Do the Deferred Tax Liabilities Have Substance? Perception of Australian Practicing Auditors

Authors

  • Theo Christopher
  • Atique Islam
  • Robert Lopez

Abstract

This study examines whether the provision for deferred income tax (PDIT) is perceived by the auditors as a liability of substance. To this end a survey of Australian auditors was undertaken based on the concept of liabilities as stated in the Statement of Accounting Concepts (SAC) 4. The results based on a sample of one hundred and seventy-six auditors showed that a majority of them do not consider PDIT as a liability of substance. But a majority is in favour of recognising and disclosing it in the balance sheet as a deferred credit. The ï¬ndings have implications in the context of the current review of the standard in the area of tax effect accounting in Australia and overseas.

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How to Cite

Christopher, T., Islam, A., & Lopez, R. (2013). Do the Deferred Tax Liabilities Have Substance? Perception of Australian Practicing Auditors. The International Journal of Accounting and Business Society, 6(1), 1–18. Retrieved from https://ijabs.ub.ac.id/index.php/ijabs/article/view/129