Presentation of tax under FRS 102

An entity must present changes in a current tax liability (or asset) and changes in a deferred tax liability (or asset) as a tax expense (or income) unless the item creating the current or deferred tax amount is recognised in OCI, in which case, the deferred tax is also recognised in OCI. Deferred tax arising on the initial recognition of a business combination is dealt with in accordance with FRS 102, s 29.11 and added to the goodwill recognised on the combination. See the FRS 102 ― specific deferred tax issues guidance note for further information.