(a) In the 2015 Exposure Draft on the Conceptual Framework for Financial Reporting (the Conceptual Framework), the accounting model is built on the definitions and principles for recognition of assets and liabilities. The understandability and consistent application of these definitions and principles are crucial. However, it appears that standard setters have interpreted the existing definitions differently for many years and the result is that the Conceptual Framework (2010) is inconsistent with many existing IFRS Standards.

Required:
(ii) Discuss how the recognition of assets and liabilities under IAS® 12 Income Taxes and IAS 37 Provisions, Contingent Liabilities and Contingent Assets are both inconsistent with the definitions in the Conceptual Framework (2010) and how certain items recognised in a business combination may not be recognised in the individual financial statements of the group companies. (6 marks)