FRS 102: how to deal with deferred tax under new UK GAAP

Karen Duncan, senior manager at KPMG, examines the potential pitfalls of the new approach to deferred tax accounting under the FRS 102 framework, with tips, advice and practical examples covering revalued assets, business combinations, disclosures and share-based payments

With FRS 102, Financial Reporting Standard applicable in the UK and Ireland, being effective for periods commencing on or after 1 January 2015, entities are starting to consider (if they have not already done so) the accounting for their transition from old UK GAAP. Deferred tax accounting is one of the most commonly cited areas of difference between old UK GAAP (FRS 19, Deferred Tax) and FRS 102.

This article (which is not intended to be a full analysis of the differences between FRS 102, FRS 19 and IAS 12, Income Taxes) looks at some of the areas of difference between FRS 19 and FRS 102, particularly those that may easily be overlooked on transition to FRS 102.

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