UUÂãÁÄÖ±²¥

IFRS introduction

Produced by Tolley in association with
Corporation Tax
Guidance

IFRS introduction

Produced by Tolley in association with
Corporation Tax
Guidance
imgtext

Reporting of income taxes under IFRS is subject to the accounting standard IAS 12.

The version of IFRS used in the UK has been IFRS as endorsed by the EU. From 1 January 2021, UK-endorsed IFRS must be used. This is identical to EU-endorsed IFRS as at that date, but may change subsequently as the UK decides to possibly not endorse parts of past or future IFRS.

Scope of IAS 12

According to IAS 12, para 2:

‘income taxes include all domestic and foreign taxes which are based on taxable profits. Income taxes also include taxes, such as withholding taxes, which are payable by a subsidiary, associate or joint venture on distributions to the reporting entity.’

The IASB has intentionally not published guidance on which specific taxes fall within this definition. It is important to determine whether specific taxes that a company pays are income taxes or not because:

  1. •

    only income

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Malcolm Greenbaum
Malcolm Greenbaum

Director and Principal Trainer at Greenbaum Training and Consultancy Limited


Malcolm is a UK Chartered Accountant and Chartered Tax Advisor winning the John Wood Medal in the November 1995 CIOT sitting for the best paper on business taxation. He was previously Director of Finance and Taxation Programmes at BPP Professional Education and has delivered IFRS, US GAAP, UK Tax and VAT training (at all levels from an introduction to the complexities of IAS 39) to a multitude of organisations world-wide since 1992. Malcolm has particular experience in delivering bespoke training programmes to multi-nationals in the financial services, transport and energy sectors as well as delivering UK tax and VAT update programmes to accounting and law firms. He is passionate about training and his enthusiasm ensures that the participants enjoy the learning experience whilst gaining knowledge through their engagement in the sessions and through encouraging them to ask questions and discuss practical issues they may have. Malcolm also provides consultancy services to companies and accounting firms, including provision of VAT advice, reviewing accounting policy manuals and advising on accounting treatments of various transactions. In his spare time, Malcolm enjoys flying having gained a Private Pilot's Licence in 2014.

Powered by

Popular Articles

Non-trading deficits on loan relationships

Non-trading deficits on loan relationshipsOverview of non-trading deficits (NTDs)When a company’s debits on its non-trading loan relationships and derivative contracts in an accounting period exceed the credits on its non-trading loan relationships and derivative contracts in the same period (the

14 Jul 2020 12:17 | Produced by Tolley Read more Read more

Supplies of goods and services connected with education

Supplies of goods and services connected with educationThis guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:•Supplies of education•Local authority

14 Jul 2020 13:44 | Produced by Tolley Read more Read more

Research and development (R&D) relief ― overview

Research and development (R&D) relief ― overviewThis guidance note provides an overview of the research and development (R&D) tax reliefs for companies.See the Research and development tax relief summary diagram which summarises the R&D tax relief.See also Simon’s Taxes D1.401.For a factsheet which

14 Jul 2020 12:22 | Produced by Tolley in association with Will Sweeney Read more Read more