Adrian MM. May 27, 2019:

IAS - International Adriano Standard (3) Brazilian etc. National Insurance and/or Social Security has or have been overpaid in one or more years. So the resultant *credit* vs. loan or advance is set ('carried forward') against the same or other tax or welfare contributory liabilities in future years.

Mark Robertson May 27, 2019:

International Accounting Standard (2) A deferred tax liability arises if an entity will pay tax if it recovers the carrying amount of another asset or liability. A deferred tax asset arises if an entity:

will pay less tax if it recovers the carrying amount of another asset or liability;or has unused tax losses or unused tax credits.
Deferred tax assets are recognised only when it is probable that taxable profits will be available against which the deferred tax asset can be utilised.

Deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the entity expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are not discounted.

Mark Robertson May 27, 2019:

International Accounting Standard (IAS) 12 (1) IAS 12 prescribes the accounting treatment for income taxes. Income taxes include all domestic and foreign taxes that are based on taxable profits.
IAS 12 requires an entity to recognise a deferred tax liability or (subject to specified conditions) a deferred tax asset for all temporary differences, with some exceptions. Temporary differences are differences between the tax base of an asset or liability and its carrying amount in the statement of financial position. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes.

Current tax for current and prior periods is, to the extent that it is unpaid, recognised as a liability. Overpayment of current tax is recognised as an asset. Current tax liabilities (assets) for the current and prior periods are measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.