Deferred Income Tax Services (IAS 12)
We offer expert deferred income tax services in accordance with IAS 12 income taxes. This helps companies to measure, understand and disclose deferred tax positions accurately in their financial statements.
Our strategy works keeping the temporary difference methods in mind, that emphasizes on the differences between carrying the amount of assets, liabilities and the tax base. This helps to make it fully compliant while sharing accurate, audit-ready and professional tax reporting.
We serve clients through quarterly and annual tax reports that cover both multi-jurisdictional and complicated structures covering US GAAP and IFRS frameworks.
Our Core IAS 12 Expertise
We help clients to put IAS 12 in all the key aspects, such as:
- Understanding deferred tax liabilities for taxable temporary differences
- Understanding deferred tax assets on a probable future taxable profit
- Measuring the enacted and the substantively enacted tax rates
- Proper tax impacts allocation between profit & loss, other detailed income (OCI), and equity
- Preparing audit-ready documentation
Our Services include:
Deferred Tax Calculations & Financial Reporting
- Preparing and reviewing deferred tax assets and liabilities under IAS 12
- Quarterly and annual IFRS reporting support
- Sharing financial statement disclosures and taxation
Supporting Audits & Documentation
- Financial statement audits and assistance
- Planning technical memos and supporting schedules
- Replying to auditor queries with documented positions
Business & Complicated Transactions
We offer absolute support on the deferred tax complications arising due to business transactions like:
- IAS 12 apps in business combinations (IFRS 3)
- Treating temporary differences on acquisition
- Working around goodwill and initial recognition rules
- Reverse licensing and unsuccessful transactions analysis
Tax Law Changes & Uncertain Tax Roles
- Working around tax law changes and their impact on deferred taxes
- Assessing uncertain tax treatments under IFRIC 23
- Documentation support for defensible tax positions
Financial Instruments & Temporary Differences
Understanding the deferred tax impacts of financial instruments under IAS 32 and IFRS 9.
Address the temporary differences regarding:
- Convertible debt
- Equitable instruments and Warrants
- Dividend vs interest classification
Tax Credits & Government Assistance
- Suggestions regarding tax credits, including SR&ED
- Check accounting under:
- IAS 12 (income taxes)
- IAS 20 (government grants)
- Analysis of deferred tax asset recognition
Advanced Tax Advisory
- Analysis of debt absolution and restructuring transactions
- Deferred tax consequences of business sales or divisions
- Managing items outside profit & loss (OCI/Equity)
Expertise in the Mining Industry
We provide specific expertise in the mining industry such as:
- Shares flow-through
- Renunciating expenses
- Resource balancing and tax attribution
Why Hire Us?
- IAS 12 Specialists: Seasoned professionals in IFRS-based tax accounting
- Audit-Ready Approach: Expertise from the preparer and auditor point of view
- Cross-Border Functionality: Alignment with IFRS and U.S. GAAP (ASC 740) where required.
- Industry Expertise: Mining, technology, and consumer businesses
Reliable & Defensible: Strong documentation with respect to tax position
Frequently Asked Questions (FAQs)
What is Deferred Tax Under IAS 12?
Deferres tax under IAS 12 is the difference that occur due to a temporary difference between the asset amoung and liabilities with their tax bases. This results in a deductible amount in the future.
How are deferred tax assets recognized?
Deferred tax assets are understood only when the probability of sufficient taxable profit is available for using deductible temporary differences and tax losses.
What is the initial recognition exemption?
IAS 12 does not allow deferred tax on specific transactions such as:
- No business combination is available
- Transaction affects neither accounting nor taxable profit at an initial recognition
How do IAS 12 treat business combinations?
Deferred taxes are known for temporary differences based on acquisition except cases like goodwill where different rules are adherable.
Are Uncertain tax positions covered under IAS 12?
Yes, they are addressed through IFRIC 23 offering guidance on measurement and recognition.
How are tax credits treated under IFRS?
Tax credits come under:
- IAS 12(for income taxes)
- IAS 20 ( if under government assistance)
Treatment is based on the credit nature.
Do you support audit processes?
Of course. We offer full audit support, such as documentation, direct assistance, and technical memos in response to the auditor’s queries.
Get Expert IAS 12 Support
Proper deferred tax reporting is essential for audit success, financial integrity, and regulatory compliance. Our team shares a technically sound, fully compliant IAS 12 and audit-ready solutions customized for your business.
Get in touch with us to discuss your deferred tax needs to ensure reporting is up to industry standards.