Abstract
The article examines the latest changes in RSA 18/02 "Accounting for corporate income tax payments", adopted by order of the Ministry of Finance of the Russian Federation. The new version of the Regulation comes into effect since January 01, 2020. As a result of the study, the authors revealed a convergence of Russian standards for determining temporary differences and deferred taxes, and at the same time indicated differences that still remained, and also assessed the existing differences. The authors considered it appropriate to systematize new principles for calculating deferred income taxes. For clarity, the definitions of current tax, net profit and other concepts, calculations of current tax and income tax expenses are presented in the form of formulas that can be easily compared with a previously existing methodology. The results of the study can be used when transforming financial statements, as well as in the construction of the consolidated financial statements generated in Russia in accordance with the requirements of IFRS, since the latest amendments in RSA 18/02 include the calculation of income tax for members of a consolidated group of taxpayers.
Highlights
IntroductionIn commercial organizations, whose primary purpose is to make a profit, the issue of reflecting income taxes in financial statements is of particular relevance, since there are often situations with discrepancies in accounting and tax profits, which lead to temporary differences and deferred taxes
In commercial organizations, whose primary purpose is to make a profit, the issue of reflecting income taxes in financial statements is of particular relevance, since there are often situations with discrepancies in accounting and tax profits, which lead to temporary differences and deferred taxes.By order of the Ministry of Finance of Russia dated November 20, 2018 No 236n (Order of the Ministry of Finance of Russian Federation, 2018), fundamental changes were made to the accounting procedure for income tax payments, established by RSA 18/02
The changes adopted in the procedure of accounting for corporate income tax payments resulted in adjustments in the financial statements, which were confirmed in Order of the Ministry of Finance of Russia dated April 19, 2019
Summary
In commercial organizations, whose primary purpose is to make a profit, the issue of reflecting income taxes in financial statements is of particular relevance, since there are often situations with discrepancies in accounting and tax profits, which lead to temporary differences and deferred taxes. By order of the Ministry of Finance of Russia dated November 20, 2018 No 236n (Order of the Ministry of Finance of Russian Federation, 2018), fundamental changes were made to the accounting procedure for income tax payments, established by RSA 18/02. The changes adopted in the procedure of accounting for corporate income tax payments resulted in adjustments in the financial statements, which were confirmed in Order of the Ministry of Finance of Russia dated April 19, 2019 No 61n 61н (Order of the Ministry of Finance of Russian Federation, 2019). Both orders come into force with the financial statements for the year 2020. The ability to correctly reflect the components of tax accounting is extremely important to form reliable financial statements and their control, since the complexity of the mechanism for calculating deferred taxes inevitably entails the use of various manipulations in the desire to intentionally distort the reported indicators of profit, revenue, tax expenses and other indicators for dishonest purposes
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