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Current Income Tax Disclosures in Separate Financial Statements of IFRS Adopters in Slovakia

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  • Miloš Tumpach
  • Adriana Stanková

Abstract

As a direct result of the accession into EU, IFRSs have been introduced in Slovakia as a framework for compilation of separate financial statements of various businesses since 2006. Because of traditionally strong ties between accounting and tax regulation, taxpayers and tax authorities were exposed to an unprecedented situation. Consequently, national parliament and the government have tried to address major identified issues. Apparently, two underlying principles have been established for carrying out these initiatives - to comply with the Regulation No. 1606/2002 and to keep the tax burden at the same level. Still, there is serious concern about the effectiveness of the measures adopted, as there are at least three approaches for determination of income taxes of IFRS adopters in Slovakia. Because the relevance of accounting information is partially driven by their ability to predict future order and results of events, our paper is focused on the assessment of the disclosures related to current income tax determination, presented in the separate financial statements of the said companies. Though lack of such information decrease the relevance of financial statements, it is quite commonplace. Additionally, we have found traces of boilerplate disclosures (i. e. likely wordings presented in financial statements of different companies).

Suggested Citation

  • Miloš Tumpach & Adriana Stanková, 2014. "Current Income Tax Disclosures in Separate Financial Statements of IFRS Adopters in Slovakia," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2014(4), pages 76-85.
    • Handle: RePEc:prg:jnlefa:v:2014:y:2014:i:4:id:131
    DOI: 10.18267/j.efaj.131
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    References listed on IDEAS

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    1. Eva Eberhartinger & Margret Klostermann, 2007. "What if IFRS were a Tax Base? New Empirical Evidence from an Austrian Perspective," Accounting in Europe, Taylor & Francis Journals, vol. 4(2), pages 141-168, December.
    2. Karampinis, Nikolaos I. & Hevas, Dimosthenis L., 2013. "Effects of IFRS Adoption on Tax-induced Incentives for Financial Earnings Management: Evidence from Greece," The International Journal of Accounting, Elsevier, vol. 48(2), pages 218-247.
    3. Jacqueline Haverals, 2005. "IAS/IFRS in Belgium: Quantitative Analysis of the Impact on the Tax Burden of Companies," Working Papers CEB 05-011.RS, ULB -- Universite Libre de Bruxelles.
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    Keywords

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    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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