Income Tax in IFRS and US GAAP (2000 words)
An IAS 12 income tax is the main source of direction on calculation of income taxes in IRFS. In IAS 12 Income taxes, a supposed ‘complete method of balance sheet’ of accounting for income taxes is applied that identifies the recent tax results of dealings and activities as well as the prospected tax results of the future settlement and recovery of assets and liabilities of a company. The dissimilarities among the tax base of assets and liabilities and moving quantity, as well as future incomes and profits are identified. Continued...
IFRS - INCOME TAX
U.S GAAP – INCOME TAX
KEY DIFFERENCE BETWEEN U.S GAAP AND IFRS
Classification of Deferred Tax Assets and Liabilities
Recognition of Deferred Tax Assets
Tax Rate for Measuring Deferred Tax Assets and Liabilities
Uncertain Tax Positions
Tax Consequences of Intercompany Sales
Deferred Taxes on Foreign Nonmonetary Assets/Liabilities Re-measured From Local Currency to Functional Currency
Leveraged Leases
Initial Recognition
Special Deductions
Share-Based Compensation
Subsequent Changes in Deferred Taxes That Were Originally Charged or Credited to Equity (Backward Tracing)
Undistributed Earnings on Investments
IMPACT ON FINANCIAL STATEMENTS
CONCLUSION
REFERENCES
U.S GAAP – INCOME TAX
KEY DIFFERENCE BETWEEN U.S GAAP AND IFRS
Classification of Deferred Tax Assets and Liabilities
Recognition of Deferred Tax Assets
Tax Rate for Measuring Deferred Tax Assets and Liabilities
Uncertain Tax Positions
Tax Consequences of Intercompany Sales
Deferred Taxes on Foreign Nonmonetary Assets/Liabilities Re-measured From Local Currency to Functional Currency
Leveraged Leases
Initial Recognition
Special Deductions
Share-Based Compensation
Subsequent Changes in Deferred Taxes That Were Originally Charged or Credited to Equity (Backward Tracing)
Undistributed Earnings on Investments
IMPACT ON FINANCIAL STATEMENTS
CONCLUSION
REFERENCES
