Aasb-16 Tax Analysis

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The Australian Accounting Standard Board Drafted Accounting Standard AASB-112, Income taxes under section 334 of The Corporations Act 2001 on 15 July 2004.
The main principle of tax effect accounting as per AASB-112 are as follows:-
• Computation of any future recovery of the carrying amount of assets which an entity recognizes in its financial statements
• Transactions and other important events of the current period that are present in the financial statements.
The recognition of asset or liability will depend on whether the entity is expected to recover or settle the carrying amount of asset or liability. If it is certain that the recovery or settlement of the amount will happen then it will make future tax payments and such recovery or

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