The essence of temporary differences under the conditions of changes in RSA 18/02 and convergence with IAS 12 “Income taxes” and their impact on the financial statements
Keywords:
Current income tax, temporary differences, deferred taxes, permanent differences, net profit.
Abstract
The article examines the latest changes in RSA 18/02 "Accounting for corporate income tax payments", adopted by order of the Ministry of Finance of the Russian Federation. The new version of the Regulation comes into effect since January 01, 2020. As a result of the study, the authors revealed a convergence of Russian standards for determining temporary differences and deferred taxes, and at the same time indicated differences that still remained, and also assessed the existing differences. The authors considered it appropriate to systematize new principles for calculating deferred income taxes. For clarity, the definitions of current tax, net profit and other concepts, calculations of current tax and income tax expenses are presented in the form of formulas that can be easily compared with a previously existing methodology.
The results of the study can be used when transforming financial statements, as well as in the construction of the consolidated financial statements generated in Russia in accordance with the requirements of IFRS, since the latest amendments in RSA 18/02 include the calculation of income tax for members of a consolidated group of taxpayers.
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References
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Wang, S. (2016) Discussion of 'Unrealised earnings, dividends and reporting aggressiveness: An examination of firms' behavior in the era of fair value accounting'. Accounting and Finance. Volume 56, Issue 1, 251-257
Weisel, J.A. (2015). Deutsche autoparts, LLC-reconciling U.S. gaap to IFRS. Journal of the International Academy for Case Studies. Volume 21, Issue 5, 319-322
Yapa, P.W. and Kraal, D. (2015) The adoption of ‘international accounting standard (IAS) 12 income taxes’: Convergence or divergence with local accounting standards in selected ASEAN countries? Australasian Accounting, Business and Finance Journal. Volume 9, Issue 1, 3-24
Dudin, M.N., Prokofiev, M.N., Fedorova, I.Y., Frygin, A.V. and Kutsuri, G.N. (2015) International practice of generation of the national budget income on the basis of the generally accepted financial reporting standards (IFRS) Asian Social Science. Volume 11, Issue 8, 119-126
Elakova, A.A. and Gudzhatullaeva, E.M. (2016) Standard application peculiarities for subsidiary income taxes. Academy of Strategic Management Journal. Volume 15, Issue SpecialIssue 1, 38-43
Fujibayashi, M., Kojima, H. and Tsuji, M. (2015) Academy of Accounting and Financial Studies Journal Volume 19, Issue 3, 87-102
Hong, N. and Shim, J. October (2019) The effect of the adoption of International Accounting Standards No. 12 (IAS No.12) for firms reporting losses: Evidence from Korea. Sustainability (Switzerland). Volume 11, Issue 20, 1 5732
IAS 12 “Income taxes” of 16.09.201” ConsultantPlus reference and legal system
Kapoutsou, E., Tzovas, C. and Chalevas, C. (2015) Earnings management and income tax evidence from Greece Corporate Ownership and Control Volume 12, Issue 2 CONT6, 523-541
Mejzlík, L., Arltová, M., Procházka, D. and Vítek, L. (2015) The adoption of International Financial Reporting Standards in the Czech Republic and its impact on corporate taxation Politicka Ekonomie. Volume 63, Issue 7, 811-832
Order of the Ministry of Finance of Russia dated November 20, 2018 No. 236n “On Amending RSA 18/02 “Accounting for corporate income tax payments”” ConsultantPlus reference and legal system
Order of the Ministry of Finance of Russia dated November 19, 2002, N 114н « On approval RSA 18/02 “Accounting for corporate income tax payments”” ConsultantPlus reference and legal system
Order of the Ministry of Finance of Russia dated April 19, 2019 No. 61n “On Amending
Procházka, D. and Molin, J. (2016) Book-tax conformity: The review of recent research and its implication for the IFRS adoption in Europe. eJournal of Tax Research. Volume 14, Issue 1, 96-118
Rathke, A.A., Rezende, A.J. and Antônio, R.M. (2019) Last chance for a big bath: Managing deferred taxes under IAS 12 in Brazilian listed Revista Contabilidade e Financas. Volume 30, Issue 80, 268-281
Trofimova, L. B. (2003) Features of taxation in trade union organizations under the conditions of the 25th chapter of the Tax Code. A collection of scientific articles by teachers and graduate students of the Department of Accounting and Auditing. Issue No. 2 M: ATIСО, 49-54 (In Russian).
Trofimova, L. B. (2010) Accounting for income tax calculations in accordance with Russian and international standards Scientific and Practical and Theoretical Journal "International Accounting" (Publishing House "Finance and Credit" 30-36 ISSN 2073-5081 Printedhttp: // elibrary.ru/item.asp?id=13080253 (In Russian).
Trofimova, L. B. (2015) Monograph Relevant financial statements in terms of development of integration processes. M: Infra-M. 253 p. ISBN 978-5-16-006474-1 978-5-16-011689-1 (print) ISBN 978-5-164066-9 (online) http://elibrary.ru/item.asp?id=28941703, www.dx.doi.org/10.12737/14656. (In Russian).
Vallisova L. and Dvoakova L. (2018) Implementation of international financial accounting standards from the perspective of companies in the Czech Republic. Economic Annals-XXI. Volume 167, Issue 9-10, 70-74
Wang, S. (2016) Discussion of 'Unrealised earnings, dividends and reporting aggressiveness: An examination of firms' behavior in the era of fair value accounting'. Accounting and Finance. Volume 56, Issue 1, 251-257
Weisel, J.A. (2015). Deutsche autoparts, LLC-reconciling U.S. gaap to IFRS. Journal of the International Academy for Case Studies. Volume 21, Issue 5, 319-322
Yapa, P.W. and Kraal, D. (2015) The adoption of ‘international accounting standard (IAS) 12 income taxes’: Convergence or divergence with local accounting standards in selected ASEAN countries? Australasian Accounting, Business and Finance Journal. Volume 9, Issue 1, 3-24
Published
2020-02-21
How to Cite
Trofimova, L., Prodanova, N., Nudel, S., Dikikh, V., & Savina, N. (2020). The essence of temporary differences under the conditions of changes in RSA 18/02 and convergence with IAS 12 “Income taxes” and their impact on the financial statements. Amazonia Investiga, 9(26), 415-422. https://doi.org/10.34069/AI/2020.26.02.48
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