IAS 12, titled "Income Taxes,"

1. Objective: The primary objective of IAS 12 is to account for the current and future tax consequences of:

- The future recovery (settlement) of the carrying amount of assets (liabilities) that are recognized in an entity’s balance sheet.

- Transactions and other events of the current period that are recognized in an entity’s financial statements.

2. Temporary Differences: A central concept in IAS 12 is the recognition of deferred tax liabilities and assets for temporary differences. Temporary differences are differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

3. Deferred Tax Liabilities and Assets:

- A deferred tax liability is recognized for all taxable temporary differences, except in specific exceptions outlined by the standard.

- A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized.

4. Measurement: Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

5. Recognition of Tax Expense: The tax expense (income) related to profit or loss from ordinary activities is presented as an integral part of these profit or loss figures. This includes both current tax and deferred tax.

6. Presentation: The standard requires separate disclosure of current and deferred tax in financial statements. It also mandates the disclosure of the relationship between tax expense (income) and accounting profit in the form of a reconciliation.

7. Uncertain Tax Positions: IAS 12 requires entities to consider whether it is probable that a taxation authority will accept an uncertain tax treatment. If not probable, the effect of the uncertainty should be reflected in determining the related tax liability or asset.

8. Tax Losses: Recognition of deferred tax assets for unused tax losses and unused tax credits is also an important aspect. These should be recognized to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilized.

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