I don’t dive into the technicalities of deferred tax too often in this space, because, you know, it’s nice to keep at least a handful of readers… But let’s make an exception today, courtesy of this fact pattern recently considered by IFRIC: an entity acquires an intangible asset with a finite useful life (a licence)…
The SEC recently issued Staff Accounting Bulletin 118, setting out some views of the SEC staff on applying the so-called “Tax Cuts and Jobs” Act, signed into US law on December 22nd and therefore “substantively enacted” before the year end (and in time to mess up the holiday season for expert practitioners in the area).…
A European example of faulty reasoning in applying IAS 12 Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 19th edition: The issuer specialized in planting cacao trees, operating a cacao plantation…
Should deferred tax be abandoned, basically? It’s not uncommon of course to come across complaints that the concepts underlying deferred tax balances are hard to follow, that the resulting assets and liabilities don’t mean much to users, and so forth. I suppose I’ve always taken a fairly standard view towards that issue, as I put…
IFRIC has issued IFRIC 23, Uncertainty over Income Tax Treatments. It took a while – I wrote about the draft version over a year and a half ago. An uncertain tax treatment for purposes of the interpretation is one “for which there is uncertainty over whether the relevant taxation authority will accept the tax treatment…
The IASB has issued for comment its latest proposed annual improvements to the standards, with comments to be received by April 12, 2017. There are just three items: Borrowing costs IAS 23 Borrowing Costs states: “To the extent that an entity borrows funds generally and uses them for the purpose of obtaining a qualifying asset,…
The Institute of Chartered Accountants of England and Wales have issued the latest in a series of “Audit Insights” documents, this one focused on “Improving annual reports of listed companies.” Some of the content covers matters addressed on this blog several times in the past, for example in commenting on materiality and disclosure overload, and…
IFRIC has issued a draft interpretation, Uncertainty over Income Tax Treatments, with comments to be received by January 19, 2016 An uncertain tax treatment for purposes of the draft interpretation is one where uncertainty exists “over whether the taxation authority will accept a specific tax treatment under the tax law,” for example where the acceptability…
by John Hughes The IASB has issued Recognition of Deferred Tax Assets for Unrealized Losses, an exposure draft of proposed changes to IAS 12 Income Taxes, with comments to be received by December 18, 2014. The press release accompanying the exposure draft was unusually plain and stark, as if reflecting that even the IASB’s publicity…
A European example of the difficulty of recognizing a deferred tax asset for unused tax losses Here’s another of the issues from some extracts of enforcement decisions recently issued by the European Securities and Markets Authority (ESMA) (for more background see here): “The issuer is a commercial bank. In the consolidated IFRS financial statements for…
