Tax Loss Carryforward Disclosure and Uncertainty

Flagmeier, Vanessa; Mueller, Jens

doi:10.2139/ssrn.2982321

Cited by 6 publications

(6 citation statements)

References 83 publications

(51 reference statements)

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“…Однако есть ряд зарубежных экс пертов, чьи работы представляю т интерес в рамках данного исследования: Д. Хюрлиманн и Э. Тайтлер-Файнберг [1], Й. Бёссер и Й. Пильхофер [2], К. Хербон, И. Туттиччи, П.С. Кор [4], В. Флагмайер и Й. Мюллер [5] и другие.…”

Section: обзор литературы и результаты исследованияunclassified

Tax loss carryforwards: valuation of deferred tax assets

AKSENT'EV

2023

Vestnik universiteta

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In the article, a comparative analysis of modern approaches to the assessment of deferred tax assets recognized for tax losses is carried out. The ambiguity of tax losses as an object of accounting observation is substantiated. Positive and negative effects of tax losses that do not allow to objectively qualify tax benefits as assets in accordance with conceptual criteria for their recognition are characterised. Prospective and retrospective factors for assessing the future recovery of deferred tax assets are presented. An example of accounting entries regarding recognition and recovery of tax losses using a valuation account is provided. The timing of prospective analysis is justified. Conservative and affirmative approaches to the assessment of tax losses in the financial accounting system are described. Based on the findings of the study, conclusions are given, and lines of future research are suggested.

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Section: обзор литературы и результаты исследованияunclassified

Tax loss carryforwards: valuation of deferred tax assets

AKSENT'EV

2023

Vestnik universiteta

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“…Some studies show that corporations strategically avoid disclosing unpleasant tax information to manage stakeholder perception (Akamah et al, 2018;Dyreng et al, 2016). Other studies indicate that firms seem to report some tax information voluntarily to mitigate negative capital market reactions to missing tax information (Balakrishnan et al, 2019;Chen et al, 2019;Flagmeier & Müller, 2019). Demeré et al (2019) provide empirical evidence that firms smooth their GAAP ETRs.…”

Section: Management Of Tax Perception and Its Impact On Stakeholdersmentioning

confidence: 99%

Tax Misperception and its Effects on Decision Making – Literature Review and Behavioral Taxpayer Response Model

Blaufus

Chirvi

Huber

et al. 2020

European Accounting Review

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Previous accounting research shows that taxes affect decision making by individuals and firms. Most studies assume that agents have an accurate perception regarding their tax burden. However, there is a growing body of literature analyzing whether taxes are indeed perceived correctly. We review 128 studies on the measurement of tax misperception and its behavioral implications. The review reveals that many taxpayers have substantial tax misperceptions that lead to biased decision making. We develop a Behavioral Taxpayer Response Model on the impact of provided tax information on tax perception. Besides individual traits, characteristics of the tax information and the decision environment determine the extent of tax misperception. We discuss opportunities for future research and methodological limitations. While there is much evidence on tax misperception at the individual level, we hardly find any research at the firm level. Little is known about the real effects of managers' tax misperception and on how tax information is strategically managed to impact stakeholders. This research gap is surprising as a large part of the accounting literature analyzes decision making and disclosure of firms. We recommend a mixed-method approach combining experiments, surveys, and archival data analyses to improve the knowledge on tax misperception and its consequences.

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“…There are some instances of no tax reporting. Flagmeier and Müller (2016) have aimed to provide a clarification of one category of difference in the level of TD. They offer an insight into the incentives to disclose information on tax losses carried forward, a significant component of the tax footnote.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Literature concerning the tax information disclosed in the financial statements indicates that it is often incomplete or not readily understandable (Flagmeier and Müller, 2016).There are notable differences in the quantity and quality of disclosure between corporations. It is not clear why some companies provide extensive details, while others report only the mandatory items.…”

Section: Literature Reviewmentioning

confidence: 99%

The effect of components of tax saving on tax disclosure

Mgammal

2019

PAR

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Purpose The purpose of this study is to examine the impact of tax planning (TP), which measured by the component of tax saving (TS), namely, permanent differences (PDs), temporary differences (TDF), foreign tax rates (FTRs) differentials and tax losses (TLOS) on tax disclosure (TD). Design/methodology/approach This study uses panel data set from sample consisted of 286 non-financial listed companies in the main market of Bursa Malaysia (formerly known as Kuala Lumpur stock exchange) for three years 2010-2012. The empirical understanding of TD depends on publicly source of data in the financial statement, characterized in the aggregated note of tax expenses. TD was measured using modified effective tax rate reconciling items, as it is appropriate in the Malaysian environment. The paper uses multivariate statistical analyses on this sample. Findings The empirical results of the multivariate regressions indicated that TD exhibits significant positive association with the TLOS component of TS but has significant negative relationship related to the PDs component of TS and TDFs component of TS. Research limitations/implications This study extends the prior-related literature by examining the relation between TD and component of TS. This study depends on both the signaling theory and the Scholes–Wolfson framework. These are the main theories concerned with TD and TP (TSs), respectively. Therefore, from a theoretical side, the authors adds to the current theories by verifying that users are the party influenced whether positively or negatively, by the extent of TD or the extent of activities of TP through Malaysian organizations. Practical implications The evidence found by this study has important policy and practical knowledge implications for a minimum of three parties, namely, authorities, researchers in academic field and decision-makers and firm managers. The findings can provide them some relevant insights on the importance of TS actions from companies’ perspective and contribute to the discussion of who verifies and deduces from TD directed by companies. Originality/value This study is regarded as the first attempt to examine the impact of the component of TS, namely: PDs, TDFs, FTRs differentials and TLOS on TD in a developing nation such as Malaysia. In spite of this paper focuses on a single country, it contributes significant insights to the debate about TD.

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Tax Loss Carryforward Disclosure and Uncertainty

Cited by 6 publications

References 83 publications

Tax loss carryforwards: valuation of deferred tax assets

Tax loss carryforwards: valuation of deferred tax assets

Tax Misperception and its Effects on Decision Making – Literature Review and Behavioral Taxpayer Response Model

The effect of components of tax saving on tax disclosure

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