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International Accounting Standard 12 –“Income Tax” and Aspects for Discussion

Applied Finance and Accounting

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Field Value
 
Title International Accounting Standard 12 –“Income Tax” and Aspects for Discussion
 
Creator Chiladze, Izolda
 
Description International accounting standard 12-Income tax – regulates accounting methodic of profit tax and demands that the enterprises must account the deferred tax asset and the deferred tax liability. For this reason, the net profit indicator published in the financial statement of the enterprises is unrealistic which in one hand contradicts to requirements of basic qualitative characteristics a financial statement such as Relevance and Faithful Representation and in another hand, it allows of fraud in the financial statement.The aim of this study is to substantiation necessity of simplification of the IAS 12 – Income Tax. In the article is affirmed that accounting of the deferred tax asset and deferred tax liability derives many problems for the enterprises and the investors. They also have not an analytical role in the financial analysis of the enterprises. That is why, the leadership of the enterprises avoids to using mentioned standard 12 – Income Tax - in Georgia. This study gives the recommendation that in the IAS 12 - Income tax – bring in the changes, which will be simplified by the method of profit tax accounting in the enterprises and it will eliminate the existing problems of accounting the profit tax.
 
Publisher Redfame publishing
 
Contributor —
 
Date 2017-09-25
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://redfame.com/journal/index.php/afa/article/view/2667
10.11114/afa.v4i1.2667
 
Source Applied Finance and Accounting; Vol 4, No 1 (2018); 1-10
2374-2429
2374-2410
 
Language eng
 
Relation http://redfame.com/journal/index.php/afa/article/view/2667/2819
 
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