International GAAP® 2019: Generally Accepted Accounting Practice under International Financial Reporting Standards
Page 464
Discussed and Next Steps, dated 30 March
additional goods and services, dated
2015.
9 November 2015.
73 TRG Agenda paper 38, Portfolio Practical
55 TRG Agenda paper 48, Customer options for
Expedient and Application of Variable
additional goods and services, dated
Consideration Constraint, dated 13 July 2015.
9 November 2015.
74 TRG Agenda paper 38, Portfolio Practical
56 TRG Agenda paper 48, Customer options for
Expedient and Application of Variable
additional goods and services, dated
Consideration Constraint, dated 13 July 2015.
9 November 2015.
75 TRG Agenda paper 35, Accounting for
57 TRG Agenda paper 48, Customer options for
Restocking Fees and Related Costs, dated
additional goods and services, dated
13 July 2015.
9 November 2015.
76 TRG Agenda paper 35, Accounting for
58 TRG Agenda paper 48, Customer options for
Restocking Fees and Related Costs, dated
additional goods and services, dated
13 July 2015.
9 November 2015.
77 Consistent with the discussions within TRG
59 TRG Agenda paper 48, Customer options for
Agenda paper 30, Significant Financing
additional goods and services, dated
Components, dated 30 March 2015.
9 November 2015.
78 TRG Agenda paper 30, Significant Financing
60 FASB TRG Agenda paper 54, Considering
Components, dated 30 March 2015.
Class of Customer When Evaluating Whether a
79 TRG Agenda paper 34, March 2015 Meeting –
Customer Option Gives Rise to a Material
Summary of Issues Discussed and Next Steps,
Right, dated 18 April 2016.
dated 13 July 2015.
61 TRG Agenda paper 32, Accounting for a 80 TRG Agenda paper 34, March 2015 Meeting –
Customer’s Exercise of a Material Right, dated
Summary of Issues Discussed and Next Steps,
30 March 2015.
dated 13 July 2015.
62 TRG Agenda paper 32, Accounting for a 81 TRG Agenda paper 30, Significant Financing
Customer’s Exercise of a Material Right, dated
Components, dated 30 March 2015.
30 March 2015.
2330 Chapter 28
82 TRG Agenda paper 30, Significant Financing 97 TRG Agenda paper 31, Allocation of the
Components, dated 30 March 2015 and TRG
Transaction Price for Discounts and Variable
Agenda paper 34, March 2015 Meeting –
Consideration, dated 30 March 2015 and TRG
Summary of Issues Discussed and Next Steps,
Agenda paper 34, March 2015 Meeting –
dated 13 July 2015.
Summary of Issues Discussed and Next Steps,
83 TRG Agenda paper 30, Significant Financing
dated 13 July 2015.
Components, dated 30 March 2015.
98 FASB TRG Agenda paper 56, Over Time
84 TRG Agenda paper 34, March 2015 Meeting –
Revenue Recognition, dated 7 November 2016.
Summary of Issues Discussed and Next Steps,
99 FASB TRG Agenda paper 60, November 2016
dated 13 July 2015.
Meeting – Summary of Issues Discussed and
85 TRG Agenda paper 30, Significant Financing
Next Steps, dated 31 January 2017.
Components, dated 30 March 2015 and TRG
100 TRG Agenda paper 43, Determining When
Agenda paper 34, March 2015 Meeting –
Control of a Commodity Transfers, dated
Summary of Issues Discussed and Next Steps,
13 July 2015.
dated 13 July 2015.
101 TRG Agenda paper 43, Determining When
86 TRG Agenda paper 30, Significant Financing
Control of a Commodity Transfers, dated
Components, dated 30 March 2015 and TRG
13 July 2015.
Agenda paper 34, March 2015 Meeting – 102 IFRIC Update, March 2018.
Summary of Issues Discussed and Next Steps,
103 FASB TRG Agenda paper 56, Over Time
dated 13 July 2015.
Revenue Recognition, dated 7 November 2016.
87 IFRIC Agenda paper 13, IFRS Interpretations
104 FASB TRG Agenda paper 60, November 2016
Committee Work in Progress, September 2018.
Meeting – Summary of Issues Discussed and
88 TRG Agenda paper 28, Consideration Payable to
Next Steps, dated 31 January 2017.
a Customer, dated 30 March 2015, TRG Agenda
105 FASB TRG Agenda paper 56, Over Time
paper 34, March 2015 Meeting – Summary of
Revenue Recognition, dated 7 November 2016.
Issues Discussed and Next Steps, dated 13 July
106 FASB TRG Agenda paper 60, November 2016
2015 and TRG Agenda paper 37, Consideration
Meeting – Summary of Issues Discussed and
Payable to a Customer, dated 13 July 2015.
Next Steps, dated 31 January 2017.
89 TRG Agenda paper 28, Consideration Payable
107 AICPA Audit and Accounting Guide, Revenue
to a Customer, dated 30 March 2015, TRG
Recognition, Chapter 3, Aerospace and
Agenda paper 34, March 2015 Meeting –
Defense Entities, paras. 3.5.18-3.5.23.
Summary of Issues Discussed and Next Steps,
108 IFRIC Update, March 2018
dated 13 July 2015 and TRG Agenda paper 37,
109 TRG Agenda paper 40, Practical Expedient for
Consideration Payable to a Customer, dated
Measuring Progress toward Complete
13 July 2015.
Satisfaction of a Performance Obligation, dated
90 TRG Agenda paper 37, Consideration Payable
13 July 2015.
to a Customer, dated 13 July 2015.
110 TRG Agenda paper 40, Practical Expedient for
91 TRG Agenda paper 44, July 2015 Meeting –
Measuring Progress toward Complete
Summary of Issues Discussed and Next Steps,
Satisfaction of a Performance Obligation, dated
dated 9 November 2015.
13 July 2015.
92 FASB TRG Agenda paper 59, Payments to
111 TRG Agenda paper 40, Practical Expedient for
Customers, dated 7 November 2016.
Measuring Progress toward Complete
93 FASB TRG Agenda paper 60, November 2016
Satisfaction of a Performance Obligation, dated
Meeting – Summary of Issues Discussed and
13 July 2015.
Next Steps, dated 31 January 2017.
112 TRG Agenda paper 44, July 2015 Meeting –
94 TRG Agenda paper 32, Accounting for a
Summary of Issues Discussed and Next Steps,
Customer’s Exercise of a Material Right, dated
dated 9 November 2015.
30 March 2015 and TRG Agenda paper 34, March
113
TRG Agenda paper 16, Stand-Ready
2015 Meeting – Summary of Issues Discussed and
Performance Obligations, dated 26
January
Next Steps, dated 13 July 2015.
2015 and TRG Agenda paper 25, January 2015
95 TRG Agenda paper 39, Application of the
Meeting – Summary of Issues Discussed and
Series Provision and Allocation of Variable
Next Steps, dated 30 March 2015.
Consideration
, dated 13 July 2015.
114 TRG Agenda paper 41, Measuring progress
96 TRG Agenda paper 39, Application of the
when multiple goods or services are included in
Series Provision and Allocation of Variable
a single performance obligation, dated 13 July
Consideration, dated 13 July 2015.
2015.
Revenue
2331
115 TRG Agenda paper 41, Measuring progress when 134 TRG Agenda paper 23, Incremental costs of
multiple goods or services are included in a single
obtaining a contract, dated 26 January 2015.
performance obligation, dated 13 July 2015.
135 FASB TRG Agenda paper 57, Capitalization
116 FASB TRG Agenda paper 53, Evaluating How
and Amortization of Incremental Costs of
Control Transfers Over Time, dated 18 April
Obtaining a Contract, dated 7 November 2016.
2016.
136 FASB TRG Agenda paper 60, November 2016
117 TRG Agenda paper 40, Practical Expedient for
Meeting – Summary of Issues Discussed and
Measuring Progress toward Complete
Next Steps, dated 31 January 2017.
Satisfaction of a Performance Obligation, dated
137 FASB TRG Agenda paper 57, Capitalization
13 July 2015.
and Amortization of Incremental Costs of
118 TRG Agenda paper 33, Partial Satisfaction of
Obtaining a Contract, dated 7 November 2016.
Performance Obligations Prior to Identifying
138 FASB TRG Agenda paper 60, November 2016
the Contract, dated 30 March 2015.
Meeting – Summary of Issues Discussed and
119 TRG Agenda paper 34, March 2015 Meeting –
Next Steps, dated 31 January 2017.
Summary of Issues Discussed and Next Steps,
139 FASB TRG Agenda paper 57, Capitalization
dated 13 July 2015.
and Amortization of Incremental Costs of
120 ICC website https://iccwbo.org/resources-for-
Obtaining a Contract, dated 7 November 2016.
business/incoterms-rules/incoterms-rules-
140 TRG Agenda paper 23, Incremental costs of
2010/ (accessed 10 September 2018).
obtaining a contract, dated 26 January 2015.
121 TRG Agenda paper 39, Application of the 141 TRG Agenda paper 23, Incremental costs of
Series Provision and Allocation of Variable
obtaining a contract, dated 26 January 2015.
Consideration, dated 13 July 2015
142 TRG Agenda paper 33, Partial Satisfaction of
122 TRG Agenda paper 45, Licences – Specific
Performance Obligations Prior to Identifying
Application Issues About Restrictions and
the Contract, dated 30 March 2015 and TRG
Renewals, dated 9 November 2015.
Agenda paper 34, March 2015 Meeting –
123 FASB ASU 2016-10, Revenue from Contracts
Summary of Issues Discussed and Next Steps,
with Customers (Topic
606): Identifying
dated 13 July 2015.
Performance Obligations and Licensing, April
143 FASB TRG Agenda paper 60, November 2016
2016, para. BC71.
Meeting – Summary of Issues Discussed and
124 FASB TRG Agenda paper 58, Sales-Based or
Next Steps, dated 31 January 2017 and FASB
Usage-Based Royalty with Minimum
TRG Agenda paper 57, Capitalization and
Guarantee, dated 7 November 2016.
Amortization of Incremental Costs of
125 FASB TRG Agenda paper 60, November 2016
Obtaining a Contract, dated 7 November 2016.
Meeting – Summary of Issues Discussed and
144 FASB TRG Agenda paper 60, November 2016
Next Steps, dated 31 January 2017.
Meeting – Summary of Issues Discussed and
126 FASB TRG Agenda paper 58, Sales-Based or
Next Steps, dated 31 January 2017 and FASB
Usage-Based Royalty with Minimum
TRG Agenda paper 57, Capitalization and
Guarantee, dated 7 November 2016.
Amortization of Incremental Costs of
127 TRG Agenda paper 29, Warranties, dated
Obtaining a Contract, dated 7 November 2016.
30 March 2015 and TRG Agenda paper 34,
145 TRG Agenda paper 23, Incremental costs of
March 2015 Meeting – Summary of Issues
obtaining a contract, dated 26 January 2015.
Discussed and Next Steps, dated 13 July 2015.
146 TRG Agenda paper 23, Incremental costs of
128 IFRIC Update, March 2018.
obtaining a contract, dated 26 January 2015.
129 FASB TRG Agenda paper 57, Capitalization
147 TRG Agenda paper 4, Impairment testing of
and Amortization of Incremental Costs of
capitalised contract costs, dated 18 July 2014.
Obtaining a Contract, dated 7 November 2016.
148 TRG Agenda paper 7, Presentation of a contract
130 FASB TRG Agenda paper 57, Capitalization
as a contract asset or a contract liability, dated
and Amortization of Incremental Costs of
31 October 2014 and TRG Agenda paper 11,
Obtaining a Contract, dated 7 November 2016.
October 2014 Meeting – Summary of Issues
131 FASB TRG Agenda paper 60, November 2016
Discussed and Next Steps, dated 26 January
Meeting – Summary of Issues Discussed and
2015.
Next Steps, dated 31 January 2017.
149 TRG Agenda paper 7, Presentation of a contract
132 FASB TRG Agenda paper 57, Capitalization
as a contract asset or a contract liability, dated
and Amortization of Incremental Costs of
31 October 2014 and TRG Agenda paper 11,
Obtaining a Contract, dated 7 November 2016.
October 2014 Meeting – Summary of Issues
133 TRG Agenda paper 23, Incremental costs of
Discussed and Next Steps, dated 26 January
obtaining a contract, dated 26 January 2015.
2015.
2332 Chapter 28
150 TRG Agenda paper 7, Presentation of a contract 153 Para. 25 of IFRS 10 applies if a parent loses
as a contract asset or a contract liability, dated
control of a subsidiary. Para. 23 of IFRS 10
31 October 2014 and TRG Agenda paper 11,
applies if a parent’s ownership interest in a
October 2014 Meeting – Summary of Issues
subsidiary changes without the parent losing
Discussed and Next Steps, dated 26 January
control of that subsidiary.
2015.
154 Discussion Paper DP/2014/2, Reporting the
151 FASB TRG Agenda paper 51, Contract Asset
Financial Effects of Rate Regulation.
Treatment in Contract Modifications, dated 155 IASB
Agenda
paper 9A Rate-regulated
18 April 2016.
Activities, July 2018.
152 TRG Agenda paper 40, Practical Expedient for
Measuring Progress toward Complete
Satisfaction of a Performance Obligation, dated
13 July 2015.
2333
Chapter 29
Income taxes
1 INTRODUCTION .......................................................................................... 2343
1.1
The nature of taxation ...................................................................................... 2343
/>
1.2 Allocation
between periods ............................................................................. 2343
1.2.1
No provision for deferred tax (‘flow through’) ............................ 2344
1.2.2
Provision for deferred tax (the temporary difference
approach) ............................................................................................. 2345
1.3
The development of IAS 12 ............................................................................. 2346
1.3.1
References to taxes in standards other than IAS 12 .................... 2347
2 OBJECTIVE AND SCOPE OF IAS 12 ............................................................ 2348
2.1
Objective ............................................................................................................. 2348
2.2 Overview
.............................................................................................................
2349
3 DEFINITIONS ............................................................................................... 2349
4 SCOPE .......................................................................................................... 2350
4.1
What is an ‘income tax’? .................................................................................... 2351
4.1.1
Levies ................................................................................................... 2353
4.1.2 Hybrid
taxes
(including minimum taxes) ...................................... 2353
4.2
Withholding and similar taxes ......................................................................... 2354
4.3
Investment tax credits ...................................................................................... 2355
4.4 Interest
and
penalties ......................................................................................... 2357
4.5 Effectively
tax-free
entities
.............................................................................
2359
5 CURRENT TAX ............................................................................................ 2360
5.1
Enacted or substantively enacted tax legislation ........................................ 2360
5.1.1
Meaning of substantive enactment in various jurisdictions ...... 2360
5.1.2
Changes to tax rates and laws enacted before the
reporting date ...................................................................................... 2361