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ИД «Финансы и кредит»






International Accounting

Accounting for deferred taxes in the initial recognition of assets and liabilities. Part 2

Vol. 26, Iss. 5, MAY 2023

Received: 3 November 2022

Received in revised form: 14 January 2023

Accepted: 16 February 2023

Available online: 16 May 2023


JEL Classification: M41, H32, H39

Pages: 563–592


Subject. This article discusses the methodological particularities of recording deferred taxes arising from the initial recognition of assets and liabilities.
Objectives. The article aims to analyze the approaches of the developers of American and International Standards in terms of accounting for deferred taxes in the initial recognition of assets and liabilities, as well as characterize the problems of the Initial Recognition Exemption – IRE rule, and propose areas for their elimination.
Methods. The research is speculative. For the study, I used the dialectical method of scientific knowledge, the method of collecting theoretical and regulatory information, the method of formalization, as well as analysis, synthesis, observation, and comparison.
Results. The article summarizes the foreign experience of accounting for deferred taxes at the initial recognition of an asset. It describes the key situations for applying the simultaneous equation method in accordance with American practices, and justifies the economic benefits of using this approach.
Conclusions and Relevance. The IRE rule does not provide an opportunity to reliably disclose information about the impact of taxation on the financial position of the company at the initial recognition of assets and liabilities. The method of simultaneous equations eliminates this problem, but there are contradictions associated with the understanding of fair value, which is adjusted for deferred taxes. It is necessary to use the American experience in improving standards and conduct additional theoretical research to develop methodological approaches to accounting for deferred taxes at the initial recognition of assets and liabilities. The results of the study can be useful to practitioners in the field of deferred tax accounting, as well as analysts and researchers whose activities are focused on accounting, taxation, and other persons concerned who study the theoretical and financial aspects of deferred taxes.

Keywords: deferred taxes, income taxes, assigned value


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