A proposal for a clearer standard on accounting for income tax has been put forward by the International Accounting Standards Board. If adopted, the new standard would replace the existing requirements in IAS 12, Income Taxes . The IASB's aim is to create a clearer, more principle-based standard that will make the accounting requirements on income tax easier to understand and apply and combat inconsistency when reporting from one jurisdiction to another. Under the proposed new standard, the basic approach to accounting for income tax -the temporary difference approach, which recognises now the future tax consequences of past events and transactions - will be retained but the IASB will remove most of the exceptions to 'simplify the accounting and strengthen the principle in the standard'. The structure of the standard would also be changed to make it easier to use. According to the IASB, changes need to be made as a result of the different circumstances each jurisdiction faces with income tax requirements that can result in 'complex and potentially diverse interpretations'. Sir David Tweedie, chairman of the IASB, said: 'Our aim is to achieve a clearer, more principle-based standard that will make the accounting requirements on income tax easier to understand and apply and will also result in more consistent reporting.' The IASB's proposals are set out in the exposure draft, Income Tax , which is open for comment until 31 July 2009.