Currency of material  
This material was last updated when this standard was released in July 2004.  
 
A list of the omnibus amending standards issued up until July 2007 that have affected this standard since this date is included in the following table. The table also contains the date when the relevant changes become operative. 
 
Omnibus amending standards are available on the AASB website as are compiled standards incorporating omnibus amendments as soon as they are completed by the AASB. 
 
Details of the changes made by each omnibus are summarised in ANT and Charter’s “The Panel” as they are released. For a quick overview of the new material applying at 30 June 2007 click here.  

• Current tax liabilities and assets must be recognised for any current and prior period taxes due measured at the rates applicable for the period; 
   
  
• Defines a temporary difference as the difference between the carrying amount of an asset or liability and its tax base - an assessable temporary difference exists where the carrying amount of an asset exceeds its tax base while an deductible temporary difference exists where the carrying amount of a liability exceeds its tax base; 
   
  
• A deferred tax liability must be recognised for the future tax consequences of all assessable temporary differences with three exceptions:  
  
  1. goodwill;  
     
  2. initial recognition of an asset/liability other than in a business combination which, at the time of the transaction, does not affect either the accounting or the taxable profit; and  
     
  3. certain investments in subsidiaries, branches, associates and interests in joint ventures.
   
  
• A deferred tax liability must be recognised for revaluation of asset above written down cost; 
   
  
• A deferred tax asset must be recognised for deductible temporary differences, unused tax losses, and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilised, with the exceptions of initial recognition of an asset/liability and certain investments; 
   
  
• Deferred tax liabilities (assets) must be measured at the tax rates expected to apply when the liability is settled or asset is realised, using the tax rates/laws that have been enacted or substantively enacted by the reporting date; 
   
  
• Discounting of deferred tax assets and liabilities is prohibited; 
   
  
• Current and deferred tax must be recognised as an expense or income in the profit or loss except if it relates to a business combination or to an amount recognised as a direct debit/credit in equity (eg. asset revaluation); and 
   
  
• Tax expense (income) must be presented on the face of the income statement.