[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-159803-105":59,"doc-detail-159803-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","international-accounting-standard-12-income-tax-aspects-for-discussion","International Accounting Standard 12 - Income Tax - Aspects for Discussion","","International Accounting Standard 12—Income Tax—sets accounting requirements for profit tax, especially the recognition of deferred tax assets and deferred tax liabilities. When these elements are handled in practice, the reported net profit in financial statements may become unrealistic and conflict with key qualitative characteristics such as relevance and faithful representation, while also creating opportunities for misstatement or fraud. The study argues for simplifying IAS 12 because deferred tax accounting raises persistent problems for enterprises and investors and lacks analytical usefulness in financial analysis. It recommends changes that simplify profit tax accounting under IAS 12 and eliminate existing issues.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/international-accounting-standard-12-income-tax-aspects-for-discussion/159803/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/international-accounting-standard-12-income-tax-aspects-for-discussion/159803.png","ImageObject",300,407,{"name":92,"@type":93},"Connor ","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-06","2026-08-29",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",14,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What does IAS 12 (Income Tax) require enterprises to recognize?","Question",{"text":113,"@type":114},"IAS 12 requires recognizing deferred tax assets (DTA) and deferred tax liabilities (DTL) as part of profit tax accounting.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"Why can IAS 12’s deferred tax accounting affect the quality of reported net profit?",{"text":118,"@type":114},"Deferred tax asset and liability accounting may make the net profit indicator unrealistic, contradicting qualitative characteristics like relevance and faithful representation, and it may enable fraud in financial statements.",{"name":120,"@type":111,"acceptedAnswer":121},"What is the main purpose of the study discussed in the article?",{"text":122,"@type":114},"The study substantiates the necessity of simplifying IAS 12, proposing changes to make profit tax accounting simpler and to address ongoing problems faced by enterprises and investors.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},159803,1788023230,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":52,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":130,"read_time":144,"preview_page_count":4},687207022233,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","International Accounting Standard 12 –“Income Tax” and Aspects for  \nDiscussion  \nIzolda Chiladze  \nCorrespondence: Izolda Chiladze, Department Accounting, and Audit, Ivane Javakhishvili Tbilisi State University, Tbilisi, 0179, Georgia.  \nReceived: June 12, 2016 Accepted: September 11, 2017 Available online: September 24, 2017  \ndoi:10.11114/afa.v4i1.2667 URL: [https://doi.org/10.11114/afa.v4i1.2667](https://doi.org/10.11114/afa.v4i1.2667)  \nAbstract  \nInternational accounting standard 12-Income tax – regulates accounting methodic of profit tax and demands that the enterprises must account the deferred tax asset and the deferred tax liability. For this reason, the net profit indicator published in the financial statement of the enterprises is unrealistic which in one hand contradicts to requirements of basic qualitative characteristics a financial statement such as Relevance and Faithful Representation and in another hand, it allows of fraud in the financial statement.  \nThe aim of this study is to substantiation necessity of simplification of the IAS 12 – Income Tax. In the article is affirmed that accounting of the deferred tax asset and deferred tax liability derives many problems for the enterprisesand the investors. They also have not an analytical role in the financial analysis of the enterprises. That is why, the leadership of the enterprises avoids to using mentioned standard 12 – Income Tax - in Georgia. This study gives the recommendation that in the IAS 12 - Income tax – bring in the changes, which will be simplified by the method of profit tax accounting in the enterprises and it will eliminate the existing problems of accounting the profit tax.  \nKeywords: income (profit) tax, the accounting profit, taxable profit, deferred tax liability, deferred tax asset, real net profit  \n1. Introduction  \n1.1 Important of Research  \nThe profit is the important indicator at the macro and micro levels. Profit is a substantial source of state budget revenues, investor dividends, reinvestment of the enterprises and stimulating employees. Accordingly, the profit tax volume impacts on the investors’ profit, reinvestment in enterprise and, revenues of the state budget. Therefore, ordered accounting of profit tax is an important event for the management of enterprises and for the each State. Therefore, the income tax policy in the state and its accounting issues are very topical in all states. Due to such importance, the IAS Board has created an IAS 12 – Income tax (2012)– that gives recommendations on profit tax accounting.  \nBecause the International Accounting Standard has its own requirements, and own tax legislation operates in states, are different from each other the Accounting Profit and the Tax Profit. The difference between them is the deferred tax asset (or liability) . From that, the IAS 12 –Income Tax (2012)– demands to account a Deferred Tax Asset (DTA) and Deferred Tax Liability (DTL) . But their accounting generates a lot of questions on which have not been answered. Accounting the deferred tax asset and deferred tax liability is a very controversial issue. These issues have been debated now for over 40 years (Wong, 2006) .  \nIn the introduction of the standard 12 – Income Tax (2012) we reading: the principal issue in accounting for the income tax is to reflect the results for taxable amounts of the current and future tax consequences of (a) the future recovery (settlement) of the carrying amount of assets (liabilities) that are recognized in an entity’s statement of financial position; and (b) transaction and other events of the current period that are recognized in an entity’s financial statements.  \nIt is inherent in the recognition of an asset or liability that the reporting entity expects to recover or settle the carrying amount of that asset or liability. If it is probable that recovery or settlement of that carrying amount will make future tax payments larger (smaller) than they would be if such recovery or set","cbCaia0reSzRkZNf","https://ap.wps.com/l/cbCaia0reSzRkZNf","pdf",392117,"English","# Abstract\n# Introduction\n## Important of Research\n## Object of the Study and Literature Review","[{\"question\":\"What does IAS 12 (Income Tax) require enterprises to recognize?\",\"answer\":\"IAS 12 requires recognizing deferred tax assets (DTA) and deferred tax liabilities (DTL) as part of profit tax accounting.\"},{\"question\":\"Why can IAS 12’s deferred tax accounting affect the quality of reported net profit?\",\"answer\":\"Deferred tax asset and liability accounting may make the net profit indicator unrealistic, contradicting qualitative characteristics like relevance and faithful representation, and it may enable fraud in financial statements.\"},{\"question\":\"What is the main purpose of the study discussed in the article?\",\"answer\":\"The study substantiates the necessity of simplifying IAS 12, proposing changes to make profit tax accounting simpler and to address ongoing problems faced by enterprises and investors.\"}]","International Accounting Standard 12 - Income Tax - Aspects for Discussion | PDF",25]