Accounting for tax consolidation under Australian equivalents to IFRSs
Published on:
Aug 08, 2005
This Discussion Paper from Deloitte (Australia) focuses on UIG Interpretation 1052 Tax Consolidation Accounting (Interpretation 1052).
However, from a commercial perspective, there are three clear messages for Australian entities arising from Interpretation 1052:
- tax funding arrangements need to be reviewed and if necessary rewritten to avoid superfluous accounting implications
- the costs and benefits of any systems changes need to be considered
- care needs to be taken to ensure that the accounting methodology adopted does not result in unfavourable tax consequences.
This paper explores these issues in addition to providing an in-depth analysis of the accounting mechanics of Interpretation 1052.
