Accounting Recording of Deferred Tax from ORI Components

How is the deferred income tax charge accounted for when it relates to an item recognized in other comprehensive income?

Deferred income tax is part of the income tax accrued in each period, and recognizes the tax effect of temporary differences between the accounting balances of assets and liabilities and the corresponding tax bases used to determine taxable gain. The counterpart may be a deferred tax asset or a deferred tax liability, depending on whether the temporary difference giving rise to it is deductible or taxable, respectively.

In the case of items related to other comprehensive income (for example: earnings on the difference in the price of financial assets measured at fair value with changes in ORI, or the revaluation of a PP&E item), the accounting charge for deferred income tax must be allocated to the “Income tax” accounts enabled for this purpose under item 650000 (ORI for the period) of the chart of accounts. with counterpart entry in the account 171144 “Deferred tax asset” or 331141 “Deferred tax liability”, as applicable.

Rules involved:

Rules involved:

IAS 12 – Income Tax

Supplementary provisions to the Chart of Accounts