Current tax is recognised as an expense in the period in which the taxable profit arises, based on applicable tax rates and laws.
Any adjustments to tax payable or recoverable in respect of previous periods are recognised in the current period.
Current tax liabilities (or assets) are measured at the amount expected to be paid (or recovered) using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences between the carrying amounts of assets and liabilities in the financial statements and their tax bases.
Deferred tax assets are only recognised to the extent that it is probable that future taxable profits will be available against which the asset can be utilised.