Deferring tax- A Chief Financial Officer's guide to avoiding the pitfalls
Deferring tax- A Chief Financial Officer's guide to avoiding the pitfalls
Preparation of financial statements under International Financial Reporting Standards (IFRS) requires the application of IAS 12. IAS 12 is not new. However for many finance executives, the concepts underlying the computation of deferred tax are not intuitive. IAS 12 takes a mechanistic approach to the computation but also requires significant judgment in some areas. Also applying the concepts of IAS 12 requires a thorough knowledge of the relevant tax laws. For all these reasons, many find the calculation of a deferred tax provision under IAS 12 problematic.
We are pleased to share with you 'Deferred tax - A Chief Financial Officer's guide to avoiding pitfalls', a publication by the IFRS team at Grant Thornton International Ltd.
The guide summarises IAS 12's approach to calculating the deferred tax provision in order to help CFOs prioritise and identify key issues. It also includes interpretational guidance in certain problematic areas of deferred tax calculation.
The sections on avoiding the pitfalls will assist in understanding potential problem areas in order to know when to consult further.