehensive income, separately from profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"No: it is items recognised outside profit or loss that carry their tax in other comprehensive income.","es":""}},{"id":"B","text":{"fr":"","en":"In profit or loss, in the statement(s) of profit or loss and other comprehensive income.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only in the income tax note, with no line in the financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the note details the expense; it does not replace its presentation.","es":""}},{"id":"D","text":{"fr":"","en":"Directly as a deduction from equity.","es":""},"correct":false,"feedback":{"fr":"","en":"No: tax related to profit or loss is not taken to equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000454","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE","IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000454","tested_point":"QST.IAS12.000454","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000015","section_id":"outside-rule"},"references":["IAS 12 §77","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Calvidra recognised a revaluation of land in other comprehensive income; the related deferred tax amounts to 45,000. How is this tax presented?","es":""},"explanation":{"fr":"","en":"Tax relating to an item recognised in other comprehensive income is recognised in other comprehensive income (IAS 12, para. 61A). The tax expense presented in profit or loss is the one related to profit or loss from ordinary activities (IAS 12, para. 77, wording before IFRS 18): the 45,000 is not part of it.","es":""},"common_error":{"fr":"","en":"Including in tax expense in profit or loss the tax relating to other comprehensive income.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Within tax expense in profit or loss, together with current tax.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the tax follows the item recognised outside profit or loss.","es":""}},{"id":"B","text":{"fr":"","en":"In the note only, with no recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the deferred tax is recognised.","es":""}},{"id":"C","text":{"fr":"","en":"As a deduction from operating profit.","es":""},"correct":false,"feedback":{"fr":"","en":"No: tax on the revaluation does not go through profit or loss.","es":""}},{"id":"D","text":{"fr":"","en":"In other comprehensive income, together with the revaluation it relates to.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000455","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE","IAS12.DEFINITIONS.KEY_TERMS","IAS12.ALLOCATION.OUTSIDE_PROFIT_OR_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000455","tested_point":"QST.IAS12.000455","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §77","IAS 12 §6","IAS 12 §61A"],"exercise":{"prompt":{"fr":"","en":"Dorvenne's 20X5 data: current tax 500,000; deferred tax expense in profit or loss 80,000; deferred tax on a revaluation recognised in other comprehensive income 40,000. What tax expense does Dorvenne present in profit or loss?","es":""},"explanation":{"fr":"","en":"Tax expense comprises current tax and deferred tax (IAS 12, para. 6) recognised in profit or loss; the tax relating to the revaluation is recognised in other comprehensive income (IAS 12, para. 61A). Expense presented in profit or loss (IAS 12, para. 77, wording before IFRS 18): 500,000 + 80,000 = 580,000.","es":""},"common_error":{"fr":"","en":"Adding all the year's taxes into the expense presented in profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"580,000, current tax and deferred tax recognised in profit or loss.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"500,000, deferred tax being presented only in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"No: deferred tax expense is part of tax expense.","es":""}},{"id":"C","text":{"fr":"","en":"620,000, all the year's taxes combined.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the tax of 40,000 is recognised in other comprehensive income.","es":""}},{"id":"D","text":{"fr":"","en":"540,000, current tax and the tax relating to the revaluation of land.","es":""},"correct":false,"feedback":{"fr":"","en":"No: it is the deferred tax in profit or loss, not that of the revaluation, that is added.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000456","standard_id":"IAS12","concept_ids":["IAS12.PRESENTATION.TAX_EXPENSE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000456","tested_point":"QST.IAS12.000456","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000019","section_id":"tax-expense-presentation"},"references":["IAS 12 §78"],"exercise":{"prompt":{"fr":"","en":"The Estriva group holds a foreign subsidiary whose deferred tax liability, translated under IAS 21, gives rise to an exchange loss of 12,000 recognised in profit or loss. How may Estriva classify this loss?","es":""},"explanation":{"fr":"","en":"IAS 21 does not specify where to present these differences; those on foreign deferred tax assets or liabilities may be classified as deferred tax expense (income) where that presentation is considered the most useful to users (IAS 12, para. 78, wording before IFRS 18). The choice is a matter of judgement, applied on a reasoned basis.","es":""},"common_error":{"fr":"","en":"Presenting this classification as mandatory.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Mandatorily as deferred tax expense, without assessing usefulness.","es":""},"correct":false,"feedback":{"fr":"","en":"No: it is an option, not a requirement.","es":""}},{"id":"B","text":{"fr":"","en":"Mandatorily in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the loss is recognised in profit or loss according to the case data.","es":""}},{"id":"C","text":{"fr":"","en":"As deferred tax expense if that presentation is considered the most useful to users.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As a direct reduction of the liability, with no effect on profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the difference is recognised in profit or loss; only its presentation line is in question.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000457","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000457","tested_point":"QST.IAS12.000457","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The major components of tax expense (income) are disclosed separately.","es":""},"explanation":{"fr":"","en":"IAS 12 requires the major components of tax expense (income) to be disclosed separately (IAS 12, para. 79), for example current tax and deferred tax.","es":""},"common_error":{"fr":"","en":"Disclosing only the total tax expense.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000458","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000458","tested_point":"QST.IAS12.000458","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Yspala, which recognises revaluations and actuarial differences in other comprehensive income, may simply disclose the total amount of tax relating to its other comprehensive income.","es":""},"explanation":{"fr":"","en":"IAS 12 requires disclosure of the amount of income tax relating to each component of other comprehensive income (IAS 12, para. 81): Yspala must split it between revaluations and actuarial differences.","es":""},"common_error":{"fr":"","en":"Not disclosing the tax relating to each component of other comprehensive income.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000459","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000459","tested_point":"QST.IAS12.000459","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The subsidiary Zarnovel incurred a tax loss in 20X5 but recognised a deferred tax asset whose use depends on future taxable profits. As long as management judges the asset recoverable, no specific disclosure about it is required.","es":""},"explanation":{"fr":"","en":"When the use of a deferred tax asset depends on future taxable profits in excess of those arising from the reversal of existing taxable differences, or the entity has suffered a loss in the jurisdiction in the current or preceding period, the entity discloses the amount of the asset and the nature of the evidence supporting its recognition (IAS 12, para. 82).","es":""},"common_error":{"fr":"","en":"Omitting the nature of the evidence for a deferred tax asset that depends on future profits after a loss.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000460","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000460","tested_point":"QST.IAS12.000460","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"For its investments in subsidiaries with no deferred tax liability recognised, a group must disclose the aggregate amount of the related temporary differences; disclosing the amount of the unrecognised liabilities is only encouraged where practicable.","es":""},"explanation":{"fr":"","en":"The aggregate amount of temporary differences associated with investments for which no deferred tax liability is recognised must be disclosed (IAS 12, para. 81). As computing the unrecognised liabilities is often impracticable, the standard requires the amount of the differences and only encourages that of the liabilities where practicable (IAS 12, para. 87).","es":""},"common_error":{"fr":"","en":"Believing that the amount of the unrecognised liability is always required.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000461","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000461","tested_point":"QST.IAS12.000461","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12 §88"],"exercise":{"prompt":{"fr":"","en":"Arquevin is challenging in court a tax reassessment that has not yet been decided. Which standard governs the disclosures about this unresolved tax dispute, and which standard governs any recognition?","es":""},"explanation":{"fr":"","en":"Tax-related contingent liabilities and contingent assets, such as unresolved disputes with the taxation authorities, are disclosed in accordance with IAS 37; this reference covers disclosure only, recognition falling under IAS 12 (IAS 12, para. 88).","es":""},"common_error":{"fr":"","en":"Recognising an income tax dispute as an IAS 37 provision.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 37 for both disclosure and recognition, as for any dispute.","es":""},"correct":false,"feedback":{"fr":"","en":"No: recognition of a dispute on income tax falls under IAS 12.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 12 for disclosure, IAS 37 for recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"No: it is the other way round.","es":""}},{"id":"C","text":{"fr":"","en":"IAS 37 for disclosure, IAS 12 for recognition.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No disclosure until the court has ruled.","es":""},"correct":false,"feedback":{"fr":"","en":"No: an unresolved dispute is precisely the example of a tax contingency to be described.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000462","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000462","tested_point":"QST.IAS12.000462","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"For each type of temporary difference and each type of unused tax losses and credits, what information does IAS 12 require?","es":""},"explanation":{"fr":"","en":"For each type of temporary difference and of unused tax losses and credits, the entity discloses the amount of the deferred tax assets and liabilities recognised in the statement of financial position and the amount of deferred tax income or expense recognised in profit or loss (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Presenting an overall net deferred tax balance with no breakdown by nature.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only the net deferred tax balance at the reporting date, all types combined.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the information is required by type, not only as an overall net amount.","es":""}},{"id":"B","text":{"fr":"","en":"The reversal schedule of each difference and its discounted amount.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the standard requires neither a schedule nor discounting of deferred taxes.","es":""}},{"id":"C","text":{"fr":"","en":"The deferred tax assets and liabilities recognised and the deferred tax recognised in profit or loss.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The tax rate applicable to each difference for the next five years.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no forecast rate per difference is required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000463","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000463","tested_point":"QST.IAS12.000463","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Which of these items does IAS 12 require in the income tax note?","es":""},"explanation":{"fr":"","en":"The items to be disclosed separately include: the tax relating to each component of other comprehensive income; the amount of deductible temporary differences, unused tax losses and credits for which no deferred tax asset is recognised; the tax consequences of dividends proposed or declared before the financial statements were authorised for issue and not recognised as a liability (IAS 12, para. 81). Neither a schedule nor discounting is required.","es":""},"common_error":{"fr":"","en":"Omitting the unrecognised items, which are useful for assessing potential assets.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The detailed schedule of the reversal of each temporary difference.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no schedule is required.","es":""}},{"id":"B","text":{"fr":"","en":"The tax relating to each component of other comprehensive income.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The amount of deductible differences, unused tax losses and credits with no deferred tax asset recognised.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The discount rate used to measure deferred taxes.","es":""},"correct":false,"feedback":{"fr":"","en":"No: deferred taxes are not discounted; there is no rate to disclose.","es":""}},{"id":"E","text":{"fr":"","en":"The tax consequences of dividends proposed before authorisation for issue, not recognised as a liability.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000464","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000464","tested_point":"QST.IAS12.000464","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The Orsavel group's tax controller is preparing the note: which of the following circumstances require a deferred tax asset to be detailed, including its amount and the justification for it?","es":""},"explanation":{"fr":"","en":"This disclosure is required when the use of the asset depends on future taxable profits in excess of those arising from the reversal of existing taxable differences, or when the entity has suffered a loss, in the current or preceding period, in the tax jurisdiction concerned (IAS 12, para. 82).","es":""},"common_error":{"fr":"","en":"Omitting the nature of the evidence after a recent loss.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Whenever a deferred tax asset is recognised, whatever its basis.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the requirement targets specific situations, not every asset.","es":""}},{"id":"B","text":{"fr":"","en":"Its use depends on future taxable profits exceeding the reversal of existing taxable differences.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The asset arises from a business combination carried out during the year.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the origin of the asset is not the criterion for this disclosure.","es":""}},{"id":"D","text":{"fr":"","en":"The entity suffered a tax loss in the preceding year in the jurisdiction concerned.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000465","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000052","tested_point":"VG.IAS12.000052","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"To prepare its income tax note, the Brezolan group draws up the movement schedule of its net deferred tax liability: opening {opening_net_dtl}; deferred tax expense in profit or loss {profit_or_loss_charge}; deferred tax recognised in other comprehensive income (charge) {oci_charge}; liability arising from a business combination in the year {business_combination}. Compute the closing net deferred tax liability.","es":""},"explanation":{"fr":"","en":"The movement schedule is a preparation and control tool (teaching assumption) that reconciles the required disclosures: deferred tax recognised in profit or loss and tax relating to other comprehensive income (IAS 12, para. 81). Closing: 1,200,000 + 150,000 + 60,000 + 300,000 = 1,710,000.","es":""},"common_error":{"fr":"","en":"Forgetting the liability brought in by the combination, which goes through neither profit or loss nor other comprehensive income.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_net_dtl","value":"1200000","unit":"EUR"},{"id":"profit_or_loss_charge","value":"150000","unit":"EUR"},{"id":"oci_charge","value":"60000","unit":"EUR"},{"id":"business_combination","value":"300000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening net deferred tax liability","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax in other comprehensive income (charge)","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax liability arising from the combination","es":""},"value":"300000","unit":"EUR"}],"steps":[{"id":"CLOSING_NET_DTL","label":{"fr":"","en":"Closing net deferred tax liability","es":""},"answer":1710000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_NET_DTL","meaning":{"fr":"","en":"Closing net deferred tax liability","es":""},"expression":"a + b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening net deferred tax liability","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax expense in profit or loss","es":""},"value":150000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Deferred tax in other comprehensive income (charge)","es":""},"value":60000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Deferred tax liability arising from the combination","es":""},"value":300000,"unit":"EUR"}],"result":1710000,"unit":"EUR"}],"rationale":{"fr":"","en":"The movement schedule is a preparation and control tool (teaching assumption) that reconciles the required disclosures: deferred tax recognised in profit or loss and tax relating to other comprehensive income (IAS 12, para. 81).","es":""},"references":["REF.IAS12.81"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000466","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000052","tested_point":"VG.IAS12.000052","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Review of the Ferondil group's income tax note. Net deferred tax liability: opening {opening_net_dtl}; deferred tax income in profit or loss {profit_or_loss_income}; deferred tax charge in other comprehensive income {oci_charge}; deferred tax credited directly to equity {equity_credit}; liability arising from a business combination {business_combination}. The published statement of financial position shows a net liability of {reported_closing}. Compute the expected closing balance and the difference still to be explained.","es":""},"explanation":{"fr":"","en":"Movement rebuilt (control tool, teaching assumption) from the disclosures required by nature and by allocation (IAS 12, para. 81): 640,000 − 220,000 + 35,000 − 15,000 + 410,000 = 850,000. Difference with the published balance: 850,000 − 820,000 = 30,000, to be analysed (exchange, reclassification, error) before finalising the note.","es":""},"common_error":{"fr":"","en":"Adding the deferred tax income to the liability instead of deducting it.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_net_dtl","value":"640000","unit":"EUR"},{"id":"profit_or_loss_income","value":"220000","unit":"EUR"},{"id":"oci_charge","value":"35000","unit":"EUR"},{"id":"equity_credit","value":"15000","unit":"EUR"},{"id":"business_combination","value":"410000","unit":"EUR"},{"id":"reported_closing","value":"820000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening net deferred tax liability","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax income in profit or loss","es":""},"value":"220000","unit":"EUR"},{"label":{"fr":"","en":"Charge in other comprehensive income","es":""},"value":"35000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax credited to equity","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Liability arising from the combination","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Published net liability","es":""},"value":"820000","unit":"EUR"}],"steps":[{"id":"COMPUTED_CLOSING","label":{"fr":"","en":"Expected closing balance","es":""},"answer":850000,"tolerance":0,"unit":"EUR"},{"id":"UNEXPLAINED_DIFFERENCE","label":{"fr":"","en":"Difference to be explained","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"COMPUTED_CLOSING","meaning":{"fr":"","en":"Expected closing balance","es":""},"expression":"a - b + c - d + e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening net deferred tax liability","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax income in profit or loss","es":""},"value":220000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Charge in other comprehensive income","es":""},"value":35000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Deferred tax credited to equity","es":""},"value":15000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Liability arising from the combination","es":""},"value":410000,"unit":"EUR"}],"result":850000,"unit":"EUR","rationale":{"fr":"","en":"Movement rebuilt (control tool, teaching assumption) from the disclosures required by nature and by allocation (IAS 12, para. 81): 640,000 − 220,000 + 35,000 − 15,000 + 410,000 = 850,000.","es":""}},{"step":"UNEXPLAINED_DIFFERENCE","meaning":{"fr":"","en":"Difference to be explained","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected closing balance","es":""},"value":850000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Published net liability","es":""},"value":820000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"references":["REF.IAS12.81"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000467","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES","IAS12.DEFINITIONS.KEY_TERMS","IAS12.CURRENT_TAX.RECOGNITION"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000467","tested_point":"QST.IAS12.000467","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §6","IAS 12","IAS 12 §12"],"exercise":{"prompt":{"fr":"","en":"Gernasse prepares its 20X5 income tax note: current tax for the year {current_tax}; additional current tax due for 20X4, identified in 20X5 (case data) {prior_year_current_tax}; deferred tax expense {deferred_tax_expense}. Compute the tax expense for the year.","es":""},"explanation":{"fr":"","en":"Tax expense comprises current tax and deferred tax (IAS 12, para. 6); current tax covers the current and prior periods (IAS 12, para. 12). Expense: 840,000 + 40,000 + 95,000 = 975,000, whose major components are disclosed separately in the note (IAS 12, para. 79).","es":""},"common_error":{"fr":"","en":"Leaving the prior-year top-up out of tax expense.","es":""},"format":"CALCULATION","placeholders":[{"id":"current_tax","value":"840000","unit":"EUR"},{"id":"prior_year_current_tax","value":"40000","unit":"EUR"},{"id":"deferred_tax_expense","value":"95000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Current tax for the year","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Additional current tax for 20X4","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax expense","es":""},"value":"95000","unit":"EUR"}],"steps":[{"id":"TAX_EXPENSE","label":{"fr":"","en":"Tax expense for the year","es":""},"answer":975000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAX_EXPENSE","meaning":{"fr":"","en":"Tax expense for the year","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax for the year","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Additional current tax for 20X4","es":""},"value":40000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Deferred tax expense","es":""},"value":95000,"unit":"EUR"}],"result":975000,"unit":"EUR","rationale":{"fr":"","en":"Expense: 840,000 + 40,000 + 95,000 = 975,000, whose major components are disclosed separately in the note (IAS 12, para. 79).","es":""}}],"references":["REF.IAS12.6","REF.IAS12.79","REF.IAS12.12"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000468","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000468","tested_point":"QST.IAS12.000468","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Hollivane has unused tax losses of {unused_losses}; a deferred tax asset is recognised for only {losses_recognised} of those losses. In addition, deductible temporary differences of {unrecognised_differences} have given rise to no asset. What amount of unrecognised differences, losses and credits does Hollivane disclose in its note (no tax credits)?","es":""},"explanation":{"fr":"","en":"The entity discloses the amount of deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax asset is recognised (IAS 12, para. 81): unrecognised losses 2,000,000 − 1,200,000 = 800,000, plus deductible differences 500,000, i.e. 1,300,000 (presented by nature in the note).","es":""},"common_error":{"fr":"","en":"Disclosing all the losses, including those already recognised.","es":""},"format":"CALCULATION","placeholders":[{"id":"unused_losses","value":"2000000","unit":"EUR"},{"id":"losses_recognised","value":"1200000","unit":"EUR"},{"id":"unrecognised_differences","value":"500000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Unused tax losses","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Losses for which an asset is recognised","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Unrecognised deductible differences","es":""},"value":"500000","unit":"EUR"}],"steps":[{"id":"AMOUNT_DISCLOSED","label":{"fr":"","en":"Unrecognised amount to disclose","es":""},"answer":1300000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000469","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000469","tested_point":"QST.IAS12.000469","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12"],"exercise":{"prompt":{"fr":"","en":"The Jorvella group recognised a deferred tax asset of 3,200,000 in its subsidiary in country K, which incurred a tax loss in 20X5; management relies on a firm order book and a completed restructuring. What information must the income tax note contain in this respect?","es":""},"explanation":{"fr":"","en":"After a loss in the current period in the jurisdiction concerned, the entity discloses the amount of the deferred tax asset and the nature of the evidence supporting its recognition (IAS 12, para. 82): here 3,200,000, the order book and the restructuring. The relevance of this evidence is a matter of management judgement.","es":""},"common_error":{"fr":"","en":"Omitting the nature of the evidence for a deferred tax asset that depends on future profits after a loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No specific information, the asset being presented with the other deferred taxes.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the recent loss triggers specific disclosure.","es":""}},{"id":"B","text":{"fr":"","en":"The amount of 3,200,000 and the nature of the evidence (firm orders, restructuring).","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only the amount of the subsidiary's tax losses, with no mention of the asset recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the disclosure concerns the asset recognised and its justification.","es":""}},{"id":"D","text":{"fr":"","en":"A statement that the asset will be reversed if the subsidiary is still loss-making in 20X6.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the standard asks for the nature of the evidence, not a conditional undertaking.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000470","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000470","tested_point":"QST.IAS12.000470","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IAS 12 §80"],"exercise":{"prompt":{"fr":"","en":"Which of these items may be among the components of tax expense disclosed in the note?","es":""},"explanation":{"fr":"","en":"Components of tax expense may include current tax, adjustments of current tax of prior periods, deferred tax relating to changes in tax rates and deferred tax expense arising from the write-down of a deferred tax asset (IAS 12, para. 80). Tax relating to other comprehensive income is not a component of tax expense in profit or loss, and a value added tax is not an income tax.","es":""},"common_error":{"fr":"","en":"Mixing tax relating to other comprehensive income into tax expense.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The adjustment, recognised in 20X5, of current tax for 20X4.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Deferred tax relating to a revaluation recognised in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"No: this tax is recognised in other comprehensive income, outside tax expense in profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"Deferred tax relating to the cut in the tax rate enacted during the year.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Deferred tax expense arising from the write-down of a deferred tax asset.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Value added tax collected on the year's sales.","es":""},"correct":false,"feedback":{"fr":"","en":"No: it is not an income tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000471","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000471","tested_point":"QST.IAS12.000471","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §80","IAS 12 §6"],"exercise":{"prompt":{"fr":"","en":"Kervadin's 20X5 income tax note: current tax before use of losses {current_tax_before_losses}; benefit from prior losses never recognised, used to reduce current tax {loss_benefit}; release of excess current tax for 20X4 {prior_year_release}; deferred tax expense on temporary differences originating in the year {origination_expense}; deferred tax income from a rate cut {rate_change_income}; write-down of a deferred tax asset {write_down}. Compute tax expense.","es":""},"explanation":{"fr":"","en":"These items are components of tax expense (IAS 12, para. 80), which combines current tax and deferred tax (IAS 12, para. 6): 900,000 − 150,000 − 20,000 + 60,000 − 35,000 + 45,000 = 800,000. Each material component is disclosed separately.","es":""},"common_error":{"fr":"","en":"Adding the benefit from losses instead of deducting it.","es":""},"format":"CALCULATION","placeholders":[{"id":"current_tax_before_losses","value":"900000","unit":"EUR"},{"id":"loss_benefit","value":"150000","unit":"EUR"},{"id":"prior_year_release","value":"20000","unit":"EUR"},{"id":"origination_expense","value":"60000","unit":"EUR"},{"id":"rate_change_income","value":"35000","unit":"EUR"},{"id":"write_down","value":"45000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Current tax before use of losses","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Benefit from unrecognised losses","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Release of 20X4 current tax","es":""},"value":"20000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax on differences originating in the year","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Income from the rate cut","es":""},"value":"35000","unit":"EUR"},{"label":{"fr":"","en":"Write-down of a deferred tax asset","es":""},"value":"45000","unit":"EUR"}],"steps":[{"id":"TAX_EXPENSE","label":{"fr":"","en":"Tax expense","es":""},"answer":800000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TAX_EXPENSE","meaning":{"fr":"","en":"Tax expense","es":""},"expression":"a - b - c + d - e + f","variables":[{"symbol":"a","meaning":{"fr":"","en":"Current tax before use of losses","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Benefit from unrecognised losses","es":""},"value":150000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Release of 20X4 current tax","es":""},"value":20000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Deferred tax on differences originating in the year","es":""},"value":60000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Income from the rate cut","es":""},"value":35000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Write-down of a deferred tax asset","es":""},"value":45000,"unit":"EUR"}],"result":800000,"unit":"EUR","rationale":{"fr":"","en":"These items are components of tax expense (IAS 12, para. 80), which combines current tax and deferred tax (IAS 12, para. 6): 900,000 − 150,000 − 20,000 + 60,000 − 35,000 + 45,000 = 800,000.","es":""}}],"references":["REF.IAS12.80","REF.IAS12.6"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000472","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES","IAS12.ALLOCATION.DIVIDENDS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000472","tested_point":"QST.IAS12.000472","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000016","section_id":"distribution-rate"},"references":["IAS 12 §82A","IAS 12 §52A"],"exercise":{"prompt":{"fr":"","en":"In Lumbrac's country, tax on distributed profits is higher than on retained profits (case data); Lumbrac therefore measures its tax at the rate for undistributed profits. What does it disclose about future dividends?","es":""},"explanation":{"fr":"","en":"In this situation, tax is measured at the rate applicable to undistributed profits (IAS 12, para. 52A). The entity discloses the nature of the potential tax consequences of paying dividends, the amount of those that are practicably determinable and whether there are potential consequences that are not (IAS 12, para. 82A).","es":""},"common_error":{"fr":"","en":"Giving no information about the potential tax consequences of distributions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: as long as no dividend is decided, the tax issue does not arise.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the disclosure is due even with no dividend decided.","es":""}},{"id":"B","text":{"fr":"","en":"The nature of the potential tax consequences, their amount where practicably determinable, and the existence of consequences that cannot be determined.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only the total amount of additional tax, even if it is not practicably determinable.","es":""},"correct":false,"feedback":{"fr":"","en":"No: only practicably determinable amounts are disclosed; the others are flagged.","es":""}},{"id":"D","text":{"fr":"","en":"A deferred tax liability at the distributed-profits rate, to be disclosed in the note.","es":""},"correct":false,"feedback":{"fr":"","en":"No: tax is measured at the undistributed rate; this is a disclosure, not an additional liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000473","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.COMPONENTS_AND_BALANCES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000473","tested_point":"QST.IAS12.000473","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000020","section_id":"components"},"references":["IFRIC 23 §A4"],"exercise":{"prompt":{"fr":"","en":"IFRIC 23 creates a specific disclosure requirement to describe in detail, in the income tax note, every uncertain tax treatment used by the entity.","es":""},"explanation":{"fr":"","en":"When there is uncertainty, the entity determines whether to disclose the judgements made in determining taxable profit, tax bases, unused tax losses and credits and tax rates, and the assumptions and estimates used, applying the general disclosure requirements on judgements and sources of estimation uncertainty (IFRIC 23, para. A4). There is no detailed requirement specific to each treatment.","es":""},"common_error":{"fr":"","en":"Believing that every uncertain treatment must be described in detail in all circumstances.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000474","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000474","tested_point":"QST.IAS12.000474","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"The explanation of the relationship between tax expense and accounting profit may take the form of a numerical reconciliation in amounts or of a reconciliation between the average effective tax rate and the applicable rate.","es":""},"explanation":{"fr":"","en":"IAS 12 requires this relationship to be explained in one of two forms: a numerical reconciliation between tax expense and the product of accounting profit multiplied by the applicable tax rate(s), or a reconciliation between the average effective tax rate and the applicable rate, disclosing the basis on which the applicable rate is computed (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Believing that only a reconciliation in rates is allowed.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000475","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000475","tested_point":"QST.IAS12.000475","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Once the numerical reconciliation is presented, the entity need not disclose how the applicable tax rate used was determined.","es":""},"explanation":{"fr":"","en":"The reconciliation is accompanied by disclosure of the basis on which the applicable tax rate(s) is (are) computed (IAS 12, para. 81): readers must know which rate serves as the reference.","es":""},"common_error":{"fr":"","en":"Omitting the basis of the applicable rate.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000476","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000476","tested_point":"QST.IAS12.000476","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"When the applicable tax rate moves from 28% to 25% from one year to the next, the entity explains that change.","es":""},"explanation":{"fr":"","en":"The required disclosures include an explanation of changes in the applicable tax rate(s) compared with the previous period (IAS 12, para. 81).","es":""},"common_error":{"fr":"","en":"Changing the reference rate without explaining it.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000477","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000477","tested_point":"QST.IAS12.000477","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §81","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"For its numerical reconciliation, to what amount does Morliandre apply the applicable tax rate?","es":""},"explanation":{"fr":"","en":"The numerical reconciliation compares tax expense with the product of accounting profit multiplied by the applicable rate (IAS 12, para. 81); accounting profit is profit for the period before deducting tax expense (IAS 12, para. 5).","es":""},"common_error":{"fr":"","en":"Reconciling tax expense with accounting profit after tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Profit after tax for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"No: starting from profit after tax distorts the whole reconciliation.","es":""}},{"id":"B","text":{"fr":"","en":"Accounting profit, that is profit before tax expense.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Taxable profit reported to the taxation authority.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the reconciliation explains precisely the gap between tax and accounting profit, not taxable profit.","es":""}},{"id":"D","text":{"fr":"","en":"Revenue for the period.","es":""},"correct":false,"feedback":{"fr":"","en":"No: revenue is not the base of an income tax.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000478","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000478","tested_point":"QST.IAS12.000478","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §84"],"exercise":{"prompt":{"fr":"","en":"What is the purpose of explaining the relationship between tax expense and accounting profit?","es":""},"explanation":{"fr":"","en":"This disclosure enables users to understand whether the relationship between tax expense and accounting profit is unusual and the significant factors that could affect it in the future, such as exempt income, non-deductible expenses or tax losses (IAS 12, para. 84).","es":""},"common_error":{"fr":"","en":"Reducing the reconciliation to a formality with no analytical value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To justify the current tax payable to the taxation authority.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the reconciliation concerns the accounting expense, not the tax payable.","es":""}},{"id":"B","text":{"fr":"","en":"To present the reversal schedule of deferred taxes.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no schedule is involved.","es":""}},{"id":"C","text":{"fr":"","en":"To show that the effective rate always equals the statutory rate.","es":""},"correct":false,"feedback":{"fr":"","en":"No: it precisely explains the gaps between the two.","es":""}},{"id":"D","text":{"fr":"","en":"To enable users to understand whether the relationship is unusual and which factors could affect it in the future.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000479","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000479","tested_point":"QST.IAS12.000479","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81","IAS 12 §84"],"exercise":{"prompt":{"fr":"","en":"Nimbrage (applicable rate stable over the period) prepares its numerical reconciliation. Which of these items are reconciling items between expected tax and tax expense?","es":""},"explanation":{"fr":"","en":"The reconciliation explains the gap between tax expense and accounting profit multiplied by the applicable rate (IAS 12, para. 81): non-deductible expenses, exempt income and unrecognised losses are typical factors (IAS 12, para. 84), as is an adjustment of a prior year's tax. A temporary difference, offset by deferred tax at the same rate, creates no gap; tax recognised in other comprehensive income is outside tax expense in profit or loss.","es":""},"common_error":{"fr":"","en":"Including temporary differences as reconciling items of the effective tax rate.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Non-deductible fines recognised as expenses.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Accelerated tax depreciation of a machine, the rate being unchanged.","es":""},"correct":false,"feedback":{"fr":"","en":"No: a temporary difference offset by deferred tax at the same rate.","es":""}},{"id":"C","text":{"fr":"","en":"Tax-exempt dividends received.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A subsidiary's tax loss for the year, for which no deferred tax asset is recognised.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Deferred tax on a revaluation recognised in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"No: this tax is not part of tax expense in profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000480","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000053","tested_point":"VG.IAS12.000053","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Orsavel earns accounting profit before tax of {accounting_profit}; the applicable tax rate it has used (case data) is {applicable_rate}%. Compute the expected tax, the starting point of its numerical reconciliation.","es":""},"explanation":{"fr":"","en":"The numerical reconciliation starts from the product of accounting profit multiplied by the applicable rate (IAS 12, para. 81): 4,800,000 × 25% = 1,200,000. The choice of applicable rate is case data, whose basis must be disclosed.","es":""},"common_error":{"fr":"","en":"Applying the rate to profit after tax.","es":""},"format":"CALCULATION","placeholders":[{"id":"accounting_profit","value":"4800000","unit":"EUR"},{"id":"applicable_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Accounting profit before tax","es":""},"value":"4800000","unit":"EUR"},{"label":{"fr":"","en":"Applicable rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"EXPECTED_TAX","label":{"fr":"","en":"Expected tax","es":""},"answer":1200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPECTED_TAX","meaning":{"fr":"","en":"Expected tax","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Accounting profit before tax","es":""},"value":4800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Applicable rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":1200000,"unit":"EUR","rationale":{"fr":"","en":"The numerical reconciliation starts from the product of accounting profit multiplied by the applicable rate (IAS 12, para. 81): 4,800,000 × 25% = 1,200,000.","es":""}}],"references":["REF.IAS12.81"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000481","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000053","tested_point":"VG.IAS12.000053","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §81","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Pruvenza's profit before tax expense amounts to {accounting_profit}. It uses as applicable rate the domestic rate of {applicable_rate}% (case data). What expected tax does it show at the top of its reconciliation?","es":""},"explanation":{"fr":"","en":"Accounting profit is profit before tax expense (IAS 12, para. 5); the reconciliation starts from that profit multiplied by the applicable rate (IAS 12, para. 81): 2,350,000 × 28% = 658,000.","es":""},"common_error":{"fr":"","en":"Starting from taxable profit rather than accounting profit.","es":""},"format":"CALCULATION","placeholders":[{"id":"accounting_profit","value":"2350000","unit":"EUR"},{"id":"applicable_rate","value":"28","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Profit before tax expense","es":""},"value":"2350000","unit":"EUR"},{"label":{"fr":"","en":"Applicable rate (%)","es":""},"value":"28","unit":"PERCENT"}],"steps":[{"id":"EXPECTED_TAX","label":{"fr":"","en":"Expected tax","es":""},"answer":658000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPECTED_TAX","meaning":{"fr":"","en":"Expected tax","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit before tax expense","es":""},"value":2350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Applicable rate (%)","es":""},"value":28,"unit":"PERCENT"}],"result":658000,"unit":"EUR","rationale":{"fr":"","en":"the reconciliation starts from that profit multiplied by the applicable rate (IAS 12, para. 81): 2,350,000 × 28% = 658,000.","es":""}}],"references":["REF.IAS12.81","REF.IAS12.5"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000482","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000054","tested_point":"VG.IAS12.000054","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81","IAS 12 §84"],"exercise":{"prompt":{"fr":"","en":"Quorvane (accounting profit {accounting_profit}, applicable rate {applicable_rate}%) recognised non-deductible fines of {non_deductible_fines} and received exempt dividends of {exempt_dividends}; additional tax of {prior_year_adjustment} for the previous year is recognised in profit or loss. Its temporary differences are all covered by deferred tax at the same rate. Compute the tax expense expected at the end of the reconciliation.","es":""},"explanation":{"fr":"","en":"Numerical reconciliation (IAS 12, para. 81): expected tax 6,000,000 × 25% = 1,500,000; fines 200,000 × 25% = +50,000; exempt dividends 400,000 × 25% = −100,000; prior-year adjustment +30,000; tax expense 1,480,000. These factors explain the gap with the applicable rate (IAS 12, para. 84); temporary differences do not appear.","es":""},"common_error":{"fr":"","en":"Adding the gross amount of the fines instead of their tax effect.","es":""},"format":"CALCULATION","placeholders":[{"id":"accounting_profit","value":"6000000","unit":"EUR"},{"id":"applicable_rate","value":"25","unit":"PERCENT"},{"id":"non_deductible_fines","value":"200000","unit":"EUR"},{"id":"exempt_dividends","value":"400000","unit":"EUR"},{"id":"prior_year_adjustment","value":"30000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Accounting profit","es":""},"value":"6000000","unit":"EUR"},{"label":{"fr":"","en":"Applicable rate (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Non-deductible fines","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Exempt dividends","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Additional tax for the previous year","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"TAX_EXPENSE","label":{"fr":"","en":"Tax expense","es":""},"answer":1480000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000483","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000054","tested_point":"VG.IAS12.000054","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81","IAS 12 §84"],"exercise":{"prompt":{"fr":"","en":"The Rastelle group reports consolidated accounting profit of {group_profit}; applicable rate used {applicable_rate}% (the parent's domestic rate, case data). This profit includes: {foreign_profit} earned by a subsidiary taxed at {foreign_rate}%; a tax loss of {unrecognised_loss} of another subsidiary (same rate as the parent), with no deferred tax asset; non-deductible expenses of {non_deductible}. Compute the consolidated tax expense resulting from the reconciliation.","es":""},"explanation":{"fr":"","en":"Numerical reconciliation (IAS 12, para. 81): expected tax 8,000,000 × 25% = 2,000,000; subsidiary rate differential 2,000,000 × (25% − 15%) = −200,000; unrecognised loss 600,000 × 25% = +150,000; non-deductible expenses 120,000 × 25% = +30,000; expense 1,980,000. Foreign rates, unrecognised losses and non-deductible expenses are factors to be explained (IAS 12, para. 84).","es":""},"common_error":{"fr":"","en":"Deducting the effect of the unrecognised loss instead of adding it.","es":""},"format":"CALCULATION","placeholders":[{"id":"group_profit","value":"8000000","unit":"EUR"},{"id":"applicable_rate","value":"25","unit":"PERCENT"},{"id":"foreign_profit","value":"2000000","unit":"EUR"},{"id":"foreign_rate","value":"15","unit":"PERCENT"},{"id":"unrecognised_loss","value":"600000","unit":"EUR"},{"id":"non_deductible","value":"120000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Consolidated accounting profit","es":""},"value":"8000000","unit":"EUR"},{"label":{"fr":"","en":"Applicable rate (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Foreign subsidiary's profit","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Foreign subsidiary's rate (%)","es":""},"value":"15","unit":"PERCENT"},{"label":{"fr":"","en":"Unrecognised tax loss","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Non-deductible expenses","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"TAX_EXPENSE","label":{"fr":"","en":"Consolidated tax expense","es":""},"answer":1980000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000484","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000055","tested_point":"VG.IAS12.000055","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Silvadore's draft reconciliation shows: expected tax {expected_tax}; effect of non-deductible expenses +{non_deductible_effect}; effect of exempt income −{exempt_income_effect}. The tax expense recognised is {reported_tax_expense}. What difference remains to be explained before the reconciliation is published?","es":""},"explanation":{"fr":"","en":"A complete numerical reconciliation links expected tax to tax expense (IAS 12, para. 81): 900,000 + 40,000 − 25,000 = 915,000, against an expense of 1,010,000; unexplained difference 95,000 (for example unrecognised losses or a prior-year adjustment, to be identified). Teaching assumption: an arithmetic check before publication.","es":""},"common_error":{"fr":"","en":"Publishing a reconciliation whose total does not agree with tax expense.","es":""},"format":"CALCULATION","placeholders":[{"id":"expected_tax","value":"900000","unit":"EUR"},{"id":"non_deductible_effect","value":"40000","unit":"EUR"},{"id":"exempt_income_effect","value":"25000","unit":"EUR"},{"id":"reported_tax_expense","value":"1010000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Expected tax","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Effect of non-deductible expenses","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Effect of exempt income","es":""},"value":"25000","unit":"EUR"},{"label":{"fr":"","en":"Tax expense recognised","es":""},"value":"1010000","unit":"EUR"}],"steps":[{"id":"RESIDUAL","label":{"fr":"","en":"Difference to be explained","es":""},"answer":95000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000485","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000055","tested_point":"VG.IAS12.000055","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":240,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"Review of the Trelmont group's reconciliation: accounting profit {accounting_profit}, applicable rate {applicable_rate}%; research tax credit −{tax_credit}; effect of foreign rates −{rate_differential}; release of excess tax for the prior year −{prior_year_release}. Tax expense recognised: {reported_tax_expense}. Compute the unexplained difference.","es":""},"explanation":{"fr":"","en":"Expected tax (IAS 12, para. 81): 5,000,000 × 30% = 1,500,000; after identified items: 1,500,000 − 60,000 − 110,000 − 15,000 = 1,315,000; difference with the expense of 1,390,000: 75,000, to be identified before publication.","es":""},"common_error":{"fr":"","en":"Adding the reducing items instead of deducting them.","es":""},"format":"CALCULATION","placeholders":[{"id":"accounting_profit","value":"5000000","unit":"EUR"},{"id":"applicable_rate","value":"30","unit":"PERCENT"},{"id":"tax_credit","value":"60000","unit":"EUR"},{"id":"rate_differential","value":"110000","unit":"EUR"},{"id":"prior_year_release","value":"15000","unit":"EUR"},{"id":"reported_tax_expense","value":"1390000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Accounting profit","es":""},"value":"5000000","unit":"EUR"},{"label":{"fr":"","en":"Applicable rate (%)","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Research tax credit","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Effect of foreign rates","es":""},"value":"110000","unit":"EUR"},{"label":{"fr":"","en":"Release of prior-year tax","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Tax expense recognised","es":""},"value":"1390000","unit":"EUR"}],"steps":[{"id":"RESIDUAL","label":{"fr":"","en":"Unexplained difference","es":""},"answer":75000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000486","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000486","tested_point":"QST.IAS12.000486","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81","IAS 12 §84"],"exercise":{"prompt":{"fr":"","en":"Uvrelac's reconciliation (applicable rate 25%, unchanged) includes a line 'accelerated tax depreciation: −80,000', whereas the related deferred tax is recognised at the same rate. Where is the error?","es":""},"explanation":{"fr":"","en":"The reconciliation explains the gap between total tax expense and expected tax (IAS 12, para. 81). A temporary difference reduces current tax but creates deferred tax expense of the same amount at the same rate: total expense is unchanged. The factors to explain are items that durably affect the relationship, such as exempt income or non-deductible expenses (IAS 12, para. 84).","es":""},"common_error":{"fr":"","en":"Including temporary differences as reconciling items of the effective tax rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The temporary difference is not a reconciling item: it is neutralised by deferred tax.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The line should have shown 80,000 as a positive amount.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the sign is not the issue; the line should not exist.","es":""}},{"id":"C","text":{"fr":"","en":"The reconciliation should have covered current tax only.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the reconciliation covers total tax expense.","es":""}},{"id":"D","text":{"fr":"","en":"The line should have been 20,000, i.e. 80,000 × 25%.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no amount should appear for this temporary difference.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000487","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION","IAS12.DEFINITIONS.KEY_TERMS"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000487","tested_point":"QST.IAS12.000487","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000002","section_id":"accounting-vs-taxable-profit"},"references":["IAS 12 §81","IAS 12 §5"],"exercise":{"prompt":{"fr":"","en":"Valquessa (profit before tax 2,000,000, tax expense 500,000, applicable rate 25%) opens its reconciliation with 'expected tax: 1,500,000 × 25% = 375,000' and presents an 'other' item of 125,000. Where is the error?","es":""},"explanation":{"fr":"","en":"Expected tax is accounting profit multiplied by the applicable rate (IAS 12, para. 81), accounting profit being profit before tax expense (IAS 12, para. 5): 2,000,000 × 25% = 500,000. Starting from profit after tax (1,500,000) creates an artificial gap of 125,000 hidden in 'other'.","es":""},"common_error":{"fr":"","en":"Reconciling tax expense with accounting profit after tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The rate: the previous year's effective rate should have been applied.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the reconciliation starts from the applicable rate, not from a prior effective rate.","es":""}},{"id":"B","text":{"fr":"","en":"The 'other' item is allowed and suffices to explain the gap.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the gap comes from a wrong base, not from a real factor.","es":""}},{"id":"C","text":{"fr":"","en":"The base: expected tax should have been computed on profit before tax, i.e. 500,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The calculation: 1,500,000 × 25% gives 400,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the multiplication is right; the base is wrong.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000488","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000488","tested_point":"QST.IAS12.000488","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §84","IAS 12 §81"],"exercise":{"prompt":{"fr":"","en":"The Wenlandor group's 20X5 reconciliation (expected tax 3,000,000, expense 4,100,000) includes: non-deductible expenses +150,000; exempt income −50,000; current-year losses of subsidiaries with no deferred tax asset +1,000,000. Management expects these subsidiaries to remain loss-making for two years. Which explanation should the note highlight?","es":""},"explanation":{"fr":"","en":"The reconciliation (IAS 12, para. 81) must enable users to understand whether the relationship is unusual and which significant factors could affect it in the future, such as tax losses (IAS 12, para. 84). The unrecognised losses (1,000,000 of a 1,100,000 gap) are the main factor and, according to management's forecast (case data), are expected to persist.","es":""},"common_error":{"fr":"","en":"Presenting a reconciliation without bringing out the dominant factor.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The non-deductible expenses, the most frequent item in reconciliations.","es":""},"correct":false,"feedback":{"fr":"","en":"No: 150,000 is only a small part of the gap.","es":""}},{"id":"B","text":{"fr":"","en":"No explanation: the gap simply results from the arithmetic of the applicable rate.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the gap has an identifiable cause that must be explained.","es":""}},{"id":"C","text":{"fr":"","en":"The exempt income, which reduces the expense.","es":""},"correct":false,"feedback":{"fr":"","en":"No: it reduces the expense and cannot explain its increase.","es":""}},{"id":"D","text":{"fr":"","en":"The subsidiaries' unrecognised losses, the main factor and one likely to persist.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000489","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000489","tested_point":"QST.IAS12.000489","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81","IAS 12 §85"],"exercise":{"prompt":{"fr":"","en":"Yspala, headquartered in country H, uses an applicable rate of 27%: 22% national income tax plus 5% local tax levied on a comparable taxable profit (case data). What must its note contain?","es":""},"explanation":{"fr":"","en":"The entity uses the applicable rate that provides the most meaningful information, often the domestic rate of the country of domicile, aggregating national tax and local taxes computed on a substantially similar level of taxable profit (IAS 12, para. 85). It discloses the basis on which the applicable rate is computed (IAS 12, para. 81): here 22% + 5% = 27%. The choice remains a judgement to be reasoned.","es":""},"common_error":{"fr":"","en":"Omitting the basis of the applicable rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only the rate of 27%, its composition being internal information.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the basis of the applicable rate must be disclosed.","es":""}},{"id":"B","text":{"fr":"","en":"The rate of 27% and its basis of computation (national and local taxes aggregated).","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only the national rate of 22%, local tax being excluded in principle from any reconciliation.","es":""},"correct":false,"feedback":{"fr":"","en":"No: aggregating local taxes levied on a comparable profit is contemplated by the standard.","es":""}},{"id":"D","text":{"fr":"","en":"The year's effective rate, which replaces the applicable rate.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the effective rate is reconciled to the applicable rate; it does not replace it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000490","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000490","tested_point":"QST.IAS12.000490","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §85"],"exercise":{"prompt":{"fr":"","en":"On what criterion does the entity choose the applicable rate for its reconciliation?","es":""},"explanation":{"fr":"","en":"The entity uses the applicable rate that provides the most meaningful information to users; it is often the domestic rate of the country of domicile, aggregating national tax and local taxes computed on a substantially similar level of taxable profit (IAS 12, para. 85).","es":""},"common_error":{"fr":"","en":"Choosing the applicable rate to minimise the gaps to be explained.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The highest rate in the group, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"No: prudence is not the criterion.","es":""}},{"id":"B","text":{"fr":"","en":"The rate that makes the reconciliation gap smallest.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the rate is not chosen to reduce the gaps.","es":""}},{"id":"C","text":{"fr":"","en":"The rate that provides the most meaningful information, often the domestic rate of the country of domicile.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The previous year's weighted average rate, required for comparability.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no such rate is required.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000491","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000491","tested_point":"QST.IAS12.000491","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81","IAS 12 §84"],"exercise":{"prompt":{"fr":"","en":"Calvidra (accounting profit {accounting_profit}, applicable rate {applicable_rate}%) remeasured its opening deferred tax liability following a rate cut enacted for future years: deferred tax income of {rate_change_effect} (case data). It also has non-deductible expenses of {non_deductible}. Compute the tax expense resulting from the numerical reconciliation.","es":""},"explanation":{"fr":"","en":"Reconciliation (IAS 12, para. 81): expected tax 3,000,000 × 25% = 750,000; effect of the rate cut on deferred taxes −40,000; non-deductible expenses 60,000 × 25% = +15,000; expense 725,000. The effect of the rate change is a factor to be explained to understand the relationship between expense and profit (IAS 12, para. 84).","es":""},"common_error":{"fr":"","en":"Multiplying the effect of the rate change by the applicable rate.","es":""},"format":"CALCULATION","placeholders":[{"id":"accounting_profit","value":"3000000","unit":"EUR"},{"id":"applicable_rate","value":"25","unit":"PERCENT"},{"id":"rate_change_effect","value":"40000","unit":"EUR"},{"id":"non_deductible","value":"60000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Accounting profit","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Applicable rate (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Income from the rate cut","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Non-deductible expenses","es":""},"value":"60000","unit":"EUR"}],"steps":[{"id":"TAX_EXPENSE","label":{"fr":"","en":"Tax expense","es":""},"answer":725000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000492","standard_id":"IAS12","concept_ids":["IAS12.DISCLOSURE.RATE_RECONCILIATION"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000492","tested_point":"QST.IAS12.000492","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000021","section_id":"reconciliation-rule"},"references":["IAS 12 §81","IAS 12 §85"],"exercise":{"prompt":{"fr":"","en":"After moving its headquarters from country R (rate 30%) to country S (rate 25%) in 20X5, the Dorvenne group now uses 25% as the applicable rate in its reconciliation, against 30% in 20X4. What does it disclose?","es":""},"explanation":{"fr":"","en":"The applicable rate is the one that provides the most meaningful information, often the domestic rate of the country of domicile (IAS 12, para. 85). The entity discloses the basis on which the applicable rate is computed and explains changes in the applicable rate(s) compared with the previous period (IAS 12, para. 81): here, the change in the country of domicile.","es":""},"common_error":{"fr":"","en":"Omitting the basis of the applicable rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: the choice of applicable rate is for management alone.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the basis of the rate and its change must be explained.","es":""}},{"id":"B","text":{"fr":"","en":"Only the new rate of 25%, the previous rate no longer being of interest.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the change compared with the previous period must be explained.","es":""}},{"id":"C","text":{"fr":"","en":"The basis of the 25% rate and the explanation of the move from 30% to 25% (relocation of the headquarters).","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A restatement of the 20X4 reconciliation at 25%, with no other explanation.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the standard requires the change to be explained, not hidden.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000493","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000493","tested_point":"QST.IAS12.000493","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §3"],"exercise":{"prompt":{"fr":"","en":"An uncertain tax treatment is a tax treatment for which there is uncertainty over whether the relevant taxation authority will accept it under tax law.","es":""},"explanation":{"fr":"","en":"IFRIC 23 defines an uncertain tax treatment as one for which there is uncertainty over whether the relevant taxation authority will accept it; tax treatments are those an entity uses or plans to use in its income tax filings (IFRIC 23, para. 3).","es":""},"common_error":{"fr":"","en":"Limiting the notion to treatments already challenged by the authority.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000494","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000494","tested_point":"QST.IAS12.000494","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §3"],"exercise":{"prompt":{"fr":"","en":"Within the meaning of IFRIC 23, a court ruling on whether a tax treatment is acceptable is never a taxation authority.","es":""},"explanation":{"fr":"","en":"The taxation authority means the body or bodies that decide whether tax treatments are acceptable under the law, including a court (IFRIC 23, para. 3).","es":""},"common_error":{"fr":"","en":"Limiting the taxation authority to the tax office alone.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000495","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000495","tested_point":"QST.IAS12.000495","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23"],"exercise":{"prompt":{"fr":"","en":"Arquevin may take into account the fact that the taxation authority in its country audits on average only one return in twenty when assessing the effect of an uncertain tax treatment.","es":""},"explanation":{"fr":"","en":"The entity assumes that the authority will examine amounts it has a right to examine and will have full knowledge of all related information: detection risk is not taken into account (IFRIC 23, para. 8).","es":""},"common_error":{"fr":"","en":"Taking into account the risk of non-detection by the taxation authority.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000496","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000496","tested_point":"QST.IAS12.000496","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23"],"exercise":{"prompt":{"fr":"","en":"Where there is an uncertain tax treatment, the entity recognises and measures its current or deferred tax applying IAS 12, on the basis of the amounts determined under IFRIC 23.","es":""},"explanation":{"fr":"","en":"IFRIC 23 clarifies how to apply the recognition and measurement requirements of IAS 12 when there is uncertainty: current or deferred tax is recognised and measured under IAS 12, based on the amounts determined under the interpretation (IFRIC 23, para. 4). It is not a separate provision.","es":""},"common_error":{"fr":"","en":"Treating a tax uncertainty as an IAS 37 provision.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000497","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000497","tested_point":"QST.IAS12.000497","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §9","IFRIC 23 §10"],"exercise":{"prompt":{"fr":"","en":"If the entity concludes that it is probable that the authority will accept an uncertain tax treatment, it determines its taxable profit, tax bases and tax rates consistently with the treatment used or planned in its tax filings.","es":""},"explanation":{"fr":"","en":"When acceptance is probable, the entity determines taxable profit (tax loss), tax bases, unused tax losses and credits and tax rates consistently with the treatment used or planned to be used in its income tax filings (IFRIC 23, para. 10).","es":""},"common_error":{"fr":"","en":"Recognising an additional tax liability although acceptance is judged probable.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000498","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000498","tested_point":"QST.IAS12.000498","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §5"],"exercise":{"prompt":{"fr":"","en":"Which of these questions is among those addressed by IFRIC 23?","es":""},"explanation":{"fr":"","en":"The interpretation addresses four issues: whether uncertain tax treatments are considered separately; the assumptions about examination by the authority; the determination of taxable profit, tax bases, unused tax losses and credits and tax rates; and the consideration of changes in facts and circumstances (IFRIC 23, para. 5).","es":""},"common_error":{"fr":"","en":"Extending IFRIC 23 to topics it does not address.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The discount rate to apply to current tax liabilities expected to be settled in the long term.","es":""},"correct":false,"feedback":{"fr":"","en":"No: this topic is not among the interpretation's four issues.","es":""}},{"id":"B","text":{"fr":"","en":"Whether to consider each uncertain tax treatment separately or together with others.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The recognition of levies not based on profit.","es":""},"correct":false,"feedback":{"fr":"","en":"No: such levies are not income taxes.","es":""}},{"id":"D","text":{"fr":"","en":"The presentation of late-payment interest in the statement of cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"No: this topic is not among the four issues.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000499","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000499","tested_point":"QST.IAS12.000499","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §3"],"exercise":{"prompt":{"fr":"","en":"What do 'tax treatments' cover within the meaning of IFRIC 23?","es":""},"explanation":{"fr":"","en":"Tax treatments are the treatments used or planned to be used by an entity in its income tax filings (IFRIC 23, para. 3): a position planned for a return not yet filed is therefore also covered.","es":""},"common_error":{"fr":"","en":"Waiting until the return is filed before analysing an uncertain treatment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only treatments already challenged by the taxation authority.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no challenge is required.","es":""}},{"id":"B","text":{"fr":"","en":"Only treatments shown in returns already filed.","es":""},"correct":false,"feedback":{"fr":"","en":"No: treatments planned for a future return are also covered.","es":""}},{"id":"C","text":{"fr":"","en":"The accounting policies used for current and deferred tax expense in the financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"No: these are tax treatments, not accounting policies.","es":""}},{"id":"D","text":{"fr":"","en":"The treatments used or that the entity plans to use in its income tax filings.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000500","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000500","tested_point":"QST.IAS12.000500","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §6"],"exercise":{"prompt":{"fr":"","en":"On what criterion does the entity decide whether to consider an uncertain tax treatment separately or together with others?","es":""},"explanation":{"fr":"","en":"The entity follows the approach that better predicts the resolution of the uncertainty, considering for example how it prepares and supports its tax filings or how the authority is expected to conduct its examination (IFRIC 23, para. 6).","es":""},"common_error":{"fr":"","en":"Grouping treatments with no examination link merely to offset positions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The approach that produces the lowest tax liability.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the criterion is not minimising the liability.","es":""}},{"id":"B","text":{"fr":"","en":"The approach that better predicts the resolution of the uncertainty.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Always separately, each treatment being a distinct unit of account.","es":""},"correct":false,"feedback":{"fr":"","en":"No: grouping is possible when it better predicts the resolution.","es":""}},{"id":"D","text":{"fr":"","en":"Always together, all the treatments of a year forming a block.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no automatic grouping by year is provided.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000501","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000501","tested_point":"QST.IAS12.000501","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Belcastor concludes that it is not probable that the authority will accept the deduction of an intragroup restructuring charge. What is the consequence?","es":""},"explanation":{"fr":"","en":"If acceptance is not probable, the entity reflects the effect of the uncertainty in determining the related amounts: taxable profit, tax bases, unused tax losses and credits, tax rates (IFRIC 23, para. 11).","es":""},"common_error":{"fr":"","en":"Waiting for a reassessment before reflecting an uncertainty whose acceptance is not probable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None until the authority issues a reassessment.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the uncertainty is reflected without waiting for a notice.","es":""}},{"id":"B","text":{"fr":"","en":"A note disclosure only, with no effect on the amounts.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the tax amounts are affected.","es":""}},{"id":"C","text":{"fr":"","en":"The effect of the uncertainty is reflected in determining taxable profit and the related amounts.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The restructuring charge is removed from accounting profit.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the recognition of the charge itself is not in question.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000502","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000502","tested_point":"QST.IAS12.000502","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23"],"exercise":{"prompt":{"fr":"","en":"What assumptions does the entity make about the examination of its tax treatments by the authority?","es":""},"explanation":{"fr":"","en":"The entity assumes that the authority will examine amounts it has a right to examine and will have full knowledge of all related information (IFRIC 23, para. 8); detection risk is ignored.","es":""},"common_error":{"fr":"","en":"Weighting the uncertainty by the probability of an audit.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The authority will have full knowledge of all related information.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The authority will only audit the files with the largest amounts.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the examination covers all amounts the authority has a right to examine.","es":""}},{"id":"C","text":{"fr":"","en":"The authority will examine amounts it has a right to examine.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The probability of an audit is weighted using published statistics.","es":""},"correct":false,"feedback":{"fr":"","en":"No: detection risk is not taken into account.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000503","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000503","tested_point":"QST.IAS12.000503","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §6"],"exercise":{"prompt":{"fr":"","en":"Which factors may the entity consider in deciding the unit of account of a tax uncertainty?","es":""},"explanation":{"fr":"","en":"The approach used is the one that better predicts the resolution; the entity considers, for example, how it prepares and supports its tax filings, or how it expects the authority to conduct its examination (IFRIC 23, para. 6). Offsetting favourable and unfavourable positions or minimising the liability are not criteria.","es":""},"common_error":{"fr":"","en":"Grouping treatments with no examination link merely to offset positions.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"How it prepares and supports its income tax filings.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The possibility of offsetting an unfavourable position against an unrelated favourable one.","es":""},"correct":false,"feedback":{"fr":"","en":"No: grouping to offset does not improve the prediction of the resolution.","es":""}},{"id":"C","text":{"fr":"","en":"How the authority is expected to conduct its examination and resolve issues.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The wish to reduce the tax liability presented.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the liability presented is not a criterion.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000504","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000504","tested_point":"QST.IAS12.000504","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"When acceptance of an uncertain tax treatment is not probable, which amounts may be affected by the effect of the uncertainty?","es":""},"explanation":{"fr":"","en":"The effect of the uncertainty is reflected in determining taxable profit (tax loss), tax bases, unused tax losses and credits and tax rates (IFRIC 23, para. 11). Accounting profit and carrying amounts are not changed.","es":""},"common_error":{"fr":"","en":"Changing carrying amounts to reflect a tax uncertainty.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Taxable profit for the year.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Accounting profit before tax.","es":""},"correct":false,"feedback":{"fr":"","en":"No: a tax uncertainty does not change accounting profit before tax.","es":""}},{"id":"C","text":{"fr":"","en":"The tax base of an asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Unused tax losses.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The carrying amount of non-current assets.","es":""},"correct":false,"feedback":{"fr":"","en":"No: carrying amounts are not affected.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000505","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000056","tested_point":"VG.IAS12.000056","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §6"],"exercise":{"prompt":{"fr":"","en":"The Calvidra group charges its subsidiaries brand royalties, management fees and IT services, all based on the same transfer pricing study. The authority usually examines these flows together, in the light of that study. Which unit of account should be used?","es":""},"explanation":{"fr":"","en":"The unit of account is the one that better predicts the resolution, considering in particular how the authority is expected to conduct its examination (IFRIC 23, para. 6). Flows supported by the same study and examined together are considered together. This choice is a matter of judgement, to be documented.","es":""},"common_error":{"fr":"","en":"Artificially splitting an uncertainty that is examined as a whole.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The three flows together, examined in the light of the same transfer pricing study.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Each invoice separately, to isolate the amounts that might be challenged.","es":""},"correct":false,"feedback":{"fr":"","en":"No: splitting by invoice does not reflect how the examination will proceed.","es":""}},{"id":"C","text":{"fr":"","en":"All the group's tax treatments together, whatever their nature.","es":""},"correct":false,"feedback":{"fr":"","en":"No: grouping unrelated treatments does not better predict the resolution.","es":""}},{"id":"D","text":{"fr":"","en":"No unit of account: transfer prices are not tax treatments.","es":""},"correct":false,"feedback":{"fr":"","en":"No: prices used in tax returns are tax treatments.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000506","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_VG.IAS12.000056","tested_point":"VG.IAS12.000056","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §6"],"exercise":{"prompt":{"fr":"","en":"Dorvenne has two uncertainties: whether a project is eligible for a research tax credit, assessed by a specialised unit on a technical file, and whether compensation paid to a former director is deductible, checked during general audits. The tax director proposes treating them together 'because one should be won and the other lost'. Which unit of account should be used?","es":""},"explanation":{"fr":"","en":"The unit of account is the one that better predicts the resolution (IFRIC 23, para. 6). Two unrelated treatments, examined under different procedures, will be resolved separately: they are considered separately. Grouping to offset a losing position against a winning one does not better predict the resolution.","es":""},"common_error":{"fr":"","en":"Grouping treatments with no examination link merely to offset positions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Together, to reflect the expected offset between the two outcomes.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the hoped-for offset is not a unit-of-account criterion.","es":""}},{"id":"B","text":{"fr":"","en":"Together, as every entity must group its uncertainties for a given year.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no annual grouping is required.","es":""}},{"id":"C","text":{"fr":"","en":"No analysis: a tax credit is outside the scope of IFRIC 23.","es":""},"correct":false,"feedback":{"fr":"","en":"No: eligibility for the credit affects tax credits, amounts covered by the interpretation.","es":""}},{"id":"D","text":{"fr":"","en":"Separately, the two treatments being resolved independently.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000507","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000507","tested_point":"QST.IAS12.000507","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §9","IFRIC 23 §10","IFRIC 23"],"exercise":{"prompt":{"fr":"","en":"Estriva deducted a clean-up provision in 20X5. Two independent tax opinions and settled case law conclude that the deduction will be accepted by a fully informed authority (case data). Which treatment applies in the 20X5 financial statements?","es":""},"explanation":{"fr":"","en":"The assessment assumes examination by an authority with full knowledge of all information (IFRIC 23, para. 8). If acceptance is probable, taxable profit and the other amounts are determined consistently with the treatment used in the tax return (IFRIC 23, para. 10): no additional tax. The probability of acceptance is a judgement based here on the opinions and case law provided.","es":""},"common_error":{"fr":"","en":"Recognising an additional tax liability although acceptance is probable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise the tax related to the deduction out of prudence, as long as no audit has taken place.","es":""},"correct":false,"feedback":{"fr":"","en":"No: acceptance being probable, prudence does not justify an additional liability.","es":""}},{"id":"B","text":{"fr":"","en":"Follow the treatment in the tax return: no additional tax is recognised.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Recognise half of the tax at stake, as case law may change.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no arbitrary weighting is provided when acceptance is probable.","es":""}},{"id":"D","text":{"fr":"","en":"Defer any analysis until the limitation period expires.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the assessment is made at each reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000508","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000508","tested_point":"QST.IAS12.000508","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §11","IFRIC 23"],"exercise":{"prompt":{"fr":"","en":"Falquenne deducted in 20X5 interest paid to a sister company; according to its advisers, it is not probable that a fully informed authority will accept this deduction (case data). How is the uncertainty reflected in the 20X5 financial statements?","es":""},"explanation":{"fr":"","en":"Acceptance not being probable, the effect of the uncertainty is reflected in the taxable profit used (IFRIC 23, para. 11). Current tax is then recognised and measured under IAS 12 on that basis (IFRIC 23, para. 4): it increases, with no separate provision. The amount is measured using the method that better predicts the resolution (measurement concept).","es":""},"common_error":{"fr":"","en":"Treating a tax uncertainty as an IAS 37 provision.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A provision for tax risks under IAS 37, separate from current tax.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the uncertainty is built into current tax under IAS 12, not into a provision.","es":""}},{"id":"B","text":{"fr":"","en":"A mere mention in the note, the return having already been filed.","es":""},"correct":false,"feedback":{"fr":"","en":"No: acceptance not being probable, the amounts are affected.","es":""}},{"id":"C","text":{"fr":"","en":"An increase in current tax, taxable profit reflecting the effect of the uncertainty.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A reduction in accounting profit before tax by the amount of the interest.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the accounting interest expense is not changed.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000509","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000509","tested_point":"QST.IAS12.000509","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Gernasse claims tax amortisation on an acquired brand, whereas a fully informed authority would probably not accept this amortisation (case data). The brand is not amortised for accounting purposes. Which amount does the uncertainty directly affect for deferred tax?","es":""},"explanation":{"fr":"","en":"If acceptance is not probable, the effect of the uncertainty is reflected in determining tax bases (IFRIC 23, para. 11): the tax base of the brand is determined without the challenged amortisation, which changes the temporary difference and the related deferred tax.","es":""},"common_error":{"fr":"","en":"Limiting the effect of an uncertainty to current tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The tax base of the brand, determined without the challenged amortisation.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The carrying amount of the brand, reduced by the tax amortisation claimed.","es":""},"correct":false,"feedback":{"fr":"","en":"No: a tax uncertainty does not change the carrying amount.","es":""}},{"id":"C","text":{"fr":"","en":"None: the uncertainty only concerns current tax.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the interpretation also covers tax bases, hence deferred tax.","es":""}},{"id":"D","text":{"fr":"","en":"The tax rate, increased by a flat-rate penalty.","es":""},"correct":false,"feedback":{"fr":"","en":"No: nothing in the case justifies an increased rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000510","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000510","tested_point":"QST.IAS12.000510","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23"],"exercise":{"prompt":{"fr":"","en":"Hollivane's year-end file states: 'questionable deduction of 400,000; acceptance unlikely if audited, but audit probability only 10%; no additional tax recognised'. Where is the error?","es":""},"explanation":{"fr":"","en":"The entity must assume that the authority will examine amounts it has a right to examine, with full knowledge of the information: detection risk is not taken into account (IFRIC 23, para. 8). The low probability of an audit cannot justify recognising no additional tax.","es":""},"common_error":{"fr":"","en":"Taking into account the risk of non-detection by the taxation authority.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount: the deduction should have been 40,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the amount of the deduction is not in question.","es":""}},{"id":"B","text":{"fr":"","en":"The principle: an uncertainty is only taken into account after a written reassessment notice.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the uncertainty is assessed without waiting for a reassessment.","es":""}},{"id":"C","text":{"fr":"","en":"The assumption: audit probability must not be taken into account; examination is assumed.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The calculation: 10% of the tax at stake should have been recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"No: weighting by audit probability repeats the same error.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000511","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000511","tested_point":"QST.IAS12.000511","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23","IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Isparo, judging acceptance of a deduction unlikely, recognised 180,000 as a 'charge to provisions for risks' (operating expense) and as a 'provision for tax risks' in liabilities. Where is the error?","es":""},"explanation":{"fr":"","en":"An uncertainty over income tax is reflected in the tax amounts (IFRIC 23, para. 11), then recognised and measured under IAS 12 (IFRIC 23, para. 4): current tax expense and current tax liability, not a provision for risks.","es":""},"common_error":{"fr":"","en":"Treating a tax uncertainty as an IAS 37 provision.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount: a provision must always be discounted.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the issue is not discounting but the nature of the liability.","es":""}},{"id":"B","text":{"fr":"","en":"The classification: this is current tax expense and a current tax liability, under IAS 12.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The principle: no uncertainty should be recognised before an actual tax audit.","es":""},"correct":false,"feedback":{"fr":"","en":"No: acceptance not being probable, the effect is recognised.","es":""}},{"id":"D","text":{"fr":"","en":"The calculation: the provision should have been half of 180,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the amount is not in question in the case.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000512","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"ANALYSIS","context":"V1_QST.IAS12.000512","tested_point":"QST.IAS12.000512","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §6"],"exercise":{"prompt":{"fr":"","en":"The Jorvella group presents a single 'net' uncertainty of 50,000, obtained by grouping a 350,000 risk of rejection of transfer prices in country P and a 300,000 refund claim on a tax in country Q, 'to reflect the overall exposure'. Where is the error?","es":""},"explanation":{"fr":"","en":"The unit of account is the one that better predicts the resolution, considering in particular how each authority will conduct its examination (IFRIC 23, para. 6). Two issues in different countries and examinations are resolved separately; grouping them to offset them does not better predict their resolution.","es":""},"common_error":{"fr":"","en":"Grouping treatments with no examination link merely to offset positions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount: the correct net exposure is 650,000.","es":""},"correct":false,"feedback":{"fr":"","en":"No: adding the amounts does not correct the unit-of-account error.","es":""}},{"id":"B","text":{"fr":"","en":"The principle: a group may present only one tax uncertainty per country and per year.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no such rule exists.","es":""}},{"id":"C","text":{"fr":"","en":"The calculation: the average of the two amounts should have been used.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the average makes no sense here.","es":""}},{"id":"D","text":{"fr":"","en":"The grouping: these treatments with no examination link must be considered separately.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000515","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.ASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000515","tested_point":"QST.IAS12.000515","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000022","section_id":"scope-ifric23"},"references":["IFRIC 23 §7","IFRIC 23 §6"],"exercise":{"prompt":{"fr":"","en":"The Mercadine group has decided to consider together three uncertain tax treatments linked to the same reorganisation. How do the provisions of IFRIC 23 referring to 'an uncertain tax treatment' then apply?","es":""},"explanation":{"fr":"","en":"The entity determines whether to consider a treatment separately or together with others (IFRIC 23, para. 6); when it considers them together, any reference to an uncertain tax treatment in the interpretation refers to the group of treatments so considered (IFRIC 23, para. 7): the probability of acceptance and measurement are assessed for the group.","es":""},"common_error":{"fr":"","en":"Grouping treatments and then still assessing them one by one.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They always apply to each treatment taken separately, grouping being only a presentation matter.","es":""},"correct":false,"feedback":{"fr":"","en":"No: grouping defines the unit of account of the analysis.","es":""}},{"id":"B","text":{"fr":"","en":"They apply to the group of treatments considered together.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They apply only to the largest treatment in the group.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no treatment is given priority.","es":""}},{"id":"D","text":{"fr":"","en":"They no longer apply, grouping turning the uncertainty into a provision.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the uncertainty is still dealt with under IAS 12 and IFRIC 23.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000516","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000516","tested_point":"QST.IAS12.000516","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"IFRIC 23 requires the effect of every tax uncertainty to be measured using the expected value.","es":""},"explanation":{"fr":"","en":"The effect of uncertainty is reflected using the method that better predicts its resolution: the most likely amount, suited where outcomes are binary or concentrated on one value, or the expected value, suited where the range is neither binary nor concentrated (IFRIC 23, para. 11). The choice is a matter of judgement.","es":""},"common_error":{"fr":"","en":"Using the expected value for a binary outcome without justification.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000517","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000517","tested_point":"QST.IAS12.000517","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §12"],"exercise":{"prompt":{"fr":"","en":"When the same uncertainty affects current tax and deferred tax, the entity may use one probability of acceptance for current tax and another for deferred tax.","es":""},"explanation":{"fr":"","en":"When an uncertain tax treatment affects both current and deferred tax, the entity makes consistent judgements and estimates for both (IFRIC 23, para. 12).","es":""},"common_error":{"fr":"","en":"Using different assumptions for current and deferred tax affected by the same uncertainty.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000518","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000518","tested_point":"QST.IAS12.000518","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §13"],"exercise":{"prompt":{"fr":"","en":"The entity reassesses a judgement or estimate about an uncertain tax treatment when the facts and circumstances on which it was based change, or as a result of new information that affects it.","es":""},"explanation":{"fr":"","en":"A judgement or estimate is reassessed if the facts and circumstances on which it was based change, or as a result of new information that affects it (IFRIC 23, para. 13).","es":""},"common_error":{"fr":"","en":"Freezing the initial assessment until resolution.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000519","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000519","tested_point":"QST.IAS12.000519","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §14"],"exercise":{"prompt":{"fr":"","en":"The effect of new information about an uncertain tax treatment is recognised retrospectively, restating the year in which the treatment was used.","es":""},"explanation":{"fr":"","en":"The effect of a change in facts and circumstances or of new information is treated as a change in accounting estimate under IAS 8 (IFRIC 23, para. 14): it is recognised prospectively, with no restatement.","es":""},"common_error":{"fr":"","en":"Restating retrospectively the effect of new information instead of treating it as a change in estimate.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000520","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000520","tested_point":"QST.IAS12.000520","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Whether compensation of 2,000,000 is deductible depends on a single legal question: it is either allowed in full or disallowed in full. Which method better predicts the resolution?","es":""},"explanation":{"fr":"","en":"The most likely amount is suited where possible outcomes are binary or concentrated on one value; the expected value where the range is neither binary nor concentrated (IFRIC 23, para. 11). Here there are only two outcomes: by judgement, the most likely amount is the suitable method.","es":""},"common_error":{"fr":"","en":"Using the expected value for a binary outcome without justification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The most likely amount, the outcomes being binary.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The expected value, always more accurate.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the expected value would give an amount matching no possible outcome.","es":""}},{"id":"C","text":{"fr":"","en":"The simple average of the two outcomes, whatever their probability.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no unweighted average is provided.","es":""}},{"id":"D","text":{"fr":"","en":"The highest amount, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"No: prudence is not the criterion.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000521","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000521","tested_point":"QST.IAS12.000521","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §14"],"exercise":{"prompt":{"fr":"","en":"After the reporting date but before authorisation for issue, Norvaline learns new information about an uncertain tax treatment. Which standard determines whether this is an adjusting event?","es":""},"explanation":{"fr":"","en":"The effect of new information is a change in estimate under IAS 8, and IAS 10 determines whether a change occurring after the reporting period is an adjusting or non-adjusting event (IFRIC 23, para. 14).","es":""},"common_error":{"fr":"","en":"Systematically restating the closed year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 37, the matter relating to provisions.","es":""},"correct":false,"feedback":{"fr":"","en":"No: IAS 37 does not govern income tax.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 12 alone, which sets the date of each event.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the interpretation expressly refers to IAS 10.","es":""}},{"id":"C","text":{"fr":"","en":"IAS 10, which determines whether the subsequent event is adjusting or not.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"IAS 8, which always requires restatement.","es":""},"correct":false,"feedback":{"fr":"","en":"No: IAS 8 characterises the effect as a change in estimate, with no restatement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000522","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000522","tested_point":"QST.IAS12.000522","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IAS 12 §88"],"exercise":{"prompt":{"fr":"","en":"Orsavel is in dispute with the taxation authority over a reassessment not yet decided. How do IAS 12 and IAS 37 interact for this dispute?","es":""},"explanation":{"fr":"","en":"The entity discloses, in accordance with IAS 37, tax-related contingent liabilities and contingent assets, such as unresolved disputes; this reference covers disclosure only, recognition falling under IAS 12 (IAS 12, para. 88).","es":""},"common_error":{"fr":"","en":"Recognising an income tax dispute under IAS 37.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 37 governs both recognition and disclosure of the pending tax dispute.","es":""},"correct":false,"feedback":{"fr":"","en":"No: recognition falls under IAS 12.","es":""}},{"id":"B","text":{"fr":"","en":"IAS 12 governs recognition, IAS 37 the disclosures about the tax contingency.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Only IAS 37 applies as long as the dispute is not decided.","es":""},"correct":false,"feedback":{"fr":"","en":"No: recognition remains governed by IAS 12.","es":""}},{"id":"D","text":{"fr":"","en":"No disclosure is given about a pending tax dispute.","es":""},"correct":false,"feedback":{"fr":"","en":"No: an unresolved dispute is the typical tax contingency to be described.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000523","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000523","tested_point":"QST.IAS12.000523","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"In which of these situations is the expected value, prima facie, the method that better predicts the resolution (subject to the entity's judgement)?","es":""},"explanation":{"fr":"","en":"The expected value is suited where the range of possible outcomes is neither binary nor concentrated on one value; the most likely amount where outcomes are binary or concentrated (IFRIC 23, para. 11).","es":""},"common_error":{"fr":"","en":"Using the expected value for a binary outcome without justification.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A deduction either allowed in full or disallowed in full.","es":""},"correct":false,"feedback":{"fr":"","en":"No: binary outcome, most likely amount.","es":""}},{"id":"B","text":{"fr":"","en":"A transfer pricing adjustment that could result in many different amounts, with no dominant value.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A dispute whose outcome is almost certainly a single amount.","es":""},"correct":false,"feedback":{"fr":"","en":"No: concentrated outcome, most likely amount.","es":""}},{"id":"D","text":{"fr":"","en":"A negotiation that could end in a wide range of scattered amounts.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000524","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000057","tested_point":"VG.IAS12.000057","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"For the transfer pricing adjustment that it judges not probably accepted, Pelvanor estimates (case data): no additional tax ({prob_nil}%), {amount_b} ({prob_b}%), {amount_c} ({prob_c}%) or {amount_d} ({prob_d}%). Judging the range scattered, it uses the expected value. Compute the additional tax to recognise.","es":""},"explanation":{"fr":"","en":"For a range neither binary nor concentrated, the expected value, the sum of amounts weighted by their probability, is suited (IFRIC 23, para. 11): 0 × 40% + 200,000 × 30% + 500,000 × 20% + 900,000 × 10% = 250,000. The probabilities are case data; the choice of method is a documented judgement.","es":""},"common_error":{"fr":"","en":"Taking the most likely amount (nil) for a scattered range.","es":""},"format":"CALCULATION","placeholders":[{"id":"prob_nil","value":"40","unit":"PERCENT"},{"id":"amount_b","value":"200000","unit":"EUR"},{"id":"prob_b","value":"30","unit":"PERCENT"},{"id":"amount_c","value":"500000","unit":"EUR"},{"id":"prob_c","value":"20","unit":"PERCENT"},{"id":"amount_d","value":"900000","unit":"EUR"},{"id":"prob_d","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Probability of no additional tax (%)","es":""},"value":"40","unit":"PERCENT"},{"label":{"fr":"","en":"Amount B","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Probability B (%)","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Amount C","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Probability C (%)","es":""},"value":"20","unit":"PERCENT"},{"label":{"fr":"","en":"Amount D","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Probability D (%)","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"UNCERTAIN_TAX","label":{"fr":"","en":"Additional tax","es":""},"answer":250000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000525","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000057","tested_point":"VG.IAS12.000057","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"The Quessaro group is negotiating with two authorities the allocation of its distribution profits. Its advisers expect additional tax of {amount_a} ({prob_a}%), {amount_b} ({prob_b}%), {amount_c} ({prob_c}%) or {amount_d} ({prob_d}%), with no dominant outcome. What amount is recognised if the entity concludes that the expected value better predicts the resolution?","es":""},"explanation":{"fr":"","en":"Expected value (IFRIC 23, para. 11): 50,000 × 25% + 150,000 × 35% + 300,000 × 25% + 600,000 × 15% = 12,500 + 52,500 + 75,000 + 90,000 = 230,000.","es":""},"common_error":{"fr":"","en":"Taking the most likely amount although the entity concluded on the expected value.","es":""},"format":"CALCULATION","placeholders":[{"id":"amount_a","value":"50000","unit":"EUR"},{"id":"prob_a","value":"25","unit":"PERCENT"},{"id":"amount_b","value":"150000","unit":"EUR"},{"id":"prob_b","value":"35","unit":"PERCENT"},{"id":"amount_c","value":"300000","unit":"EUR"},{"id":"prob_c","value":"25","unit":"PERCENT"},{"id":"amount_d","value":"600000","unit":"EUR"},{"id":"prob_d","value":"15","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Amount A","es":""},"value":"50000","unit":"EUR"},{"label":{"fr":"","en":"Probability A (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Amount B","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Probability B (%)","es":""},"value":"35","unit":"PERCENT"},{"label":{"fr":"","en":"Amount C","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Probability C (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Amount D","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Probability D (%)","es":""},"value":"15","unit":"PERCENT"}],"steps":[{"id":"UNCERTAIN_TAX","label":{"fr":"","en":"Additional tax","es":""},"answer":230000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000526","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000058","tested_point":"VG.IAS12.000058","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"Rastelle deducted an expense of {deduction}. The outcome is binary: the deduction is either allowed in full or disallowed in full; the probability of disallowance is {rejection_probability}% (case data). Tax rate: {tax_rate}%. Rastelle concludes that the most likely amount better predicts the resolution. Compute the additional tax to recognise.","es":""},"explanation":{"fr":"","en":"For binary outcomes, the most likely amount is suited (IFRIC 23, para. 11). Disallowance being the most likely outcome (65%), the amount used is the tax if disallowed: 1,600,000 × 25% = 400,000. An expected value (260,000) would match no possible outcome.","es":""},"common_error":{"fr":"","en":"Using the expected value for a binary outcome without justification.","es":""},"format":"CALCULATION","placeholders":[{"id":"deduction","value":"1600000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"},{"id":"rejection_probability","value":"65","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Expense deducted","es":""},"value":"1600000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Probability of disallowance (%)","es":""},"value":"65","unit":"PERCENT"}],"steps":[{"id":"UNCERTAIN_TAX","label":{"fr":"","en":"Additional tax","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"UNCERTAIN_TAX","meaning":{"fr":"","en":"Additional tax","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expense deducted","es":""},"value":1600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":400000,"unit":"EUR"}],"rationale":{"fr":"","en":"For binary outcomes, the most likely amount is suited (IFRIC 23, para. 11).","es":""},"references":["REF.IFRIC23.11"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000527","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"CALCULATION","context":"V1_VG.IAS12.000058","tested_point":"VG.IAS12.000058","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":180,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"For a disputed withholding, Silvadore expects (case data): no tax ({prob_nil}%), {amount_central} ({prob_central}%) or {amount_high} ({prob_high}%). The outcomes being concentrated on one value, it uses the most likely amount. What amount does it recognise?","es":""},"explanation":{"fr":"","en":"Where outcomes are concentrated on one value, the most likely amount is suited (IFRIC 23, para. 11): 270,000, an outcome at 80%. The expected value (246,000) would be possible if the entity judged that it better predicts the resolution; here the judgement made is the most likely amount.","es":""},"common_error":{"fr":"","en":"Taking the highest amount out of prudence.","es":""},"format":"CALCULATION","placeholders":[{"id":"prob_nil","value":"10","unit":"PERCENT"},{"id":"amount_central","value":"270000","unit":"EUR"},{"id":"prob_central","value":"80","unit":"PERCENT"},{"id":"amount_high","value":"300000","unit":"EUR"},{"id":"prob_high","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Probability of no tax (%)","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Central amount","es":""},"value":"270000","unit":"EUR"},{"label":{"fr":"","en":"Probability of the central amount (%)","es":""},"value":"80","unit":"PERCENT"},{"label":{"fr":"","en":"High amount","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Probability of the high amount (%)","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"UNCERTAIN_TAX","label":{"fr":"","en":"Additional tax","es":""},"answer":270000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000528","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"CALCULATION","context":"V1_QST.IAS12.000528","tested_point":"QST.IAS12.000528","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":300,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §12","IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"In 20X5, Trelmont deducted in full the cost of equipment of {asset_cost}; a fully informed authority would probably require tax depreciation over {tax_life} years (acceptance not probable, most likely amount used by judgement). Carrying amount of the equipment at the reporting date: {carrying_amount}; rate {tax_rate}%. Compute the resulting increase in current tax and decrease in the deferred tax liability.","es":""},"explanation":{"fr":"","en":"The effect is reflected in taxable profit and the tax base (IFRIC 23, para. 11), with consistent judgements for current and deferred tax (IFRIC 23, para. 12). Deduction allowed: 800,000 / 4 = 200,000; current tax +(800,000 − 200,000) × 25% = 150,000. Tax base 600,000 instead of 0: deferred tax liability (640,000 − 600,000) × 25% = 10,000 instead of 160,000, i.e. −150,000.","es":""},"common_error":{"fr":"","en":"Using different assumptions for current and deferred tax affected by the same uncertainty.","es":""},"format":"CALCULATION","placeholders":[{"id":"asset_cost","value":"800000","unit":"EUR"},{"id":"tax_life","value":"4","unit":"YEARS"},{"id":"carrying_amount","value":"640000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Cost of the equipment","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Tax depreciation period (years)","es":""},"value":"4","unit":"YEARS"},{"label":{"fr":"","en":"Carrying amount at the reporting date","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (%)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"CURRENT_TAX_INCREASE","label":{"fr":"","en":"Increase in current tax","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"DTL_DECREASE","label":{"fr":"","en":"Decrease in the deferred tax liability","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CURRENT_TAX_INCREASE","meaning":{"fr":"","en":"Increase in current tax","es":""},"expression":"(a - (a / b)) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost of the equipment","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax depreciation period (years)","es":""},"value":4,"unit":"YEARS"},{"symbol":"c","meaning":{"fr":"","en":"Tax rate (%)","es":""},"value":25,"unit":"PERCENT"}],"result":150000,"unit":"EUR"}],"rationale":{"fr":"","en":"The effect is reflected in taxable profit and the tax base (IFRIC 23, para. 11), with consistent judgements for current and deferred tax (IFRIC 23, para. 12).","es":""},"references":["REF.IFRIC23.12","REF.IFRIC23.11"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000532","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000532","tested_point":"QST.IAS12.000532","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §11"],"exercise":{"prompt":{"fr":"","en":"The Yspala group's intragroup royalties are under examination; according to its advisers, the outcome may take about ten values between 0 and 1,200,000, none with a probability above 20%. Which method applies, subject to documenting the judgement?","es":""},"explanation":{"fr":"","en":"The expected value is suited where the range is neither binary nor concentrated on one value; the most likely amount where outcomes are binary or concentrated (IFRIC 23, para. 11). About ten outcomes with no dominant value point to the expected value.","es":""},"common_error":{"fr":"","en":"Using the most likely amount for a scattered range.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The most likely amount, which is easier to explain.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no outcome dominates; the most likely amount would poorly predict the resolution.","es":""}},{"id":"B","text":{"fr":"","en":"The maximum amount, 1,200,000, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"No: prudence is not the criterion.","es":""}},{"id":"C","text":{"fr":"","en":"The expected value, the range being scattered.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No amount until the examination is completed.","es":""},"correct":false,"feedback":{"fr":"","en":"No: acceptance not being probable, the effect is reflected at the reporting date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000533","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000533","tested_point":"QST.IAS12.000533","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §14","IFRIC 23 §13"],"exercise":{"prompt":{"fr":"","en":"Zarnovel's reporting date is 31 December 20X5; the financial statements are to be authorised on 15 March 20X6. On 20 February 20X6, a final decision in Zarnovel's own dispute, concerning its 20X4 return, confirms the authority's position. How should the effect of this information be analysed?","es":""},"explanation":{"fr":"","en":"The new information leads to reassessing the estimate (IFRIC 23, para. 13); its effect is a change in accounting estimate, and IAS 10 determines whether this change occurring after the reporting period is an adjusting event for the 20X5 financial statements (IFRIC 23, para. 14). The IAS 10 analysis (condition existing at the reporting date or not) is a matter of judgement, based on the facts of the case.","es":""},"common_error":{"fr":"","en":"Restating retrospectively the effect of new information instead of treating it as a change in estimate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Restate the 20X4 financial statements, the year of the return in question.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the effect is never dealt with by retrospective restatement.","es":""}},{"id":"B","text":{"fr":"","en":"Apply IAS 10 to determine whether it is an adjusting event for the 20X5 financial statements.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Ignore the information, which is after the reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"No: information after the reporting date may be an adjusting event.","es":""}},{"id":"D","text":{"fr":"","en":"Wait until 20X7 to recognise the effect, after payment.","es":""},"correct":false,"feedback":{"fr":"","en":"No: payment is not the triggering event.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000534","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000534","tested_point":"QST.IAS12.000534","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §A2","IFRIC 23 §13","IFRIC 23 §14"],"exercise":{"prompt":{"fr":"","en":"Arquevin's current tax liability for an uncertain treatment includes 120,000 for 20X1 and 90,000 for 20X2. In 20X5, the authority's right to re-examine 20X1 expires without an audit. Which treatment applies?","es":""},"explanation":{"fr":"","en":"The expiry of the authority's right to examine a tax treatment is an example of a change that may lead to reassessing the judgement (IFRIC 23, para. A2); the reassessment (IFRIC 23, para. 13) concerns 20X1 here: the 120,000 part is released in 20X5, as a change in estimate with no restatement (IFRIC 23, para. 14). The 20X2 part remains open to examination.","es":""},"common_error":{"fr":"","en":"Restating retrospectively the effect of new information instead of treating it as a change in estimate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Release the whole liability (210,000), since the authority audited no year.","es":""},"correct":false,"feedback":{"fr":"","en":"No: only 20X1 can no longer be examined.","es":""}},{"id":"B","text":{"fr":"","en":"Change nothing until all years are time-barred.","es":""},"correct":false,"feedback":{"fr":"","en":"No: each year is reassessed when the facts change.","es":""}},{"id":"C","text":{"fr":"","en":"Release 120,000 in 20X5, as a change in estimate, and keep 90,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Restate the 20X1 financial statements to remove the original liability.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the effect is a change in estimate, with no restatement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000537","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000537","tested_point":"QST.IAS12.000537","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §A3"],"exercise":{"prompt":{"fr":"","en":"Two years after filing its return, Dorvenne has received no reaction from the authority on an uncertain treatment; this silence alone is enough to justify reassessing its judgement.","es":""},"explanation":{"fr":"","en":"The absence of agreement or disagreement by the authority with a tax treatment, in isolation, is unlikely to constitute a change in facts and circumstances or new information (IFRIC 23, para. A3).","es":""},"common_error":{"fr":"","en":"Releasing a liability merely because the authority has not reacted.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000538","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000538","tested_point":"QST.IAS12.000538","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §A2"],"exercise":{"prompt":{"fr":"","en":"Which of these events are examples of changes in facts and circumstances or new information that may, depending on the circumstances, lead to reassessing a judgement about an uncertain tax treatment?","es":""},"explanation":{"fr":"","en":"IFRIC 23 cites in particular: examinations or actions by the authority (agreement or disagreement with the entity's treatment or a similar treatment, information about the amount paid to settle a similar treatment), changes in rules established by the authority, and the expiry of its right to examine or re-examine a treatment (IFRIC 23, para. A2).","es":""},"common_error":{"fr":"","en":"Reassessing on the basis of events unrelated to the acceptance of the treatment.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The authority discloses the amount another company paid to settle a similar treatment.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A change in the entity's auditor.","es":""},"correct":false,"feedback":{"fr":"","en":"No: unrelated to the acceptance of the treatment.","es":""}},{"id":"C","text":{"fr":"","en":"The authority changes its rules on the issue concerned.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The authority's right to re-examine the year concerned expires.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The entity's share price falls sharply.","es":""},"correct":false,"feedback":{"fr":"","en":"No: unrelated to the acceptance of the tax treatment.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000539","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000539","tested_point":"QST.IAS12.000539","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §A1","IFRIC 23 §13"],"exercise":{"prompt":{"fr":"","en":"The supreme court of country X rejects, for another company, the deductibility of royalties similar to those the Estriva group deducts in country X. Estriva also deducts royalties in country Y, governed by different tax law and not covered by the decision. Which reassessment applies?","es":""},"explanation":{"fr":"","en":"The entity assesses the relevance and effect of a change or new information in the context of applicable tax law; the same event may lead to reassessing the judgement about one treatment without affecting another treatment governed by different tax law (IFRIC 23, para. A1), under the reassessment principle (IFRIC 23, para. 13).","es":""},"common_error":{"fr":"","en":"Mechanically extending a decision to treatments governed by other law.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reassess both treatments in the same way, the decision concerning royalties.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the effect is assessed against the law applicable to each treatment.","es":""}},{"id":"B","text":{"fr":"","en":"Reassess the treatment in country X; that in country Y is not affected if governed by different law.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Reassess nothing, the decision concerning another company.","es":""},"correct":false,"feedback":{"fr":"","en":"No: a decision on a similar treatment may be new information.","es":""}},{"id":"D","text":{"fr":"","en":"Reassess only the treatment in country Y, to diversify the risk.","es":""},"correct":false,"feedback":{"fr":"","en":"No: it is the treatment in country X that is concerned.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000540","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000540","tested_point":"QST.IAS12.000540","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §A5","IAS 12 §88"],"exercise":{"prompt":{"fr":"","en":"Falquenne concludes that it is probable that the authority will accept an uncertain tax treatment; no adjustment is therefore recognised. What must it still consider?","es":""},"explanation":{"fr":"","en":"When acceptance is probable, the entity determines whether to disclose the potential effect of the uncertainty as a tax-related contingency (IFRIC 23, para. A5), applying the requirements on tax contingencies, which refer to IAS 37 for disclosure (IAS 12, para. 88).","es":""},"common_error":{"fr":"","en":"Failing to consider disclosure of a tax contingency.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing: probable acceptance ends any analysis.","es":""},"correct":false,"feedback":{"fr":"","en":"No: disclosure of the contingency still has to be considered.","es":""}},{"id":"B","text":{"fr":"","en":"Recognising an IAS 37 provision for half of the tax at stake.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no provision is recognised.","es":""}},{"id":"C","text":{"fr":"","en":"Whether to disclose the potential effect of the uncertainty as a tax-related contingency.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Restating the year in which the treatment was used.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no restatement is involved.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000541","standard_id":"IAS12","concept_ids":["IAS12.UNCERTAINTY.MEASUREMENT_AND_CHANGES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000541","tested_point":"QST.IAS12.000541","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000023","section_id":"two-methods"},"references":["IFRIC 23 §A4","IFRIC 23 §A5"],"exercise":{"prompt":{"fr":"","en":"Where there are uncertain tax treatments, which disclosures must the entity consider providing, under the general requirements and the reference to tax contingencies?","es":""},"explanation":{"fr":"","en":"The entity determines whether to disclose the judgements made in determining taxable profit, tax bases, losses and credits and rates, and the assumptions and estimates used (IFRIC 23, para. A4); where acceptance is probable, it considers disclosing the potential effect as a tax-related contingency (IFRIC 23, para. A5). Neither a list of future audits nor the negotiation strategy is covered.","es":""},"common_error":{"fr":"","en":"Believing that an uncertainty probably accepted never requires disclosure.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The judgements made in determining taxable profit and tax bases.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The list of tax audits the entity expects over the next five years.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no disclosure of this kind is covered.","es":""}},{"id":"C","text":{"fr":"","en":"The assumptions and estimates used in determining the tax amounts.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The potential effect of an uncertainty whose acceptance is probable, as a tax-related contingency.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The negotiation strategy planned with the authority.","es":""},"correct":false,"feedback":{"fr":"","en":"No: this is not a covered disclosure.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000542","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000542","tested_point":"QST.IAS12.000542","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"IAS 12 applies to income taxes arising from tax law enacted or substantively enacted to implement the OECD Pillar Two model rules, including qualified domestic minimum top-up taxes.","es":""},"explanation":{"fr":"","en":"The standard applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the OECD, including qualified domestic minimum top-up taxes (IAS 12, para. 4A).","es":""},"common_error":{"fr":"","en":"Treating Pillar Two top-up tax as a levy outside the scope of IAS 12.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000543","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000543","tested_point":"QST.IAS12.000543","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"The Gernasse group must recognise a deferred tax liability for the Pillar Two top-up tax it expects to pay on the future profits of a low-taxed subsidiary.","es":""},"explanation":{"fr":"","en":"As an exception, the entity neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes (IAS 12, para. 4A).","es":""},"common_error":{"fr":"","en":"Recognising deferred tax for Pillar Two top-up tax.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000544","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000544","tested_point":"QST.IAS12.000544","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §88A"],"exercise":{"prompt":{"fr":"","en":"The entity discloses in its notes that it has applied the exception to recognising and disclosing information about deferred taxes related to Pillar Two.","es":""},"explanation":{"fr":"","en":"The entity discloses that it has applied the exception relating to deferred tax assets and liabilities related to Pillar Two income taxes (IAS 12, para. 88A).","es":""},"common_error":{"fr":"","en":"Applying the exception without saying so.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000545","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000545","tested_point":"QST.IAS12.000545","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §88C"],"exercise":{"prompt":{"fr":"","en":"In a period in which Pillar Two legislation is enacted but not yet in effect, the entity discloses known or reasonably estimable information that helps users understand its exposure to those taxes.","es":""},"explanation":{"fr":"","en":"In periods in which the legislation is enacted or substantively enacted but not yet in effect, the entity discloses known or reasonably estimable information that helps users understand its exposure to Pillar Two income taxes (IAS 12, para. 88C).","es":""},"common_error":{"fr":"","en":"Disclosing nothing as long as the legislation is not in effect.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000546","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000546","tested_point":"QST.IAS12.000546","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §88D"],"exercise":{"prompt":{"fr":"","en":"Information about Pillar Two exposure before the effective date must reflect all the specific requirements of the legislation and cannot take the form of a range.","es":""},"explanation":{"fr":"","en":"The qualitative and quantitative information about exposure at the reporting date need not reflect all the specific requirements of the legislation and may be provided as an indicative range (IAS 12, para. 88D).","es":""},"common_error":{"fr":"","en":"Giving up any disclosure for lack of a full computation under the legislation.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000547","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000547","tested_point":"QST.IAS12.000547","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §88B","IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"Where and how does the Hollivane group present the Pillar Two top-up tax due for the year?","es":""},"explanation":{"fr":"","en":"Pillar Two tax is an income tax (IAS 12, para. 4A); the entity discloses separately its current tax expense (income) related to Pillar Two income taxes (IAS 12, para. 88B).","es":""},"common_error":{"fr":"","en":"Not disclosing separately the current tax related to Pillar Two.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As current tax, with separate disclosure of the expense related to Pillar Two.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In operating expenses, as a business levy.","es":""},"correct":false,"feedback":{"fr":"","en":"No: it is an income tax.","es":""}},{"id":"C","text":{"fr":"","en":"As deferred tax, the base being future profits.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the exception prohibits deferred tax related to Pillar Two.","es":""}},{"id":"D","text":{"fr":"","en":"Directly in equity, the tax being due by the group's parent.","es":""},"correct":false,"feedback":{"fr":"","en":"No: nothing justifies recognition in equity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000548","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000548","tested_point":"QST.IAS12.000548","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"What is the scope of the exception provided by IAS 12 for Pillar Two income taxes?","es":""},"explanation":{"fr":"","en":"As an exception, the entity neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes (IAS 12, para. 4A); current tax remains recognised.","es":""},"common_error":{"fr":"","en":"Recognising deferred tax for Pillar Two top-up tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It exempts from recognising any tax related to Pillar Two, including current tax.","es":""},"correct":false,"feedback":{"fr":"","en":"No: Pillar Two current tax is recognised.","es":""}},{"id":"B","text":{"fr":"","en":"It allows the entity to choose whether or not to recognise deferred tax related to Pillar Two.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the exception is mandatory.","es":""}},{"id":"C","text":{"fr":"","en":"It prohibits recognising deferred taxes related to Pillar Two and disclosing information about them.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It covers only deferred tax assets, liabilities remaining recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the exception covers both assets and liabilities.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000549","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000549","tested_point":"QST.IAS12.000549","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §88D"],"exercise":{"prompt":{"fr":"","en":"The Isparo group, affected by Pillar Two legislation enacted but not yet in effect, has no known or reasonably estimable information about its exposure at the reporting date. What does it do?","es":""},"explanation":{"fr":"","en":"If information is not known or reasonably estimable, the entity discloses a statement to that effect and information about its progress in assessing its exposure (IAS 12, para. 88D).","es":""},"common_error":{"fr":"","en":"Remaining silent for lack of an available estimate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It says nothing, for lack of a figure.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the absence of information must be stated.","es":""}},{"id":"B","text":{"fr":"","en":"It states this fact and discloses its progress in assessing the exposure.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It publishes a flat-rate estimate equal to 15% of its profit.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no flat-rate estimate is provided.","es":""}},{"id":"D","text":{"fr":"","en":"It recognises a prudent deferred tax liability pending the assessment.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the exception prohibits deferred tax related to Pillar Two.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000550","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000550","tested_point":"QST.IAS12.000550","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §88A","IAS 12 §88B","IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"The Jorvella group is subject in 20X5 to Pillar Two legislation in effect. Which of these disclosures does it provide?","es":""},"explanation":{"fr":"","en":"The entity discloses that it has applied the exception relating to deferred tax (IAS 12, para. 88A) and separately discloses its current tax expense related to Pillar Two (IAS 12, para. 88B). It discloses no information about deferred taxes related to Pillar Two, which are the subject of the exception (IAS 12, para. 4A).","es":""},"common_error":{"fr":"","en":"Not disclosing separately the current tax related to Pillar Two.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount of deferred tax liabilities that would be recognised without the exception.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the exception also prohibits disclosure about these deferred taxes.","es":""}},{"id":"B","text":{"fr":"","en":"The fact that it has applied the exception relating to deferred taxes related to Pillar Two.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The current tax expense related to Pillar Two, disclosed separately.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A schedule of deferred tax assets related to Pillar Two.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no information is given about these deferred taxes.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000551","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS12.000551","tested_point":"QST.IAS12.000551","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":70,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §88C","IAS 12 §88D"],"exercise":{"prompt":{"fr":"","en":"Before the effective date of enacted Pillar Two legislation, what forms may the information about the Kervadin group's exposure take?","es":""},"explanation":{"fr":"","en":"The objective is to help users understand the exposure (IAS 12, para. 88C); the entity provides qualitative and quantitative information at the reporting date, which need not reflect all the requirements of the legislation and may be provided as an indicative range (IAS 12, para. 88D).","es":""},"common_error":{"fr":"","en":"Requiring a full computation before any disclosure.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A qualitative description of the jurisdictions in which exposure may arise.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The amount of the Pillar Two deferred tax liability that would be recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"No: deferred tax related to Pillar Two is neither recognised nor described.","es":""}},{"id":"C","text":{"fr":"","en":"An indicative range of the impact on tax expense.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Simplified quantitative information not reflecting all the requirements of the legislation.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000554","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000554","tested_point":"QST.IAS12.000554","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §88C","IAS 12 §88D"],"exercise":{"prompt":{"fr":"","en":"At 31 December 20X5, the Pillar Two legislation of the country of Orsavel, the parent, is enacted and will take effect on 1 January 20X6. Preliminary analyses (case data) indicate that one subsidiary would be low-taxed, with top-up tax estimated at between 0.8 and 1.2 million. What does Orsavel do in its 20X5 financial statements?","es":""},"explanation":{"fr":"","en":"In the period in which the legislation is enacted but not in effect, the entity discloses known or reasonably estimable information about its exposure (IAS 12, para. 88C), qualitative and quantitative, possibly as an indicative range (IAS 12, para. 88D). No current tax is due for 20X5 according to the case data, and no deferred tax is recognised.","es":""},"common_error":{"fr":"","en":"Recognising the future top-up tax in advance.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise a deferred tax liability of 1 million, the mid-point of the range.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the exception prohibits deferred tax related to Pillar Two.","es":""}},{"id":"B","text":{"fr":"","en":"Recognise current tax of 1.2 million out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"No: no tax is due for 20X5.","es":""}},{"id":"C","text":{"fr":"","en":"Describe its exposure (subsidiary concerned) and disclose the indicative range of 0.8 to 1.2 million.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Disclose nothing before the effective date.","es":""},"correct":false,"feedback":{"fr":"","en":"No: disclosure of the exposure is required from enactment.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000555","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000555","tested_point":"QST.IAS12.000555","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §88A","IAS 12 §88B","IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"In 20X6, the first year of application of Pillar Two legislation, the Pruvenza group owes top-up tax of 210,000 (case data); its teams also flag differences between carrying amounts and the bases used by the Pillar Two rules, which would produce future top-up tax. Which treatment applies?","es":""},"explanation":{"fr":"","en":"The year's top-up tax is Pillar Two current tax, disclosed separately (IAS 12, para. 88B). No deferred tax is recognised or disclosed for Pillar Two (IAS 12, para. 4A), and the entity discloses that it has applied the exception (IAS 12, para. 88A).","es":""},"common_error":{"fr":"","en":"Recognising deferred tax for Pillar Two top-up tax.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Current tax of 210,000 disclosed separately, no Pillar Two deferred tax, disclosure of the exception.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Current tax of 210,000 and deferred tax on the differences flagged.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the exception prohibits deferred tax related to Pillar Two.","es":""}},{"id":"C","text":{"fr":"","en":"Current tax of 210,000 merged into total current tax expense, with no other mention.","es":""},"correct":false,"feedback":{"fr":"","en":"No: current tax related to Pillar Two is disclosed separately.","es":""}},{"id":"D","text":{"fr":"","en":"No recognition in 20X6, the tax being payable in 20X7.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the year's tax is recognised whatever the payment date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS12.000556","standard_id":"IAS12","concept_ids":["IAS12.PILLAR_TWO.EXCEPTION_AND_DISCLOSURE"],"dimension":"APPLICATION","context":"V1_QST.IAS12.000556","tested_point":"QST.IAS12.000556","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IAS12","lesson_id":"LS.IAS12.000024","section_id":"exception"},"references":["IAS 12 §4A"],"exercise":{"prompt":{"fr":"","en":"The country of the subsidiary Quorvane has adopted a qualified domestic minimum top-up tax implementing the Pillar Two rules. The finance director proposes treating it as a levy outside IAS 12, on the grounds that it is computed under its own rules. What is the right view?","es":""},"explanation":{"fr":"","en":"IAS 12 applies to income taxes arising from legislation implementing the Pillar Two rules, including qualified domestic minimum top-up taxes (IAS 12, para. 4A). Being computed under specific rules does not take them out of scope.","es":""},"common_error":{"fr":"","en":"Treating Pillar Two top-up tax as a levy outside the scope of IAS 12.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The proposal is sound: computation under specific rules excludes the tax from IAS 12.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the standard expressly covers these taxes.","es":""}},{"id":"B","text":{"fr":"","en":"The tax falls under IAS 12, qualified domestic minimum top-up taxes being expressly covered.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The tax falls under IAS 37, as an obligation arising from legislation.","es":""},"correct":false,"feedback":{"fr":"","en":"No: it is an income tax.","es":""}},{"id":"D","text":{"fr":"","en":"The treatment depends solely on the amount of the top-up tax.","es":""},"correct":false,"feedback":{"fr":"","en":"No: the amount is not a scope criterion.","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IAS12.000001":"Objective and scope: what an income tax is — The objective of the standard","LX.IAS12.000002":"Objective and scope: what an income tax is — The objective of the standard","LX.IAS12.000003":"Objective and scope: what an income tax is — The objective of the standard","LX.IAS12.000004":"Objective and scope: what an income tax is — What is an income tax?","LX.IAS12.000005":"Objective and scope: what an income tax is — What is an income tax?","LX.IAS12.000006":"Objective and scope: what an income tax is — Government grants and investment tax credits: a boundary","LX.IAS12.000007":"Objective and scope: what an income tax is — Government grants and investment tax credits: a boundary","LX.IAS12.000008":"Objective and scope: what an income tax is — Pillar Two taxes: in scope, with an exception","LX.IAS12.000009":"Objective and scope: what an income tax is — Common mistakes","LX.IAS12.000010":"Objective and scope: what an income tax is — Judgement: hybrid levies","LX.IAS12.000011":"Objective and scope: what an income tax is — Method: should IAS 12 be applied?","LX.IAS12.000012":"Objective and scope: what an income tax is — Method: should IAS 12 be applied?","LX.IAS12.000013":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","LX.IAS12.000014":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Current tax, deferred tax, tax expense","LX.IAS12.000015":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Numeric example: Talvessa's tax expense for N","LX.IAS12.000016":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Numeric example: Talvessa's tax expense for N","LX.IAS12.000017":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Definitive gap or temporary difference?","LX.IAS12.000018":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Temporary differences, deferred tax assets and liabilities","LX.IAS12.000019":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Talvessa's closing entries","LX.IAS12.000020":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Common mistakes","LX.IAS12.000021":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","LX.IAS12.000022":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Why add current tax and deferred tax together?","LX.IAS12.000023":"The tax base of assets and liabilities — The tax base of an asset","LX.IAS12.000024":"The tax base of assets and liabilities — The tax base of an asset","LX.IAS12.000025":"The tax base of assets and liabilities — The tax base of a liability","LX.IAS12.000026":"The tax base of assets and liabilities — The tax base of a liability","LX.IAS12.000027":"The tax base of assets and liabilities — A tax base with no carrying amount","LX.IAS12.000028":"The tax base of assets and liabilities — Method: determining a tax base","LX.IAS12.000029":"The tax base of assets and liabilities — The tax base of a liability","LX.IAS12.000030":"The tax base of assets and liabilities — Common mistakes","LX.IAS12.000031":"The tax base of assets and liabilities — On consolidation: which tax return?","LX.IAS12.000032":"The tax base of assets and liabilities — On consolidation: which tax return?","LX.IAS12.000033":"The tax base of assets and liabilities — When the tax base is not obvious: go back to the principle","LX.IAS12.000034":"The tax base of assets and liabilities — Method: determining a tax base","LX.IAS12.000035":"The tax base of assets and liabilities — Method: determining a tax base","LX.IAS12.000036":"The tax base of assets and liabilities — Judgement in determining tax bases","LX.IAS12.000037":"Current tax: liability, instalments and loss carry-back — Numeric example: Talvessa's current tax and Quentora's carry-back","LX.IAS12.000038":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","LX.IAS12.000039":"Current tax: liability, instalments and loss carry-back — The entries","LX.IAS12.000040":"Current tax: liability, instalments and loss carry-back — Carrying back tax losses","LX.IAS12.000041":"Current tax: liability, instalments and loss carry-back — Carrying back tax losses","LX.IAS12.000042":"Current tax: liability, instalments and loss carry-back — Measuring current tax: amount expected, enacted or substantively enacted rates","LX.IAS12.000043":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","LX.IAS12.000044":"Current tax: liability, instalments and loss carry-back — Carrying back tax losses","LX.IAS12.000045":"Current tax: liability, instalments and loss carry-back — Common mistakes","LX.IAS12.000046":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","LX.IAS12.000047":"Current tax: liability, instalments and loss carry-back — Method: from the tax return to the current tax balance","LX.IAS12.000048":"Current tax: liability, instalments and loss carry-back — Numeric example: Talvessa's current tax and Quentora's carry-back","LX.IAS12.000049":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","LX.IAS12.000050":"Current tax: liability, instalments and loss carry-back — Judgement in current tax","LX.IAS12.000051":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","LX.IAS12.000052":"Taxable temporary differences and deferred tax liabilities — Classic sources: a timing gap between accounting and taxable profit","LX.IAS12.000053":"Taxable temporary differences and deferred tax liabilities — Numeric example: the full life of the liability on Talvessa's machine","LX.IAS12.000054":"Taxable temporary differences and deferred tax liabilities — Numeric example: the full life of the liability on Talvessa's machine","LX.IAS12.000055":"Taxable temporary differences and deferred tax liabilities — The entries: origination and reversal of the liability","LX.IAS12.000056":"Taxable temporary differences and deferred tax liabilities — The entries: origination and reversal of the liability","LX.IAS12.000057":"Taxable temporary differences and deferred tax liabilities — Other sources: revaluations, business combinations, exchange","LX.IAS12.000058":"Taxable temporary differences and deferred tax liabilities — Method: from the statement of financial position to the deferred tax liability","LX.IAS12.000059":"Taxable temporary differences and deferred tax liabilities — Other sources: revaluations, business combinations, exchange","LX.IAS12.000060":"Taxable temporary differences and deferred tax liabilities — Other sources: revaluations, business combinations, exchange","LX.IAS12.000061":"Taxable temporary differences and deferred tax liabilities — Common mistakes","LX.IAS12.000062":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","LX.IAS12.000063":"Taxable temporary differences and deferred tax liabilities — Numeric example: the full life of the liability on Talvessa's machine","LX.IAS12.000064":"Taxable temporary differences and deferred tax liabilities — Judgement: identifying all differences and their pattern","LX.IAS12.000065":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","LX.IAS12.000066":"Deductible temporary differences and deferred tax assets — Liability side: expenses deductible later","LX.IAS12.000067":"Deductible temporary differences and deferred tax assets — Numeric example: the deferred tax assets of Talvessa and Arbelis","LX.IAS12.000068":"Deductible temporary differences and deferred tax assets — Asset side: a carrying amount below the tax base","LX.IAS12.000069":"Deductible temporary differences and deferred tax assets — The entries","LX.IAS12.000070":"Deductible temporary differences and deferred tax assets — The entries","LX.IAS12.000071":"Deductible temporary differences and deferred tax assets — Method: from the deductible difference to the recognised asset","LX.IAS12.000072":"Deductible temporary differences and deferred tax assets — Why a probability condition for the asset only?","LX.IAS12.000073":"Deductible temporary differences and deferred tax assets — Common mistakes","LX.IAS12.000074":"Deductible temporary differences and deferred tax assets — Liability side: expenses deductible later","LX.IAS12.000075":"Deductible temporary differences and deferred tax assets — Numeric example: the deferred tax assets of Talvessa and Arbelis","LX.IAS12.000076":"Deductible temporary differences and deferred tax assets — Judgement: future deductibility and recoverability","LX.IAS12.000077":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","LX.IAS12.000078":"Goodwill: the exception, deductible goodwill and a higher tax base — Why this exception?","LX.IAS12.000079":"Goodwill: the exception, deductible goodwill and a higher tax base — After the outset: reductions stay unrecognised","LX.IAS12.000080":"Goodwill: the exception, deductible goodwill and a higher tax base — Deductible goodwill: a liability for what does not come from the outset","LX.IAS12.000081":"Goodwill: the exception, deductible goodwill and a higher tax base — The entries","LX.IAS12.000082":"Goodwill: the exception, deductible goodwill and a higher tax base — Goodwill below its tax base: a possible asset","LX.IAS12.000083":"Goodwill: the exception, deductible goodwill and a higher tax base — Common mistakes","LX.IAS12.000084":"Goodwill: the exception, deductible goodwill and a higher tax base — Method: dealing with deferred tax on goodwill","LX.IAS12.000085":"Goodwill: the exception, deductible goodwill and a higher tax base — Judgement: tracking the 'layers' of difference","LX.IAS12.000086":"The initial recognition exception and equal differences — The rule: three cumulative conditions","LX.IAS12.000087":"The initial recognition exception and equal differences — Leases and decommissioning: two equal differences, two deferred taxes","LX.IAS12.000088":"The initial recognition exception and equal differences — The typical example: an asset whose cost is not deductible","LX.IAS12.000089":"The initial recognition exception and equal differences — Leases and decommissioning: two equal differences, two deferred taxes","LX.IAS12.000090":"The initial recognition exception and equal differences — The entries at the outset","LX.IAS12.000091":"The initial recognition exception and equal differences — Numeric example: Halcyra's transactions at the outset","LX.IAS12.000092":"The initial recognition exception and equal differences — Grants deducted from the carrying amount: the exception applies","LX.IAS12.000093":"The initial recognition exception and equal differences — Compound instruments: outside the exception, tax charged to equity","LX.IAS12.000094":"The initial recognition exception and equal differences — The entries at the outset","LX.IAS12.000095":"The initial recognition exception and equal differences — Method: the decision tree on initial recognition","LX.IAS12.000096":"The initial recognition exception and equal differences — Common mistakes","LX.IAS12.000097":"The initial recognition exception and equal differences — The rule: three cumulative conditions","LX.IAS12.000098":"The initial recognition exception and equal differences — Method: the decision tree on initial recognition","LX.IAS12.000099":"The initial recognition exception and equal differences — Judgement: the position paper on equal differences","LX.IAS12.000100":"The initial recognition exception and equal differences — The typical example: an asset whose cost is not deductible","LX.IAS12.000101":"The initial recognition exception and equal differences — Grants deducted from the carrying amount: the exception applies","LX.IAS12.000102":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","LX.IAS12.000103":"Probable taxable profit: three sources, restrictions and tax planning — Numeric example: Mirelda's deferred tax asset","LX.IAS12.000104":"Probable taxable profit: three sources, restrictions and tax planning — Source 2: future taxable profits, with no double counting","LX.IAS12.000105":"Probable taxable profit: three sources, restrictions and tax planning — Source 3: tax planning opportunities","LX.IAS12.000106":"Probable taxable profit: three sources, restrictions and tax planning — Source 3: tax planning opportunities","LX.IAS12.000107":"Probable taxable profit: three sources, restrictions and tax planning — When the law restricts use to one type of income","LX.IAS12.000108":"Probable taxable profit: three sources, restrictions and tax planning — When the law restricts use to one type of income","LX.IAS12.000109":"Probable taxable profit: three sources, restrictions and tax planning — Recovering an asset for more than its carrying amount","LX.IAS12.000110":"Probable taxable profit: three sources, restrictions and tax planning — Recovering an asset for more than its carrying amount","LX.IAS12.000111":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","LX.IAS12.000112":"Probable taxable profit: three sources, restrictions and tax planning — Method: the cascading recoverability test","LX.IAS12.000113":"Probable taxable profit: three sources, restrictions and tax planning — Common mistakes","LX.IAS12.000114":"Probable taxable profit: three sources, restrictions and tax planning — Judgement: credible and consistent forecasts","LX.IAS12.000115":"Probable taxable profit: three sources, restrictions and tax planning — Why such a demanding review?","LX.IAS12.000116":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","LX.IAS12.000117":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","LX.IAS12.000118":"Unused tax losses and tax credits; reassessment at each reporting date — History of recent losses: convincing evidence","LX.IAS12.000119":"Unused tax losses and tax credits; reassessment at each reporting date — Numeric example: Brisalme's asset on losses over three reporting dates","LX.IAS12.000120":"Unused tax losses and tax credits; reassessment at each reporting date — Numeric example: Brisalme's asset on losses over three reporting dates","LX.IAS12.000121":"Unused tax losses and tax credits; reassessment at each reporting date — Brisalme's entries","LX.IAS12.000122":"Unused tax losses and tax credits; reassessment at each reporting date — Brisalme's entries","LX.IAS12.000123":"Unused tax losses and tax credits; reassessment at each reporting date — Brisalme's entries","LX.IAS12.000124":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","LX.IAS12.000125":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","LX.IAS12.000126":"Unused tax losses and tax credits; reassessment at each reporting date — Numeric example: Brisalme's asset on losses over three reporting dates","LX.IAS12.000127":"Unused tax losses and tax credits; reassessment at each reporting date — History of recent losses: convincing evidence","LX.IAS12.000128":"Unused tax losses and tax credits; reassessment at each reporting date — What the notes must show","LX.IAS12.000129":"Unused tax losses and tax credits; reassessment at each reporting date — What the notes must show","LX.IAS12.000130":"Unused tax losses and tax credits; reassessment at each reporting date — What the notes must show","LX.IAS12.000131":"Unused tax losses and tax credits; reassessment at each reporting date — Common mistakes","LX.IAS12.000132":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","LX.IAS12.000133":"Unused tax losses and tax credits; reassessment at each reporting date — Method: the asset on losses, from one reporting date to the next","LX.IAS12.000134":"Unused tax losses and tax credits; reassessment at each reporting date — Method: the asset on losses, from one reporting date to the next","LX.IAS12.000135":"Unused tax losses and tax credits; reassessment at each reporting date — Method: the asset on losses, from one reporting date to the next","LX.IAS12.000136":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","LX.IAS12.000137":"Unused tax losses and tax credits; reassessment at each reporting date — Judgement: when does evidence become 'convincing'?","LX.IAS12.000138":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","LX.IAS12.000139":"Unused tax losses and tax credits; reassessment at each reporting date — History of recent losses: convincing evidence","LX.IAS12.000140":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","LX.IAS12.000141":"Investments: controlling the timing of reversal — The liability and its exception: control and no foreseeable reversal","LX.IAS12.000142":"Investments: controlling the timing of reversal — Numeric example: Dravenne's investments","LX.IAS12.000143":"Investments: controlling the timing of reversal — The liability and its exception: control and no foreseeable reversal","LX.IAS12.000144":"Investments: controlling the timing of reversal — The liability and its exception: control and no foreseeable reversal","LX.IAS12.000145":"Investments: controlling the timing of reversal — The asset: only if reversal is foreseeable","LX.IAS12.000146":"Investments: controlling the timing of reversal — Where do these differences come from?","LX.IAS12.000147":"Investments: controlling the timing of reversal — What is disclosed for unrecognised differences","LX.IAS12.000148":"Investments: controlling the timing of reversal — Dravenne's entry","LX.IAS12.000149":"Investments: controlling the timing of reversal — Common mistakes","LX.IAS12.000150":"Investments: controlling the timing of reversal — Method: investment by investment","LX.IAS12.000151":"Investments: controlling the timing of reversal — Judgement: 'foreseeable future' and control","LX.IAS12.000152":"Investments: controlling the timing of reversal — Method: investment by investment","LX.IAS12.000153":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Deferred tax: the rate expected on reversal","LX.IAS12.000154":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Numeric example: Gravelot's deferred tax liability","LX.IAS12.000155":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — 'Substantively enacted': when an announcement equals enactment","LX.IAS12.000156":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — 'Substantively enacted': when an announcement equals enactment","LX.IAS12.000157":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Progressive scales: the expected average rate","LX.IAS12.000158":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — A different rate depending on whether profits are distributed","LX.IAS12.000159":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","LX.IAS12.000160":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Why these measurement rules?","LX.IAS12.000161":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","LX.IAS12.000162":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Deferred tax: the rate expected on reversal","LX.IAS12.000163":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — The entry for the rate effect","LX.IAS12.000164":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Deferred tax: the rate expected on reversal","LX.IAS12.000165":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Common mistakes","LX.IAS12.000166":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Method: measuring a deferred tax balance","LX.IAS12.000167":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Method: measuring a deferred tax balance","LX.IAS12.000168":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — The entry for the rate effect","LX.IAS12.000169":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Judgement: substantive enactment and schedules","LX.IAS12.000170":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Method: measuring a deferred tax balance","LX.IAS12.000171":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","LX.IAS12.000172":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — 'Substantively enacted': when an announcement equals enactment","LX.IAS12.000173":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","LX.IAS12.000174":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","LX.IAS12.000175":"The expected manner of recovery: use or sell? — Revalued land: deemed recovered through sale","LX.IAS12.000176":"The expected manner of recovery: use or sell? — Investment property at fair value: a rebuttable presumption","LX.IAS12.000177":"The expected manner of recovery: use or sell? — Investment property at fair value: a rebuttable presumption","LX.IAS12.000178":"The expected manner of recovery: use or sell? — Numeric example: Montelis's three properties","LX.IAS12.000179":"The expected manner of recovery: use or sell? — Montelis's entries","LX.IAS12.000180":"The expected manner of recovery: use or sell? — Common mistakes","LX.IAS12.000181":"The expected manner of recovery: use or sell? — Method: choosing rate and base","LX.IAS12.000182":"The expected manner of recovery: use or sell? — Judgement: intention and business model","LX.IAS12.000183":"The expected manner of recovery: use or sell? — Revalued land: deemed recovered through sale","LX.IAS12.000184":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","LX.IAS12.000185":"From the statement of financial position to profit or loss: deferred tax expense — Numeric example: Talvessa's tax expense for N+1","LX.IAS12.000186":"From the statement of financial position to profit or loss: deferred tax expense — Isolating what does not go to profit or loss","LX.IAS12.000187":"From the statement of financial position to profit or loss: deferred tax expense — Talvessa's entries at 31/12/N+1","LX.IAS12.000188":"From the statement of financial position to profit or loss: deferred tax expense — Isolating what does not go to profit or loss","LX.IAS12.000189":"From the statement of financial position to profit or loss: deferred tax expense — Why follow the original transaction?","LX.IAS12.000190":"From the statement of financial position to profit or loss: deferred tax expense — Isolating what does not go to profit or loss","LX.IAS12.000191":"From the statement of financial position to profit or loss: deferred tax expense — Common mistakes","LX.IAS12.000192":"From the statement of financial position to profit or loss: deferred tax expense — Numeric example: Talvessa's tax expense for N+1","LX.IAS12.000193":"From the statement of financial position to profit or loss: deferred tax expense — Method: building tax expense for the period","LX.IAS12.000194":"From the statement of financial position to profit or loss: deferred tax expense — Judgement: tracing the origin of differences","LX.IAS12.000195":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","LX.IAS12.000196":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","LX.IAS12.000197":"Tax outside profit or loss: other comprehensive income and equity — Numeric example: Talvessa, revaluation, change in policy and rate cut","LX.IAS12.000198":"Tax outside profit or loss: other comprehensive income and equity — Talvessa's entries","LX.IAS12.000199":"Tax outside profit or loss: other comprehensive income and equity — Items directly in equity","LX.IAS12.000200":"Tax outside profit or loss: other comprehensive income and equity — Method: allocating tax outside profit or loss","LX.IAS12.000201":"Tax outside profit or loss: other comprehensive income and equity — When allocation is difficult: a reasonable key","LX.IAS12.000202":"Tax outside profit or loss: other comprehensive income and equity — Numeric example: Talvessa, revaluation, change in policy and rate cut","LX.IAS12.000203":"Tax outside profit or loss: other comprehensive income and equity — Talvessa's entries","LX.IAS12.000204":"Tax outside profit or loss: other comprehensive income and equity — When allocation is difficult: a reasonable key","LX.IAS12.000205":"Tax outside profit or loss: other comprehensive income and equity — Tax revaluation","LX.IAS12.000206":"Tax outside profit or loss: other comprehensive income and equity — Tax revaluation","LX.IAS12.000207":"Tax outside profit or loss: other comprehensive income and equity — Items directly in equity","LX.IAS12.000208":"Tax outside profit or loss: other comprehensive income and equity — Common mistakes","LX.IAS12.000209":"Tax outside profit or loss: other comprehensive income and equity — Items directly in equity","LX.IAS12.000210":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","LX.IAS12.000211":"Tax outside profit or loss: other comprehensive income and equity — Judgement: origin of differences and reserve transfers","LX.IAS12.000212":"Tax outside profit or loss: other comprehensive income and equity — Method: allocating tax outside profit or loss","LX.IAS12.000213":"Dividends, withholding taxes and change in tax status — Withholding tax on behalf of shareholders","LX.IAS12.000214":"Dividends, withholding taxes and change in tax status — The entries","LX.IAS12.000215":"Dividends, withholding taxes and change in tax status — The tax consequences of a dividend: when and where","LX.IAS12.000216":"Dividends, withholding taxes and change in tax status — Numeric example: Bellune and Porvida","LX.IAS12.000217":"Dividends, withholding taxes and change in tax status — The entries","LX.IAS12.000218":"Dividends, withholding taxes and change in tax status — Withholding tax on behalf of shareholders","LX.IAS12.000219":"Dividends, withholding taxes and change in tax status — The tax consequences of a dividend: when and where","LX.IAS12.000220":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","LX.IAS12.000221":"Dividends, withholding taxes and change in tax status — Numeric example: Bellune and Porvida","LX.IAS12.000222":"Dividends, withholding taxes and change in tax status — The entries","LX.IAS12.000223":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","LX.IAS12.000224":"Dividends, withholding taxes and change in tax status — Common mistakes","LX.IAS12.000225":"Dividends, withholding taxes and change in tax status — Method","LX.IAS12.000226":"Dividends, withholding taxes and change in tax status — Judgement: who bears the tax?","LX.IAS12.000227":"Dividends, withholding taxes and change in tax status — Withholding tax on behalf of shareholders","LX.IAS12.000228":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","LX.IAS12.000229":"Deferred tax in a business combination — Numeric example: Castelio acquires Marvenis","LX.IAS12.000230":"Deferred tax in a business combination — The consolidation entries","LX.IAS12.000231":"Deferred tax in a business combination — And goodwill itself?","LX.IAS12.000232":"Deferred tax in a business combination — The acquirer's deferred tax asset: outside the combination","LX.IAS12.000233":"Deferred tax in a business combination — Acquired tax benefits recognised later","LX.IAS12.000234":"Deferred tax in a business combination — Acquired tax benefits recognised later","LX.IAS12.000235":"Deferred tax in a business combination — Acquired tax benefits recognised later","LX.IAS12.000236":"Deferred tax in a business combination — The consolidation entries","LX.IAS12.000237":"Deferred tax in a business combination — The consolidation entries","LX.IAS12.000238":"Deferred tax in a business combination — Common mistakes","LX.IAS12.000239":"Deferred tax in a business combination — Method: deferred tax in the purchase price allocation","LX.IAS12.000240":"Deferred tax in a business combination — Judgement in business combinations","LX.IAS12.000241":"Deferred tax in a business combination — Method: deferred tax in the purchase price allocation","LX.IAS12.000242":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","LX.IAS12.000243":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","LX.IAS12.000244":"Share-based payment: future deduction and excess in equity — Numeric example: Sabrane's share option plan","LX.IAS12.000245":"Share-based payment: future deduction and excess in equity — The excess deduction: in equity","LX.IAS12.000246":"Share-based payment: future deduction and excess in equity — Sabrane's entries","LX.IAS12.000247":"Share-based payment: future deduction and excess in equity — The excess deduction: in equity","LX.IAS12.000248":"Share-based payment: future deduction and excess in equity — Common mistakes","LX.IAS12.000249":"Share-based payment: future deduction and excess in equity — Judgement: estimating a deduction that depends on the share price","LX.IAS12.000250":"Share-based payment: future deduction and excess in equity — The excess deduction: in equity","LX.IAS12.000251":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","LX.IAS12.000252":"Presentation: offsetting tax balances and presenting tax expense — Numeric example: the Azurane group's tax balance sheet","LX.IAS12.000253":"Presentation: offsetting tax balances and presenting tax expense — Offsetting deferred tax","LX.IAS12.000254":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","LX.IAS12.000255":"Presentation: offsetting tax balances and presenting tax expense — Why such strict conditions?","LX.IAS12.000256":"Presentation: offsetting tax balances and presenting tax expense — The rare case: a right limited to certain periods","LX.IAS12.000257":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","LX.IAS12.000258":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","LX.IAS12.000259":"Presentation: offsetting tax balances and presenting tax expense — Offsetting deferred tax","LX.IAS12.000260":"Presentation: offsetting tax balances and presenting tax expense — Common mistakes","LX.IAS12.000261":"Presentation: offsetting tax balances and presenting tax expense — Method: building a group's tax balance sheet","LX.IAS12.000262":"Presentation: offsetting tax balances and presenting tax expense — Judgement: right and intention","LX.IAS12.000263":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","LX.IAS12.000264":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","LX.IAS12.000265":"The tax note: components, balances by nature, unrecognised losses, contingencies — Numeric example: Talvessa's tax note for N+1","LX.IAS12.000266":"The tax note: components, balances by nature, unrecognised losses, contingencies — The information to be disclosed separately","LX.IAS12.000267":"The tax note: components, balances by nature, unrecognised losses, contingencies — 'Fragile' deferred tax assets: the nature of the evidence","LX.IAS12.000268":"The tax note: components, balances by nature, unrecognised losses, contingencies — Investments, tax contingencies and uncertainties","LX.IAS12.000269":"The tax note: components, balances by nature, unrecognised losses, contingencies — Investments, tax contingencies and uncertainties","LX.IAS12.000270":"The tax note: components, balances by nature, unrecognised losses, contingencies — Common mistakes","LX.IAS12.000271":"The tax note: components, balances by nature, unrecognised losses, contingencies — Judgement: what to detail, how to say it","LX.IAS12.000272":"The tax note: components, balances by nature, unrecognised losses, contingencies — Method: building the tax note","LX.IAS12.000273":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","LX.IAS12.000274":"The reconciliation between tax expense and accounting profit — Numeric example: the Vitrelle group reconciliation","LX.IAS12.000275":"The reconciliation between tax expense and accounting profit — Numeric example: the Vitrelle group reconciliation","LX.IAS12.000276":"The reconciliation between tax expense and accounting profit — Common mistakes","LX.IAS12.000277":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","LX.IAS12.000278":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","LX.IAS12.000279":"The reconciliation between tax expense and accounting profit — What is the reconciliation for?","LX.IAS12.000280":"The reconciliation between tax expense and accounting profit — Method: building the reconciliation in amounts","LX.IAS12.000281":"The reconciliation between tax expense and accounting profit — Method: building the reconciliation in amounts","LX.IAS12.000282":"The reconciliation between tax expense and accounting profit — Numeric example: the Vitrelle group reconciliation","LX.IAS12.000283":"The reconciliation between tax expense and accounting profit — Judgement: analysing an unusual rate","LX.IAS12.000284":"The reconciliation between tax expense and accounting profit — Method: building the reconciliation in amounts","LX.IAS12.000285":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — Assumption: an authority that examines everything and knows everything","LX.IAS12.000286":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","LX.IAS12.000287":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","LX.IAS12.000288":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — Single or grouped: the unit of account","LX.IAS12.000289":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","LX.IAS12.000290":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — The central test: is acceptance probable?","LX.IAS12.000291":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — The central test: is acceptance probable?","LX.IAS12.000292":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — Single or grouped: the unit of account","LX.IAS12.000293":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — Method: diagnosing tax positions","LX.IAS12.000294":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — Common mistakes","LX.IAS12.000295":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — Method: diagnosing tax positions","LX.IAS12.000296":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — Judgement: assessing acceptance","LX.IAS12.000297":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — Example: Altamys's three positions","LX.IAS12.000298":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","LX.IAS12.000299":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Numeric example: measuring Altamys's positions A and B","LX.IAS12.000300":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Numeric example: measuring Altamys's positions A and B","LX.IAS12.000301":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Altamys's entries","LX.IAS12.000302":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Consistency between current and deferred tax","LX.IAS12.000303":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Consistency between current and deferred tax","LX.IAS12.000304":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Altamys's entries","LX.IAS12.000305":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Reassessing when facts change","LX.IAS12.000306":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Reassessing when facts change","LX.IAS12.000307":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Reassessing when facts change","LX.IAS12.000308":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Reassessing when facts change","LX.IAS12.000309":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Numeric example: measuring Altamys's positions A and B","LX.IAS12.000310":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Common mistakes","LX.IAS12.000311":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Judgement: probabilities, method and subsequent events","LX.IAS12.000312":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Disclosures: tax contingencies","LX.IAS12.000313":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","LX.IAS12.000314":"Pillar Two: top-up tax, mandatory exception and disclosures — The entry","LX.IAS12.000315":"Pillar Two: top-up tax, mandatory exception and disclosures — Disclosures: exception applied, separate current tax","LX.IAS12.000316":"Pillar Two: top-up tax, mandatory exception and disclosures — Before entry into force: disclosing exposure","LX.IAS12.000317":"Pillar Two: top-up tax, mandatory exception and disclosures — Numeric example: the Zephora group","LX.IAS12.000318":"Pillar Two: top-up tax, mandatory exception and disclosures — Common mistakes","LX.IAS12.000319":"Pillar Two: top-up tax, mandatory exception and disclosures — Method","LX.IAS12.000320":"Pillar Two: top-up tax, mandatory exception and disclosures — Judgement: disclosure of exposure","LX.IAS12.000321":"Pillar Two: top-up tax, mandatory exception and disclosures — Method","LX.IAS12.000322":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Numeric example: Talvessa's tax expense for N","LX.IAS12.000323":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Method: from the tax return to tax expense","LX.IAS12.000324":"The tax base of assets and liabilities — The tax base of a liability","LX.IAS12.000325":"The tax base of assets and liabilities — The tax base of an asset","LX.IAS12.000326":"Current tax: liability, instalments and loss carry-back — Numeric example: Talvessa's current tax and Quentora's carry-back","LX.IAS12.000327":"Current tax: liability, instalments and loss carry-back — Carrying back tax losses","LX.IAS12.000328":"Taxable temporary differences and deferred tax liabilities — Numeric example: the full life of the liability on Talvessa's machine","LX.IAS12.000329":"Taxable temporary differences and deferred tax liabilities — The entries: origination and reversal of the liability","LX.IAS12.000330":"Deductible temporary differences and deferred tax assets — Numeric example: the deferred tax assets of Talvessa and Arbelis","LX.IAS12.000331":"Deductible temporary differences and deferred tax assets — The entries","LX.IAS12.000332":"Goodwill: the exception, deductible goodwill and a higher tax base — Deductible goodwill: a liability for what does not come from the outset","LX.IAS12.000333":"The initial recognition exception and equal differences — Leases and decommissioning: two equal differences, two deferred taxes","LX.IAS12.000334":"Probable taxable profit: three sources, restrictions and tax planning — Numeric example: Mirelda's deferred tax asset","LX.IAS12.000335":"Probable taxable profit: three sources, restrictions and tax planning — Numeric example: Mirelda's deferred tax asset","LX.IAS12.000336":"Probable taxable profit: three sources, restrictions and tax planning — Common mistakes","LX.IAS12.000337":"Unused tax losses and tax credits; reassessment at each reporting date — History of recent losses: convincing evidence","LX.IAS12.000338":"Unused tax losses and tax credits; reassessment at each reporting date — Method: the asset on losses, from one reporting date to the next","LX.IAS12.000339":"Unused tax losses and tax credits; reassessment at each reporting date — Judgement: when does evidence become 'convincing'?","LX.IAS12.000340":"Investments: controlling the timing of reversal — Numeric example: Dravenne's investments","LX.IAS12.000341":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Numeric example: Gravelot's deferred tax liability","LX.IAS12.000342":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","LX.IAS12.000343":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","LX.IAS12.000344":"The expected manner of recovery: use or sell? — Revalued land: deemed recovered through sale","LX.IAS12.000345":"From the statement of financial position to profit or loss: deferred tax expense — Numeric example: Talvessa's tax expense for N+1","LX.IAS12.000346":"From the statement of financial position to profit or loss: deferred tax expense — Judgement: tracing the origin of differences","LX.IAS12.000347":"Tax outside profit or loss: other comprehensive income and equity — Numeric example: Talvessa, revaluation, change in policy and rate cut","LX.IAS12.000348":"Tax outside profit or loss: other comprehensive income and equity — Numeric example: Talvessa, revaluation, change in policy and rate cut","LX.IAS12.000349":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","LX.IAS12.000350":"Dividends, withholding taxes and change in tax status — Judgement: who bears the tax?","LX.IAS12.000351":"Deferred tax in a business combination — Numeric example: Castelio acquires Marvenis","LX.IAS12.000352":"Share-based payment: future deduction and excess in equity — The excess deduction: in equity","LX.IAS12.000353":"Share-based payment: future deduction and excess in equity — The excess deduction: in equity","LX.IAS12.000354":"Presentation: offsetting tax balances and presenting tax expense — Numeric example: the Azurane group's tax balance sheet","LX.IAS12.000355":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","LX.IAS12.000356":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","LX.IAS12.000357":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","LX.IAS12.000358":"The reconciliation between tax expense and accounting profit — Numeric example: the Vitrelle group reconciliation","LX.IAS12.000359":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — Assumption: an authority that examines everything and knows everything","LX.IAS12.000360":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Numeric example: measuring Altamys's positions A and B","LX.IAS12.000361":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","LX.IAS12.000362":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Common mistakes","LX.IAS12.000363":"Pillar Two: top-up tax, mandatory exception and disclosures — Numeric example: the Zephora group","LX.IAS12.000364":"Objective and scope: what an income tax is — The objective of the standard","LX.IAS12.000365":"Objective and scope: what an income tax is — What is an income tax?","LX.IAS12.000366":"The expected manner of recovery: use or sell? — Investment property at fair value: a rebuttable presumption","LX.IAS12.000367":"The initial recognition exception and equal differences — The rule: three cumulative conditions","LX.IAS12.000368":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","LX.IAS12.000369":"Deferred tax in a business combination — The acquirer's deferred tax asset: outside the combination","LX.IAS12.000370":"The tax note: components, balances by nature, unrecognised losses, contingencies — The information to be disclosed separately","LX.IAS12.000371":"The reconciliation between tax expense and accounting profit — Method: building the reconciliation in amounts","LX.IAS12.000372":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","LX.IAS12.000373":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","LX.IAS12.000374":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","LX.IAS12.000375":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","LX.IAS12.000376":"Presenting tax from 2027: the income taxes category and exchange differences — Worked example","LX.IAS12.000377":"Presenting tax from 2027: the income taxes category and exchange differences — What changes: where tax sits in profit or loss","LX.IAS12.000378":"Presenting tax from 2027: the income taxes category and exchange differences — Paragraph 77: before and after IFRS 18","LX.IAS12.000379":"Presenting tax from 2027: the income taxes category and exchange differences — Paragraph 78: exchange differences on tax balances","LX.IAS12.000380":"Presenting tax from 2027: the income taxes category and exchange differences — What does not change: offsetting","LX.IAS12.000381":"The tax note from 2027: same disclosures, new cross-references — The amended cross-references","QST.IAS12.000001":"Objective and scope: what an income tax is — The objective of the standard","QST.IAS12.000002":"Objective and scope: what an income tax is — The objective of the standard","QST.IAS12.000003":"Objective and scope: what an income tax is — The objective of the standard","QST.IAS12.000004":"Objective and scope: what an income tax is — The objective of the standard","QST.IAS12.000005":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000006":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000007":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000008":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000009":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000010":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000011":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000012":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000013":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000014":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000015":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000016":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000017":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000018":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000019":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000020":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000021":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000022":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000023":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000024":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000025":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000026":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000027":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000028":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000029":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000030":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000031":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000032":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000033":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000034":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000037":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000038":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000039":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000040":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000041":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000042":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000043":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000044":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000045":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000046":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000047":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000048":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000049":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000050":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000051":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000052":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000053":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000054":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000055":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000056":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000057":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000058":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000059":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000060":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000061":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000062":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000063":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000064":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000065":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000066":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000067":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000068":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000069":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000070":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000071":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000072":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000073":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000074":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000075":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000076":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000077":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000078":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000084":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000085":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000086":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000087":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000088":"Current tax: liability, instalments and loss carry-back — The rule: liability for the unpaid part, asset for the excess","QST.IAS12.000089":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000090":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000091":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000092":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000093":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000094":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000095":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000096":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000097":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000098":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000099":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000100":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000101":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000102":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000103":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000108":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000109":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000110":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000111":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000112":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000113":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000114":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000115":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000116":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000117":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000118":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000119":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000120":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000121":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000122":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000123":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000124":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000125":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000129":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000130":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000131":"Taxable temporary differences and deferred tax liabilities — The rule: a liability for all taxable differences, with exceptions","QST.IAS12.000132":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000133":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000134":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000135":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000136":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000137":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000138":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000139":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000140":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000141":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000142":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000143":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000144":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000145":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000146":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000147":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000148":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000149":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000150":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000151":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000152":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000153":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000154":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000155":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000156":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000157":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000158":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000159":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000162":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000163":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000164":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000165":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000166":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000169":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000170":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000171":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000172":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000173":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000174":"The initial recognition exception and equal differences — The rule: three cumulative conditions","QST.IAS12.000177":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000178":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000179":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000180":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000181":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000182":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000183":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000184":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000185":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000186":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000187":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000188":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000189":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000190":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000191":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000192":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000193":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000194":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000195":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000196":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000197":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000198":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000199":"Probable taxable profit: three sources, restrictions and tax planning — Source 1: taxable differences reversing at the same time","QST.IAS12.000202":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000203":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000204":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000205":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000206":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000207":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000208":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000209":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000213":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000214":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000215":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000216":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000217":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000218":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000219":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000220":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000221":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000222":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000223":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000224":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000225":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000228":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000229":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000230":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000231":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000232":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000233":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000234":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000237":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000238":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000239":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000242":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000243":"Unused tax losses and tax credits; reassessment at each reporting date — At each reporting date: reduce, reverse, recognise","QST.IAS12.000244":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000245":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000246":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000247":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000248":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000249":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000250":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000251":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000252":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000253":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000254":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000257":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000258":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000259":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000260":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000262":"Investments: controlling the timing of reversal — Where do these differences come from?","QST.IAS12.000264":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000265":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000266":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000267":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000268":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000269":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000270":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000271":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000272":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000273":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000274":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000275":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000276":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000277":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000278":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000279":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000280":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000281":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000285":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000286":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000287":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000288":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000289":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000290":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — Current tax: rates in force at the reporting date","QST.IAS12.000291":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000292":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000293":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000294":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000295":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000296":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000297":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000298":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000299":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000300":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000301":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000302":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000303":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000304":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000305":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000308":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","QST.IAS12.000309":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","QST.IAS12.000310":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","QST.IAS12.000311":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","QST.IAS12.000312":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","QST.IAS12.000313":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","QST.IAS12.000314":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","QST.IAS12.000315":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","QST.IAS12.000316":"Tax rates: enacted or substantively enacted, expected on reversal; no discounting — No discounting","QST.IAS12.000317":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000318":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000319":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000320":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000321":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000322":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000323":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000324":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000325":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000326":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000327":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000332":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000333":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000334":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000335":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000336":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000337":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000338":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000339":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000340":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000341":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000342":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000343":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000344":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000345":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000346":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000347":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000348":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000349":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000350":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000351":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000352":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000353":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000354":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000360":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000361":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000362":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000363":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000364":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000365":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000368":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000369":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000370":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000371":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000372":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000373":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000374":"Unused tax losses and tax credits; reassessment at each reporting date — The rule: an asset to the extent of probable future profit","QST.IAS12.000375":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000376":"Objective and scope: what an income tax is — What is an income tax?","QST.IAS12.000377":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000378":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000379":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000382":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000383":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000384":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000385":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","QST.IAS12.000386":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","QST.IAS12.000387":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","QST.IAS12.000388":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","QST.IAS12.000389":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","QST.IAS12.000390":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","QST.IAS12.000392":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","QST.IAS12.000393":"Dividends, withholding taxes and change in tax status — Change in tax status (SIC-25)","QST.IAS12.000394":"The expected manner of recovery: use or sell? — The rule: reflect the expected manner of recovery","QST.IAS12.000395":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000396":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000397":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000398":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000399":"Goodwill: the exception, deductible goodwill and a higher tax base — The rule: no liability on initial recognition of goodwill","QST.IAS12.000400":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000401":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000402":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000403":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000404":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000405":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000406":"Deductible temporary differences and deferred tax assets — The rule: an asset to the extent of probable taxable profit","QST.IAS12.000411":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000412":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000413":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000414":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000415":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000416":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000418":"Deferred tax in a business combination — Differences arising from the combination and their effect on goodwill","QST.IAS12.000419":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000420":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000421":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000422":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000423":"The tax base of assets and liabilities — The tax base of an asset","QST.IAS12.000424":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000425":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000428":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000429":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000430":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000431":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000432":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000433":"Share-based payment: future deduction and excess in equity — The future deduction and its estimate","QST.IAS12.000434":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000435":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000436":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000437":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000438":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000439":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000440":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000441":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000442":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000443":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000444":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000445":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000446":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000447":"Presentation: offsetting tax balances and presenting tax expense — Offsetting current tax","QST.IAS12.000448":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","QST.IAS12.000449":"From the statement of financial position to profit or loss: deferred tax expense — The rule: in profit or loss, with three exceptions","QST.IAS12.000450":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","QST.IAS12.000451":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","QST.IAS12.000452":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000453":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","QST.IAS12.000454":"Tax outside profit or loss: other comprehensive income and equity — The rule: same or different period","QST.IAS12.000455":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000456":"Presentation: offsetting tax balances and presenting tax expense — Where to present tax expense?","QST.IAS12.000457":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000458":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000459":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000460":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000461":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000462":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000463":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000464":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000465":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000466":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000467":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000468":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000469":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000470":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000471":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000472":"Dividends, withholding taxes and change in tax status — The rate for undistributed profits","QST.IAS12.000473":"The tax note: components, balances by nature, unrecognised losses, contingencies — The components of tax expense","QST.IAS12.000474":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000475":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000476":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000477":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000478":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000479":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000480":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000481":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000482":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000483":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000484":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000485":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000486":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000487":"The vocabulary of IAS 12: accounting profit, taxable profit, current tax and deferred tax — Accounting profit and taxable profit","QST.IAS12.000488":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000489":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000490":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000491":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000492":"The reconciliation between tax expense and accounting profit — The rule: a numerical reconciliation","QST.IAS12.000493":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000494":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000495":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000496":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000497":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000498":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000499":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000500":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000501":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000502":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000503":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000504":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000505":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000506":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000507":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000508":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000509":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000510":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000511":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000512":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000515":"IFRIC 23 (1): identifying an uncertain tax treatment and assessing its acceptance — What IFRIC 23 deals with and its definitions","QST.IAS12.000516":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000517":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000518":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000519":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000520":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000521":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000522":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000523":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000524":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000525":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000526":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000527":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000528":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000532":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000533":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000534":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000537":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000538":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000539":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000540":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000541":"IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing — Most likely amount or expected value","QST.IAS12.000542":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000543":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000544":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000545":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000546":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000547":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000548":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000549":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000550":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000551":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000554":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000555":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception","QST.IAS12.000556":"Pillar Two: top-up tax, mandatory exception and disclosures — Within the scope of IAS 12, with a mandatory exception"}}