Browsing by Author "Mear, Kim Marie"
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- ItemDeferred tax-- the effect of the implementation of NZ IAS 12 : income taxes : a thesis presented in partial fulfilment of the requirements for the degree of Master of Business Studies (Accountancy) at Massey University, Albany, New Zealand(Massey University, 2011) Mear, Kim MariePurpose: The purpose of this thesis is to document the changes to income tax and deferred tax due to the implementation of New Zealand International Financial Reporting Standards (NZ IFRS), particularly New Zealand International Accounting Standard 12: Income Taxes (NZ IAS 12). Motivation: Stent, Bradbury and Hooks (2010) investigate the effect of the implementation of NZ IFRS on assets and liabilities generally. The results indicate that tax assets and tax liabilities increase but an in-depth analysis of income tax and deferred tax changes and the reason for these changes is not provided. Research Question: What was the impact of changing from Standard Statement of Accounting Practice 12: Accounting for Income Tax (SSAP 12) under NZ FRS to NZ IAS 12: Income Taxes under NZ IFRS on income tax and deferred tax as recorded in the statement of financial position and notes to the financial statements? Design/Methodology: Using a sample of entities listed on the New Zealand Stock Exchange (NZX), I analyse the dollar effect, percentage change and direction of change to income tax, deferred tax and net tax assets (liabilities) due to the mandatory change to NZ IAS 12 for the period 2005 to 2008. I analyse the variables that influence the change in income tax and deferred tax due to the implementation of NZ IFRS including users of the partial and comprehensive basis, asset revaluation reserves, unrecognised deferred tax assets, early and late adopters and small and large entities. Findings: The results indicate that partial basis deferred tax users and those with asset revaluation reserves have larger decreases (increases) in net tax assets (liabilities). Late adopters and smaller companies are also less affected by the implementation of NZ IAS 12 than their counterparts. Research Limitations: Small sample Practical Implications: I provide an extensive comparison between SSAP 12 pre NZ IFRS and NZ IAS 12 post NZ IFRS and highlight the differences between the partial basis and comprehensive basis. My results also provide information to the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) who are currently working towards convergence of United States Generally Accepted Accounting Policies (US GAAP) and IFRS.
- ItemInformation relevance of deferred tax : a thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy in Accounting at Massey University, Albany, New Zealand(Massey University, 2017) Mear, Kim MarieThe International Accounting Standards Board (IASB) has undertaken research on accounting for income taxes. The IASB research suggests that a fundamental change from International Accounting Standard 12: Income Taxes (IAS 12), the balance sheet method, to another method may be considered. Other methods for accounting for deferred tax include the taxes payable method, the comprehensive basis under the income statement method, and the partial basis under the income statement method. This thesis provides evidence on this issue by using non-United States data to examine these deferred tax methods. This thesis examines the research question “are deferred tax methods, relative to the taxes payable method, information relevant?” Information that is ‘information relevant’ has two components: predictability and value relevance (Ohlson, 1995). The predictability of deferred tax methods is measured by its ability to predict future tax payments relative to the taxes payable method. The value relevance of deferred tax methods is measured by its association with share price relative to the taxes payable method. Literature examining deferred taxes predominately uses United States US data and US Generally Accepted Accounting Principles (US GAAP), and only partially examines deferred tax methods. This thesis contributes to the literature by examining all three deferred tax line items: deferred tax liabilities, deferred tax assets and deferred tax expense. The data is collected from the financial information for firms listed on the NZ Stock Exchange. Two samples of firms are examined: from 2000 to 2004 (pre IFRS) and 2008 to 2012 (post IFRS). The results show that the comprehensive basis under the income statement method is a better predictor of future tax payments and is value relevant relative to the taxes payable method. This indicates that it is information relevant. The partial basis under the income statement method is a better predictor of future tax payments relative to the taxes payable method however it is only value relevant for firms in the highest three deciles of mean increases in tax paid over the period. The balance sheet method is not a better predictor of future tax payments relative to the taxes payable method. The balance sheet method is, however, value relevant. The balance sheet method using disaggregated deferred tax is also value relevant relative to the balance sheet method.