SIC 25: iNCOME TAXES - CHANGES IN THE TAX STATUS OF AN ENTERPRISE OR ITS SHAREHOLDERS

Sometimes the changes in the tax status of an enterprise or its shareholders changed due to the initial public offering or due to the restructuring of the business operations. However, such change does not give rise to an increase or decrease in the pretax amounts that are recognized in the equity.


SIC 25 provides guidance that changes in the current and deferred tax due to the change in the tax status shall be included in the statement of the profit or loss for the period in which such changes arise.


SIC 25 specified that tax consequences due to the revaluation of the property, plant, and equipment shall be recognized directly in the equity or as a part of the other comprehensive income.