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IAS 12 Income Taxes
1AS 12 needs a deferred tax liability should be well known for all taxable temporary difference with minor exceptions as goodwill that is not allowable for tax purposes.
For the auditor pints are:
(i) Confirm that the company's policy as considered deferred tax is in conformity along with IAS 12 and is consistent along with the before the year
(ii) Verify the determination of the deferred tax calculations of all temporary differences and the arithmetical accuracy.
(iii) Whether deductible temporary dissimilarity exists when leading to deferred tax assets confirm about the situation for recognition has been met.
(iv) Whether a deferred tax asset has been well known for unused tax losses being carried forward, confirm which the conditions allowing such recognition have been met. Ensure that all disclosure requirements have been met.
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