Problems of Presenting Information about Deferred Taxes

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Abstract

Currently, accounting standards in the area of income tax accounting continue to be vague and unspecific. In this connection, this paper investigates the key aspects of the presentation of deferred tax information in accordance with the rules of modern accounting standards and theoretical provisions. The article describes the peculiarities of deferred tax classification in the balance sheet and the profit and loss statement. An attempt is made to explain the effect of restoration of deferred tax liabilities. The conclusion is made that in scientific literature the essence of income taxes still remains undisclosed and that because of this the developers of accounting standards are deprived of an opportunity to compile them adequately. The example of the use of provisions of IAS 12 «Income Taxes» in order to conceal important economic information is given. American and international experience in terms of indicating the sources of recovery of the value of deferred tax assets is compared. It has been defined that the Russian standard in the field of accounting of income taxes is not transparent in the part of representation of the information on deferred taxes. In the conclusion the directions of improvement of accounting legislation are presented.

About the authors

Andrey A. Aksentev

Kuban State University; Perspektiva LLC

Author for correspondence.
Email: anacondaz7@rambler.ru
ORCID iD: 0000-0002-0838-4729
SPIN-code: 9601-6154
ResearcherId: AAT-9852-2021

Master's student, Accountant

Russian Federation, Krasnodar; Krasnodar

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Supplementary files

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1. JATS XML
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2. Fig. 1. Key items of the balance sheet in the field of disclosure of information on deferred taxes.

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3. Fig. 2. Offset of deferred tax liabilities against taxable profit generated by assets.

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4. Fig. 3. Veiling of financial reporting indicators with the help of deferred taxes on the example of the Russian bank PJSC JSCB Primorye for 2016 (a fragment from the reporting and author's calculations).

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5. Fig. 4. Excerpt from the «tax footnote» of the financial statements of Uber Technology, Inc. for 2019-2021.

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