Can a New Concept of Control under IFRS Have an Impact on a CCCTB?

Vašek, Libor; Gluzová, Tereza

doi:10.18267/j.efaj.133

Cited by 7 publications

(14 citation statements)

References 3 publications

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“…Instead, it builds on the control guidance that existed in IAS 27 and SIC-12 but adds additional context, explanation and application guidance…" With regards to the companies on Prague Stock Exchange, similar results (i.e. limited adjustments to the scopes of consolidation) were predicted by Vašek and Gluzová (2014).…”

Section: Resultsmentioning

confidence: 97%

The Adoption of Ifrs 10 and Its Impact on the Scope of Consolidation

Gluzová¹

2015

AAK

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Consolidated financial statements present aggregated information for a group formed by the parent company and its subsidiaries. The existence of control is the most important condition to determine the relationship between companies within the group. This article focuses on the adoption of a novelised control concept introduced by IFRS 10. Companies quoted on Prague and Warsaw stock exchanges were chosen to illustrate the impact of IFRS 10. The article provides an analysis of consolidated financial statements in a year of the adoption of IFRS 10 and a year immediately preceding. Summarized findings reveal whether IFRS 10 had a material impact on consolidated financial statements.

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Section: Resultsmentioning

confidence: 97%

The Adoption of Ifrs 10 and Its Impact on the Scope of Consolidation

Gluzová¹

2015

AAK

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“…Finally, the proposal of the directive has no formal connections to the accounting standards and it develops its own definition of taxable income (e.g. Spengel and Zöllkau (2012), Vašek and Gluzová (2014)). While there are several simulation studies on the consequences of the Council's proposal on the tax burden and tax revenues of the EU member states, they focus rather on the CCCTB-variant of the concept.…”

Section: Literature Reviewmentioning

confidence: 99%

Deductibility of Provisions under the CCCTB Proposal and Its Effects on Companies: The Case of Poland

Leszczyłowska¹

2015

EFAJ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The aim of the paper is to empirically examine the scale and the distribution of the tax advantage which emerges when provisions for future liabilities are deductible from taxable earnings, as proposed in the CCCTB concept. The paper concentrates on Poland -a country for which the expected economic effects of this proposal are still controversial and ambiguous. The results are also relevant for other European countries in which provisions are currently treated in a different way for financial and for tax accounting purposes. The analysis is based on the information from financial statements of 250 companies from the period 2007 -2012. The microsimulation method in a multi-period setting is implemented. The results show that in case provisions are deductible for tax purposes the tax due decreases by 5,6 % or and by 9,8 % on average, depending on the liquidity situation of companies. The tax advantage is distributed differently among companies. The majority of taxpayers is expected to gain from the reform. Only for single companies there is an increase in tax, induced by the existing, restricted tax loss carry forward rules. The median change in CIT amounts to -1 % and -2 %. Terms of use: Documents in EconStor may

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“…Previous research documented that the majority of entities adopted these standards only when they became mandatory (e.g. Mazars, 2014;Vašek and Gluzová, 2014;Gluzová, 2015Gluzová, , 2017. Vašek and Gluzová (2014) Gluzová, 2015Gluzová, , 2017.…”

Section: Effects Of Adopting Ifrs 10 and Ifrs 11 And Research Questmentioning

confidence: 99%

“…In fact, the few studies on the effects of IFRS 10 are divided between evidence of effects in a few groups and immaterial (e.g. IASB 2011g; EFRAG 2012a,2012b; Mazars 2014; Priscilla and Ariyanto 2014; Vašek and Gluzová, 2014;Gluzová, 2015Gluzová, , 2017 and of material effects and in a larger number of groups (e.g. Büdy-Rózsa, 2012;ESMA, 2014ESMA, , 2016.…”

Section: Introductionmentioning

confidence: 99%

Effects of adopting IFRS 10 and IFRS 11 on consolidated financial statements

Lopes

2019

MEDAR

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Purpose The purpose of this paper is to investigate how the adoption of IFRS 10 and IFRS 11 affected consolidated financial statements. Specifically, the paper explores whether entities adopted mandatorily or voluntarily both IFRS, whether expressly declared effects, whether considered those effects as material and whether those effects had impacts on selected items of financial statements and on selected financial ratios. Design/methodology/approach The research is an exploratory study using public entities from Germany, France and the UK. The majority of the data is manually collected from financial statements. Findings The results suggest that the adoption of the new IFRS 10 affected the composition of a large number of entity groups but that their financial information and economic-financial indicators do not present material changes. There is also evidence of a large and material impact on the changes in the classification and accounting for interests in arrangements under joint control through the new IFRS 11. The evidence thus suggests unequal effects of the adoption of IFRS 10 and IFRS 11 on the proportion of entities declaring materiality of effects, on the quantitative effects on selected items of financial statements, and on financial ratios. A comparison between the pre-adoption and post-adoption periods reveals that the majority of the effects are driven by the adoption of IFRS 11. Originality/value As far as is known this exploratory paper is the first presenting the effectiveness of adopting the most important standards under the “consolidation package” and opens an avenue for future research by academics, for future post-implementation reviews by IASB, and for analysis of peer reviews between accounting practitioners.

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Can a New Concept of Control under IFRS Have an Impact on a CCCTB?

Cited by 7 publications

References 3 publications

The Adoption of Ifrs 10 and Its Impact on the Scope of Consolidation

The Adoption of Ifrs 10 and Its Impact on the Scope of Consolidation

Deductibility of Provisions under the CCCTB Proposal and Its Effects on Companies: The Case of Poland

Effects of adopting IFRS 10 and IFRS 11 on consolidated financial statements

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