Income Tax Accounting, A comparative look between US GAAP and IFRS

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Tax accounting insights 01/05/2012 by Tax accounting services
Income Tax Accounting, A comparative look between US GAAP and IFRS

At a glance

Significant differences continue to exist between the IASB's anf the FASB's income tax accounting models, notwithstanding ongoing convergence efforts. This PwC publication provides a comparative summary between standards and a closer look at seven significant differences -- tax basis, initial recognition, intercompany transactions, accounting for uncertain tax positions, allocating income taxes, share-based compensation, and investment in subsidiaries.

Significant differences continue to exist between the International Accounting Standards Board's (IASB) and the Financial Accounting Standards Board's (FASB) income tax accounting models, notwithstanding ongoing convergence efforts. While an Exposure Draft (ED) was issued by the IASB in 2009, which would have eliminated a significant portion of these differences, the ED ultimately was abandoned and the scope of the income tax accounting project narrowed. In 2010, the IASB updated its project status by publishing an amendment to IAS 12 and suspending its other work on income taxes. A more fundamental review of income tax accounting may be considered by the IASB after 2011.

This Tax accounting insights includes a comparative summary between standards within its appendix and provides a closer look at seven significant differences -- tax basis, initial recognition, intercompany transactions, accounting for uncertain tax positions, allocating income taxes, share-based compensation, and investment in subsidiaries.