• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Temporary Difference in IAS 12 (Q)

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Temporary Difference in IAS 12 (Q)

  • This topic has 1 reply, 2 voices, and was last updated 14 years ago by dineshhh.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • February 8, 2011 at 7:32 pm #47343
    proaccountant
    Participant
    • Topics: 19
    • Replies: 7
    • ☆

    Question:
    As per IAS 12, deffered tax liability shall be recognized for all taxable temporary difference, except to the extent that the initial recognition of an asset or liability in a transaction which:
    (a) is not a business combination and
    (b) at the time of the time of the transaction, affect neither accounting profit not taxable profit …

    Can you further explain and give me the numerical example of the above situation/point?

    Please reply as soon as possible.

    February 13, 2011 at 6:01 pm #77104
    dineshhh
    Participant
    • Topics: 0
    • Replies: 5
    • ☆

    Proaccountant..
    These are two exemptions to the recognition of Deferred tax liability.
    i) As a result of Business combination, a Deferred tax liability arises usually due to upward revaluation of Net assets of subsidiaries, which affects directly goodwill. Therefore the Deferred tax should not be recognized.

    ii) Deferred tax is provided for the temporary differences, because they create difference between Taxable profit, and accouting profit. Where there no such case, DT should not be recognised.
    If that initial recognition does neither affect Accounting nor Taxable profit, there doesn’t appear to be that difference due to that transaction.

    I hope, this helps you to remove your confusions.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)
  • kennedyavege@2023 on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in