scholarly journals The Effect of the Adoption of International Accounting Standards No. 12 (IAS No.12) for Firms Reporting Losses: Evidence from Korea

2019 ◽  
Vol 11 (20) ◽  
pp. 5732
Author(s):  
Hong ◽  
Shim
Keyword(s):  
Accounting Standards ◽  
Income Taxes ◽  
Good News ◽  
International Accounting ◽  
International Accounting Standards ◽  
Deferred Tax Assets ◽  
Listed Firms ◽  
Incremental Information ◽  
Deferred Tax ◽  
Accounting For Income Taxes

This study examines the effects of the adoption of International Accounting Standards No. 12, Income Taxes (IAS No.12) on the incremental information about future profitability for firms reporting losses compared to Korean Generally Accepted Accounting No.16, Accounting for Income Taxes (K-GAAP No.16). Specifically, this paper shows that whether the IAS No.12 affects the information of deferred tax assets (DTAs) regarding loss persistence which implies the ability to predict earnings sustainability. Using a sample of 2,905 observations from Korean listed firms that reported a loss between 2007 and 2014, we divide loss firm-years into categories of ‘good news’ (GN) or ‘bad news’ (BN) based on whether management appears to report an increase in DTAs. We find that our tax categories have incremental information about the probability of loss reversal under K-GAAP No. 16, but under IAS No.12 the incremental effects of a deferred tax balance disappear. Also, we find that investors underweight the informativeness of DTAs under K-GAAP, and after the adoption of IAS No.12, investors cannot obtain buy-and-hold returns by buying GN firm-years and selling BN firms-years. However, this is not because investors understand the information of DTAs, but because the informativeness of DTAs deteriorates after the relaxation in the recognition threshold of DTAs.

scholarly journals Kanttekeningen bij de RJ- en IASB-voorschriften inzake de waardering van ‘zekere’ latente belastingvorderingen

2012 ◽  
Vol 86 (6) ◽  
pp. 235-242
Author(s):  
Peter Epe ◽  
Henk Langendijk
Keyword(s):  
Accounting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Deferred Tax Assets ◽  
Deferred Tax ◽  
International Accounting Standards Board

De verwerking van winstbelasting in de (bedrijfseconomische, ook wel genoemd: vennootschappelijke of commerciële) jaarrekening is een technisch lastig en gecompliceerd vraagstuk. Belangrijk probleempunt bij deze verwerking is de waardering van de door de Raad voor de Jaarverslaggeving (RJ) genoemde balanspost Latente belastingvorderingen. De International Accounting Standards Board (IASB) noemt deze balanspost Deferred tax assets. Wij willen in dit artikel stilstaan bij de waardering van deze post door na te gaan in hoeverre deze latente belastingvorderingen met zekerheid (dat wil zeggen zonder dat toekomstige fiscale winst nodig is) zullen worden verrekend. Ons inziens komen in de huidige RJ- en IASB-voorschriften de situaties, waarin latente belastingvorderingen met zekerheid zullen worden verrekend, in onvoldoende mate tot uiting. De voorschriften van de RJ en de IASB zijn ons inziens te veel gebaseerd op situaties van onzekerheid. Voor zover de voorschriften van de RJ en de IASB betrekking hebben op zekere situaties, dekken de voorschriften ons inziens de lading niet volledig, met als gevolg dat zij voor de praktijk van de jaarverslaggeving onvoldoende houvast bieden voor de waardering van latente belastingvorderingen. Wij bepleiten dan ook de geldende RJ- en IASB-voorschriften ter zake aan te passen.

scholarly journals Relationship Between Deferred Tax Category and Stock Prices in Pharmacy

2018 ◽  
Vol 66 (6) ◽  
pp. 1469-1475
Author(s):  
Petr Habanec
Keyword(s):  
Time Series ◽  
Stock Prices ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Accounting Standards ◽  
Earning Management ◽  
International Accounting ◽  
International Accounting Standards ◽  
Deferred Tax ◽  
The Relationship

The paper deals with relationship between stock prices and deferred tax category. Joos, Pratt and Young provided evidence that book‑tax differences are correlated with earning management. In this paper is confirmed negative relationship between stock prices and deferred tax. The relationship is assessed on sample of companies making business in pharmacy (CZNACE‑C‑21). The relationship between deferred tax category and stock prices is assessed on a sample of companies in the time series from 2005 to 2015. Sample consists of companies listed on Frankfurt stock exchange and reporting in accordance with international accounting standards IAS/IFRS. The stock prices dataset is based on Morningstar database. The results are compared with the results of author ’s previous study concerning the deferred tax materiality.

An investigation of the level of compliance with international accounting standards (IAS 1) by listed firms in Bahrain Bourse

2016 ◽  
Vol 9 (2) ◽  
pp. 254-276 ◽  
Author(s):  
Fatema Ebrahim Alrawahi ◽  
Adel Mohammed Sarea
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Annual Reports ◽  
International Accounting ◽  
International Accounting Standards ◽  
Content Type ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Industry Type ◽  
Regulatory Bodies

Purpose This study aims to investigate the association between seven firm-specific characteristics and the level of mandatory compliance with International Accounting Standards (IAS) 1 by firms listed on Bahrain Bourse. Design/methodology/approach A disclosure index is used to measure the extent of compliance with IAS 1. Each of the 36 sampled firms’ annual reports were examined against the index for the financial year ending December 31, 2013. Findings The results reveal an overall compliance of 83 per cent. Regression results report that only audit firm size, profitability and industry type have a positive and significant association with IAS 1 disclosure requirements. Practical implications This study should be particularly relevant to regulatory bodies in Bahrain for strategizing and encouraging compliance with IAS 1 by listed firms. Originality/value Additionally, the study contributes to financial reporting literature relating to the Gulf Cooperation Council countries, mainly Bahrain. Bahrain is a financial hub, and it is interesting to examine how it presents its financial statements to investors and the degree of its compliance with International Financial Reporting Standards since its adoption in 2007.

scholarly journals Pengaruh Penerapan PSAK No. 46 Terhadap Laporan Laba Rugi Pada Tiga Perusahaan Yang Terdaftar di BEI

2018 ◽  
Vol 2 (1) ◽  
pp. 031-046
Author(s):  
Abdilla Rahmania Kusmala ◽  
Hastoni .
Keyword(s):  
Income Tax ◽  
Stock Exchange ◽  
Accounting Standards ◽  
Income Taxes ◽  
Financial Accounting ◽  
Income Statement ◽  
The Difference ◽  
Deferred Tax Liabilities ◽  
Deferred Tax ◽  
Accounting For Income Taxes

The company follows a accounting standards generally accepted in drawing up the financial statements, namely Financial accounting standards (SAK). For various reasons, that standard is different from the taxation provisions also utilize accounting information. Due to the difference of a few things in Financial accounting standards (SAK) with the provisions of the Regulation militate in% u2013 Invitation taxation. Bond Accountant Indonesia (IAI) has confirmed the Statements of financial accounting standards (PSAK) No. 46 concerning accounting for income taxes, is a new thing in the accounting standards for enterprises in Indonesia. PSAK No. 46.The purpose of this research is to know concerning PSAK NO. 46 and see if PSAK NO. 46 already applied on the PT Astra International Tbk, PT Mustika Ratu Tbk, PT Mayora Indah Tbk. And how its influence from the application of PSAK NO.46 of the income statement of the company. The study was conducted at the corner of Indonesia stock exchange at STIE Kesatuan Bogor. The results showed that in the application of PSAK NO. 46 will develop assets and deferred tax liabilities interest arising due to temporary differences. The influence of the application of PSAK NO. 46 on the income statements give rise to a difference between the burden of income tax with income tax debt resulting from the existence of differences in recognition of tax-deferred interest assets, which is set to PSAK NO. 46.

Determinants of accounting policy choices under international accounting standards

2017 ◽  
Vol 30 (4) ◽  
pp. 430-446 ◽  
Author(s):  
Muhammad Jahangir Ali ◽  
Kamran Ahmed
Keyword(s):  
Accounting Standards ◽  
Reporting Quality ◽  
Alternative Methods ◽  
International Accounting ◽  
International Accounting Standards ◽  
Content Type ◽  
Listed Firms ◽  
Policy Choices ◽  
Investment Opportunity Set ◽  
Accounting Policy

Purpose The purpose of this paper is to examine the determinants of accounting policy choices under International Accounting Standards (IASs) of listed firms in South Asia. Design/methodology/approach We selected three IASs-based accounting policy choices from 369 listed companies in India, Pakistan and Bangladesh for the financial year 2007-2008. Findings Our results show that firm size, investment opportunity set, leverage and ownership by the general public are significant determinants of accounting policy choice in South Asian countries. However, we do not find a significant relationship between firms’ accounting policy choices and profitability, assets-in-place and taxes. Practical implications Our results suggest that as some flexibility exists in IASB’s accounting standards, this may allow managers to use income-increasing/decreasing methods. There is scope for regulators and standards setters to reduce the alternative methods which are likely improve firms’ reporting quality. Originality/value Our study contributes to the understanding as to what determines managers’ choice of a particular accounting method allowed in IAS.

scholarly journals Kwantifi ceren van waarschijnlijkheid voor de waardering van onzekere belastingposities

2009 ◽  
Vol 83 (5) ◽  
pp. 166-172
Author(s):  
Ruud Hafkenscheid
Keyword(s):  
Accounting Standards ◽  
Income Taxes ◽  
International Accounting ◽  
International Accounting Standards ◽  
International Accounting Standards Board

In de Project Update on Income Taxes stelt de International Accounting Standards Board (IASB) voor om de verwachtingswaarde verplicht te stellen voor de waardering van onzekere winstbelastingposities in de jaarrekening. Voor de berekening daarvan is het nodig in te schatten wat de waarschijnlijkheid is van de mogelijke uitkomsten van de onzekere posities. Dit artikel beschrijft een modelleertechniek met behulp van beslissingstabellen, die een effectieve, effi ciënte en transparante waarschijnlijkheidsschatting voor fi scale onzekerheden mogelijk maakt.

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