Business Combinations, Goodwill and Deferred Taxes： Evidences Emerging From a Comparative Analysis Between Italy and Bulgaria

The starting point for the research was the evidence of a possible contradiction in the provisions of IAS 12 on goodwill and deferred income taxes, i.e., about the need to calculate deferred income taxation on temporary differences relating to all assets except for goodwill. This paper aims at exploring the degree of consistency between the theoretical provisions of International Accounting Standards （IAS）/International Financial Reporting Standards （IFRS） and their actual application by the management of Italian and Bulgarian listed companies, as regards the accounting treatments of deferred income taxes relating to the item ＂goodwill＂. The findings suggest that there are some differences between the accounting methods used by the management of most Italian listed companies and the provisions of IAS/IFRS. It can be argued that the rules given by IAS/IFRS are sometimes contradictory, since they may cause doubts in interpretation. As a consequence, in the end of the paper, an amendment to the provisions, set forth in IAS/IFRS concerning the accounting treatment of deferred income taxes relating to the item ＂goodwill＂, is proposed.

Treatment of the Income Tax in Enterprises Merger

Many merger and reorganization is enterprises merger, because merger perplexing, the treatment of income tax accounting exists a variety of complex problems, the merging party obtains the net wealth of the combined party, some include the deferred income tax liabilities and deferred tax assets, there are not included. The merging party merger resulting combined balance in the merging process may affect the current income tax and deferred income tax, but also may not have any effect. This paper goes through the application case on enterprises merger＇ merging party or purchase party tax treatment to carry on analysis, which provides the major reference for accounting theory and accounting practice circles.

Thinking about tax deferred endowment insurance in China

With the growing eldes, our country has entered an aging population society. Social endowment insurance has not meet the demand of people, more and more people are turning to commercial endowment insurance field for help. As a new form of commercial endowment insurance, personal tax deferred model of commercial endowment insurance has huge development space in our country. This paper analyzes the necessity of implementing tax deferred endowment insurance and explores the feasibility and obstacle of individual tax deferred endowment from the point of the government policy, financial income and economic development .At the same time,this paper hold the view that though the personal tax deferred model of commercial endowment insurance may has some bottlenecks in the process of implementing, there are considerable development prospects.

Does an abnormal change in deferred tax assets interfere with analysts' earnings forecasts?

In 2007,China adopted the single balance sheet liability method for tax accounting,but its shortcomings have emerged.I sample A-share listed companies from 2007 to 2018 to study whether an abnormal change in deferred tax assets interferes with analysts’earnings forecasts and find that an abnormal change in deferred tax assets increases the error and divergence of these forecasts.Compared with a negative abnormal change in deferred tax assets,a positive abnormal change has a greater impact on earnings forecasts.Additionally,the level of corporate governance,audit quality and analysts’professional ability have moderating effects on the correlation between an abnormal change in deferred tax assets and earnings forecasts.However,an abnormal change in deferred tax liabilities does not have a significant impact on that correlation.