Statement of Income
Statement of Income
Current tax and deferred tax is recognized as income or expense in the income statement for the period, except for income taxes derived from:
transactions or events that are credited or charged directly to equity in the same period or different periods (see paragraphs 39 to 41); or
business combinations that are substantially the acquisition (see paragraphs 42 to 43)
Transactions Credited or Charged Directly to Equity
Current tax and deferred tax should be charged or credited directly to equity if the tax-related transactions are credited or charged directly to equity.
Tax and Deferred Tax Assets
Tax assets and liabilities should be presented separately from other assets and liabilities in the balance sheet. Deferred tax assets and deferred tax liabilities should be distinguished from current tax assets and liabilities.
If in a company’s financial statements, assets and current liabilities are presented separately from non-current assets and liabilities of the assets (liabilities) should not be presented as assets (liabilities) smoothly.
Eliminating one another (Offset)
Current tax assets should be compensated (offset) with a current tax liability and the amount of exemption shall be presented on the balance sheet.
Expense (income) relating to tax Profit or Loss from Normal Activities
Expense (income) taxes related to profit or loss from ordinary activities should be presented separately in the income statement.
Final Income Tax
If the carrying value of assets or liabilities associated with the final income tax is different from the DPP was then the difference should not be recognized as deferred tax assets or liabilities.
On income which has been subject to final income tax, the tax burden dakui proportional to the amount of income recognized in the accounting period.
The difference between the Final Income Tax payable by the amount charged as tax on profit and loss account is now recognized as Prepaid Taxes and Tax Accrued
Final income tax account is paid in advance must be presented separately from the final income tax accrued.
Accounting Treatment for Special Matters
Principal amount of additional taxes and penalties established by the Tax Assessment Letter (SKP) should be charged as income or other expenses in the Statement of Income for the period, unless the objection or appeal. Principal amount of additional taxes and penalties are determined by deferred assessments. If there is a fundamental error is admitted to the accounting treatment of IAS 25 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies.
The following matters should be disclosed:
The main elements of expense (income) tax;
amount of current tax and deferred taxes from transactions which are directly charged or credited to equity;
expense (income) tax from extraordinary items recognized during the current period
explanation of the relationship between tax expense (income) tax and accounting profit in either or both of the following forms:
the reconciliation between tax expense (income) tax accounting profit with the theoretical and effective tax rates, by revealing the basis for calculating the effective tax rate; or
reconciliation between the effective tax rate on average (average effective tax rate) and the applicable tax rate, by revealing the basis for calculating the applicable tax rate.
explanation of changes in applicable tax rates and tax rates in comparison with the previous accounting period;
number (and expiry date, if any) deductible temporary differences and the remaining loss can be compensated for the following period, which is not recognized as deferred tax assets on the balance sheet;
for each group of temporary differences and losses for each group can be utilized for the following years:
amount of deferred tax assets and liabilities are recognized on the balance sheet for each period of the presentation;
amount of expense (income) tax liabilities recognized in the income statement if the amount is never an evident from changes in the amount of deferred tax assets or liabilities are recognized on the balance sheet and
for discontinued operations, income tax expense arising from:
gains or losses on discontinued operations, and
profit or loss from ordinary activities discontinued operations for the reporting period, along with a number of previous accounting periods presented in financial statements.
Companies must disclose the amount of deferred tax assets and the nature of evidence to support his claim, if:
use of deferred tax assets depends on whether the taxable profit that can be generated in future periods exceeds the profit from the realization of taxable temporary differences that already exist, and
the company has suffered losses in the current period or previous periods.