It’s just deferred tax – who cares how we do it!?

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…

Deferred tax – unloved and unsound?

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…

Uncertain tax positions – becoming more certain?

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…