Planning for IFRS: Today's IFRS tax challenges

Accounting changes made in connection with a company's conversion/convergence to IFRS in the US as well as throughout the rest of the world, will have a broad impact on an organization's global tax function.

Areas impacted may include:
  • Cash taxes
  • Tax accounting methods
  • Tax planning
  • Transfer pricing
  • Tax processes, systems and controls
  • Income tax accounting
PwC can provide a wide range of IFRS tax services designed to provide a flexible, yet thorough, solution to help corporate tax functions understand, identify, and manage the tax-related issues arising from IFRS conversion/convergence activities occurring throughout the world.

IFRS tax services drivers

  • Conversion and convergence activities occurring in jurisdictions outside the US


    PwC can conduct an analysis to understand which jurisdictions have already adopted IFRS
    and which jurisdictions have near-term plans to adopt IFRS and/or IFRS for SMEs in order to proactively address the tax impacts of such conversion/convergence activities.

    Potential value realized

    Companies can anticipate these conversion/convergence activities, identify the resulting tax issues, and proactively plan versus just reacting to them.

    For more information, please visit:
    IFRS for SMEs: How does this affect US companies?
    IFRS adoption by country

  • Tax accounting differences between US GAAP and IFRS


    PwC will analyze and quantify the impact of the various tax accounting differences between US GAAP and IFRS — either current IAS 12 or the proposals included in the IAS 12 Exposure Draft — and model these impacts on the company’s financial statements and related income tax disclosures.

    Potential value realized

    Early identification and modeling of the areas of significant impact may enable a company to proactively plan for these changes in order to properly communicate these impacts to the company’s key stakeholders, as well as institute needed changes to the tax function’s systems, processes and internal controls.

    For more information, please visit:
    Income tax accounting under IFRS article series

  • Convergence of US GAAP and IFRS in several key areas of accounting


    PwC will analyze and quantify how ongoing US GAAP/IFRS convergence activities may impact a company’s income tax accounting, cash tax liabilities, tax accounting method change considerations, and tax planning

    Potential value realized

    Clients will be equipped to properly plan for and manage the potential impacts on a company’s cash taxes and the filing of any required or desired tax accounting method changes

    For more information, please visit:
    10Minutes on the emerging influence of IFRS

  • Educate company staff about IFRS and its tax-related impacts


    PwC will conduct client training sessions on the similarities and differences between US GAAP and IFRS and the potential tax implications and opportunities associated with adopting IFRS.

    Potential value realized

    Clients will gain an understanding of the accounting rules under IFRS in order to better equip the tax department to function in a post-IFRS environment, as well as gain an understanding of the accounting rules that will likely be used by many of the company’s foreign subsidiaries as they begin to convert/converge to IFRS.

    For more information, please visit:
    IFRS Video Learning Center
    IFRS and US GAAP: Similarities and differences
  • Redomicilation of US companies to jurisdictions with IFRS reporting requirements and issuance of the SEC's proposed IFRS roadmap


    PwC will perform a traditional Phase 1, 2, or 3 analysis.

    Potential value realized

    Clients will have the ability to implement a well-structured and thorough IFRS conversion strategy that may contribute to more effective and efficient tax reporting and planning.

    For more information, please visit:
    Current situation and next steps

For more information, please download IFRS tax services.