Topic 08 · IAS 12

Income taxes

How current and deferred tax are recognised, measured and disclosed, including deferred tax assets, uncertain tax positions and the treatment of loss carryforwards.

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Standard-setter changes on this topic

2023-12-14US GAAP
ASU 2023-09 Improvements to Income Tax Disclosures
Requires public business entities to disaggregate the rate reconciliation into specified categories at a quantitative threshold and all entities to disaggregate income taxes paid by federal, state and significant foreign jurisdictions. Effective for annual periods beginning after 15 December 2024 (public business entities) and after 15 December 2025 (all other entities). Effective 2025-01-01.
2023-05-23IFRS
International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12)
Introduces a mandatory temporary exception from recognising and disclosing deferred tax assets and liabilities related to Pillar Two top-up taxes (IAS 12.4A), plus a targeted disclosure requirement (IAS 12.88A). The exception applies immediately; the disclosure requirement applies for periods beginning on or after 1 January 2023. Effective 2023-01-01.
2021-05-07IFRS
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
Narrows the initial-recognition exemption by adding IAS 12.22A, so that deferred tax must now be recognised on transactions such as leases and decommissioning obligations that give rise to equal and offsetting taxable and deductible temporary differences. Effective for periods beginning on or after 1 January 2023, modified retrospective. Effective 2023-01-01.