Temporary differences schedule

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  MACHINE_A_ACCELERATED_TAX_DEPRECIATION

• Carrying amount of the asset (asset item)

  Number

  630,000

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  900,000

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

  650,000

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  250,000

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  380,000

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  95,000

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  0

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Account	Debit	Credit
  Deferred tax expense	95,000
  Deferred tax liability		95,000

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Debit Deferred tax asset ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”) ; Credit Deferred tax income ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  TAX_BASE_PER_TAX_LAW

• Applicable exception

  JudgmentRequired

  No exception: deferred tax recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NO_EXCEPTION_APPLIES

• Deferred tax liability recognised (after exceptions)

  Number

  95,000

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  0

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesPass
• The deferred tax asset entry balancesNot evaluated
• The single transaction entry balances (equal differences)Not evaluated
• The compound instrument entry balancesNot evaluated

Assets

0

Liabilities

95,000

Profit or loss

-95,000

OCI

0

Equity

-95,000

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  MACHINE_B_ACCELERATED_TAX_DEPRECIATION

• Carrying amount of the asset (asset item)

  Number

  150,000

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  400,000

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

  330,000

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  70,000

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  80,000

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  20,000

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  0

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Account	Debit	Credit
  Deferred tax expense	20,000
  Deferred tax liability		20,000

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Debit Deferred tax asset ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”) ; Credit Deferred tax income ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  TAX_BASE_PER_TAX_LAW

• Applicable exception

  JudgmentRequired

  No exception: deferred tax recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NO_EXCEPTION_APPLIES

• Deferred tax liability recognised (after exceptions)

  Number

  20,000

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  0

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesPass
• The deferred tax asset entry balancesNot evaluated
• The single transaction entry balances (equal differences)Not evaluated
• The compound instrument entry balancesNot evaluated

Assets

0

Liabilities

20,000

Profit or loss

-20,000

OCI

0

Equity

-20,000

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  DEVELOPMENT_COSTS_DEDUCTED_WHEN_INCURRED

• Carrying amount of the asset (asset item)

  Number

  300,000

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  300,000

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

  300,000

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  0

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  300,000

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  75,000

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  0

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Account	Debit	Credit
  Deferred tax expense	75,000
  Deferred tax liability		75,000

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Debit Deferred tax asset ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”) ; Credit Deferred tax income ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  TAX_BASE_PER_TAX_LAW

• Applicable exception

  JudgmentRequired

  No exception: deferred tax recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NO_EXCEPTION_APPLIES

• Deferred tax liability recognised (after exceptions)

  Number

  75,000

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  0

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesPass
• The deferred tax asset entry balancesNot evaluated
• The single transaction entry balances (equal differences)Not evaluated
• The compound instrument entry balancesNot evaluated

Assets

0

Liabilities

75,000

Profit or loss

-75,000

OCI

0

Equity

-75,000

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  RESEARCH_COSTS_EXPENSED_DEDUCTIBLE_LATER

• Carrying amount of the asset (asset item)

  Number

  0

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  120,000

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

  40,000

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  80,000

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  80,000

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  0

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  20,000

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Debit Deferred tax expense ← Deferred tax liability recognised (after exceptions) ; Credit Deferred tax liability ← Deferred tax liability recognised (after exceptions)

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Account	Debit	Credit
  Deferred tax asset	20,000
  Deferred tax income		20,000

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  ITEM_WITHOUT_CARRYING_AMOUNT

• Applicable exception

  JudgmentRequired

  No exception: deferred tax recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NO_EXCEPTION_APPLIES

• Deferred tax liability recognised (after exceptions)

  Number

  0

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  20,000

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesNot evaluated
• The deferred tax asset entry balancesPass
• The single transaction entry balances (equal differences)Not evaluated
• The compound instrument entry balancesNot evaluated

Assets

20,000

Liabilities

0

Profit or loss

20,000

OCI

0

Equity

20,000

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  RECEIVABLES_REVENUE_ALREADY_TAXED

• Carrying amount of the asset (asset item)

  Number

  450,000

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  450,000

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  450,000

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  0

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  0

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Debit Deferred tax expense ← Deferred tax liability recognised (after exceptions) ; Credit Deferred tax liability ← Deferred tax liability recognised (after exceptions)

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Debit Deferred tax asset ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”) ; Credit Deferred tax income ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Benefits not taxable: base equal to the carrying amount

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  COLLECTION_NOT_TAXABLE

• Applicable exception

  JudgmentRequired

  No exception: deferred tax recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NO_EXCEPTION_APPLIES

• Deferred tax liability recognised (after exceptions)

  Number

  0

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  0

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesNot evaluated
• The deferred tax asset entry balancesNot evaluated
• The single transaction entry balances (equal differences)Not evaluated
• The compound instrument entry balancesNot evaluated

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  WARRANTY_COSTS_DEDUCTIBLE_WHEN_PAID

• Carrying amount of the asset (asset item)

  Number

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

  160,000

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

  160,000

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  0

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  160,000

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  0

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  40,000

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Debit Deferred tax expense ← Deferred tax liability recognised (after exceptions) ; Credit Deferred tax liability ← Deferred tax liability recognised (after exceptions)

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Account	Debit	Credit
  Deferred tax asset	40,000
  Deferred tax income		40,000

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  TAX_BASE_PER_TAX_LAW

• Applicable exception

  JudgmentRequired

  No exception: deferred tax recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NO_EXCEPTION_APPLIES

• Deferred tax liability recognised (after exceptions)

  Number

  0

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  40,000

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesNot evaluated
• The deferred tax asset entry balancesPass
• The single transaction entry balances (equal differences)Not evaluated
• The compound instrument entry balancesNot evaluated

Assets

40,000

Liabilities

0

Profit or loss

40,000

OCI

0

Equity

40,000

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  MAINTENANCE_REVENUE_TAXED_WHEN_RECEIVED

• Carrying amount of the asset (asset item)

  Number

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

  80,000

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

  80,000

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  0

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  80,000

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  0

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  20,000

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Debit Deferred tax expense ← Deferred tax liability recognised (after exceptions) ; Credit Deferred tax liability ← Deferred tax liability recognised (after exceptions)

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Account	Debit	Credit
  Deferred tax asset	20,000
  Deferred tax income		20,000

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  REVENUE_IN_ADVANCE_NOT_TAXABLE_LATER

• Applicable exception

  JudgmentRequired

  No exception: deferred tax recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NO_EXCEPTION_APPLIES

• Deferred tax liability recognised (after exceptions)

  Number

  0

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  20,000

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesNot evaluated
• The deferred tax asset entry balancesPass
• The single transaction entry balances (equal differences)Not evaluated
• The compound instrument entry balancesNot evaluated

Assets

20,000

Liabilities

0

Profit or loss

20,000

OCI

0

Equity

20,000

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  FINE_NEVER_DEDUCTIBLE

• Carrying amount of the asset (asset item)

  Number

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

  25,000

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

  0

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  0

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  25,000

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  0

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  0

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Debit Deferred tax expense ← Deferred tax liability recognised (after exceptions) ; Credit Deferred tax liability ← Deferred tax liability recognised (after exceptions)

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Debit Deferred tax asset ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”) ; Credit Deferred tax income ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  PERMANENT_DIFFERENCE_NO_TEMPORARY_DIFFERENCE

• Applicable exception

  JudgmentRequired

  No exception: deferred tax recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NO_EXCEPTION_APPLIES

• Deferred tax liability recognised (after exceptions)

  Number

  0

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  0

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesNot evaluated
• The deferred tax asset entry balancesNot evaluated
• The single transaction entry balances (equal differences)Not evaluated
• The compound instrument entry balancesNot evaluated

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  LEASE_PAYMENTS_DEDUCTIBLE_WHEN_PAID

• Carrying amount of the asset (asset item)

  Number

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

  480,000

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

  480,000

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  0

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  0

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  0

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  120,000

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  120,000

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Debit Deferred tax expense ← Deferred tax liability recognised (after exceptions) ; Credit Deferred tax liability ← Deferred tax liability recognised (after exceptions)

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Debit Deferred tax asset ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”) ; Credit Deferred tax income ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Account	Debit	Credit
  Deferred tax asset (on the liability)	120,000
  Deferred tax liability (on the asset)		120,000

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  TAX_BASE_PER_TAX_LAW

• Applicable exception

  JudgmentRequired

  Equal differences: deferred tax asset and liability recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  EQUAL_TAXABLE_AND_DEDUCTIBLE_DIFFERENCES

• Deferred tax liability recognised (after exceptions)

  Number

  0

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  0

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesNot evaluated
• The deferred tax asset entry balancesNot evaluated
• The single transaction entry balances (equal differences)Pass
• The compound instrument entry balancesNot evaluated

Assets

120,000

Liabilities

120,000

Profit or loss

0

OCI

0

Equity

0

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  DISMANTLING_DEDUCTIBLE_WHEN_INCURRED

• Carrying amount of the asset (asset item)

  Number

  860,000

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  700,000

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

  160,000

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

  160,000

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  700,000

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  160,000

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  40,000

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  0

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  40,000

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  40,000

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Debit Deferred tax expense ← Deferred tax liability recognised (after exceptions) ; Credit Deferred tax liability ← Deferred tax liability recognised (after exceptions)

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Debit Deferred tax asset ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”) ; Credit Deferred tax income ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Account	Debit	Credit
  Deferred tax asset (on the liability)	40,000
  Deferred tax liability (on the asset)		40,000

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  TAX_BASE_PER_TAX_LAW

• Applicable exception

  JudgmentRequired

  Equal differences: deferred tax asset and liability recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  EQUAL_TAXABLE_AND_DEDUCTIBLE_DIFFERENCES

• Deferred tax liability recognised (after exceptions)

  Number

  0

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  0

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesNot evaluated
• The deferred tax asset entry balancesNot evaluated
• The single transaction entry balances (equal differences)Pass
• The compound instrument entry balancesNot evaluated

Assets

40,000

Liabilities

40,000

Profit or loss

0

OCI

0

Equity

0

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  LICENCE_COST_NEVER_DEDUCTIBLE

• Carrying amount of the asset (asset item)

  Number

  200,000

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  0

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  200,000

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  50,000

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  0

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Debit Deferred tax expense ← Deferred tax liability recognised (after exceptions) ; Credit Deferred tax liability ← Deferred tax liability recognised (after exceptions)

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Debit Deferred tax asset ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”) ; Credit Deferred tax income ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  TAX_BASE_PER_TAX_LAW

• Applicable exception

  JudgmentRequired

  Initial recognition exception: deferred tax not recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  THREE_CONDITIONS_MET

• Deferred tax liability recognised (after exceptions)

  Number

  0

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  0

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesNot evaluated
• The deferred tax asset entry balancesNot evaluated
• The single transaction entry balances (equal differences)Not evaluated
• The compound instrument entry balancesNot evaluated

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  GRANT_TAXED_WHEN_RECEIVED_DEFERRED_INCOME

• Carrying amount of the asset (asset item)

  Number

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

  150,000

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

  150,000

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  0

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  150,000

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  0

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  37,500

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Debit Deferred tax expense ← Deferred tax liability recognised (after exceptions) ; Credit Deferred tax liability ← Deferred tax liability recognised (after exceptions)

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Account	Debit	Credit
  Deferred tax asset	37,500
  Deferred tax income		37,500

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  ALREADY_TAXED_NOT_TAXABLE_LATER

• Applicable exception

  JudgmentRequired

  No exception: deferred tax recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  TRANSACTION_AFFECTS_TAXABLE_PROFIT

• Deferred tax liability recognised (after exceptions)

  Number

  0

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  37,500

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

IAS 12 §81

• Information prepared

  ChecklistRequired

  • Deferred tax assets and liabilities recognised, by type of temporary difference
  • Deferred tax recognised in profit or loss, by type of difference
  • Deductible differences for which no deferred tax asset is recognised

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The determination of the tax base is documentedPass
• The review of the exceptions is documentedPass
• The deferred tax liability retained is stated (0 if none)Pass
• The deferred tax asset retained is stated (0 if none)Pass
• The deferred tax liability entry balancesNot evaluated
• The deferred tax asset entry balancesPass
• The single transaction entry balances (equal differences)Not evaluated
• The compound instrument entry balancesNot evaluated

Assets

37,500

Liabilities

0

Profit or loss

37,500

OCI

0

Equity

37,500

• Item examined, taxable entity and taxation authority concerned, origin of the difference

  TextRequired

  GOODWILL_NOT_DEDUCTIBLE

• Carrying amount of the asset (asset item)

  Number

  900,000

  Input convention: one instance documents a single item; fill in either the asset data or the liability data.

• Tax cost of the asset (amount originally deductible under the tax law)

  Number

  Case data: tax cost and deductions under the tax law. If the benefits from the asset are not taxable, enter a tax cost equal to the carrying amount and no deduction (para. 7).

• Tax deductions already claimed on the asset (cumulative tax depreciation)

  Number

• Carrying amount of the liability (liability item, revenue received in advance included)

  Number

• Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

  Number

• Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  Number

  25 %

  IFRS rule: rate expected to apply on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate itself.

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §7IAS 12 §8IAS 12 §9IAS 12IAS 12

• Points examined

  ChecklistRequired

  • Asset: tax base = amount deductible against future taxable benefits
  • Benefits not taxable: tax base equal to the carrying amount
  • Liability: carrying amount less amounts deductible in future periods
  • Revenue received in advance: carrying amount less revenue not taxable in future periods
  • Item with no carrying amount but with a tax base (research costs deductible later)
  • Tax base not immediately apparent: back to the fundamental principle (higher or lower future tax payments)
  • Consolidation: consolidated carrying amounts compared with the bases of the consolidated return or of each entity

IAS 12 §5IAS 12 §16IAS 12IAS 12 §18IAS 12 §20IAS 12 §26IAS 12 §41IAS 12 §55

• Points examined

  ChecklistRequired

  • Temporary difference = difference between carrying amount and tax base, determined by reference to the carrying amount
  • Asset whose carrying amount exceeds its tax base: taxable difference
  • Timing difference between accounting and taxable profit (interest, accelerated tax depreciation, development)
  • Other origins: business combination, revaluation, goodwill, initial difference, investments, exchange differences
  • Revaluation or fair value without tax adjustment: deferred tax even without an intention to dispose
  • Deductible differences: retirement benefits deductible when paid, assets at fair value whose tax base is higher
  • Non-monetary items whose taxable profit is determined in another currency

IAS 12 §15IAS 12 §21IAS 12 §21AIAS 12 §21BIAS 12 §22IAS 12 §23IAS 12 §24IAS 12 §32AIAS 12 §33

• Points examined

  ChecklistRequired

  • Non-deductible goodwill: no deferred tax liability on its initial recognition (residual amount)
  • Later reductions of an unrecognised liability on goodwill: not recognised
  • Taxable difference on goodwill arising after initial recognition: liability recognised
  • Goodwill whose carrying amount is below its tax base: deferred tax asset (if profit is probable)
  • Initial recognition outside a business combination, with no effect on accounting or taxable profit and no equal differences: exception
  • Treatment of an initial difference according to the nature of the transaction (non-deductible cost, for example)
  • Compound instrument: difference outside the exception, deferred tax charged to the equity component
  • Non-taxable grant deducted from the carrying amount of an asset: deductible difference, deferred tax asset not recognised (reference to para. 22)

  IFRS rule: a non-taxable grant deducted from the carrying amount of the asset (or presented as deferred income) gives rise to a deductible difference, but the related deferred tax asset is not recognised, for the reason given in para. 22 (para. 33). A grant taxed on receipt follows the general case.

IAS 12 §22AIAS 12 §15IAS 12 §24

• Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset)

  Number

• Deductible difference on the liability (lease liability or decommissioning provision)

  Number

• Points examined

  Checklist

  • Transaction that is not a business combination
  • Neither accounting profit nor taxable profit affected at the date of the transaction
  • Equal taxable and deductible differences under the tax law: exception not applicable

IAS 12 §23

• Carrying amount of the liability component on initial recognition

  Number

• Tax base of the liability component under the tax law of the case

  Number

  IFRS rule: in some jurisdictions, the tax base of the liability component equals the total of the liability and equity components; the taxable difference arising from the split is not covered by the initial recognition exception (para. 23). Case data: the tax base itself.

• Points reviewed

  Checklist

  • Tax base of the liability component equal to the total of both components (tax law of the case)
  • Taxable difference arising from the split: outside the initial recognition exception
  • Deferred tax liability charged to the equity component; subsequent changes in profit or loss

IAS 12 §5IAS 12 §7IAS 12 §8IAS 12 §15IAS 12 §22AIAS 12 §24IAS 12 §47IAS 12 §23

• Tax base of the asset

  Calculation

  0

  Tax cost of the asset (amount originally deductible under the tax law) ; − Tax deductions already claimed on the asset (cumulative tax depreciation)

• Tax base of the liability

  Calculation

  0

  Carrying amount of the liability (liability item, revenue received in advance included) ; − Amounts of the liability deductible in future periods (or revenue in advance not taxable in future)

• Taxable temporary difference

  Calculation

  900,000

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

  Single signed calculation: (carrying amount − tax base) of the asset − (carrying amount − tax base) of the liability; positive part taxable, negative part deductible.

• Deductible temporary difference

  Calculation

  0

  Carrying amount of the asset (asset item) ; − Tax base of the asset ; − Carrying amount of the liability (liability item, revenue received in advance included) ; Tax base of the liability

• Deferred tax liability computed (before exceptions)

  Calculation

  225,000

  Taxable temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Gross deferred tax asset computed (before exceptions and recoverability test)

  Calculation

  0

  Deductible temporary difference ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax liability on the asset of the single transaction

  Calculation

  Taxable difference on the asset (right-of-use asset or decommissioning cost included in the asset) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax asset on the liability of the single transaction

  Calculation

  Deductible difference on the liability (lease liability or decommissioning provision) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Net position of the single transaction (control, nil at the commencement date)

  Calculation

  0

  Deferred tax liability on the asset of the single transaction ; − Deferred tax asset on the liability of the single transaction

  IFRS rule: deferred tax asset and liability recognised separately (para. 22A); the net amount is a control. Net presentation only if the offsetting conditions are met (“Group deferred tax”).

• Taxable difference on the liability component (tax base − carrying amount)

  Calculation

  0

  Tax base of the liability component under the tax law of the case ; − Carrying amount of the liability component on initial recognition

• Deferred tax liability charged to the equity component

  Calculation

  0

  Taxable difference on the liability component (tax base − carrying amount) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: the deferred tax liability is charged directly to the carrying amount of the equity component, subsequent changes being recognised in profit or loss (para. 23). For this instance, DTL_RECOGNISED stays at 0: recognition goes through the compound instrument entry, not through profit or loss.

• Deferred tax liability arising

  Entry

  Debit Deferred tax expense ← Deferred tax liability recognised (after exceptions) ; Credit Deferred tax liability ← Deferred tax liability recognised (after exceptions)

  Teaching assumption: the difference arises during the period, on an item recognised in profit or loss, with no opening balance; changes in an existing balance and allocation outside profit or loss belong to “Deferred tax measurement and allocation”.

• Recognition of the deferred tax asset

  Entry

  Debit Deferred tax asset ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”) ; Credit Deferred tax income ← Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Same teaching assumption as for the liability: arising in the period, in profit or loss, with no opening balance.

• Single transaction: deferred tax asset and liability at the commencement date

  Entry

  Debit Deferred tax asset (on the liability) ← Deferred tax asset on the liability of the single transaction ; Credit Deferred tax liability (on the asset) ← Deferred tax liability on the asset of the single transaction

• Compound instrument: deferred tax liability charged to the equity component

  Entry

  Debit Equity component of the compound instrument ← Deferred tax liability charged to the equity component ; Credit Deferred tax liability ← Deferred tax liability charged to the equity component

IAS 12 §7IAS 12 §8IAS 12IAS 12IAS 12 §15IAS 12 §21IAS 12 §21BIAS 12 §22IAS 12 §22AIAS 12 §24IAS 12 §32A

• Determination of the tax base

  JudgmentRequired

  Deductible (or non-taxable) amounts under the tax law of the case

  Deductible (or non-taxable) amounts under the tax law of the case / Benefits not taxable: base equal to the carrying amount / Bases of the consolidated tax return of the group

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  TAX_BASE_PER_TAX_LAW

• Applicable exception

  JudgmentRequired

  Initial recognition of goodwill: liability not recognised

  No exception: deferred tax recognised / Initial recognition of goodwill: liability not recognised / Initial recognition exception: deferred tax not recognised / Equal differences: deferred tax asset and liability recognised

  Professional judgement based on the nature of the transaction and the tax law of the case: business combination or not, effect on profits at the date of the transaction, equal differences arising.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  GOODWILL_RESIDUAL_AMOUNT

• Deferred tax liability recognised (after exceptions)

  Number

  0

  Amount recognised in profit or loss in the period by the entry recording the liability (teaching assumption: arising in the period, with no opening balance). Enter 0 if an exception applies or if the deferred tax is recognised through another entry (single transaction, equity component).

• Deferred tax asset recognised (after exceptions and probability assessment, “Recoverability of deferred tax assets”)

  Number

  0

  IFRS rule: asset recognised to the extent that taxable profit is probable (para. 24); the assessment is documented in “Recoverability of deferred tax assets”. Enter 0 if no asset is recognised.