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CA Final · Financial Reporting · Ind AS 12 Income Taxes

Ind AS 12 omits paragraphs 51C-51D of IAS 12 and modifies paragraphs 20 and 51E. According to the Ind AS 12 comparison with IAS 12, what is the reason for these changes?

Paragraphs 51C-51D are deleted, and paragraphs 20 and 51E modified, because Ind AS 40 does not permit the fair value model for investment property. The IAS 12 rules on deferred tax for fair-value-measured investment property therefore have no application in Ind AS.

  1. AInd AS 40 does not allow the fair value modelCorrect
  2. BInd AS 1 removed the option of presenting other comprehensive income
  3. CInd AS 103 treats bargain purchase gain in capital reserve
  4. DInd AS 101 contains the transitional provisions of SIC 25

Explanation

The comparison states that the fair value model is not allowed in Ind AS 40. As a result paragraphs 51C-51D are deleted and paragraphs 20 and 51E are modified. The Ind AS 103 bargain purchase difference relates to paragraph 68(a), not to these paragraphs. The Ind AS 1 change relates to the removal of the separate income statement.

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