Accounting of deferred taxable asset and liability is not justified

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Ivane Javakhishvili Tbilisi State University Press
International accounting standard 12-Income tax – regulates accounting methodic of profit tax and demands that the enterprises must account the deferred tax asset and the deferred tax liability. For this reason, the net profit indicator published in the financial statement of the enterprises is unrealistic which in one hand contradicts to requirements of basic qualitative characteristics a financial statement such as Relevance and Faithful Representation and in another hand, it allows of fraud in the financial statement. The aim of this study is to substantiation necessity of simplification of the IAS 12 – Income Tax. In the article is affirmed that accounting of the deferred tax asset and deferred tax liability derives many problems for the enterprises and the investors. They also have not an analytical role in the financial analysis of the enterprises. That is why, the leadership of the enterprises avoids to using mentioned standard 12 – Income Tax - in Georgia. This study gives the recommendation that in the IAS 12 - Income tax – bring in the changes, which will be simplified by the method of profit tax accounting in the enterprises and it will eliminate the existing problems of accounting the profit tax.
1. ბასს - 12 – „მოგებიდან გადასახადები“. თარგმანი ინგლისურიდან. ბაფ. თბ., 2016. 2. ფინანსური ანგარიშგების კონცეპტუალური საფუძვლები“. თარგმანი ინგლისურიდან. ბაფ. თბ., 2016. 3. ჭილაძე იზოლდა, მოგების გადასახადის აღრიცხვის სრულყოფის საკითხები, მონოგრაფია, გამომც. მერიდიანი, თბ., 2012 4. ჭილაძე იზოლდა, მოგების გადასახადის აღრიცხვის ოპტიმალური სქემა, საერთაშორისო სამეცნიერო კონფერენციის მასალები: ეროვნული ეკონომიკის მდგრადი განვითარების აქტუალური პრობლემები. პაატა გუგუშვილის ეკონომიკის ინსტიტუტი. 2015. გვ:289-292 5. Aletkin, P. A. (2011). Accounting and analysis of deferred tax assets and liabilities. Kazan: Kazan State Financial Economic University. In Russian. 2017.05.008) BDO 6. Chiladze, I. (2018). International Accounting Standard 12–“Income Tax” and Aspects for Discussion. Journal , Applied Finance and Accounting, Vol. 4, No. 1, February 2018. pp: 1-10. 7. Michael Raine Senior Tax Manager, Deloitte Oliver Holt Director (2013), Tax Accounting: Current and Deferred Tax. 8. Norman, W. (2006). Accounting for deferred taxes under NZ IAS 12. 9. Vuckovic-Milutinovic, S., & Lukic, R. (2013). Analysis of deferred taxes in the business environment in Serbia Economic. Seria Management, 16, pp: 25-37.
deferred tax liability; deferred tax asset; real net profit; a simplified approach of accounting
III International Scientific Conference: "Challenges of Globalization in Economics and Business", Tbilisi, 2018, pp. 489-495