tax impact of uk gaap conversion - kpmg in the...
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Tax Impact of UK GAAP Conversion
1515 AprilApril 20132013
AgendaAgenda
Introduction - Peter Scholes
New UK GAAP overview – Nick Chandler
Goodwill - Christine Hood
Forex, loans and derivatives –Kashif Javed
Deferred tax - Neil Henderson
Thinking about conversion -Peter Scholes
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Introduction
Why GAAP matters
UK GAAP conversion – issues and opportunities
Today’s presenters
New UK GAAP overview – Nick Chandler
■ ■ ■ ■ ■
■■
■
■
New UK GAAP - overview
FRS 100 Application of
financial reporting reqquirements
Which standards to apply Application of SORPs Effective date Meaning of ‘equivalence’
Issued Nov 2012
FRS 101 Reduced disclosure framework
List of disclosure exemptions for ‘qualifying entities’ applying recognition and measurement requirements of EU-IFRS
Issued Nov 2012
FRS 102 FRS applicable in
the UK & ROI FRED 48
SS Operational standard derived from IFRS for
MEs List of disclosure exemptions from this FRS for ‘qualifying entities’
Issued Mar 2013
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Which framework can I apply?
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Consolidated or individual accounts?
Consolidated Individual
EU-IFRS mandated? Qualifying entity?
Yes No No Yes
EU-IFRS with full disclosure
FRS 102 with full disclosure
FRS 101 FRS 102 with reduced
disclosure
(EU-IFRS with reduced
)disclosure)
Consistency rules under the Companies Act 2006
■ Unless there are, in the opinion of the directors, good reasons for not doing so, all UK subsidiary companies, where a UK parent prepares consolidated accounts, must follow a consistent accounting framework, being either:
IAS accounts EU-IFRS
Companies Act accounts
FRS 102 FRS 101 FRSSE
■ This means that qualifying companies can elect to apply FRS 102 or FRS 101 on a company-by-company basis.
■ Early adoption can also be applied on a company-by-company basis.
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PLC Consol – EU-IFRS
Individual – FRS 101 Individual – Early adopt
Sub 1 Individual – FRS 101
Individual Individual – Early Early adopt adopt
Sub 2 FRS 102
Adopt Adopt y/e y/e 31 31 DDec ec 2015 2015
Sub 3 FRS FRS 101 101
Adopt y/e 31 Dec 2015
Sub 4 FRS FRS 102 102
Adopt y/e 31 Dec 2015
Sub 5 FRS 101 FRS 101
Early adopt
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Timeline for adoption
TheThe mandatorymandatory timeframetimeframe forfor 3131 DecemberDecember yearyear ends:ends:
Comparative balanceTransition dateTransition date sheet datesheet date First reporting dateFirst reporting date
March2013 31 December 2013 31 December 2014 31 December 2015
Early adopy ption is available...
...BUT transition date may have already passed
ste s & te a co t o s
Financial covenants and other
t t t t t t
Why think about conversion now?
The table below highlights a number of reasons why companies should be considering the impact of conversion now
Area Potential impact
Choice of FRS 102 or EU-IFRS ■ The advantages and disadvantages of both alternatives will need to be considered − How will the accounting alternatives affect earnings, distributable reserves and taxation? − Impact of the consistency rules under the Companies Act 2006
Distributable profits ■ Adoption of EU-IFRS/FRS 102 may introduce volatility in distributable profits ■ Change in accounting policies may create dividend traps ■ Actions to mitigate effects of any traps at the ‘dividend block level’ will need to be considered
Taxable profits & tax planning ■ Existing tax planning may need to be unwound g p g y ■ New tax planning may be required ■ Certain tax elections may be required
Systems & internal controlsSy ■ Systems will need to be updated to calculate EU-IFRS/FRS 102 compliant data ■ Budgeting and management accounting processes will be affected
Training & resource ■ Accounting staff and non-accounting staff will need to be trained in the relevant requirements of EU-IFRS/FRS 102
Financial covenants and other KPIs
■ Impact on interest cover ratios and other KPIs will need to be considered ■ Financial covenants may need to be re-negotiated
Performance-related remuneration schemes
■ Potential implications for performance-related remuneration schemes will need to be considered
Hedge accounting IAS 39 d FRS 102 i h h d d i i d d ti b l b h■ IAS 39 and FRS 102 require the hedge designation and documentation to be complete by the date of transition for hedge accounting to be effective from that date
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Key GAAP differences
Business combinations
Tax Financiali t tinstruments
Operating leases
Foreign exchange
Defined benefit pension schemes
Development costs
Investment properties
Borrowing costs
Goodwill – Christine Hood
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Goodwill
New standards EU-IFRS - goodwill is not amortised FRS 102 - goodwill amortised over finite useful life; default is 5 years
Purchase of goodwill in an accounting period where new standards adopted Tax relief - amortisation per accounts or 4% straight line bases, if election made Choice of standard very significant
Purchase of goodwill before adoption - transition issues On adoption of FRS 102, do not expect amortisation rate to change If EU-IFRS is adopted, tax relief available only if 4% election has been made (unless impairment) If EU-IFRS is adopted, there is an effective clawback of the previous year’s amortisation, if no
4% election has been made On adoption of new standards, what was “goodwill” under old UK GAAP may be recognised as
goodwill plus other speciific assets eg customer lists, which may be amortised at different rates in the accounts
Goodwill
Inf ormati on nee e d d o t decid e w eh t er h t o mak e a 4 e% lecti on f or e.g. a 2011 I f ti d d t d id h th t k 4% l ti f 2011 acquisi iti ition of goodwill Which standard will be adopted? Will i t be adopted early? Will new UK GAAP recognise separate assets rather than just goodwill, and what values
will be attributed to them? What rate of amortisation will be applied to goodwill and to any assets recognised
separately?
The time limit for making the 4% election is not extended. Making the 4% election can affect the total relief available, not just the timing.
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Forex, loans and derivatives - Kashif Javed
Foreign exchange
FForeiign exchhange Reminder of rules on taxation for foreign exchange Change in functional currency Designated currency election SSAP 20 forex matching for liabilities and interaction with Disregard regulations Loans accounted for as permanent as equity
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Loan relationships – taxation of foreign exchange differences
Scope ― Loan relationships ― Other money debts, e.g. trade debts
Tiiming and basis of recognition ― Taxable when recognised in GAAP compliant accounts ― Basic rule is that taxable profits are calculated in sterling ― However , if the functional currency of the company is not sterling then then the taxable
profits are, broadly, calculated in that functional currency
This is subject to the following ― Forex recognised in reserves ― Disregard regulations ― General transfer pricing rules (Part 4 TIOPA) do not apply to forex (section 447(5) CT A
2009) ― Non arm’s length rule assets and liabilities (sections 447/449 CT A 2009) ― Anti avoidance provisions
Change in functional currency
Accounting Transition to IFRS, FRS 101 or FRS 102 may result in a change in functional currency This is due to the requirement to consider whether or not an entity is autonomous when
determining the functional currency New GAAP functional currency may already of been determined on consolidation –
scope to change?
Tax Change in functional currency followed for tax – may introduce tax on forex profits and
losses where previously none
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Functional currency company Example
UK Holdco Ltd UK Holdco Ltd
UK Finco US Holdco
$
Loan
US Traders
Background UK Fi nco has made a US d enominated
loan to US sub-group UK Finco is not naturally hedged
Tax treatment If UK Finco has a US $ functional
currency, no exchange differences recognised for accounts/tax
If UK Finco has a £ functional company, exchange differences recognised on loan for accounts and hence tax
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Changes to functional currency in accounts – anti avoidance
Forex gains or losses on loans/derivatives in the period of transition are not taxable or deductible
Aim – prevent use of hindsight to recognise losses Not a test of purpose
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Functional currency: $ £ £ AP1 AP2 AP3
$ assets $ assets
$ assets
No forex No forex Forex
Designated foreign currency election
Scope – InvestmenInvestment t companycompany – Relevant for accounts based taxable profits
Effect of the election – Prepare profit and loss account/balance sheet in designated currency – Taxable exchange differences determined in designated currency
Conditions Significant assets/liabilities condition
A currency may be designated where a significant proportion of the assets and liabilities are denominated in the currency
– Meaning of “significant” – HMRC apply a “sensible” approach Consolidation condition
– Elect to use the functional currency of a parent company (broadly) into which the relevant company’s results are consolidated
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Designated foreign currency election Example
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UK Holdco Ltd UK Holdco Ltd
UK Finco US Holdco
$
Loan
US Traders
UK Finco’s only asset is US $ loan to US Holdco
UK Finco prepares its accounts in sterling UK Finco elects to prepare its tax
computations in US $ Profit and loss account/balance sheet
prepared in US $ (for tax purposes only) No forex on US $ loans in these tax accounts No taxable forex differences But, exchange differences in the accounts will
impact on the distributable profits
Foreign exchange matching - liabilities
HoldcoHoldco
€ debt Sub-
holdco
€ shares
Euro sub-group
UK GAAP SSAP 20 SSAP 20 allows reserve accounting for forex differences
on € liability and shares
Forex on liability taxable on disposal of shares (subject to SSE)
IFRS , FRS 101 or FRS 102 IFRS FRS 101 or FRS 102 Reserve accounting for forex not permitted in individual
company accounts Disregard regulations provide for similar tax treatment
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Foreign exchange matching - liabilities
Overview Disregard regulations - regulation 3 (loans) and regulation 4 (derivatives)
Effect of applying, same as under SSAP 20 ― Exchange gains and losses on the Euro derivative/loan liability are not brought into account for tax
purposes ― Disregarded amounts are brought into account on disposal of the shares, subject to SSE
Con tditiC di i ons ― Designated hedge of exchange rate risk e.g. Euro shares and Euro derivative/loan: or ― Company intends to eliminate/reduce the forex risk of holding the Euro shares by entering into or
continuing to be subject to the Euro loan
Extent of matching limited to the carrying value of Euro shares ― Value shown in the accounts of the company (i.e. as under SSAP 20) ― Or, if higher, the Euro net asset value underlying the shares. But only if an election is made within 30
days of the start of the first period Regulation 3 or 4 applies to
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Foreign exchange matching - liabilities
Holdco
€ liab Sub-
holdcoholdco
€ shares
Euro sub-group
Issues Disregard regulations only for debts which are loan
relationships e.g. not consideration for shares left outstanding
Only relevant for waters’ edge company? Document intention contemporaneously Deadline for regulation 4A election has passed?
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Debt permanent as equity – no exchange differences recognised
UK Parent
Non sterling loan
Overseas Subsidiary
Accounting UK GAAP (SSAP 20) - loans from a parent to a subsidiary may be treated as permanent as equity if
loan is not expected to be repaid in foreseeable future Loan accounted for at historic rate of exchange New GAAP - foreign currency loans will be retranslated at each balance sheet date with foreign
exchange movements taken to P&L
Tax – going forward Exchange differences on loan asset are taxable/allowable Move loan to new company and make a designated currency election?Tax – transition gain or loss Taxable/deductible (probably subject to spreading) Foreign exchange gain on transition anticipated - consider options to shelter gain Foreign exchange loss on transition is anticipated consider - options to crystallise the loss
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Initial recognition and measurement of loans and derivatives
RecognitiR i on anti dd measurementt New GAAP accounting terminology Disregard regulations and derivatives Interest free term loan
Loans and derivatives - initial recognition and subsequent measurement under IFRS and FRS102
Initial recognitionInitial recognition All financial assets and financial liabilities, including derivatives, should be recognised on the balance sheet at fair value
Subsequent Subsequent measurementmeasurement Loans – typically measured at amortised cost (similar to accruals accounting) Derivatives – fair value
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Disregard regulations and derivatives - summary
Background
Accounting for derivatives at fair value can give rise to cash tax volatility
Effect of Disregard regulations is, broadly, that derivatives are taxed as though old UK GAAP continued to apply where -
• derivative accounted for at fair value and intended to act as a hedge• hedged item is not accounted for/taxed on fair value basis, e.g. loans, future purchases/sales of currency/commodities
Points to consider
• Issue is well understood even if rules themselves are complex• No short cuts!• Systems required to manage compliance process• Contract and hedged item must be in the same company – use back to back contracts?• Elections can be made to modify application of the Disregard regulations – must be made on time
C & d de d ece ed 0
Measurement of intra-group low-interest and interest free loans
Parent company
Subsidiary
Transaction
Subsidiary lends parent company £100, interest free and repayable in 5 years. At the date of issue, the fair value of the instrument is £80.
Parent company
Dr Cash 100
Cr Intercompany payable 80
Cr P&L – dividend received 20
Subsidiary
Dr Intercompany receivable 80
Dr Equity – distribution 20
Cr Cash 100
Subsidiary requires distributable reserves.Subsidiary requires distributable reserves.
Tax
What taxable profits and losses are recognised?
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Overview of key issues
A ccounti ng i mpact t of new UK GAAP A ti i UK GAAP Different profits are recognised (eg change in functional currency) Same profits are recognised but in different accounting statements (eg forex matching) Profits (or losses) now recognised (eg permanent as equity loans)
Tax impact Cash tax volatility going forward Impact of transitional adjustments
Actions Need to consider in 2013 No short cuts Restructure (eg document loans, move loans) Make elections on time Put in place systems to produce numbers for the computations
Deferred tax – Neil Henderson
Deferred tax
■
■
Deferred tax methodology
■ TTee mporary mporary d difference ifference approach (EU-IFRS) Timing difference plus approach (FRS 102)
Profit for the year Training ■
■
■
■
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■
Key Differences
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■
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Discounting Revaluations Business Combinations Disclosures
WhWh att can I I dd o now?
Make apppproppriate tax electionsReview current tax planning Consider new tax planning
Thinking about conversion - Peter Scholes
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Next steps
WhWhatt shhouldld II ddo now??
Assess potential conversion impacts
Feed into wider conversion project
ConsidC i er id impact on pending transactions
Consider early adoption
Issues of transition – consider representations
Contacts
Nick Chandler Partner Accounting Advi isory Services Accounting Adv sory Services 020 7311 4443
Christine Hood Director I t lInternati tiona T l Tax and T d Treasury
0121 232 3381
Kashif Javed Director International Tax and Treasuryy 020 7311144 1
Neil Henderson Head of Audit and Accounting Related Tax Services 020 7694 3466 [email protected]
Sarah Hughes Senior Manager Accountingg Advisoryy Services 020 7694 3212
Peter Scholes Partner Internationa l Tax and Treasury International Tax and Treasury 020 7311 8343
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Appendix 1
Some other key GAAP differences & tax issues
■ ■
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36
Operating leases
Guaranteed increases in rentals and
leaselease incentivesincentives
Spread over lease term (EU-IFRS and FRS 102)
P&L P&L Distributable reserves Taxation
Tax impact Potentially tax relief for transitional adjustment Tax relief for rental deductions is accelerated
115 745
115 86
115 975
Example: Operating leases – guaranteed rent increase
An operating lease for a building runs for 10 years. The cost per annum is 100 with a 15% increase in year 5. Transition to FRS 102 or EU-IFRS at the end of year 4. First year of FRS 102 or EU-IFRS accounts is year 5.
GAAP AP
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Cash paid Current UK annual
Current UK GAcumulative
FRS 102 annual
FRS 102 cumulative
Year 1 100 100 100 109 109
Year 2 100 100 200 109 218
Year 3 100 100 300 109 327
Year 4 100 100 400 109 436
Year 5 115 115 515 109 545
Year 6 Year 6 115 115 115 115 630630 109 109 654654
Year 7 115 109 763
Year 8 115 109 872
Year 9 115 109 981
Year 10 115 115 1,090 109 1,090
TOTAL 1,090 1,090 1,090
0Transition adjustment
expense of 36 expense of 36
100 600
100 700
800
Example: Operating leases – lease incentive
An operating lease for a building runs for 10 years. The cost per annum is 100 with a rent free period for the first year. There is a break clause at the end of year 5.
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Cash paid Current UK GAAP annual
Current UK GAAP cumulative
FRS 102 annual
FRS 102 cumulative
Year 1 - 80 80 90 90
Year 2 100 80 160 90 180
Year 3 100 80 240 90 270
Year 4 100 80 320 90 360
Year 5 100 80 400 90 450
Year 6 Year 6 100 100 100 100 500500 90 90 540540
Year 7 100 90 630
Year 8 100 90 720
Year 9 100 100 90 810
Year 10 100 100 900 90 900
TOTAL 900 900 900
Transition adjustment
expense of 40 expense of 40
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■
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Software
Reclassification ■ Certain ■ software Certain reclassified software reclassified
from PPE to intangibles on transition (EU-IFRS and FRS 102)
Taxation
Tax impact Additional R&D tax credits may be available T ax deductions may be accelerated
Wh t I d What can I do now?
Determine whether expenditure is capital or revenue in nature and determine if additional R&D tax credits are available
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Reclassification of software
Possible transitional adjustmentadjustment
Current UK EU-IFRS FRS 102 GAAP GAAP
Development costs Accountingpolicy choice to capitalise as intangible (if criteria met) or expense
Capitalise asintangible if criteria met
Accounting policy choice to capitalise as intangible (if criteria met) or expense
Operating system g y Capitalise as part of hardware
Capitalise as part of hardware
No specific guidance – assume IFRS approach will be acceptable
Additional software Additional software acquired
Practice has been to capitalise as part of hardware
Capitalise as Capitalise as intangible
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41
Reclassification of software
On transition to EU-IFRS certain software assets could be reclassified from tangible to intanggible.
Tax impact Tax impact
Capital allowances can be claimed on software included in intangibles, but this requires an election under s815 CTA 2009 (this must be made within 2 years of the requires an election under s815 CT A 2009 (this must be made withi n 2 years of the end of the AP in which the expenditure was incurred).
There might be an issue where transition highlighted that expenditure on software
h b had incorrectly
d been taken to tangible assets, in which case s815 elections should
have been made.
Also where the expenditure is revenue for R&D purposes, s1308 allows a claim on an incurred basis for intangible assets, whereas for software costs taken to property, plant and equipment, the R&D revenue claim is on a depreciation basis.
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■
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Defined benefit pension schemes
Group schemes
No multi-employer exemptiti on ff or group schemes – deficit or surplus on at least one individual company balance sheet (EU-IFRSIFRS an d d FFRS RS 102) 102)
Distributable reserves
What can I do now? now?
Determine policy to allocate pension cost Restructure to reduce the risk of dividend blocks
Create/realise Create/realise aadditional dditional rreserves eserves Communicate with stakeholders
Example: Defined benefit plan brought on to a company balance sheet
Under current UK GAAP, no DB pplan on anyy individual company balance sheet:
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Parent PENSION SPONSOR Net assets
100
Sub. 1 Sub. 2 Net assets 20 Net assets 30
Sub. 3 Sub. 4 Net assets 80 Net assets 40
Under FRS 102 and EU-IFRS the DB plan must be brought onto at least one individual company’s BS:
Pension liability = Pension liability =120
Parent now has net liabilities ofnet liabilities of 100 – 120 = 20 And is no longer
able to pay out able to pay out dividends
Appendix 2
Deferred tax – summary of key differences
12
Deferred tax summary of key differences (1)
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Difference FRS 19 FRS 102 IAS
Discounting Allowed Not allowed Not allowed
Revaluations No provision to be made unless binding agreement to sell
Deferred tax provided Deferred tax provided
Rolled over gains
No provision to be made unless binding agreement to sell
Deferred tax provided Deferred tax provided
Industrial buildings / Non qualifying
No deferred tax to provide
No deferred tax to provide Deferred tax to provide
Deferred tax summary of key differences (2)
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Difference FRS 19 FRS 102 IAS 12
Retained earnings of subsidiaries, JVs and associates
No provision unless dividends have been accrued or there is a binding agreement to distribute
Provide unless can control timing of reversal and no reversal probable
in the foreseeable future
Provide unless can control timing of reversal and no reversal probable in the foreseeable future
Business combinations
Deferred tax should only be provided where it would be recog nised if the fair value adjustments were timing differences arising in the acquired entity’s financial statements
Where the amount attributable for tax purposes to assets and liabilities other than goodwill acquired in a business combination are different to their fair values deferred tax shall be recognised
Deferred tax should Deferred tax should always be provided on the difference between fair value and tax base of identifiable assets and liabilities acquired in a business combination
(subject to non tax (subject to non tax deductible goodwill)
Deferred tax summary of key differences (3)
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Difference FRS 19 FRS 102 IAS 12
Differences arising frre-measurement of non monetary assets from local currency to functional currency
om No deferred tax as this is not a timing difference
No deferred tax as this is not a timing difference
This results in a temporary difference on which deferred tax should be recognised
Profit or losses arising on intra group transactions that are eliminated on consolidation
eD f d t h ld D ferred tax should be provided based on the selling company tax p y rate
eD f d t h ld D ferred tax should be provided based on the selling company tax p y rate
D f d t h ld Deferred tax should be provided based on the buying company tax rate p y
Deferred tax summary of key differences (4)
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48
Difference FRS 19 FRS 102 IAS 12
Tax base of goodwill greater than book basis of goodwill at the date of acqq uisition
No deferred tax as this is not a timing difference
No deferred tax because the proposed standard excludes goodwill when providing deferred tax on business combinations
Deferred tax asset is recognised
Share options Deferred tax is based on intrinsic value at the balance sheet date capped at the
b d cumulative share
ti based compensation expense
Deferred tax is based on intrinsic value at the balance sheet date capped at the
b d cumulative share
ti based compensation expense
Deferred tax is based on intrinsic value at the balance sheet date with excess over cumulative share based
ticompensation expense recognised in equity
Deferred tax summary of key differences (5)
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Difference FRS 19 FRS 102 IAS 12
Measurement of deferred tax
No specific comment
Deferred tax on a non depreciable asset using the revaluation model or an investment property that is not a depreciable investment property shall provide deferred tax based on tax rates that apply to
the s ale o f the asset the sale of the asset
Deferred tax assets and liabilities are measured based on the expected manner of recovery (asset) or settlement
Tax reconciliation
Reconcile to current tax
Reconcile to total tax
Disclosure of expected net reversals of deferred tax balances in the next year
Reconcile to total tax
Appendix 3
GAAP conversion project outline
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GAAP conversion project stage timeline
Business as usual
Assess – stage 1 Design – stage 2 Implement – stage 3
Design stage next steps:
■ Choose accounting framework and confirm accounting policy choices.
■ Prepare accounting papers, including hedge accounting documentation.
■ Determine possible actions to mitigate volatility of results in profit and loss and distributable reserves.
■ Conduct detailed assessment of potential tax consequences.
■■ ConsiderConsider trainingtraining requirementsrequirements.
■ Plan any changes to current systems and processes e.g. choice of framework may drive additional data collection.
■ Assess the impact on debt covenants.
Implementation stage next steps:
■■ ImplementImplement anyany restructuring.restructuring.
■ Implement changes to processes e.g. around hedge accounting.
■ Implement any planned system changes for GAAP conversion.
■ DetD termiine ttransitiitional jl journall entrt iies.
■ Prepare disclosures including transitional requirements.
■ Populate statutory accounts.
Today:April 2013 Spring/Summer 13
Transition date:31 Dec 13
Comparative balance sheet date:31 Dec 14
First reporting date:31 Dec 15
Assess stage output
A report which identifies:
■ Key recognition and measurement differences;
■ Accounting policy choices and first-time adoption options available; and
■ Practical implications of each GAAP difference –identifying challenges e.g. relating to systems and processes and also potential opportunities e.g. tax, disttributable reserves or adopting early/delaying.
Workshop to discuss findings.
Design stage output
■ A detailed project implementation plan which defines the phases and work streams, including a timetable for transition.
■ Accounting papers to support decisions.
■ Technical accounting training.
■ Identification of resource needs.
Implementation stage output
■ Restated accounts compliant with EU-IFRS, FRS 101 or FRS 102 as at 31 December 2015.
Potential impact of conversion – Tax issues/opportunities
Assess Design Implement Sustain Business as usual
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A change in accounting standards in subsidiary accounts has possible current and deferred tax implications implications
The starting point for the tax computation of an individual entity is the profit before tax; whether the accounts are prepared under EU-IFRS or UK GAAP (current and FRS102)
When converting from current UK GAAP, the key steps that should be followed for tax are: • Identify the accounting adjustments that effect current tax • For the accounting adjustments that do not effect current tax, identify whether any deferred tax should be provided • Identify the “pure” deferred tax adjustments in adopting the new accounting standards • Identify the tax treatment of the transitional adjustments
What is the potential tax impact of conversion?
• Dependent on whether EU -IFRS or FRS102 adopted • Different basis of calculation – temporary difference (EU-IFRS) and timing difference-plus (FRS102) • Acquisition accounting and deferred tax on fair values • Goodwill – impaired under EU-IFRS • Potential change in functional currency? • Any debt treated permanent as equity under UK GAAP? • Hedging instruments and hedged item in different entities • Net investment hedging • Loans not at market rate • Operating leases • Disclosure requirements differ • Will need to understand and appropriately tax all “above the line ” GAAP conversion adjustments
The impact assessment needs to consider both EU-IFRS and FRS102 – obtaining potential benefits and mitigating potential costs should be possible through adopting different standards in different entities
Does the current system capture required data?
© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
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