Accounting for Tax Masterclass

The Masterclass was delivered by Kevin Holland (Cardiff) and Alan Kirkpatrick (Bournemouth)

Date: 27th March 2017
Location: Broadway House, Tothill St, Westminster, London, SW1H 9NQ

The way in which tax obligations are represented in company accounts is coming under increasing scrutiny.  In recent years, we have witnessed more strident calls for greater disclosure as part of the push for transparency more broadly within society. These calls cover both disclosures about companies’ tax policies and practices (e.g. corporate governance) and the outcomes of these policies (e.g. new country by country reporting requirements). New user groups’ needs are not being met and neither are those of the traditionally accepted principal user group, shareholders. The international and UK domestic accounting regulators, IASB and FRC, have observed deficiencies in current practice in meeting shareholder needs, particularly with respect to accounting for “tax uncertainties”.

The separation of accounting and tax as areas of specialisation means that understanding of the relationship between the two is limited. The purpose of the masterclass was to explore aspects of the way in which corporate income tax is accounted for. It will be of interest to administrators and researchers who are not familiar with the relationship between accounting and tax. Specifically, the masterclass covered:

  1. Financial regulation of Corporate Income Tax: measurement and disclosure – (a) current position (overview); (b) proposed changes;
  2. Principles of financial accounting consolidation – intercompany transactions;
  3. Properties of the corporate income tax accrual; tax uncertainty;
  4. Summarising companies’ tax charges: the effective tax rate - alternate definitions of ETRs, properties, limitations and usefulness;
  5. Tax narrative disclosures – trends and good practice in tax accounting – evidence from the Netherlands.
  6. Concluding thoughts – are user needs being met?   

For further details, contact Irene Rodger: tarc@exeter.ac.uk

Masterclass programme .

Kevin Holland: http://business.cardiff.ac.uk/people/staff/kevin-holland

Alan Kirkpatrick: http://staffprofiles.bournemouth.ac.uk/display/akirkpatrick