Accounting for Income Taxes and Losses

E Activity:Go to the International Financial Reporting Standards (IFRS) Website to review authoritative guidance on accounting for income taxes, located at http://www.ifrs.org. Note: In the search engine, type in “accounting for income taxes”. Be prepared to discuss

In a short answer form, From the e-Activity, compare and contrast the key similarities and differences

between GAAP and IFRS with respect to income tax accounting. Analyze two (2) tax

differences and determine which difference would provide the greatest tax

benefit to a corporation. Write a brief memo to the International Accounting

Standards Board (IASB) that will convince the board to adopt the tax method that

provides the greatest tax benefit to corporations.

• Differentiate between a loss carryback and loss carryforward. Explain the way in which carrybacks and carryforwards affect the reporting of deferred tax assets and deferred tax liabilities. Provide one (1) example, situation, or scenario of this affection to support your response