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It also covers the timing difference plus approach, the accruals principle behind deferral, and why deferred tax reduces volatility and highlights future tax obligations, illustrated with a numerical example.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/deferred-tax-technical-factsheet-introduction-scope-and-principles/159799/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/deferred-tax-technical-factsheet-introduction-scope-and-principles/159799.png","ImageObject",300,407,{"name":42,"@type":43},"Jacob","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-18","2026-08-29",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",18,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"FRS 102 Section 29的范围包含哪些内容？","Question",{"text":63,"@type":64},"Section 29 applies to income tax comprising current tax and deferred tax, including deferred tax in respect of assets (other than goodwill) and liabilities recognised as a result of a business combination. 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You can find the latest publications at [stevecollings.co.uk](stevecollings.co.uk).  \nINTRODUCTION  \nFRS 102 , The Financial Reporting Standard applicable in the UK and Republic of Ireland deals with deferred tax in Section 29 Income Tax. For companies applying UK-endorsed IFRS Standards , IAS 12 , Income Taxes will apply.  \nMicro-entities choosing to report under FRS 105 , The Financial Reporting Standard applicable to the Micro-entities Regime are prohibited from recognising deferred tax. This is on the grounds that it would not be possible to distinguish between current tax and deferred tax due to the lack of disclosure requirements; hence the Financial Reporting Council (FRC) scoped micro-entities that choose to report under FRS 105 out of the requirement for deferred tax.  \n1. SCOPE OF FRS 102, SECTION 29  \nThe scope of FRS 102, Section 29 is outlined in para 29.2. The scope section confirms that Section 29 applies to the accounting for income tax, which is then split into component elements. FRS 102, para 29.2 states that Section 29 applies to:  \n‘(a) income tax comprising:  \n(i) current tax; and  \n(ii) deferred tax including deferred tax in respect of assets (other than goodwill) and liabilities recognised as a result of a business combination; and  \n(b) value added tax (VAT) and other similar sales taxes, which are not income taxes.’1  \nThe requirements in FRS 102, para 29 .2(a)(ii) refer to assets (other than goodwill) and liabilities recognised as a result of a business combination. A ‘business combination’ for the purposes of FRS 102 arises when one entity obtains control over another entity; in other words, a parent company acquires a subsidiary, or an organisation acquires the trade of an unincorporated business. ACCA’s  Technical factsheet: consolidated financial statements provides more details about business combinations.  \n1 FRS 102, para 29.2.  \nThe recognition of deferred tax in respect of business combinations was included by the FRC so that FRS 102, Section 29 is aligned to the requirements of IAS 12 and hence the calculation of deferred tax under FRS 102 does not end up too dissimilar from the same calculation that would be arrived at under IFRS Standards.  \n2. DEFERRED TAX  \nFRS 102 requires deferred tax to be calculated using the ‘timing difference plus’ approach. As noted above, the calculating of deferred tax in the UK and Republic of Ireland is such that the end result would not be too different from the same calculation as that under IAS 12.  \n\n| ACCA comment |\n| --- |\n| Deferred tax in the UK and Republic of Ireland is calculated using a timing difference approach. Under this approach, deferred tax is recognised on timing differences between accounting profit and taxable profit, hence the focus of the timing difference approach is on the profit and loss account (income statement) .\u003Cbr>Under IAS 12, deferred tax is calculated on a temporary difference approach , which focuses on the book values of assets and liabilities and the tax written-down values (or ‘tax bases’) of those assets and liabilities, hence the focus of the temporary difference approach is on the balance sheet (statement of financial position) . |\n\nDeferred tax is the application of the accruals concept. This requires the tax effects of a transaction to be reported in the same accounting period as the transaction itself. Hence, an adjustment to the tax charge in the financial statements may be needed. It is this concept that gives rise to deferred tax and the overall objective is to lessen volatility within the financial statements. This also helps to highlight future obligations to pay tax that are based on profits that have already been made, which may help the directors to manage thei","cbCaikARcQgnDmnQ","https://ap.wps.com/l/cbCaikARcQgnDmnQ","pdf",286701,11,"English","# Introduction\n## Scope of FRS 102, Section 29\n## Deferred tax and calculation approach\n## Basic principles and accruals concept\n## Example: basic principles of deferred tax","[{\"question\":\"FRS 102 Section 29的范围包含哪些内容？\",\"answer\":\"Section 29 applies to income tax comprising current tax and deferred tax, including deferred tax in respect of assets (other than goodwill) and liabilities recognised as a result of a business combination. It also distinguishes VAT and other sales taxes as not being income taxes.\"},{\"question\":\"微型实体（FRS 105）为什么不确认递延所得税？\",\"answer\":\"微型实体选择按FRS 105报告时被禁止确认递延税，原因是现行税与递延税难以区分，因缺乏披露要求。监管方因此将其排除在递延所得税要求之外。\"},{\"question\":\"Deferred tax的核心目的与会计含义是什么？\",\"answer\":\"递延所得税体现权责发生制原则：交易的税务影响应与交易本身的会计期间同步确认，从而必要时调整报表中的所得税费用。总体目标是降低报表波动，并揭示基于已形成利润的未来纳税义务，帮助董事进行现金流管理。\"}]","Deferred tax - technical factsheet - introduction - scope and principles | PDF",28]