IAS 12: Income Taxes is part of the International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS).
IAS 12 sets the accounting treatment of all taxable profits and losses, both national and foreign.
[1] Timeline of IAS 12:[2] The taxable amount a company is liable for is composed of its tax base multiplied with the relevant tax rate in its country of settlement.
The tax base for a company will in general be the final amount reported in the statement of profit or loss plus or minus any comprehensive income or loss.
Therefore the difference needs to be recognised on the balance sheet as a tax asset or liability.