SIC-25 — Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders
- IAS 12 Income Taxes
- Issued: July 2000
- Effective date: 15 July 2000
Summary of SIC-25
A change in the tax status of an enterprise or its shareholders, e.g. due to an initial public offering or restructuring, does not give rise to increases or decreases in the pre-tax amounts recognised directly in equity. Therefore, SIC-25 concludes that the current and deferred tax consequences of the change in tax status should be included in net profit or loss for the period.
However, where a transaction or event does result in a direct credit or charge to equity or amounts recognised in other comprehensive income, for example the revaluation of property, plant or equipment under IAS 16 Property, Plant and Equipment, the related tax consequences would be recognised directly in equity or as part of other comprehensive income.
Click for IASC Press Release on SIC-25 (PDF 36k).