International Accounting Standards and their tax implications

The radical changes in International Accounting Standards (IAS) over existing local Generally Accepted Accounting Practice (GAAP) are likely to have implications for many companies’ tax calculations either immediately or in the future. This article focuses on why IAS have become so important, what IAS are, and why they might be important for tax. In addition, it includes a discussion of the importance of the statutory accounts for tax, pre and post IAS, and then focuses on the impact of various specific IAS.

If you would like to discuss any of the issues raised in this article, please speak with your usual contact at PricewaterhouseCoopers or contact Richard Clarke (+44 20 7804 2243; richard.d.clarke@uk.pwc-global.com) or Graham Wilson (+44 20 7212 2471; graham.Wilson@uk.pwcglobal.com)

Why are IAS so important?

In a world which is shrinking from a business perspective, with an increasing number of global companies and global investors, the differing national rules and national accounting standards do not meet the needs of global investors or other stakeholders interested in comparing the performance of different corporations.