Assessment of Deferred Tax Recognition and Measurement under IFRS and Nigeria-SAS: An Empirical Examination
Journal Title: Asian Journal of Economics, Business and Accounting - Year 2017, Vol 5, Issue 1
Abstract
This study examines the recognition and measurement of deferred taxes of manufacturing companies in Nigeria under IAS 12 and Nigerian-SAS. Deferred tax liabilities are recognized for taxable temporary differences and deferred tax assets are recognized for deductible temporary differences. The specific objective of the study is to determine the magnitude of change in deferred tax assets, deferred tax liabilities, and current taxes following the adoption of IAS 12. Three research hypotheses were formulated for the study. This study adopted the ex-post facto research design. The sample of the study comprises of fifteen (15) manufacturing companies in Nigerian. The study relied on secondary data from annual financial statements of the companies. The formulated hypotheses were analysed using paired samples t-test for difference, while linear regression was used to check for dependence. The analysis was performed with the aid of SPSS version 23. The dependent variables were proxied using deferred tax assets, liabilities and current tax liabilities as per IFRS reporting period while the independent variable were proxied using deferred tax assets, liabilities and current tax liabilities as per Nigerian-SAS reporting period. The study finds statistical significant change in deferred tax assets, tax liabilities, and current taxes. The findings also revealed a positive connection between deferred tax of manufacturing firms in Nigeria under IFRS and Nigerian-SAS. Consequent upon this study, it was recommended among others that deferred tax assets and liabilities are to be presented at the amounts that are expected to flow to or from the reporting entity when the tax benefits are ultimately realized or the tax obligations are settled.
Authors and Affiliations
Ogbodo Cy. Okenwa, Egbunike Francis Chinedu, Abiahu Mary-Fidelis Chidoziem
Keywords
Related Articles
- EP ID EP338548
- DOI 10.9734/AJEBA/2017/37651
- Views 68
- Downloads 0
The Effectiveness of Relational Bonds on Customer Loyalty Mediated with Customer Satisfaction: Telecommunication Industry, Batticaloa
Aims: Customer loyalty is considered to be a key component in enhancing the survival of businesses, especially in the situations faced by highly competitive industries. Therefore, Tele communication service providers sho...
Treasury Single Account and University Administration in South East, Nigeria
Over the years, the problem of funding has been the bane of educational development in Nigeria. Important as the education sector is to other sectors of the Nigerian economy, its development has been retarded overtime be...
Customers and Employees Assessment of Corporate Branding Benefits
Corporate branding has become an important tool employed by many industries in recent decades. It is described as the subliminal process by which industries use marketing strategies to attract customers to easily remembe...
Alternatives for Financing Waste Management: Implications for Ghana’s Growing Electronic and Electrical Equipment Waste
The waste of electrical and electronic equipment pose an environmental and human health challenge for some developing countries, including Ghana. Despite such challenges, it contributes to job creation and income generat...
Long-run and Short-run Effects of Foreign Trade and Foreign Direct Investment on Agricultural Productivity in Nigeria
This study was carried out to assess the impact of Foreign Trade and Foreign Direct Investment on Agricultural Productivity in Nigeria using annual time series data from 1980-2014. Inferential statistics were used for th...