Forum Replies Created
- Posts
i left out this topic and i havenow come back to it.
thanks for your explanation.
i understand the basic principle. i just don’t understand how bpp have applied it.
i quote from the standard:”Tax bases
The tax base of an item is crucial in determining the amount of any temporary difference, and effectively represents the amount at which the asset or liability would be recorded in a tax-based balance sheet. IAS 12 provides the following guidance on determining tax bases:
Assets. The tax base of an asset is the amount that will be deductible against taxable economic benefits from recovering the carrying amount of the asset. Where recovery of an asset will have no tax consequences, the tax base is equal to the carrying amount. [IAS 12.7]
Revenue received in advance. The tax base of the recognised liability is its carrying amount, less revenue that will not be taxable in future periods [IAS 12.8]
Other liabilities. The tax base of a liability is its carrying amount, less any amount that will be deductible for tax purposes in respect of that liability in future periods [IAS 12.8]
Unrecognised items. If items have a tax base but are not recognised in the statement of financial position, the carrying amount is nil [IAS 12.9]”must i commit all this to memory, or is there a logical way of understanding all these different situations?
thanks a lot! it’s very kind of you to do this…i can’t get my head around it either from bpp text…
can anyone explain it to me? please???