Deferred tax measurement and allocation

• Taxable entity, differences concerned, origin (profit or loss, other comprehensive income, equity) and event of the period

  TextRequired

  STANDARD_RATE_CHANGE_DIVIDEND_AND_FREE_ZONE_STATUS

• Rate used until now for deferred tax (%)

  Number

  30 %

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

  Number

  25 %

  IFRS rule: rate expected on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate. If the rate does not change, enter the same rate as at the beginning.

• Existing taxable differences at the date of the rate change (base)

  Number

  1,800,000

• Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI)

  Table

  PROFIT_OR_LOSS · 1,200,000 | OCI · 600,000

  Input convention: one PROFIT_OR_LOSS row and one OCI row, amounts of the existing differences by origin; their sum equals the existing differences.

• Row of the split isolated by the calculation

  Choice

  Other comprehensive income

  Other comprehensive income / Profit or loss

  Input convention: choose OCI; the calculation isolates the other comprehensive income portion, the remainder goes to profit or loss.

• Increase from a revaluation recognised in other comprehensive income, without tax adjustment

  Number

• Deferred tax liabilities at the beginning of the period

  Number

• Deferred tax assets at the beginning of the period

  Number

• Deferred tax liabilities at the end of the period

  Number

• Deferred tax assets at the end of the period

  Number

• Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination)

  Number

• Net decrease in deferred tax liability recognised outside profit or loss

  Number

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §47IAS 12 §48IAS 12IAS 12 §53

• Points examined

  ChecklistRequired

  • Rate expected in the period of realisation or settlement, enacted or substantively enacted at the reporting date
  • Announcement having the effect of actual enactment: announced rate used
  • Graduated rates: average rate expected over the reversal periods
  • No discounting of deferred tax assets and liabilities

IAS 12 §51IAS 12 §51AIAS 12 §51BIAS 12 §51C

• Difference relating to the portion recovered through use (base for use)

  Number

• Rate applicable to use (%)

  Number

• Difference relating to the portion recovered through sale (base for sale)

  Number

• Rate applicable to sale (%)

  Number

• Points examined

  Checklist

  • Tax consequences of the manner expected, at the reporting date, to recover or settle the carrying amount
  • Rate and tax base consistent with the manner of use or sale
  • Revalued non-depreciable asset (IAS 16): consequences of recovery through sale
  • Investment property at fair value (IAS 40): rebuttable presumption of recovery through sale
  • Presumption rebutted: depreciable property held to consume substantially all its benefits over time

IAS 12 §20IAS 12 §23IAS 12 §57IAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §62IAS 12 §62AIAS 12 §63IAS 12

• Points examined

  ChecklistRequired

  • Tax effects recognised consistently with the transaction or event itself
  • Change without a change in the differences (rate, recoverability, manner of recovery): in profit or loss, except the portion relating to items previously outside profit or loss
  • Tax in profit or loss, except for a transaction recognised outside profit or loss or a business combination
  • Tax relating to an item outside profit or loss, in the same or a different period: same allocation as the item
  • Revaluation of property, plant and equipment: item of other comprehensive income
  • Items directly in equity: retrospective opening adjustment, equity component of a compound instrument
  • Portion outside profit or loss difficult to determine (rate change on items previously outside profit or loss)
  • Tax revaluation linked to an accounting revaluation: tax effect in other comprehensive income

IAS 12 §52AIAS 12 §57AIAS 12 §65A

• Dividend recognised as a liability (gross amount)

  Number

  2,000,000

• Difference between the rate on distributed profits and the rate on undistributed profits (%)

  Number

• Rate of withholding tax on behalf of the shareholders (%)

  Number

  10 %

• Points examined

  Checklist

  • Rate depending on distribution: current and deferred tax measured at the rate on undistributed profits
  • Tax consequences recognised when the dividend payable is recognised
  • Allocation according to where the transactions that generated the distributed profits were recognised
  • Withholding paid on behalf of the shareholders: charged to equity as part of the dividend

SIC 25 §1SIC 25 §2SIC 25 §4

• Net deferred tax liability measured under the new status

  Number

  100,000

• Net deferred tax liability measured under the old status

  Number

  40,000

• Points examined

  Checklist

  • Change in the status of the entity or its shareholders (listing, restructuring, transfer)
  • Possible immediate effect on current tax; deferred tax changed according to the tax consequences of recovery or settlement
  • Effects in profit or loss, except those relating to items previously outside profit or loss

IAS 12 §20IAS 12 §47IAS 12 §51AIAS 12 §52AIAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §63IAS 12 §65ASIC 25 §4

• Deferred tax on existing differences at the old rate

  Calculation

  540,000

  Existing taxable differences at the date of the rate change (base) ; Rate used until now for deferred tax (%)

• Deferred tax on existing differences at the new rate

  Calculation

  450,000

  Existing taxable differences at the date of the rate change (base) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Increase in deferred tax liability due to the rate change

  Calculation

  0

  Deferred tax on existing differences at the new rate ; − Deferred tax on existing differences at the old rate

• Decrease in deferred tax liability due to the rate change

  Calculation

  90,000

  Deferred tax on existing differences at the new rate ; − Deferred tax on existing differences at the old rate

• Portion of the increase allocated to other comprehensive income

  Calculation

  0

  Increase in deferred tax liability due to the rate change ; Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI) ; Row of the split isolated by the calculation

  Same teaching assumption as for the decrease: explicit allocation key of the case.

• Portion of the increase allocated to profit or loss

  Calculation

  0

  Increase in deferred tax liability due to the rate change ; − Portion of the increase allocated to other comprehensive income

• Portion of the decrease allocated to other comprehensive income

  Calculation

  30,000

  Decrease in deferred tax liability due to the rate change ; Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI) ; Row of the split isolated by the calculation

  Teaching assumption: split in proportion to the differences by origin. The rule (paras. 60 and 61A) requires following the original item; the allocation method in difficult cases (para. 63) is not taught as a rule: the key is an explicit case data.

• Portion of the decrease allocated to profit or loss

  Calculation

  60,000

  Decrease in deferred tax liability due to the rate change ; − Portion of the decrease allocated to other comprehensive income

• Deferred tax liability on the revaluation (in other comprehensive income)

  Calculation

  Increase from a revaluation recognised in other comprehensive income, without tax adjustment ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: difference on an asset revalued without tax adjustment (para. 20), tax allocated like the item, here in other comprehensive income (para. 61A). Case data: recognition of the revaluation in other comprehensive income; revalued land is measured on a sale basis (para. 51B).

• Revaluation surplus net of tax

  Calculation

  Increase from a revaluation recognised in other comprehensive income, without tax adjustment ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax on the portion recovered through use

  Calculation

  Difference relating to the portion recovered through use (base for use) ; Rate applicable to use (%)

• Deferred tax on the portion recovered through sale

  Calculation

  Difference relating to the portion recovered through sale (base for sale) ; Rate applicable to sale (%)

• Deferred tax according to the expected manner of recovery

  Calculation

  0

  Deferred tax on the portion recovered through use ; Deferred tax on the portion recovered through sale

  Case data: rates and bases specific to use and to sale. IFRS rule: rate and base consistent with the expected manner (para. 51A).

• Increase in deferred tax liability due to the change in status

  Calculation

  60,000

  Net deferred tax liability measured under the new status ; − Net deferred tax liability measured under the old status

  IFRS rule: effects in profit or loss, except those relating to items previously outside profit or loss (SIC-25 para. 4). Teaching assumption: differences arising in profit or loss; otherwise the effect follows the original item.

• Decrease in deferred tax liability due to the change in status

  Calculation

  0

  Net deferred tax liability measured under the new status ; − Net deferred tax liability measured under the old status

• Additional tax due to the distribution

  Calculation

  Dividend recognised as a liability (gross amount) ; Difference between the rate on distributed profits and the rate on undistributed profits (%)

  Case data: tax regime for distributions and rate difference. Teaching assumption: distributed profits generated by transactions recognised in profit or loss (para. 57A).

• Withholding tax payable on behalf of the shareholders

  Calculation

  200,000

  Dividend recognised as a liability (gross amount) ; Rate of withholding tax on behalf of the shareholders (%)

• Net dividend payable to the shareholders

  Calculation

  1,800,000

  Dividend recognised as a liability (gross amount) ; Rate of withholding tax on behalf of the shareholders (%)

• Deferred tax expense of the period in profit or loss

  Calculation

  0

  Deferred tax liabilities at the end of the period ; − Deferred tax liabilities at the beginning of the period ; − Deferred tax assets at the end of the period ; Deferred tax assets at the beginning of the period ; − Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination) ; Net decrease in deferred tax liability recognised outside profit or loss

  Summary control, with no entry of its own: change in the net liability (liabilities − assets) less the amounts recognised outside profit or loss (para. 58). The entries above detail its causes.

• Deferred tax income of the period in profit or loss

  Calculation

  0

  Deferred tax liabilities at the end of the period ; − Deferred tax liabilities at the beginning of the period ; − Deferred tax assets at the end of the period ; Deferred tax assets at the beginning of the period ; − Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination) ; Net decrease in deferred tax liability recognised outside profit or loss

• Rate decrease: reduction of the liability split between profit or loss and other comprehensive income

  Entry

  Account	Debit	Credit
  Deferred tax liability	90,000
  Deferred tax income		60,000
  Income tax on other comprehensive income		30,000

• Rate increase: portion allocated to profit or loss

  Entry

  Debit Deferred tax expense ← Portion of the increase allocated to profit or loss ; Credit Deferred tax liability ← Portion of the increase allocated to profit or loss

• Rate increase: portion allocated to other comprehensive income

  Entry

  Debit Income tax on other comprehensive income ← Portion of the increase allocated to other comprehensive income ; Credit Deferred tax liability ← Portion of the increase allocated to other comprehensive income

• Deferred tax on the revaluation

  Entry

  Debit Income tax on other comprehensive income ← Deferred tax liability on the revaluation (in other comprehensive income) ; Credit Deferred tax liability ← Deferred tax liability on the revaluation (in other comprehensive income)

• Deferred tax liability measured according to the manner of recovery

  Entry

  Debit Deferred tax expense ← Deferred tax according to the expected manner of recovery ; Credit Deferred tax liability ← Deferred tax according to the expected manner of recovery

  Teaching assumption: liability arising in the period, with no opening balance; case data: fair value changes of the property recognised in profit or loss. An item outside profit or loss follows the allocation of the item.

• Change in status: increase in the liability

  Entry

  Account	Debit	Credit
  Deferred tax expense	60,000
  Deferred tax liability		60,000

• Change in status: decrease in the liability

  Entry

  Debit Deferred tax liability ← Decrease in deferred tax liability due to the change in status ; Credit Deferred tax income ← Decrease in deferred tax liability due to the change in status

• Tax consequence of the dividend in profit or loss

  Entry

  Debit Current tax expense ← Additional tax due to the distribution ; Credit Current tax liability ← Additional tax due to the distribution

• Dividend declared and withholding tax on behalf of the shareholders

  Entry

  Account	Debit	Credit
  Retained earnings	2,000,000
  Dividends payable		1,800,000
  Withholding tax payable		200,000

  IFRS rule: withholding paid on behalf of the shareholders is charged to equity as part of the dividend (para. 65A). Case data: withholding rate.

IAS 12 §47IAS 12 §48IAS 12 §51IAS 12 §51AIAS 12 §51BIAS 12 §51CIAS 12 §57IAS 12 §57AIAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §63SIC 25 §4

• Status of the rate retained at the reporting date

  JudgmentRequired

  Enacted rate

  Enacted rate / Substantively enacted rate / Announced rate not substantively enacted: old rate kept

  Professional judgement: substantive enactment assessed according to the legislative process of the jurisdiction of the case (para. 48).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  FINANCE_ACT_PROMULGATED_BEFORE_CLOSING_PROPOSAL_IGNORED

• Manner of recovery retained

  JudgmentRequired

  Recovery through use

  Recovery through use / Recovery through sale / Use then sale (combination) / Sale presumption applied (investment property at fair value) / Sale presumption rebutted

  Professional judgement based on the documented intentions and business model; rebuttal of the sale presumption follows the conditions of para. 51C.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  TOOLING_OFFICE_BUILDING_AND_CENTRE_RECOVERED_THROUGH_USE

• Allocation of deferred tax

  JudgmentRequired

  Split according to the origin of the differences (explicit allocation key of the case)

  In profit or loss / In other comprehensive income / Directly in equity / Split according to the origin of the differences (explicit allocation key of the case)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  PRO_RATA_BY_ORIGIN_OF_DIFFERENCES

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

  TableRequired

IAS 12 §81IAS 12 §82AIAS 12 §87AIAS 12 §87B

• Information prepared

  ChecklistRequired

  • Tax relating to each component of other comprehensive income
  • Explanation of changes in the applicable tax rate compared with the previous period
  • Deferred tax recognised in profit or loss, by type of difference
  • Tax consequences of dividends proposed or declared before authorisation for issue, not recognised
  • Rate depending on distribution: nature of the potential tax consequences, features of the regime and determinable amounts
  • Total amount impracticable: readily determinable portions disclosed

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

  References

• The status of the rate is documentedPass
• The manner of recovery is documentedPass
• The allocation is documentedPass
• The decrease is fully split between profit or loss and other comprehensive incomePass
• The increase is fully split between profit or loss and other comprehensive incomePass
• Increase in value = deferred tax + net revaluation surplusNot evaluated
• The rate decrease entry balancesPass
• The rate increase entry (profit or loss) balancesNot evaluated
• The rate increase entry (other comprehensive income) balancesNot evaluated
• The revaluation entry balancesNot evaluated
• The manner of recovery entry balancesNot evaluated
• The increase entry (status) balancesPass
• The decrease entry (status) balancesNot evaluated
• The dividend tax consequence entry balancesNot evaluated
• The dividend and withholding entry balancesPass

Assets

0

Liabilities

1,970,000

Profit or loss

0

OCI

30,000

Equity

-1,970,000

• Taxable entity, differences concerned, origin (profit or loss, other comprehensive income, equity) and event of the period

  TextRequired

  NON_DEPRECIABLE_LAND_REVALUED_IN_OCI

• Rate used until now for deferred tax (%)

  Number

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

  Number

  15 %

  IFRS rule: rate expected on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate. If the rate does not change, enter the same rate as at the beginning.

• Existing taxable differences at the date of the rate change (base)

  Number

• Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI)

  Table

  Input convention: one PROFIT_OR_LOSS row and one OCI row, amounts of the existing differences by origin; their sum equals the existing differences.

• Row of the split isolated by the calculation

  Choice

  Other comprehensive income / Profit or loss

  Input convention: choose OCI; the calculation isolates the other comprehensive income portion, the remainder goes to profit or loss.

• Increase from a revaluation recognised in other comprehensive income, without tax adjustment

  Number

  800,000

• Deferred tax liabilities at the beginning of the period

  Number

• Deferred tax assets at the beginning of the period

  Number

• Deferred tax liabilities at the end of the period

  Number

• Deferred tax assets at the end of the period

  Number

• Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination)

  Number

• Net decrease in deferred tax liability recognised outside profit or loss

  Number

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §47IAS 12 §48IAS 12IAS 12 §53

• Points examined

  ChecklistRequired

  • Rate expected in the period of realisation or settlement, enacted or substantively enacted at the reporting date
  • Announcement having the effect of actual enactment: announced rate used
  • Graduated rates: average rate expected over the reversal periods
  • No discounting of deferred tax assets and liabilities

IAS 12 §51IAS 12 §51AIAS 12 §51BIAS 12 §51C

• Difference relating to the portion recovered through use (base for use)

  Number

• Rate applicable to use (%)

  Number

• Difference relating to the portion recovered through sale (base for sale)

  Number

• Rate applicable to sale (%)

  Number

• Points examined

  Checklist

  • Tax consequences of the manner expected, at the reporting date, to recover or settle the carrying amount
  • Rate and tax base consistent with the manner of use or sale
  • Revalued non-depreciable asset (IAS 16): consequences of recovery through sale
  • Investment property at fair value (IAS 40): rebuttable presumption of recovery through sale
  • Presumption rebutted: depreciable property held to consume substantially all its benefits over time

IAS 12 §20IAS 12 §23IAS 12 §57IAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §62IAS 12 §62AIAS 12 §63IAS 12

• Points examined

  ChecklistRequired

  • Tax effects recognised consistently with the transaction or event itself
  • Change without a change in the differences (rate, recoverability, manner of recovery): in profit or loss, except the portion relating to items previously outside profit or loss
  • Tax in profit or loss, except for a transaction recognised outside profit or loss or a business combination
  • Tax relating to an item outside profit or loss, in the same or a different period: same allocation as the item
  • Revaluation of property, plant and equipment: item of other comprehensive income
  • Items directly in equity: retrospective opening adjustment, equity component of a compound instrument
  • Portion outside profit or loss difficult to determine (rate change on items previously outside profit or loss)
  • Tax revaluation linked to an accounting revaluation: tax effect in other comprehensive income

IAS 12 §52AIAS 12 §57AIAS 12 §65A

• Dividend recognised as a liability (gross amount)

  Number

• Difference between the rate on distributed profits and the rate on undistributed profits (%)

  Number

• Rate of withholding tax on behalf of the shareholders (%)

  Number

• Points examined

  Checklist

  • Rate depending on distribution: current and deferred tax measured at the rate on undistributed profits
  • Tax consequences recognised when the dividend payable is recognised
  • Allocation according to where the transactions that generated the distributed profits were recognised
  • Withholding paid on behalf of the shareholders: charged to equity as part of the dividend

SIC 25 §1SIC 25 §2SIC 25 §4

• Net deferred tax liability measured under the new status

  Number

• Net deferred tax liability measured under the old status

  Number

• Points examined

  Checklist

  • Change in the status of the entity or its shareholders (listing, restructuring, transfer)
  • Possible immediate effect on current tax; deferred tax changed according to the tax consequences of recovery or settlement
  • Effects in profit or loss, except those relating to items previously outside profit or loss

IAS 12 §20IAS 12 §47IAS 12 §51AIAS 12 §52AIAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §63IAS 12 §65ASIC 25 §4

• Deferred tax on existing differences at the old rate

  Calculation

  Existing taxable differences at the date of the rate change (base) ; Rate used until now for deferred tax (%)

• Deferred tax on existing differences at the new rate

  Calculation

  Existing taxable differences at the date of the rate change (base) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Increase in deferred tax liability due to the rate change

  Calculation

  0

  Deferred tax on existing differences at the new rate ; − Deferred tax on existing differences at the old rate

• Decrease in deferred tax liability due to the rate change

  Calculation

  0

  Deferred tax on existing differences at the new rate ; − Deferred tax on existing differences at the old rate

• Portion of the increase allocated to other comprehensive income

  Calculation

  Increase in deferred tax liability due to the rate change ; Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI) ; Row of the split isolated by the calculation

  Same teaching assumption as for the decrease: explicit allocation key of the case.

• Portion of the increase allocated to profit or loss

  Calculation

  0

  Increase in deferred tax liability due to the rate change ; − Portion of the increase allocated to other comprehensive income

• Portion of the decrease allocated to other comprehensive income

  Calculation

  Decrease in deferred tax liability due to the rate change ; Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI) ; Row of the split isolated by the calculation

  Teaching assumption: split in proportion to the differences by origin. The rule (paras. 60 and 61A) requires following the original item; the allocation method in difficult cases (para. 63) is not taught as a rule: the key is an explicit case data.

• Portion of the decrease allocated to profit or loss

  Calculation

  0

  Decrease in deferred tax liability due to the rate change ; − Portion of the decrease allocated to other comprehensive income

• Deferred tax liability on the revaluation (in other comprehensive income)

  Calculation

  120,000

  Increase from a revaluation recognised in other comprehensive income, without tax adjustment ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: difference on an asset revalued without tax adjustment (para. 20), tax allocated like the item, here in other comprehensive income (para. 61A). Case data: recognition of the revaluation in other comprehensive income; revalued land is measured on a sale basis (para. 51B).

• Revaluation surplus net of tax

  Calculation

  680,000

  Increase from a revaluation recognised in other comprehensive income, without tax adjustment ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax on the portion recovered through use

  Calculation

  Difference relating to the portion recovered through use (base for use) ; Rate applicable to use (%)

• Deferred tax on the portion recovered through sale

  Calculation

  Difference relating to the portion recovered through sale (base for sale) ; Rate applicable to sale (%)

• Deferred tax according to the expected manner of recovery

  Calculation

  0

  Deferred tax on the portion recovered through use ; Deferred tax on the portion recovered through sale

  Case data: rates and bases specific to use and to sale. IFRS rule: rate and base consistent with the expected manner (para. 51A).

• Increase in deferred tax liability due to the change in status

  Calculation

  0

  Net deferred tax liability measured under the new status ; − Net deferred tax liability measured under the old status

  IFRS rule: effects in profit or loss, except those relating to items previously outside profit or loss (SIC-25 para. 4). Teaching assumption: differences arising in profit or loss; otherwise the effect follows the original item.

• Decrease in deferred tax liability due to the change in status

  Calculation

  0

  Net deferred tax liability measured under the new status ; − Net deferred tax liability measured under the old status

• Additional tax due to the distribution

  Calculation

  Dividend recognised as a liability (gross amount) ; Difference between the rate on distributed profits and the rate on undistributed profits (%)

  Case data: tax regime for distributions and rate difference. Teaching assumption: distributed profits generated by transactions recognised in profit or loss (para. 57A).

• Withholding tax payable on behalf of the shareholders

  Calculation

  Dividend recognised as a liability (gross amount) ; Rate of withholding tax on behalf of the shareholders (%)

• Net dividend payable to the shareholders

  Calculation

  Dividend recognised as a liability (gross amount) ; Rate of withholding tax on behalf of the shareholders (%)

• Deferred tax expense of the period in profit or loss

  Calculation

  0

  Deferred tax liabilities at the end of the period ; − Deferred tax liabilities at the beginning of the period ; − Deferred tax assets at the end of the period ; Deferred tax assets at the beginning of the period ; − Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination) ; Net decrease in deferred tax liability recognised outside profit or loss

  Summary control, with no entry of its own: change in the net liability (liabilities − assets) less the amounts recognised outside profit or loss (para. 58). The entries above detail its causes.

• Deferred tax income of the period in profit or loss

  Calculation

  0

  Deferred tax liabilities at the end of the period ; − Deferred tax liabilities at the beginning of the period ; − Deferred tax assets at the end of the period ; Deferred tax assets at the beginning of the period ; − Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination) ; Net decrease in deferred tax liability recognised outside profit or loss

• Rate decrease: reduction of the liability split between profit or loss and other comprehensive income

  Entry

  Debit Deferred tax liability ← Decrease in deferred tax liability due to the rate change ; Credit Deferred tax income ← Portion of the decrease allocated to profit or loss ; Credit Income tax on other comprehensive income ← Portion of the decrease allocated to other comprehensive income

• Rate increase: portion allocated to profit or loss

  Entry

  Debit Deferred tax expense ← Portion of the increase allocated to profit or loss ; Credit Deferred tax liability ← Portion of the increase allocated to profit or loss

• Rate increase: portion allocated to other comprehensive income

  Entry

  Debit Income tax on other comprehensive income ← Portion of the increase allocated to other comprehensive income ; Credit Deferred tax liability ← Portion of the increase allocated to other comprehensive income

• Deferred tax on the revaluation

  Entry

  Account	Debit	Credit
  Income tax on other comprehensive income	120,000
  Deferred tax liability		120,000

• Deferred tax liability measured according to the manner of recovery

  Entry

  Debit Deferred tax expense ← Deferred tax according to the expected manner of recovery ; Credit Deferred tax liability ← Deferred tax according to the expected manner of recovery

  Teaching assumption: liability arising in the period, with no opening balance; case data: fair value changes of the property recognised in profit or loss. An item outside profit or loss follows the allocation of the item.

• Change in status: increase in the liability

  Entry

  Debit Deferred tax expense ← Increase in deferred tax liability due to the change in status ; Credit Deferred tax liability ← Increase in deferred tax liability due to the change in status

• Change in status: decrease in the liability

  Entry

  Debit Deferred tax liability ← Decrease in deferred tax liability due to the change in status ; Credit Deferred tax income ← Decrease in deferred tax liability due to the change in status

• Tax consequence of the dividend in profit or loss

  Entry

  Debit Current tax expense ← Additional tax due to the distribution ; Credit Current tax liability ← Additional tax due to the distribution

• Dividend declared and withholding tax on behalf of the shareholders

  Entry

  Debit Retained earnings ← Dividend recognised as a liability (gross amount) ; Credit Dividends payable ← Net dividend payable to the shareholders ; Credit Withholding tax payable ← Withholding tax payable on behalf of the shareholders

  IFRS rule: withholding paid on behalf of the shareholders is charged to equity as part of the dividend (para. 65A). Case data: withholding rate.

IAS 12 §47IAS 12 §48IAS 12 §51IAS 12 §51AIAS 12 §51BIAS 12 §51CIAS 12 §57IAS 12 §57AIAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §63SIC 25 §4

• Status of the rate retained at the reporting date

  JudgmentRequired

  Enacted rate

  Enacted rate / Substantively enacted rate / Announced rate not substantively enacted: old rate kept

  Professional judgement: substantive enactment assessed according to the legislative process of the jurisdiction of the case (para. 48).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  CAPITAL_GAINS_RATE_UNCHANGED_PROPOSAL_NOT_SUBSTANTIVELY_ENACTED

• Manner of recovery retained

  JudgmentRequired

  Recovery through sale

  Recovery through use / Recovery through sale / Use then sale (combination) / Sale presumption applied (investment property at fair value) / Sale presumption rebutted

  Professional judgement based on the documented intentions and business model; rebuttal of the sale presumption follows the conditions of para. 51C.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NON_DEPRECIABLE_REVALUED_ASSET_RECOVERED_THROUGH_SALE

• Allocation of deferred tax

  JudgmentRequired

  In other comprehensive income

  In profit or loss / In other comprehensive income / Directly in equity / Split according to the origin of the differences (explicit allocation key of the case)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  REVALUATION_RECOGNISED_IN_OCI

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

  TableRequired

IAS 12 §81IAS 12 §82AIAS 12 §87AIAS 12 §87B

• Information prepared

  ChecklistRequired

  • Tax relating to each component of other comprehensive income
  • Explanation of changes in the applicable tax rate compared with the previous period
  • Deferred tax recognised in profit or loss, by type of difference
  • Tax consequences of dividends proposed or declared before authorisation for issue, not recognised
  • Rate depending on distribution: nature of the potential tax consequences, features of the regime and determinable amounts
  • Total amount impracticable: readily determinable portions disclosed

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

  References

• The status of the rate is documentedPass
• The manner of recovery is documentedPass
• The allocation is documentedPass
• The decrease is fully split between profit or loss and other comprehensive incomeNot evaluated
• The increase is fully split between profit or loss and other comprehensive incomeNot evaluated
• Increase in value = deferred tax + net revaluation surplusPass
• The rate decrease entry balancesNot evaluated
• The rate increase entry (profit or loss) balancesNot evaluated
• The rate increase entry (other comprehensive income) balancesNot evaluated
• The revaluation entry balancesPass
• The manner of recovery entry balancesNot evaluated
• The increase entry (status) balancesNot evaluated
• The decrease entry (status) balancesNot evaluated
• The dividend tax consequence entry balancesNot evaluated
• The dividend and withholding entry balancesNot evaluated

Assets

0

Liabilities

120,000

Profit or loss

0

OCI

-120,000

Equity

-120,000

• Taxable entity, differences concerned, origin (profit or loss, other comprehensive income, equity) and event of the period

  TextRequired

  INVESTMENT_PROPERTY_AT_FAIR_VALUE

• Rate used until now for deferred tax (%)

  Number

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

  Number

  IFRS rule: rate expected on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate. If the rate does not change, enter the same rate as at the beginning.

• Existing taxable differences at the date of the rate change (base)

  Number

• Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI)

  Table

  Input convention: one PROFIT_OR_LOSS row and one OCI row, amounts of the existing differences by origin; their sum equals the existing differences.

• Row of the split isolated by the calculation

  Choice

  Other comprehensive income / Profit or loss

  Input convention: choose OCI; the calculation isolates the other comprehensive income portion, the remainder goes to profit or loss.

• Increase from a revaluation recognised in other comprehensive income, without tax adjustment

  Number

• Deferred tax liabilities at the beginning of the period

  Number

  325,000

• Deferred tax assets at the beginning of the period

  Number

• Deferred tax liabilities at the end of the period

  Number

  255,000

• Deferred tax assets at the end of the period

  Number

• Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination)

  Number

• Net decrease in deferred tax liability recognised outside profit or loss

  Number

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §47IAS 12 §48IAS 12IAS 12 §53

• Points examined

  ChecklistRequired

  • Rate expected in the period of realisation or settlement, enacted or substantively enacted at the reporting date
  • Announcement having the effect of actual enactment: announced rate used
  • Graduated rates: average rate expected over the reversal periods
  • No discounting of deferred tax assets and liabilities

IAS 12 §51IAS 12 §51AIAS 12 §51BIAS 12 §51C

• Difference relating to the portion recovered through use (base for use)

  Number

  600,000

• Rate applicable to use (%)

  Number

  25 %

• Difference relating to the portion recovered through sale (base for sale)

  Number

  700,000

• Rate applicable to sale (%)

  Number

  15 %

• Points examined

  Checklist

  • Tax consequences of the manner expected, at the reporting date, to recover or settle the carrying amount
  • Rate and tax base consistent with the manner of use or sale
  • Revalued non-depreciable asset (IAS 16): consequences of recovery through sale
  • Investment property at fair value (IAS 40): rebuttable presumption of recovery through sale
  • Presumption rebutted: depreciable property held to consume substantially all its benefits over time

IAS 12 §20IAS 12 §23IAS 12 §57IAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §62IAS 12 §62AIAS 12 §63IAS 12

• Points examined

  ChecklistRequired

  • Tax effects recognised consistently with the transaction or event itself
  • Change without a change in the differences (rate, recoverability, manner of recovery): in profit or loss, except the portion relating to items previously outside profit or loss
  • Tax in profit or loss, except for a transaction recognised outside profit or loss or a business combination
  • Tax relating to an item outside profit or loss, in the same or a different period: same allocation as the item
  • Revaluation of property, plant and equipment: item of other comprehensive income
  • Items directly in equity: retrospective opening adjustment, equity component of a compound instrument
  • Portion outside profit or loss difficult to determine (rate change on items previously outside profit or loss)
  • Tax revaluation linked to an accounting revaluation: tax effect in other comprehensive income

IAS 12 §52AIAS 12 §57AIAS 12 §65A

• Dividend recognised as a liability (gross amount)

  Number

• Difference between the rate on distributed profits and the rate on undistributed profits (%)

  Number

• Rate of withholding tax on behalf of the shareholders (%)

  Number

• Points examined

  Checklist

  • Rate depending on distribution: current and deferred tax measured at the rate on undistributed profits
  • Tax consequences recognised when the dividend payable is recognised
  • Allocation according to where the transactions that generated the distributed profits were recognised
  • Withholding paid on behalf of the shareholders: charged to equity as part of the dividend

SIC 25 §1SIC 25 §2SIC 25 §4

• Net deferred tax liability measured under the new status

  Number

• Net deferred tax liability measured under the old status

  Number

• Points examined

  Checklist

  • Change in the status of the entity or its shareholders (listing, restructuring, transfer)
  • Possible immediate effect on current tax; deferred tax changed according to the tax consequences of recovery or settlement
  • Effects in profit or loss, except those relating to items previously outside profit or loss

IAS 12 §20IAS 12 §47IAS 12 §51AIAS 12 §52AIAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §63IAS 12 §65ASIC 25 §4

• Deferred tax on existing differences at the old rate

  Calculation

  Existing taxable differences at the date of the rate change (base) ; Rate used until now for deferred tax (%)

• Deferred tax on existing differences at the new rate

  Calculation

  Existing taxable differences at the date of the rate change (base) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Increase in deferred tax liability due to the rate change

  Calculation

  0

  Deferred tax on existing differences at the new rate ; − Deferred tax on existing differences at the old rate

• Decrease in deferred tax liability due to the rate change

  Calculation

  0

  Deferred tax on existing differences at the new rate ; − Deferred tax on existing differences at the old rate

• Portion of the increase allocated to other comprehensive income

  Calculation

  Increase in deferred tax liability due to the rate change ; Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI) ; Row of the split isolated by the calculation

  Same teaching assumption as for the decrease: explicit allocation key of the case.

• Portion of the increase allocated to profit or loss

  Calculation

  0

  Increase in deferred tax liability due to the rate change ; − Portion of the increase allocated to other comprehensive income

• Portion of the decrease allocated to other comprehensive income

  Calculation

  Decrease in deferred tax liability due to the rate change ; Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI) ; Row of the split isolated by the calculation

  Teaching assumption: split in proportion to the differences by origin. The rule (paras. 60 and 61A) requires following the original item; the allocation method in difficult cases (para. 63) is not taught as a rule: the key is an explicit case data.

• Portion of the decrease allocated to profit or loss

  Calculation

  0

  Decrease in deferred tax liability due to the rate change ; − Portion of the decrease allocated to other comprehensive income

• Deferred tax liability on the revaluation (in other comprehensive income)

  Calculation

  Increase from a revaluation recognised in other comprehensive income, without tax adjustment ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: difference on an asset revalued without tax adjustment (para. 20), tax allocated like the item, here in other comprehensive income (para. 61A). Case data: recognition of the revaluation in other comprehensive income; revalued land is measured on a sale basis (para. 51B).

• Revaluation surplus net of tax

  Calculation

  Increase from a revaluation recognised in other comprehensive income, without tax adjustment ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax on the portion recovered through use

  Calculation

  150,000

  Difference relating to the portion recovered through use (base for use) ; Rate applicable to use (%)

• Deferred tax on the portion recovered through sale

  Calculation

  105,000

  Difference relating to the portion recovered through sale (base for sale) ; Rate applicable to sale (%)

• Deferred tax according to the expected manner of recovery

  Calculation

  255,000

  Deferred tax on the portion recovered through use ; Deferred tax on the portion recovered through sale

  Case data: rates and bases specific to use and to sale. IFRS rule: rate and base consistent with the expected manner (para. 51A).

• Increase in deferred tax liability due to the change in status

  Calculation

  0

  Net deferred tax liability measured under the new status ; − Net deferred tax liability measured under the old status

  IFRS rule: effects in profit or loss, except those relating to items previously outside profit or loss (SIC-25 para. 4). Teaching assumption: differences arising in profit or loss; otherwise the effect follows the original item.

• Decrease in deferred tax liability due to the change in status

  Calculation

  0

  Net deferred tax liability measured under the new status ; − Net deferred tax liability measured under the old status

• Additional tax due to the distribution

  Calculation

  Dividend recognised as a liability (gross amount) ; Difference between the rate on distributed profits and the rate on undistributed profits (%)

  Case data: tax regime for distributions and rate difference. Teaching assumption: distributed profits generated by transactions recognised in profit or loss (para. 57A).

• Withholding tax payable on behalf of the shareholders

  Calculation

  Dividend recognised as a liability (gross amount) ; Rate of withholding tax on behalf of the shareholders (%)

• Net dividend payable to the shareholders

  Calculation

  Dividend recognised as a liability (gross amount) ; Rate of withholding tax on behalf of the shareholders (%)

• Deferred tax expense of the period in profit or loss

  Calculation

  0

  Deferred tax liabilities at the end of the period ; − Deferred tax liabilities at the beginning of the period ; − Deferred tax assets at the end of the period ; Deferred tax assets at the beginning of the period ; − Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination) ; Net decrease in deferred tax liability recognised outside profit or loss

  Summary control, with no entry of its own: change in the net liability (liabilities − assets) less the amounts recognised outside profit or loss (para. 58). The entries above detail its causes.

• Deferred tax income of the period in profit or loss

  Calculation

  70,000

  Deferred tax liabilities at the end of the period ; − Deferred tax liabilities at the beginning of the period ; − Deferred tax assets at the end of the period ; Deferred tax assets at the beginning of the period ; − Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination) ; Net decrease in deferred tax liability recognised outside profit or loss

• Rate decrease: reduction of the liability split between profit or loss and other comprehensive income

  Entry

  Debit Deferred tax liability ← Decrease in deferred tax liability due to the rate change ; Credit Deferred tax income ← Portion of the decrease allocated to profit or loss ; Credit Income tax on other comprehensive income ← Portion of the decrease allocated to other comprehensive income

• Rate increase: portion allocated to profit or loss

  Entry

  Debit Deferred tax expense ← Portion of the increase allocated to profit or loss ; Credit Deferred tax liability ← Portion of the increase allocated to profit or loss

• Rate increase: portion allocated to other comprehensive income

  Entry

  Debit Income tax on other comprehensive income ← Portion of the increase allocated to other comprehensive income ; Credit Deferred tax liability ← Portion of the increase allocated to other comprehensive income

• Deferred tax on the revaluation

  Entry

  Debit Income tax on other comprehensive income ← Deferred tax liability on the revaluation (in other comprehensive income) ; Credit Deferred tax liability ← Deferred tax liability on the revaluation (in other comprehensive income)

• Deferred tax liability measured according to the manner of recovery

  Entry

  Account	Debit	Credit
  Deferred tax expense	255,000
  Deferred tax liability		255,000

  Teaching assumption: liability arising in the period, with no opening balance; case data: fair value changes of the property recognised in profit or loss. An item outside profit or loss follows the allocation of the item.

• Change in status: increase in the liability

  Entry

  Debit Deferred tax expense ← Increase in deferred tax liability due to the change in status ; Credit Deferred tax liability ← Increase in deferred tax liability due to the change in status

• Change in status: decrease in the liability

  Entry

  Debit Deferred tax liability ← Decrease in deferred tax liability due to the change in status ; Credit Deferred tax income ← Decrease in deferred tax liability due to the change in status

• Tax consequence of the dividend in profit or loss

  Entry

  Debit Current tax expense ← Additional tax due to the distribution ; Credit Current tax liability ← Additional tax due to the distribution

• Dividend declared and withholding tax on behalf of the shareholders

  Entry

  Debit Retained earnings ← Dividend recognised as a liability (gross amount) ; Credit Dividends payable ← Net dividend payable to the shareholders ; Credit Withholding tax payable ← Withholding tax payable on behalf of the shareholders

  IFRS rule: withholding paid on behalf of the shareholders is charged to equity as part of the dividend (para. 65A). Case data: withholding rate.

IAS 12 §47IAS 12 §48IAS 12 §51IAS 12 §51AIAS 12 §51BIAS 12 §51CIAS 12 §57IAS 12 §57AIAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §63SIC 25 §4

• Status of the rate retained at the reporting date

  JudgmentRequired

  Enacted rate

  Enacted rate / Substantively enacted rate / Announced rate not substantively enacted: old rate kept

  Professional judgement: substantive enactment assessed according to the legislative process of the jurisdiction of the case (para. 48).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  STANDARD_RATE_ON_CLAWBACK_CAPITAL_GAINS_RATE_ON_GAIN

• Manner of recovery retained

  JudgmentRequired

  Sale presumption applied (investment property at fair value)

  Recovery through use / Recovery through sale / Use then sale (combination) / Sale presumption applied (investment property at fair value) / Sale presumption rebutted

  Professional judgement based on the documented intentions and business model; rebuttal of the sale presumption follows the conditions of para. 51C.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NO_CONSUMPTION_BUSINESS_MODEL_RESALE_PLANNED

• Allocation of deferred tax

  JudgmentRequired

  In profit or loss

  In profit or loss / In other comprehensive income / Directly in equity / Split according to the origin of the differences (explicit allocation key of the case)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  FAIR_VALUE_CHANGES_IN_PROFIT_OR_LOSS

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

  TableRequired

IAS 12 §81IAS 12 §82AIAS 12 §87AIAS 12 §87B

• Information prepared

  ChecklistRequired

  • Tax relating to each component of other comprehensive income
  • Explanation of changes in the applicable tax rate compared with the previous period
  • Deferred tax recognised in profit or loss, by type of difference
  • Tax consequences of dividends proposed or declared before authorisation for issue, not recognised
  • Rate depending on distribution: nature of the potential tax consequences, features of the regime and determinable amounts
  • Total amount impracticable: readily determinable portions disclosed

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

  References

• The status of the rate is documentedPass
• The manner of recovery is documentedPass
• The allocation is documentedPass
• The decrease is fully split between profit or loss and other comprehensive incomeNot evaluated
• The increase is fully split between profit or loss and other comprehensive incomeNot evaluated
• Increase in value = deferred tax + net revaluation surplusNot evaluated
• The rate decrease entry balancesNot evaluated
• The rate increase entry (profit or loss) balancesNot evaluated
• The rate increase entry (other comprehensive income) balancesNot evaluated
• The revaluation entry balancesNot evaluated
• The manner of recovery entry balancesPass
• The increase entry (status) balancesNot evaluated
• The decrease entry (status) balancesNot evaluated
• The dividend tax consequence entry balancesNot evaluated
• The dividend and withholding entry balancesNot evaluated

Assets

0

Liabilities

255,000

Profit or loss

-255,000

OCI

0

Equity

-255,000

• Taxable entity, differences concerned, origin (profit or loss, other comprehensive income, equity) and event of the period

  TextRequired

  LUSTRANIAN_RATE_CUT_AND_DIVIDEND_DECLARED

• Rate used until now for deferred tax (%)

  Number

  25 %

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

  Number

  22 %

  IFRS rule: rate expected on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate. If the rate does not change, enter the same rate as at the beginning.

• Existing taxable differences at the date of the rate change (base)

  Number

  2,000,000

• Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI)

  Table

  PROFIT_OR_LOSS · 2,000,000 | OCI · 0

  Input convention: one PROFIT_OR_LOSS row and one OCI row, amounts of the existing differences by origin; their sum equals the existing differences.

• Row of the split isolated by the calculation

  Choice

  Other comprehensive income

  Other comprehensive income / Profit or loss

  Input convention: choose OCI; the calculation isolates the other comprehensive income portion, the remainder goes to profit or loss.

• Increase from a revaluation recognised in other comprehensive income, without tax adjustment

  Number

• Deferred tax liabilities at the beginning of the period

  Number

• Deferred tax assets at the beginning of the period

  Number

• Deferred tax liabilities at the end of the period

  Number

• Deferred tax assets at the end of the period

  Number

• Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination)

  Number

• Net decrease in deferred tax liability recognised outside profit or loss

  Number

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §47IAS 12 §48IAS 12IAS 12 §53

• Points examined

  ChecklistRequired

  • Rate expected in the period of realisation or settlement, enacted or substantively enacted at the reporting date
  • Announcement having the effect of actual enactment: announced rate used
  • Graduated rates: average rate expected over the reversal periods
  • No discounting of deferred tax assets and liabilities

IAS 12 §51IAS 12 §51AIAS 12 §51BIAS 12 §51C

• Difference relating to the portion recovered through use (base for use)

  Number

• Rate applicable to use (%)

  Number

• Difference relating to the portion recovered through sale (base for sale)

  Number

• Rate applicable to sale (%)

  Number

• Points examined

  Checklist

  • Tax consequences of the manner expected, at the reporting date, to recover or settle the carrying amount
  • Rate and tax base consistent with the manner of use or sale
  • Revalued non-depreciable asset (IAS 16): consequences of recovery through sale
  • Investment property at fair value (IAS 40): rebuttable presumption of recovery through sale
  • Presumption rebutted: depreciable property held to consume substantially all its benefits over time

IAS 12 §20IAS 12 §23IAS 12 §57IAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §62IAS 12 §62AIAS 12 §63IAS 12

• Points examined

  ChecklistRequired

  • Tax effects recognised consistently with the transaction or event itself
  • Change without a change in the differences (rate, recoverability, manner of recovery): in profit or loss, except the portion relating to items previously outside profit or loss
  • Tax in profit or loss, except for a transaction recognised outside profit or loss or a business combination
  • Tax relating to an item outside profit or loss, in the same or a different period: same allocation as the item
  • Revaluation of property, plant and equipment: item of other comprehensive income
  • Items directly in equity: retrospective opening adjustment, equity component of a compound instrument
  • Portion outside profit or loss difficult to determine (rate change on items previously outside profit or loss)
  • Tax revaluation linked to an accounting revaluation: tax effect in other comprehensive income

IAS 12 §52AIAS 12 §57AIAS 12 §65A

• Dividend recognised as a liability (gross amount)

  Number

  3,000,000

• Difference between the rate on distributed profits and the rate on undistributed profits (%)

  Number

• Rate of withholding tax on behalf of the shareholders (%)

  Number

  10 %

• Points examined

  Checklist

  • Rate depending on distribution: current and deferred tax measured at the rate on undistributed profits
  • Tax consequences recognised when the dividend payable is recognised
  • Allocation according to where the transactions that generated the distributed profits were recognised
  • Withholding paid on behalf of the shareholders: charged to equity as part of the dividend

SIC 25 §1SIC 25 §2SIC 25 §4

• Net deferred tax liability measured under the new status

  Number

• Net deferred tax liability measured under the old status

  Number

• Points examined

  Checklist

  • Change in the status of the entity or its shareholders (listing, restructuring, transfer)
  • Possible immediate effect on current tax; deferred tax changed according to the tax consequences of recovery or settlement
  • Effects in profit or loss, except those relating to items previously outside profit or loss

IAS 12 §20IAS 12 §47IAS 12 §51AIAS 12 §52AIAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §63IAS 12 §65ASIC 25 §4

• Deferred tax on existing differences at the old rate

  Calculation

  500,000

  Existing taxable differences at the date of the rate change (base) ; Rate used until now for deferred tax (%)

• Deferred tax on existing differences at the new rate

  Calculation

  440,000

  Existing taxable differences at the date of the rate change (base) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Increase in deferred tax liability due to the rate change

  Calculation

  0

  Deferred tax on existing differences at the new rate ; − Deferred tax on existing differences at the old rate

• Decrease in deferred tax liability due to the rate change

  Calculation

  60,000

  Deferred tax on existing differences at the new rate ; − Deferred tax on existing differences at the old rate

• Portion of the increase allocated to other comprehensive income

  Calculation

  0

  Increase in deferred tax liability due to the rate change ; Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI) ; Row of the split isolated by the calculation

  Same teaching assumption as for the decrease: explicit allocation key of the case.

• Portion of the increase allocated to profit or loss

  Calculation

  0

  Increase in deferred tax liability due to the rate change ; − Portion of the increase allocated to other comprehensive income

• Portion of the decrease allocated to other comprehensive income

  Calculation

  0

  Decrease in deferred tax liability due to the rate change ; Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI) ; Row of the split isolated by the calculation

  Teaching assumption: split in proportion to the differences by origin. The rule (paras. 60 and 61A) requires following the original item; the allocation method in difficult cases (para. 63) is not taught as a rule: the key is an explicit case data.

• Portion of the decrease allocated to profit or loss

  Calculation

  60,000

  Decrease in deferred tax liability due to the rate change ; − Portion of the decrease allocated to other comprehensive income

• Deferred tax liability on the revaluation (in other comprehensive income)

  Calculation

  Increase from a revaluation recognised in other comprehensive income, without tax adjustment ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: difference on an asset revalued without tax adjustment (para. 20), tax allocated like the item, here in other comprehensive income (para. 61A). Case data: recognition of the revaluation in other comprehensive income; revalued land is measured on a sale basis (para. 51B).

• Revaluation surplus net of tax

  Calculation

  Increase from a revaluation recognised in other comprehensive income, without tax adjustment ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax on the portion recovered through use

  Calculation

  Difference relating to the portion recovered through use (base for use) ; Rate applicable to use (%)

• Deferred tax on the portion recovered through sale

  Calculation

  Difference relating to the portion recovered through sale (base for sale) ; Rate applicable to sale (%)

• Deferred tax according to the expected manner of recovery

  Calculation

  0

  Deferred tax on the portion recovered through use ; Deferred tax on the portion recovered through sale

  Case data: rates and bases specific to use and to sale. IFRS rule: rate and base consistent with the expected manner (para. 51A).

• Increase in deferred tax liability due to the change in status

  Calculation

  0

  Net deferred tax liability measured under the new status ; − Net deferred tax liability measured under the old status

  IFRS rule: effects in profit or loss, except those relating to items previously outside profit or loss (SIC-25 para. 4). Teaching assumption: differences arising in profit or loss; otherwise the effect follows the original item.

• Decrease in deferred tax liability due to the change in status

  Calculation

  0

  Net deferred tax liability measured under the new status ; − Net deferred tax liability measured under the old status

• Additional tax due to the distribution

  Calculation

  Dividend recognised as a liability (gross amount) ; Difference between the rate on distributed profits and the rate on undistributed profits (%)

  Case data: tax regime for distributions and rate difference. Teaching assumption: distributed profits generated by transactions recognised in profit or loss (para. 57A).

• Withholding tax payable on behalf of the shareholders

  Calculation

  300,000

  Dividend recognised as a liability (gross amount) ; Rate of withholding tax on behalf of the shareholders (%)

• Net dividend payable to the shareholders

  Calculation

  2,700,000

  Dividend recognised as a liability (gross amount) ; Rate of withholding tax on behalf of the shareholders (%)

• Deferred tax expense of the period in profit or loss

  Calculation

  0

  Deferred tax liabilities at the end of the period ; − Deferred tax liabilities at the beginning of the period ; − Deferred tax assets at the end of the period ; Deferred tax assets at the beginning of the period ; − Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination) ; Net decrease in deferred tax liability recognised outside profit or loss

  Summary control, with no entry of its own: change in the net liability (liabilities − assets) less the amounts recognised outside profit or loss (para. 58). The entries above detail its causes.

• Deferred tax income of the period in profit or loss

  Calculation

  0

  Deferred tax liabilities at the end of the period ; − Deferred tax liabilities at the beginning of the period ; − Deferred tax assets at the end of the period ; Deferred tax assets at the beginning of the period ; − Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination) ; Net decrease in deferred tax liability recognised outside profit or loss

• Rate decrease: reduction of the liability split between profit or loss and other comprehensive income

  Entry

  Account	Debit	Credit
  Deferred tax liability	60,000
  Deferred tax income		60,000

• Rate increase: portion allocated to profit or loss

  Entry

  Debit Deferred tax expense ← Portion of the increase allocated to profit or loss ; Credit Deferred tax liability ← Portion of the increase allocated to profit or loss

• Rate increase: portion allocated to other comprehensive income

  Entry

  Debit Income tax on other comprehensive income ← Portion of the increase allocated to other comprehensive income ; Credit Deferred tax liability ← Portion of the increase allocated to other comprehensive income

• Deferred tax on the revaluation

  Entry

  Debit Income tax on other comprehensive income ← Deferred tax liability on the revaluation (in other comprehensive income) ; Credit Deferred tax liability ← Deferred tax liability on the revaluation (in other comprehensive income)

• Deferred tax liability measured according to the manner of recovery

  Entry

  Debit Deferred tax expense ← Deferred tax according to the expected manner of recovery ; Credit Deferred tax liability ← Deferred tax according to the expected manner of recovery

  Teaching assumption: liability arising in the period, with no opening balance; case data: fair value changes of the property recognised in profit or loss. An item outside profit or loss follows the allocation of the item.

• Change in status: increase in the liability

  Entry

  Debit Deferred tax expense ← Increase in deferred tax liability due to the change in status ; Credit Deferred tax liability ← Increase in deferred tax liability due to the change in status

• Change in status: decrease in the liability

  Entry

  Debit Deferred tax liability ← Decrease in deferred tax liability due to the change in status ; Credit Deferred tax income ← Decrease in deferred tax liability due to the change in status

• Tax consequence of the dividend in profit or loss

  Entry

  Debit Current tax expense ← Additional tax due to the distribution ; Credit Current tax liability ← Additional tax due to the distribution

• Dividend declared and withholding tax on behalf of the shareholders

  Entry

  Account	Debit	Credit
  Retained earnings	3,000,000
  Dividends payable		2,700,000
  Withholding tax payable		300,000

  IFRS rule: withholding paid on behalf of the shareholders is charged to equity as part of the dividend (para. 65A). Case data: withholding rate.

IAS 12 §47IAS 12 §48IAS 12 §51IAS 12 §51AIAS 12 §51BIAS 12 §51CIAS 12 §57IAS 12 §57AIAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §63SIC 25 §4

• Status of the rate retained at the reporting date

  JudgmentRequired

  Enacted rate

  Enacted rate / Substantively enacted rate / Announced rate not substantively enacted: old rate kept

  Professional judgement: substantive enactment assessed according to the legislative process of the jurisdiction of the case (para. 48).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  LAW_PROMULGATED_12_DECEMBER_20X7

• Manner of recovery retained

  JudgmentRequired

  Recovery through use

  Recovery through use / Recovery through sale / Use then sale (combination) / Sale presumption applied (investment property at fair value) / Sale presumption rebutted

  Professional judgement based on the documented intentions and business model; rebuttal of the sale presumption follows the conditions of para. 51C.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  PLANT_RECOVERED_THROUGH_USE

• Allocation of deferred tax

  JudgmentRequired

  In profit or loss

  In profit or loss / In other comprehensive income / Directly in equity / Split according to the origin of the differences (explicit allocation key of the case)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  DIFFERENCES_ARISEN_IN_PROFIT_OR_LOSS

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

  TableRequired

IAS 12 §81IAS 12 §82AIAS 12 §87AIAS 12 §87B

• Information prepared

  ChecklistRequired

  • Tax relating to each component of other comprehensive income
  • Explanation of changes in the applicable tax rate compared with the previous period
  • Deferred tax recognised in profit or loss, by type of difference
  • Tax consequences of dividends proposed or declared before authorisation for issue, not recognised
  • Rate depending on distribution: nature of the potential tax consequences, features of the regime and determinable amounts
  • Total amount impracticable: readily determinable portions disclosed

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

  References

• The status of the rate is documentedPass
• The manner of recovery is documentedPass
• The allocation is documentedPass
• The decrease is fully split between profit or loss and other comprehensive incomePass
• The increase is fully split between profit or loss and other comprehensive incomePass
• Increase in value = deferred tax + net revaluation surplusNot evaluated
• The rate decrease entry balancesPass
• The rate increase entry (profit or loss) balancesNot evaluated
• The rate increase entry (other comprehensive income) balancesNot evaluated
• The revaluation entry balancesNot evaluated
• The manner of recovery entry balancesNot evaluated
• The increase entry (status) balancesNot evaluated
• The decrease entry (status) balancesNot evaluated
• The dividend tax consequence entry balancesNot evaluated
• The dividend and withholding entry balancesPass

Assets

0

Liabilities

2,940,000

Profit or loss

60,000

OCI

0

Equity

-2,940,000

• Taxable entity, differences concerned, origin (profit or loss, other comprehensive income, equity) and event of the period

  TextRequired

  NON_DEPRECIABLE_LAND_REVALUED_IN_OCI

• Rate used until now for deferred tax (%)

  Number

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

  Number

  15 %

  IFRS rule: rate expected on reversal, enacted or substantively enacted at the reporting date (para. 47). Case data: the rate. If the rate does not change, enter the same rate as at the beginning.

• Existing taxable differences at the date of the rate change (base)

  Number

• Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI)

  Table

  Input convention: one PROFIT_OR_LOSS row and one OCI row, amounts of the existing differences by origin; their sum equals the existing differences.

• Row of the split isolated by the calculation

  Choice

  Other comprehensive income / Profit or loss

  Input convention: choose OCI; the calculation isolates the other comprehensive income portion, the remainder goes to profit or loss.

• Increase from a revaluation recognised in other comprehensive income, without tax adjustment

  Number

  1,000,000

• Deferred tax liabilities at the beginning of the period

  Number

• Deferred tax assets at the beginning of the period

  Number

• Deferred tax liabilities at the end of the period

  Number

• Deferred tax assets at the end of the period

  Number

• Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination)

  Number

• Net decrease in deferred tax liability recognised outside profit or loss

  Number

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IAS 12 §47IAS 12 §48IAS 12IAS 12 §53

• Points examined

  ChecklistRequired

  • Rate expected in the period of realisation or settlement, enacted or substantively enacted at the reporting date
  • Announcement having the effect of actual enactment: announced rate used
  • Graduated rates: average rate expected over the reversal periods
  • No discounting of deferred tax assets and liabilities

IAS 12 §51IAS 12 §51AIAS 12 §51BIAS 12 §51C

• Difference relating to the portion recovered through use (base for use)

  Number

• Rate applicable to use (%)

  Number

• Difference relating to the portion recovered through sale (base for sale)

  Number

• Rate applicable to sale (%)

  Number

• Points examined

  Checklist

  • Tax consequences of the manner expected, at the reporting date, to recover or settle the carrying amount
  • Rate and tax base consistent with the manner of use or sale
  • Revalued non-depreciable asset (IAS 16): consequences of recovery through sale
  • Investment property at fair value (IAS 40): rebuttable presumption of recovery through sale
  • Presumption rebutted: depreciable property held to consume substantially all its benefits over time

IAS 12 §20IAS 12 §23IAS 12 §57IAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §62IAS 12 §62AIAS 12 §63IAS 12

• Points examined

  ChecklistRequired

  • Tax effects recognised consistently with the transaction or event itself
  • Change without a change in the differences (rate, recoverability, manner of recovery): in profit or loss, except the portion relating to items previously outside profit or loss
  • Tax in profit or loss, except for a transaction recognised outside profit or loss or a business combination
  • Tax relating to an item outside profit or loss, in the same or a different period: same allocation as the item
  • Revaluation of property, plant and equipment: item of other comprehensive income
  • Items directly in equity: retrospective opening adjustment, equity component of a compound instrument
  • Portion outside profit or loss difficult to determine (rate change on items previously outside profit or loss)
  • Tax revaluation linked to an accounting revaluation: tax effect in other comprehensive income

IAS 12 §52AIAS 12 §57AIAS 12 §65A

• Dividend recognised as a liability (gross amount)

  Number

• Difference between the rate on distributed profits and the rate on undistributed profits (%)

  Number

• Rate of withholding tax on behalf of the shareholders (%)

  Number

• Points examined

  Checklist

  • Rate depending on distribution: current and deferred tax measured at the rate on undistributed profits
  • Tax consequences recognised when the dividend payable is recognised
  • Allocation according to where the transactions that generated the distributed profits were recognised
  • Withholding paid on behalf of the shareholders: charged to equity as part of the dividend

SIC 25 §1SIC 25 §2SIC 25 §4

• Net deferred tax liability measured under the new status

  Number

• Net deferred tax liability measured under the old status

  Number

• Points examined

  Checklist

  • Change in the status of the entity or its shareholders (listing, restructuring, transfer)
  • Possible immediate effect on current tax; deferred tax changed according to the tax consequences of recovery or settlement
  • Effects in profit or loss, except those relating to items previously outside profit or loss

IAS 12 §20IAS 12 §47IAS 12 §51AIAS 12 §52AIAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §63IAS 12 §65ASIC 25 §4

• Deferred tax on existing differences at the old rate

  Calculation

  Existing taxable differences at the date of the rate change (base) ; Rate used until now for deferred tax (%)

• Deferred tax on existing differences at the new rate

  Calculation

  Existing taxable differences at the date of the rate change (base) ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Increase in deferred tax liability due to the rate change

  Calculation

  0

  Deferred tax on existing differences at the new rate ; − Deferred tax on existing differences at the old rate

• Decrease in deferred tax liability due to the rate change

  Calculation

  0

  Deferred tax on existing differences at the new rate ; − Deferred tax on existing differences at the old rate

• Portion of the increase allocated to other comprehensive income

  Calculation

  Increase in deferred tax liability due to the rate change ; Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI) ; Row of the split isolated by the calculation

  Same teaching assumption as for the decrease: explicit allocation key of the case.

• Portion of the increase allocated to profit or loss

  Calculation

  0

  Increase in deferred tax liability due to the rate change ; − Portion of the increase allocated to other comprehensive income

• Portion of the decrease allocated to other comprehensive income

  Calculation

  Decrease in deferred tax liability due to the rate change ; Split of the existing differences by origin (key: PROFIT_OR_LOSS or OCI) ; Row of the split isolated by the calculation

  Teaching assumption: split in proportion to the differences by origin. The rule (paras. 60 and 61A) requires following the original item; the allocation method in difficult cases (para. 63) is not taught as a rule: the key is an explicit case data.

• Portion of the decrease allocated to profit or loss

  Calculation

  0

  Decrease in deferred tax liability due to the rate change ; − Portion of the decrease allocated to other comprehensive income

• Deferred tax liability on the revaluation (in other comprehensive income)

  Calculation

  150,000

  Increase from a revaluation recognised in other comprehensive income, without tax adjustment ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

  IFRS rule: difference on an asset revalued without tax adjustment (para. 20), tax allocated like the item, here in other comprehensive income (para. 61A). Case data: recognition of the revaluation in other comprehensive income; revalued land is measured on a sale basis (para. 51B).

• Revaluation surplus net of tax

  Calculation

  850,000

  Increase from a revaluation recognised in other comprehensive income, without tax adjustment ; Rate expected on reversal, enacted or substantively enacted at the reporting date (%)

• Deferred tax on the portion recovered through use

  Calculation

  Difference relating to the portion recovered through use (base for use) ; Rate applicable to use (%)

• Deferred tax on the portion recovered through sale

  Calculation

  Difference relating to the portion recovered through sale (base for sale) ; Rate applicable to sale (%)

• Deferred tax according to the expected manner of recovery

  Calculation

  0

  Deferred tax on the portion recovered through use ; Deferred tax on the portion recovered through sale

  Case data: rates and bases specific to use and to sale. IFRS rule: rate and base consistent with the expected manner (para. 51A).

• Increase in deferred tax liability due to the change in status

  Calculation

  0

  Net deferred tax liability measured under the new status ; − Net deferred tax liability measured under the old status

  IFRS rule: effects in profit or loss, except those relating to items previously outside profit or loss (SIC-25 para. 4). Teaching assumption: differences arising in profit or loss; otherwise the effect follows the original item.

• Decrease in deferred tax liability due to the change in status

  Calculation

  0

  Net deferred tax liability measured under the new status ; − Net deferred tax liability measured under the old status

• Additional tax due to the distribution

  Calculation

  Dividend recognised as a liability (gross amount) ; Difference between the rate on distributed profits and the rate on undistributed profits (%)

  Case data: tax regime for distributions and rate difference. Teaching assumption: distributed profits generated by transactions recognised in profit or loss (para. 57A).

• Withholding tax payable on behalf of the shareholders

  Calculation

  Dividend recognised as a liability (gross amount) ; Rate of withholding tax on behalf of the shareholders (%)

• Net dividend payable to the shareholders

  Calculation

  Dividend recognised as a liability (gross amount) ; Rate of withholding tax on behalf of the shareholders (%)

• Deferred tax expense of the period in profit or loss

  Calculation

  0

  Deferred tax liabilities at the end of the period ; − Deferred tax liabilities at the beginning of the period ; − Deferred tax assets at the end of the period ; Deferred tax assets at the beginning of the period ; − Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination) ; Net decrease in deferred tax liability recognised outside profit or loss

  Summary control, with no entry of its own: change in the net liability (liabilities − assets) less the amounts recognised outside profit or loss (para. 58). The entries above detail its causes.

• Deferred tax income of the period in profit or loss

  Calculation

  0

  Deferred tax liabilities at the end of the period ; − Deferred tax liabilities at the beginning of the period ; − Deferred tax assets at the end of the period ; Deferred tax assets at the beginning of the period ; − Net increase in deferred tax liability recognised outside profit or loss (other comprehensive income, equity, business combination) ; Net decrease in deferred tax liability recognised outside profit or loss

• Rate decrease: reduction of the liability split between profit or loss and other comprehensive income

  Entry

  Debit Deferred tax liability ← Decrease in deferred tax liability due to the rate change ; Credit Deferred tax income ← Portion of the decrease allocated to profit or loss ; Credit Income tax on other comprehensive income ← Portion of the decrease allocated to other comprehensive income

• Rate increase: portion allocated to profit or loss

  Entry

  Debit Deferred tax expense ← Portion of the increase allocated to profit or loss ; Credit Deferred tax liability ← Portion of the increase allocated to profit or loss

• Rate increase: portion allocated to other comprehensive income

  Entry

  Debit Income tax on other comprehensive income ← Portion of the increase allocated to other comprehensive income ; Credit Deferred tax liability ← Portion of the increase allocated to other comprehensive income

• Deferred tax on the revaluation

  Entry

  Account	Debit	Credit
  Income tax on other comprehensive income	150,000
  Deferred tax liability		150,000

• Deferred tax liability measured according to the manner of recovery

  Entry

  Debit Deferred tax expense ← Deferred tax according to the expected manner of recovery ; Credit Deferred tax liability ← Deferred tax according to the expected manner of recovery

  Teaching assumption: liability arising in the period, with no opening balance; case data: fair value changes of the property recognised in profit or loss. An item outside profit or loss follows the allocation of the item.

• Change in status: increase in the liability

  Entry

  Debit Deferred tax expense ← Increase in deferred tax liability due to the change in status ; Credit Deferred tax liability ← Increase in deferred tax liability due to the change in status

• Change in status: decrease in the liability

  Entry

  Debit Deferred tax liability ← Decrease in deferred tax liability due to the change in status ; Credit Deferred tax income ← Decrease in deferred tax liability due to the change in status

• Tax consequence of the dividend in profit or loss

  Entry

  Debit Current tax expense ← Additional tax due to the distribution ; Credit Current tax liability ← Additional tax due to the distribution

• Dividend declared and withholding tax on behalf of the shareholders

  Entry

  Debit Retained earnings ← Dividend recognised as a liability (gross amount) ; Credit Dividends payable ← Net dividend payable to the shareholders ; Credit Withholding tax payable ← Withholding tax payable on behalf of the shareholders

  IFRS rule: withholding paid on behalf of the shareholders is charged to equity as part of the dividend (para. 65A). Case data: withholding rate.

IAS 12 §47IAS 12 §48IAS 12 §51IAS 12 §51AIAS 12 §51BIAS 12 §51CIAS 12 §57IAS 12 §57AIAS 12 §58IAS 12 §60IAS 12 §61AIAS 12 §63SIC 25 §4

• Status of the rate retained at the reporting date

  JudgmentRequired

  Enacted rate

  Enacted rate / Substantively enacted rate / Announced rate not substantively enacted: old rate kept

  Professional judgement: substantive enactment assessed according to the legislative process of the jurisdiction of the case (para. 48).

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  CAPITAL_GAINS_RATE_UNCHANGED

• Manner of recovery retained

  JudgmentRequired

  Recovery through sale

  Recovery through use / Recovery through sale / Use then sale (combination) / Sale presumption applied (investment property at fair value) / Sale presumption rebutted

  Professional judgement based on the documented intentions and business model; rebuttal of the sale presumption follows the conditions of para. 51C.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  NON_DEPRECIABLE_REVALUED_ASSET

• Allocation of deferred tax

  JudgmentRequired

  In other comprehensive income

  In profit or loss / In other comprehensive income / Directly in equity / Split according to the origin of the differences (explicit allocation key of the case)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

  REVALUATION_RECOGNISED_IN_OCI

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

  TableRequired

IAS 12 §81IAS 12 §82AIAS 12 §87AIAS 12 §87B

• Information prepared

  ChecklistRequired

  • Tax relating to each component of other comprehensive income
  • Explanation of changes in the applicable tax rate compared with the previous period
  • Deferred tax recognised in profit or loss, by type of difference
  • Tax consequences of dividends proposed or declared before authorisation for issue, not recognised
  • Rate depending on distribution: nature of the potential tax consequences, features of the regime and determinable amounts
  • Total amount impracticable: readily determinable portions disclosed

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

  References

• The status of the rate is documentedPass
• The manner of recovery is documentedPass
• The allocation is documentedPass
• The decrease is fully split between profit or loss and other comprehensive incomeNot evaluated
• The increase is fully split between profit or loss and other comprehensive incomeNot evaluated
• Increase in value = deferred tax + net revaluation surplusPass
• The rate decrease entry balancesNot evaluated
• The rate increase entry (profit or loss) balancesNot evaluated
• The rate increase entry (other comprehensive income) balancesNot evaluated
• The revaluation entry balancesPass
• The manner of recovery entry balancesNot evaluated
• The increase entry (status) balancesNot evaluated
• The decrease entry (status) balancesNot evaluated
• The dividend tax consequence entry balancesNot evaluated
• The dividend and withholding entry balancesNot evaluated

Assets

0

Liabilities

150,000

Profit or loss

0

OCI

-150,000

Equity

-150,000