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Stephen Widberg.
Stephen Widberg.-
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tinkle
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Hello Sir,
I hope you’re well.
I’m confused about the consistency between conceptual framework and IAS 12 recognition criteria. The kit says that, ‘Conceptual F/W states when probability of inflow/out flow is low disclose in notes however IAS 12 requires Deferred Tax to be recognized even if possibility is low’
While reading the study text I didn’t come across this inconsistency, as the revised conceptual framework doesn’t talk about the probability but the potential to produce economic benefits.
Kindly shed some light on this one.
Stephen Widberg
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You make a fair point. IAS 12 requires us to recognise DT on a revaluation even if we have no intention of ever selling the asset. I cannot see how that is relevant to users.
As always, IAS 12 takes precedence over Framework.
tinkle
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