Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
Forensic and investigation services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
Mergers and acquisitions
Globalisation and company growth ambitions are driving an increase in M&A activity worldwide. We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer- term strategic goals.
Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements. At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
Innovation and investment incentives
Dynamic businesses must continually innovate to maintain competitiveness, evolve and grow. Valuable tax reliefs are available to support innovative activities, irrespective of your tax profile.
Private client services
Our solutions include dealing with emigration and tax mitigation on the income and capital growth of overseas assets.
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
Tax policies are constantly evolving and there are a number of complex changes on the horizon that could significantly affect your business.
Preparation of financial statements under International Financial Reporting Standards (IFRSs) requires the application of IAS 12 ‘Income Taxes’ (IAS 12). Income taxes, as defined in IAS 12, include current tax and deferred tax. For many finance executives the concepts underlying deferred tax are not intuitive. Applying these concepts also requires a thorough knowledge of the relevant tax laws. IAS 12 takes a mechanistic approach to the computation but also requires significant judgement in some areas. For all these reasons, many Chief Financial Officers (CFOs) find that the calculation of a deferred tax provision causes significant practical difficulties.
Fortunately, the member firms within Grant Thornton International Ltd (GTIL) have gained extensive insights into the more problematic aspects of accounting for deferred taxes under IAS 12. GTIL, through its IFRS team, develops general guidance that supports its member firms’ commitment to high quality, consistent application of IFRS.
We are pleased to share these insights by publishing ‘Deferred tax – A Chief Financial Officer’s guide to avoiding the pitfalls’ (the guide). The guide reflects the collective experience of GTIL’s IFRS team and member firm IFRS experts. It addresses IAS 12’s key application issues related to deferred taxes and includes interpretational guidance in certain problematic areas.
Who should read this guide
This guide is intended for CFOs of businesses that prepare financial statements under IFRSs. It illustrates IAS 12’s approach to the calculation of deferred tax balances but is not intended to explain every aspect of the standard in detail. Rather, it summarises the approach to calculating the deferred tax balance in order to help CFOs to prioritise and identify key issues. The sections on avoiding the pitfalls will assist in understanding potential problem areas in order to know when to consult further.
The guide has been revised to reflect changes made to IAS 12 up to 31 December 2012.
Overview of the guide
This guide summarises the approach to calculating a deferred tax balance, allocating the deferred tax charge or credit to the various components of the financial statements, sets out disclosure requirements and provides examples of the disclosures required by the standard. This guide also contains sections which cover some of the more complex areas of preparation of a deferred tax computation, for example the calculation of deferred tax balances arising from business combinations. The sections of the guide are as follows:
Section 1: Calculating a deferred tax balance – the basics
Section 2: Allocating the deferred tax charge or credit
Section 3: Disclosures
Section 4: Avoiding pitfalls – the manner of recovery and the blended rate
Section 5: Avoiding pitfalls – business combinations and consolidated accounts
Section 6: Avoiding pitfalls – share-based payments
Section 7: Avoiding pitfalls – recognition of deferred tax assets
Section 8: Avoiding pitfalls – other issues
Appendix – Glossary of terms