Empirical analysis of deferred tax accounting under IFRS (IAS 12): An international comparison of diversity in practice

This study provides an empirical analysis of deferred tax accounting under IFRS (IAS12), focusing on international and sectoral diversity within the eurozone. While IFRS aims for uniform accounting standards, prior research suggests that national tax, legal, and cultural contexts significantly influence its application. This paper investigates whether such country-specific influences extend to deferred tax accounting. Using a sample of 1,240 companies from the ten largest eurozone economies, the study analyzes consolidated financial statements for the 2024 fiscal year. Key metrics, including the absolute values of deferred tax assets and liabilities and their ratios to total assets, are compared across countries and industries. The findings reveal substantial heterogeneity. Absolute deferred tax positions are concentrated in the largest economies (Germany, France), but relative significance varies, with countries like Spain and Ireland showing higher proportions relative to total assets. At the industry level, capital-intensive and innovation-driven sectors (e.g., automotive, pharmaceuticals) exhibit distinct patterns. Furthermore, a strong positive correlation between deferred tax assets and liabilities exists in most sectors, indicating common underlying accounting and tax factors. The results confirm that, despite a unified standard, deferred tax reporting is shaped by national economic strength, industry affiliation, and local accounting practices, highlighting the need for a differentiated, relative-key-figure approach when comparing such positions internationally. This working paper is based on the thesis of Lena Spindler.