Tax implications of an IFRS conversion on debt arrangements

October 2009
  • Print-friendly version

This article provides a basic understanding of the potential impact a conversion to IFRS may have on a company's debt planning strategies. Issues discussed within this article include:
  • Determining the basis for calculating taxable profits within specific jurisdictions
  • Impact a conversion to IFRS may have on classification of financial instruments for statutory accounting and tax purposes
  • Impact adoption of IFRS has on thin capitalization rules and interest coverage rules
  • Impact on deferred tax reporting, the effective tax rate and cash tax liabilities