Any organization that has just started to adopt the IFRS would be considering the sort of impact that it would be having on its financial reporting. However, equally important is to understand the sort of impact it is going to have and the tax liability of the organization. Thus it is important to look and understand what sort of impact the IFRS is going to have as far as the tax accounting is concerned. This paper would also seem to look at the way how the income tax calculation would be affected by the change in the tax bill.
The major impact that the transition from GAAP to IFRS is that how the tax bill of the organization is going to be affected. The onus is on the CPA’s to make sure that they took into account this impact and started to carry out the beforehand of this working. As per the exposure draft that sets new standards regarding the way the income tax is supposed to be calculated (Lee & Swenson, 2016). One of the major changes is that how the tax basics are supposedly changed with the application of the new standards (Karampinis & Hevas, 2013). There have also been some changes in the way the definition of the tax basics and the way temporary differences are supposed to be treated (Lee & Swenson, 2016). The recognition of the referred and the treatment of some of the items have also changed which has created a sort of doubt regarding the way forward is needed to be planned coming