WG 10(R) Income Taxes

Chairman: Dato’ Megat Iskandar Shah; Project Manager: Mr. Thong Foo Vung

WG 10(R) was set up to review IASB's Exposure Draft on Income Taxes. The Exposure Draft, if adopted, would replace the existing requirements in IAS 12 Income Taxes. Although the Exposure Draft retains the fundamental requirements of IAS 12, it proposes to remove most of the exceptions in IAS 12, to simplify the accounting and strengthen the principle in standard which will result in more consistent reporting. Among the proposals are the introduction of definitions of tax credit and investment tax credit, changes to the definition of tax basis and removal of the initial recognition exception in IAS 12. The Exposure Draft also provides additional guidance on recognition and assessment of realisability of deferred tax assets. The IASB believes the proposals, if implemented, would resolve issues raised by users of IAS 12.