IAS 12 - Deferred Tax Basic Principles (IFRS)

[@bhekaphakathi3509]

11 years later, content is very relevant, big up🎉

[@TabaldiEducation]

Glad you found it helpful!

[@parkashmagar8468]

isn't there many things has been changed now how could this be helpful can you explain it

[@bhekaphakathi3509]

Yes, things might have changed, but the concepts are still the same. In terms of what are doing, how are we doing it and why is it being done, then study the latest version to grasp the changes

[@TabaldiEducation]

Exactly as you say,@@bhekaphakathi3509! IAS12 has not changed in the last decade. The principles are still exactly the same. The tax rates have changed.

[@phillipmokhene1156]

I have to admit, I love this Intelligent man. You Just made a concept I thought was difficult very simple for me... Thumbs up.

[@TabaldiEducation]

Hi Phillip Thank you for your kind comments there - The Tabaldi Team

[@Zelios26]

I reside in Cape Town and I'm in 3rd year BCompt. I'm currently on the chapter dealing with deferred tax in my studies and I must say your video has been a huge help to me in clarifying some particular issues that were confusing me. Thank you so much!

[@cindylove7529]

Great video, hope to see more!! I finally understand the concept.

[@TabaldiEducation]

Thanks, Cindy! Glad it helped!

[@cindyzhang8054]

Your teaching is quite helpful. I had never understood DTA & DTL until I watched your teaching video. Thanks so much!

[@TabaldiEducation]

Thank you Cindy. We are glad that we could help.

[@predgit]

This is probably the best video I have seen to simplify the concepts around taxes ! Thanks so much for uploading !

[@TabaldiEducation]

Thank you Predgit for the encouraging comment ! We are always adding new courses on our website www.tabaldi.org for the IFRS standards. Best of luck with your studies.

[@calummurphy2003]

South African accountants are always worth a watch.

[@khakamajenge4874]

He just turned a complex topic in to simple chapter. beautiful. thank you

[@AshleyMuchenje]

Thank you so much Richard for breaking down this standard .I now understand it

[@TabaldiEducation]

Glad to hear it!

[@TabaldiEducation]

Hi Lutho, in 2011 we increased the tax expense and therefore debited tax expense and credited liability. It can sometimes be a bit confusing, just remember that in this example we increase taxable income in 2011 (decreased in 2010), and therefore increase tax expense in 2011 (decrease in 2010). Hope this helps?

[@augustayarteh7524]

Ooh my God i have not covered this section yet, but i can recorgnize some of the accounts names what they stands for. I love your teaching. You sound so brave with your explanation God blessed KZbinrs for some of this video.

[@Lautaro_Guindulain]

Wow... let me say that this video was so helpful. English is not my first language, so watching these have saved me a lot reading time. Thank you so much.

[@TabaldiEducation]

Thank you Anatananarivo201, we are glad that we could assist with your studies.

[@stavroskaragiannopoulos5843]

BEST EXPLENATIONS EVER... I AM STUDYING FOR ACCA AND WITH THIS VIDEO I REALLY UNDERSTAND DEFFERED ISSUES

[@lemonsherbert8915]

Hello, I am studying ACCA as well, only started this week but I'm writing sbr,sbl in june, then my electives(afm, still deciding on the 2nd one) in sept. Do you by any chance know a community of RSA students, that I can be part of, or start one ourselves?

[@arnurakhmetov4246]

Thank you very much! Your explanation a lot easier to understand than in my IFRS lectures! God bless you

[@TabaldiEducation]

+Arnur Akhmetov Thank you for your comment. We are pleased that you found these lectures helpful.

[@thefavouredone5903]

you have just made deffered tax easy for me...thank you

[@TabaldiEducation]

We're glad to hear it!

[@TabaldiEducation]

Hi Moe, yes we are from South Africa. Thanks for the kind words, we are glad you like the video. We are working hard to put out more videos. We have not based our accounting videos on any specific tax legislation. The tax legislation changes regularly and is different around the world so in our illustrations we tell you what the scenario is for that example only. Thanks

[@davidemassa1256]

Extremely clear. Good explanation. Thank you!

[@TabaldiEducation]

You're welcome!

[@pankajsolomon1443]

Very well explained. Difficult concept explained very simply.

[@sydulislam7995]

It's really happy learning. Thanks

[@AS-bs5yj]

I wish you were a certified ACCA tuition provider...the work you do is striking! You are actually aiming to help to understand global principles through local and methodical approach, that many universities fail to provide. Thanks a lot for making IAS's and IFRS's step into life out of their published boring definitions!

[@TabaldiEducation]

Thank you so much for your comment, at Tabaldi we aim to simplify the most complex accounting definitions and concepts. Stay subscribed to our channel for more.

[@joydeepghosh4567]

Excellent discourse. Thank you. Better explanation than most texts.

[@harshahewawasam1026]

Ohhh... I was worrying about Def. Tax.. great explanation .. thanks

[@TabaldiEducation]

+HARSHA HEWAWASAM Thank you for your comment - glad you where helped by this video.... Best with your studies The Tabaldi Team

[@harshahewawasam1026]

Thank you very much

[@njabulohlongwane9079]

Yhooo great and easy to understand.Please add more video - i'll pay money to tabaldiaccountying when doing CTA in UNISA.So potential custormers.Please keep on adding.

[@TabaldiEducation]

Thank you for you comment. We do have many courses on offer - visit www.tabaldi.org to see the full packages. The Tabaldi Team

[@auwha4615]

Great Tax Expense teaching material ! It help me a lot. Thank you so much

[@pigslefats]

At 9:55 why is it a deductible temporary difference when it increases taxable income?

[@shyletmagaya5186]

Quite understandable ,u are a very good lecturer

[@stevenfine8204]

Thank Richard you legend! my exam worries will now be deferred till later on in life!!

[@TabaldiEducation]

ha ha ha and so it goes. Thanks for your comment The Tabaldi Team

[@anthonybowersss]

Hi, thanks for the great lecture on the principles of IAS12 it has really assisted me in understanding the concept of Deferred Tax.

[@TabaldiEducation]

Glad we could help Anthony, not an easy topic.

[@alemayehumesele2159]

very helpful. what a great teaching skill do you have! you made it very simple such complicated fragment. thank you very much for your contribution

[@TabaldiEducation]

+Alemayehu Mesele Thank you for your kind comments and we are pleased that you found these videos helpful and care

[@0126ray]

Really a comprehensive illustration, good job, subscribed you!

[@TabaldiEducation]

Thanks!

[@elmansory68]

Thanks It make easy to understand part of IAS12

[@tobiegardner8891]

Thanks mate, you explain this very well.

[@TabaldiEducation]

Thank you Tobie Gardner, we are glad you found this helpful - good luck with your studies

[@Clas-man]

Thanx a lot...... U are a life saver.....

[@TabaldiEducation]

+CLASMAN1000 Thank you for your comment - glad that you where helped by this video

[@kmrhmnbd]

Great job

[@TabaldiEducation]

Thanks for the question. The accounting depreciation is added back before deducting the tax depreciation (capital allowance). That is to say, we reverse the accounting depreciation (2,500 year 1; 2500 year 2) and then deduct the tax depreciation (5000 year 1; zero in year two). Please note that this example is not built on actual tax law enacted in any country, but is uses the example that for this specific asset the tax authority allowed a 100% depreciation (capital) allowance in year 1. Thanks

[@KATIYA7]

Thank you so much for sharing!! I really like the presentation format and how you could add a video of yourself. Are these all done in Power Point or you use different application ?

[@TabaldiEducation]

Thank you, Katiya. We use various applications to write, record and edit the videos. The way we currently do it has evolved from these older ones.

[@whytestifyfor]

Thank you very much just one question... Why do you add the depreciation to the taxable income? Isn't it the role of depreciation to lower the taxable income? I could understand if you've added the remaining value of the asset after depreciation which is 2500 but in this case it would be zero in 2011 and not 2500... Could you explain? Thanks!

[@wilvanvorstenbosch3733]

Excellent explanation!

[@mohammedfarsan5352]

Great Lecture. Thanks alot. Was very helpful.

[@christine__mwathi]

Thanks so much for this. I sure have some more clarity

[@InstTaxSolutionsLLC]

The basic principle of calculating deferred taxes using the international standard IFRS is done effectively in this video.

[@TabaldiEducation]

Hi Christine, we are looking at doing more of these and then possibly doing DVD's.... keep following (sorry we are a bit slow in getting more up at the moment)

[@kshetrisurendra3296]

can we adopt this SOFP approach in case the profit before taxes are different in two financial years? Since you have illustrated with constant profits at two years, how will you reconcile tax in case profit is different since it is complex in real life situation to have the same amount of profits.

[@moekazi9338]

Great lecture, very well explained.. Really appreciate it. Are you from South Africa?, and is this based on the South African budget and legislation?

[@khannagma]

Hello, If a company has tax exemption from 2005-2011, and has brought forward tax losses, & in 2011 recognizes a deferred tax asset, then why is the same amount of deferred tax asset in the SOFP an income tax addition to profit before tax in Income statement?? What will be the future effects on profits??? Thanx.

[@sapnakhakh4609]

Very Easy to Understand, Thanks so very much.....

[@TabaldiEducation]

+Sapna Khakh Glad that you found the videos easy to understand and follow.

[@munyaradzishaleenmhuruyeng2718]

thank you well explained

[@TabaldiEducation]

Glad to hear it! Thanks for the feedback!

[@luthodinisile9536]

hi..thanx for the video it's really helpful,i have a question regarding the 2011 journals for current tax,why debit tax expense and not liability? We decreased the expense by 700(28700-28000)?

[@forfun1101]

Thank you I was inspired to study again accounting

[@TabaldiEducation]

Thats great to know! Good luck with your studies.

[@Wezhilz8590]

Thanks for sharing. Very helpful

[@TabaldiEducation]

Glad it helped, Reason!

[@christinetapedza3901]

how do i download the videos they are very helpful

[@nkocnkocy8772]

thanks u just made my life easy

[@refilweprecioussebogodi3815]

How did you determine that TD in 2010 is taxable and deductible in 2011?

[@tasity1041]

Thanks. But how do you know the Tabaldy tree.

[@lottnathan6656]

Great work thank you

[@TabaldiEducation]

Our pleasure!

[@zeeshansaleem7441]

thank you it was helpful

[@amirali-lw5qy]

Thanks a lot your lecture is really helpful.Kindly upload a more comprehensive example along with reconciliation. BEST REGARDS

[@njabulohlongwane9079]

wow you are the best.

[@Gazacommandment]

ACCA P2! Yayyyyy!

[@mustafamacdi3560]

Very helpful. God bless you. Thank you so much.

[@TabaldiEducation]

mustafa macdi Many thanks for the encouraging comment, we are glad that you found this useful !

[@shankarthapa001]

Great Lecture - Thanks.

[@esperancacapelao2424]

You guys are so helpful, I love this page... Thank you! Also, can there be lessons on Group Statements (Consolidation). It's quite complex and it would really help if it is simplified and explained like these ones.

[@jinesh0306]

Thank you Richard and Tabaldi Team. This is very helpful. Tonnes of thanks and wishes from India.

[@TabaldiEducation]

Thank you for your comment. We are glad you find our videos useful :-)

[@BrunoLimacontabilidade]

Hi! Contratulations for your videos. What program do you use for make your lessons?

[@TabaldiEducation]

+Bruno Lima Thank you glad you enjoyed the videos. Best wishes for your studies. The Tabaldi Team

[@philaniwelcome7249]

Thank you very much 🔥🔥

[@TabaldiEducation]

You're welcome 😊

[@prashadguruge6691]

Thank you !! It is really helpful

[@virtuousjoffrey8022]

Do you have any videos on underlying tax and withholding tax?

[@TabaldiEducation]

Dinuka Malith Hi Dinuka, witholding tax will not usually effect deferred tax (unless it is a group situation and there is withholding tax on a foreign associate company). The tax legislation is way out of our skill set though and will be country specific. sorry, we are more IFRS guys than tax guys

[@wosewose6259]

Brilliant!

[@jennyfan9774]

Really helpful thank you.

[@ndumisocele3827]

I would be making a mistake if I do not sucribe to this, thank you very much for siifying this topic for me. ;)

[@TabaldiEducation]

+YAQOOB CELE Thank you for you comment - glad you found these videos helpful

[@prasadb2742]

Hi I have one industry question, how to create deferred tax in case of tax free units

[@TabaldiEducation]

Hi Prasad, what do you mean by 'tax-free units'?

[@magieshimbali2886]

these videos are so nice, can they make it downloadable please

[@TabaldiEducation]

Hi Magie - The videos are not downloadable. The Tabaldi Team

[@muhammadwaqar2558]

thanks a lot God bless u

[@TabaldiEducation]

Glad you benefited from these videos. Best wishes with your studies Thank you The Tabaldi Team

[@paidamoyonhembera2221]

this is useful

[@TabaldiEducation]

Thank you, @paidamoyo

[@euginiaification]

very helpful lecture

[@TabaldiEducation]

+euginia maseko Thank you for your comment - glad you found these videos helpful.

[@joshuajessekelvin5642]

Thanks ..Was helpful alot

[@TabaldiEducation]

+Joshua Jesse Kelvin Thank you for your comment - Glad that you found benefit from these videos The Tabaldi Team

[@peterrochmann1389]

thank you.

[@luthotsengiwe4650]

Can I make a request for a video on the topic Earnings Per Share

[@rjws69]

Thank you so much!

[@nimayram6029]

Dear sir , thanks for your valuable videos ,can you give a video on temporary difference but no deferred tax impact, eg, on government grant or intangible asset, it would be a great help for me, regards, Nimay Ram, From Bangladesh.

[@TabaldiEducation]

Hi Nimay, thank you for finding our videos valuable. Our KZbin channel is more for general deferred tax understanding, we do not record videos for specific areas that may not be of interest to all subscribers. Our paid platform does however have a forum where we address specific queries, visit www.tabaldi.org for more information. Good luck with your studies!

[@nimayram6029]

thanks , for the reply.

[@raviramsingh7702]

thank you very much

[@stevenhan5148]

thank you!

[@faafouinasua4581]

Thanks very much very helpful

[@TabaldiEducation]

+Faafouina Su'a Thank you for your comment - glad that you found benefit from the lecturers.

[@kashbash9645]

Why does the solution to my tax question use a future income tax recovery account that you never mention?

[@kashbash9645]

My question may be beyond the scope of this video. I have "Future Income Tax Asset (current)", "Future Inc. Tax Recovery," and "Future Inc. Tax Liability (non-current)" accounts in the journal entry.

[@lizkim4717]

thank you

[@njabulohlongwane9079]

Pleas add the new revenue standard :)

[@Patsiya95]

appreciated!

[@thandokuhlezondo2531]

+patric siyabonga OOO,I get it,udla lapha ndoda, thats why udabula kangaka

[@Patsiya95]

Sengibuyile ndoda!

[@TabaldiEducation]

Thank you - glad you found it useful!

[@helenahayes6150]

CA stands for California? So this is US taxation law?

[@TabaldiEducation]

Helena Haynes... It also stands for Chartered Accountant. The Tabaldi Team

[@rdm347]

6:45

[@dan1466]

tabaldy

[@calumsmart7468]

lol man!

[@TabaldiEducation]

Smile - from the Tabaldi Team

[@akhilabegum5654]

dan1466 urdubanyan

[@uzair1132]

Thank you very much. Allah (God almighty) bless you.

[@edyraper]

Why the more I learn accounting the less I know?

[@TabaldiEducation]

True. Same with most things in life. Keep going!

[@pigslefats]

If future economic benefits of the PPE are only worth 5000 and that's what you paid, then why bother?

[@maligue1350]

It's all about who teaches.... Period

[@wookie-b3f]

Thank you very much

[@TabaldiEducation]

You are most welcome!

[@LulamaMaqubela]

Thank you ❤️

[@mahindaarachchige3689]

many thanks

[@adityasujarminto2801]

Thank u...

[@bluelightstv9026]

Thank you