IAS 12 - Income Taxes is part of the International Financial Reporting Standards (IFRS) and sets out guidelines for accounting for current and deferred income taxes. The standard requires entities to calculate current taxes based on taxable profits and deferred taxes based on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their corresponding tax bases. An example is accounting for a deferred tax asset when an entity anticipates sufficient future taxable profits to utilize past tax losses. Another case is when temporary differences arise from revaluation of property, where the accounting value differs from the taxable value. IAS 12 also requires detailed disclosure of tax-related matters, ensuring transparency in financial statements. This standard helps businesses align their tax accounting with global financial reporting practices, facilitating comparability and comprehension by various stakeholders.