To write up this essay I have researched various accounting web sites. I have also studied tax-effect accounting thoroughly in various textbooks, articles and journals.

In my research I have found that there are significant differences between the conceptual basis of tax-effect accounting adopted in the revised and superseded Standards. Some of the major differences addressed in this essay are the methodology used, the objectives, the focus, the terminology, the measurement and the recognition criteria.

The tax-effect time bomb has been ticking away since December 1999 when the Australian Accounting Standards Board (AASB) made the standard that has thrown out an old income statement approach of tax effect accounting and replaced it with what is known as balance sheet method. Some ways that organizations can confront this change is by education, technical measures and under special circumstances, understand everyday transactions. These are also discussed in the essay.

Carrying amounts of assets or liabilities - Tax bases of assets or liabilities = Assessable or deductible temporary differences

The new terminologies used in the Revised Standard are temporary differences, current tax liability/asset, deferred tax asset, deferred tax liability, current tax expense, deferred tax expense.

Some topics in this essay:
Ernst Young's, Superseded Standard, Income Taxes”, Internet Explorer, Andersen KPMG, Income Taxes’, Urgent Issues, Revised Standard, Profit Loss, Tax-Effect Accounting, deferred tax, income tax, effect accounting, tax effect accounting, revised standard, tax effect, balance sheet, tax-effect accounting, tax expense, accounting standards, superseded standard, available internet explorer, online available internet, deferred tax assets, comprehensive balance sheet,