02-13-2008, 04:11 PM
Dears,
I wish to call the attention of practising (or on job) members towards a technical issue.
In my view, the investments in associates measured under equity method in accordance with IAS 28, give rise to deferred tax implications more specifically when dividend income has been excluded from the presumptive taxation regime.
The cost of investments and the post acquistion profits/reserves added in it create a temporary difference. It may be taxable or deductible but in most of cases it would be taxable.
I invite the attention, because people at large are ignoring this fact.
Comments would be appreciated.
Regards,
Kamran.
