IFRS
Deferred tax - A Chief Financial Officer's guide to avoiding the pitfalls
Contents
Preparation of financial statements under International Financial Reporting Standards (IFRS) requires the application of IAS 12 Income Taxes (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 judgement in some areas. Also, applying the concepts of IAS 12 requires a thorough knowledge of the relevant tax laws. For all these reasons, many Chief Financial Officers (CFOs) find the calculation of a deferred tax provision causes significant practical difficulties.
