Tax on profit - Application of the Standard, issues on auditing

Author:Vasile IUGA, PwC, Gabriel MUSTEA, PwC

JEL:

DOI:

Keywords:IAS 12 (revised), deferred tax on profit, deferred method, liability method, temporary differences

Abstract:
This material intends to present some of the basic notions needed to understand and implement the International Accounting Standard 12 (revised in 2000) – Tax on profit („IAS 12(revised)”), as well as the main difficulties related to the receivables and debts audit or of the dents with the deferred tax.\r\n- IAS 12 (revised) entered in force starting with the financial statements for the periods starting on 1 January 2001. This Standard replaces the former IAS 12 – Tax on Profit Accounting.\r\n- IAS 12 (revised) regulates the accounting and presentation of the information related to the tax on profit. Because the regulations relate to the tax on profit are specific to each country, the standard only refers to the deferred tax on profit.

---