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IAS 12 Deferred Tax

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 12 Deferred Tax

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
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  • November 11, 2018 at 1:47 pm #484479
    gangsta1
    Member
    • Topics: 75
    • Replies: 10
    • ☆☆

    Sir, IAS 12 defines the “tax base of an asset” as the amount that will be deductible against any “taxable economic benefits” that will flow to the entity when it recovers the carrying value of the asset.

    My question sir is what is this “taxable economic benefit”, and can you just give an example of how the tax base is deducted from this amount.

    November 11, 2018 at 8:16 pm #484530
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7217
    • ☆☆☆☆☆

    Hi,

    It is referring to the receipt of revenue in the future, which we receive when we use the asset to generate the benefit.

    Thanks

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