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Hey!
Hope that you are doing well.I can not understand what IAS 12 (Para 7 and 8) is saying about the tax base of assets and liabilities. Can you kindly explain it to me.
RegardsBest advice is not to worry – as long as you can follow our online lectures.
As an example:
Asset = development costs.
Assume carrying amount is 100.
Of the 100 how much will be : “deductible against taxable economic benefits from recovering the carrying amount of the asset.
Answer = nil because tax relief already obtained at time development costs capitalised
So tax base = nil.
REMEMBER:
1. WHAT MATTERS IN THE EXAM IS THAT YOU CAN IDENTIFY THE TEMPORARY DIFFERENCE.
2. EXCEPT FOR PPE TAX BASE IS GENERALLY $NIL
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