Document ID: chunk:federal_register_of_legislation:F2023C00930:reg:5:p22
Version: federal_register_of_legislation:F2023C00930
Segment Type: reg
Provision Reference: reg 5 (pt 22/61)
Character Range: 75075–77819

of a deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilised. Any such reduction shall be reversed to the extent that it becomes probable that sufficient taxable profit will be available.

Recognition of current and deferred tax
57 Accounting for the current and deferred tax effects of a transaction or other event is consistent with the accounting for the transaction or event itself. Paragraphs 58 to 68C implement this principle.
57A An entity shall recognise the income tax consequences of dividends as defined in AASB 9 when it recognises a liability to pay a dividend. The income tax consequences of dividends are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events.

Items recognised in profit or loss
58 Current and deferred tax shall be recognised as income or an expense and included in profit or loss for the period, except to the extent that the tax arises from:
(a) a transaction or event which is recognised, in the same or a different period, outside profit or loss, either in other comprehensive income or directly in equity (see paragraphs 61A–65); or
(b) a business combination (other than the acquisition by an investment entity, as defined in AASB 10 Consolidated Financial Statements, of a subsidiary that is required to be measured at fair value through profit or loss) (see paragraphs 66–68).
59 Most deferred tax liabilities and deferred tax assets arise where income or expense is included in accounting profit in one period, but is included in taxable profit (tax loss) in a different period. The resulting deferred tax is recognised in profit or loss. Examples are when:
(a) interest, royalty or dividend revenue is received in arrears and is included in accounting profit in accordance with AASB 15 Revenue from Contracts with Customers, AASB 139 Financial Instruments: Recognition and Measurement or AASB 9 Financial Instruments, as relevant, but is included in taxable profit (tax loss) on a cash basis; and
(b) costs of intangible assets have been capitalised in accordance with AASB 138 and are being amortised in profit or loss, but were deducted for tax purposes when they were incurred.
60 The carrying amount of deferred tax assets and liabilities may change even though there is no change in the amount of the related temporary differences. This can result, for example, from:
(a) a