The temporal connection with the accounting judgment in applying IAS 12 – Tax on profit

Author:Assistant PhD. student Nadia ALBU



Keywords:tax on profit, IAS 12, deferred tax, professional judgment, accounting values, tax basis, temporary differences

The IAS application requires the application of the professional judgment on two stages: in determining the deferred taxes and in calculating the eligible tax base don the fiscal result. The main difficulties and confusions are created by the fact that the first step is base don the balance sheet (respectively on elements that comes or affects several reporting years), while the second stage is base don the profit and loss account (i.e. items affecting only the current financial year).