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ACCOUNTING MISC - Income Taxes (IAS 12)

ACCOUNTING MISC - Income Taxes (IAS 12)
Governing Standard and Subsequent Application
This part of the paper will be based on the application IAS 12 Income Taxes. In light
of this, amendments of IAS 12 regarding the Income Tax Consequences of Payments on
Financial Instruments Classified as Equity were disclosed in the financial statements as not
affecting the said documents (refer to Figure 1.0). This stems from the fact that the dividends
declared by ORNG Utilities Philippines, Inc. do not give rise to tax obligations under the
current tax laws. Despite this, it had no significant impact on the financial statements.
In contrast, the Philippine Interpretation IFRIC 23 Uncertainty over Income Tax
Treatments was disclosed as one of the new accounting policies of the company, and is taken
into account in the preparation of the financial statements (refer to Figure 1.1).