FAC3701
SUMMARY NOTES
TUTORIAL LETTER 501/3/2026
,INTRODUCTION
Dear Student
This tutorial letter covers the following learning units:
Learning Unit 1: Income Taxes (IAS 12 and FRG 1)
Learning Unit 2: Accounting Policies, Changes in Accounting Estimates and
Errors (IAS 8)
Learning Unit 3: The Conceptual Framework for Financial Reporting (2018)
Learning Unit 4: Preface to International Financial Reporting Standards
Learning Unit 5: Presentation of Financial Statements (IAS 1)
Learning Unit 6: Events after the Reporting Period (IAS 10)
Learning Unit 7: Provisions, Contingent Liabilities and Contingent Assets (IAS
37)
Learning Unit 8: Fair Value Measurement (IFRS 13)
Learning Unit 9: Revenue from Contracts with Customers (IFRS 15)
LECTURERS AND CONTACT INFORMATION
All correspondence with the lecturers for this module should be directed to the following
email address:
The lecturers for FAC3701 may also be contacted telephonically using the details
below:
Lecturer Office Telephone
Number
Mr Y Mohamed Nkoana Simon Radipere Building, Office 2- 012 429 4414
51
Ms L Nkoana Simon Radipere Building, Office 2- 012 429 4694
Labuschagne 49
,IAS 12 – INCOME TAXES
The purpose of this learning unit is to establish the appropriate accounting treatment for
both current and future tax implications arising from:
the expected recovery or settlement of assets and liabilities recognised in an
entity’s statement of financial position; and
transactions and events of the current reporting period that are reflected in the
entity’s financial statements.
LEARNING OUTCOMES
Upon completion of this learning unit, you should be able to apply the requirements of
IAS 12 – Income Taxes to correctly calculate, recognise, and disclose current and
deferred tax amounts in an entity’s annual financial statements in compliance with
International Financial Reporting Standards (IFRS).
OVERVIEW OF THE LEARNING UNIT
This learning unit is structured into the following sections:
1.1 Key definitions
1.2 Objectives of IAS 12
1.3 Exempt temporary differences
1.4 Taxable temporary differences and their treatment using the statement of financial
position approach
1.4.1 Capital allowances
1.4.2 Prepayments
1.5 Recognition criteria for deferred tax assets
1.6 Unused assessed tax losses
, 1.7 Measurement principles
1.8 Presentation and disclosure requirements
1.8.1 Statement of profit or loss and other comprehensive income
1.8.2 Statement of financial position
1.8.3 Summary of disclosure requirements
1.9 Provisional tax
1.10 Formal tax assessments and resulting over- or under-provisions of current tax
1.11 Capital gains tax applicable to companies
1.12 Dividends tax (withholding tax on dividends)
1.12.1 Tax liability
1.12.2 Accounting treatment
1.12.3 Exemptions from dividends tax
1.13 FRG 1 – Substantively enacted tax rates and tax legislation
STUDY MATERIAL
RECOMMENDED RESOURCES
IFRS Standards – Annotated IFRS® Standards
IAS 12 – Income Taxes, available online at the IFRS website
Gripping GAAP (latest edition), focusing on chapters relevant to IAS 12
SUMMARY NOTES
TUTORIAL LETTER 501/3/2026
,INTRODUCTION
Dear Student
This tutorial letter covers the following learning units:
Learning Unit 1: Income Taxes (IAS 12 and FRG 1)
Learning Unit 2: Accounting Policies, Changes in Accounting Estimates and
Errors (IAS 8)
Learning Unit 3: The Conceptual Framework for Financial Reporting (2018)
Learning Unit 4: Preface to International Financial Reporting Standards
Learning Unit 5: Presentation of Financial Statements (IAS 1)
Learning Unit 6: Events after the Reporting Period (IAS 10)
Learning Unit 7: Provisions, Contingent Liabilities and Contingent Assets (IAS
37)
Learning Unit 8: Fair Value Measurement (IFRS 13)
Learning Unit 9: Revenue from Contracts with Customers (IFRS 15)
LECTURERS AND CONTACT INFORMATION
All correspondence with the lecturers for this module should be directed to the following
email address:
The lecturers for FAC3701 may also be contacted telephonically using the details
below:
Lecturer Office Telephone
Number
Mr Y Mohamed Nkoana Simon Radipere Building, Office 2- 012 429 4414
51
Ms L Nkoana Simon Radipere Building, Office 2- 012 429 4694
Labuschagne 49
,IAS 12 – INCOME TAXES
The purpose of this learning unit is to establish the appropriate accounting treatment for
both current and future tax implications arising from:
the expected recovery or settlement of assets and liabilities recognised in an
entity’s statement of financial position; and
transactions and events of the current reporting period that are reflected in the
entity’s financial statements.
LEARNING OUTCOMES
Upon completion of this learning unit, you should be able to apply the requirements of
IAS 12 – Income Taxes to correctly calculate, recognise, and disclose current and
deferred tax amounts in an entity’s annual financial statements in compliance with
International Financial Reporting Standards (IFRS).
OVERVIEW OF THE LEARNING UNIT
This learning unit is structured into the following sections:
1.1 Key definitions
1.2 Objectives of IAS 12
1.3 Exempt temporary differences
1.4 Taxable temporary differences and their treatment using the statement of financial
position approach
1.4.1 Capital allowances
1.4.2 Prepayments
1.5 Recognition criteria for deferred tax assets
1.6 Unused assessed tax losses
, 1.7 Measurement principles
1.8 Presentation and disclosure requirements
1.8.1 Statement of profit or loss and other comprehensive income
1.8.2 Statement of financial position
1.8.3 Summary of disclosure requirements
1.9 Provisional tax
1.10 Formal tax assessments and resulting over- or under-provisions of current tax
1.11 Capital gains tax applicable to companies
1.12 Dividends tax (withholding tax on dividends)
1.12.1 Tax liability
1.12.2 Accounting treatment
1.12.3 Exemptions from dividends tax
1.13 FRG 1 – Substantively enacted tax rates and tax legislation
STUDY MATERIAL
RECOMMENDED RESOURCES
IFRS Standards – Annotated IFRS® Standards
IAS 12 – Income Taxes, available online at the IFRS website
Gripping GAAP (latest edition), focusing on chapters relevant to IAS 12
