Accounting Information and Deferred Taxation: Evidence from Deposit Money Banks in Nigeria

Abstract

This study assesses the effect of accounting information on deferred taxation in Nigerian deposit money banks. The specific objectives are to; evaluate whether earnings per share has effect on deferred tax items of Nigerian deposit money banks and established how cash flow affected deferred tax items of Nigerian deposit money banks. Ex post Facto research design was adopted and the data were collected from annual reports and accounts of Nigerian deposit money banks. Pooled multiple regression analysis was employed to test the formulated hypotheses. Based on the analysis, the study found that earnings per share (EPS) and Cash flow (CASHFL) impact negatively on our dependent variable, deferred tax, but book value of equity impact was statistically significant while earnings per share (EPS) and Cash flow (CASHFL) impact were not statistically significant. The study therefore recommends among others that Since the basis of effectiveness of generating earnings (EPS) to retire deferred tax of the banks does not perform better as the analysis revealed should be should be ignored as a determinant of deferred tax in Nigeria.