IDEAS home Printed from https://ideas.repec.org/p/zbw/arqudp/50.html
   My bibliography  Save this paper

Steuerliche Wertansätze als zusätzliche Information für unternehmerische Entscheidungen? Eine Auswertung von IFRS-Abschlüssen der deutschen DAX-30- und der österreichischen ATX-Unternehmen

Author

Listed:
  • Kager, Rebekka
  • Knirsch, Deborah
  • Niemann, Rainer

Abstract

Although tax values of corporate assets and liabilities can be relevant for economic decisions, they are typically unknown to financial statement users. Tax values permit to conduct empirical studies about exercise of IFRS and tax options. Furthermore, the level of tax loss carryforwards and tax credits is essential for the valuation of a company. Tax values can serve as additional criteria in the analysis and assessment of a company. For instance, they can be used as a benchmark for assessing the earnings quality of financial statements or they can help to improve forecasts of companies' future earnings. As long as financial statements were based on national Austrian and German GAAP, financial statement users were not provided with information about tax values of corporate assets and liabilities. In contrast, IFRS-based financial statements provide extensive information concerning deferred taxes (IAS 12), which can be used for empirical analyses and for detailed derivations of corporate tax values. This paper suggests an approximation of tax values. The approach is especially based on segment reporting in accordance with IAS 14, published lists of subsidiaries and statement of deferred taxes according to IAS 12.81 lit g. Analyses of German DAX30 and Austrian ATX listed companies indicate that tax values of provisions for uncertain liabilities, especially liabilities for pensions, are usually lower than IFRS book values. This result is of particular importance for business valuation. If a company is valued based on IFRS book values of provisions, tax shields will be overestimated. The study also shows the quality of estimated tax loss carryforwards, which typically do not differ significantly from the actual total stock of tax loss carry-forwards.

Suggested Citation

  • Kager, Rebekka & Knirsch, Deborah & Niemann, Rainer, 2008. "Steuerliche Wertansätze als zusätzliche Information für unternehmerische Entscheidungen? Eine Auswertung von IFRS-Abschlüssen der deutschen DAX-30- und der österreichischen ATX-Unternehmen," arqus Discussion Papers in Quantitative Tax Research 50, arqus - Arbeitskreis Quantitative Steuerlehre.
  • Handle: RePEc:zbw:arqudp:50
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/30863/1/607979372.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mills, Lillian F. & Plesko, George A., 2003. "Bridging the Reporting Gap: A Proposal for More Informative Reconciling of Book and Tax Income," National Tax Journal, National Tax Association;National Tax Journal, vol. 56(4), pages 865-893, December.
    2. Shackelford, Douglas A. & Shevlin, Terry, 2001. "Empirical tax research in accounting," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 321-387, September.
    3. Plesko, George A., 2004. "Corporate Tax Avoidance and the Properties of Corporate Earnings," National Tax Journal, National Tax Association;National Tax Journal, vol. 57(3), pages 729-737, September.
    4. Hanlon, Michelle, 2003. "What Can We Infer About a Firm’s Taxable Income From Its Financial Statements?," National Tax Journal, National Tax Association;National Tax Journal, vol. 56(4), pages 831-863, December.
    5. Lenter, David & Slemrod, Joel & Shackelford, Douglas A., 2003. "Public Disclosure of Corporate Tax Return Information: Accounting, Economics, and Legal Perspectives," National Tax Journal, National Tax Association;National Tax Journal, vol. 56(4), pages 803-830, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hanlon, Michelle & Laplante, Stacie Kelley & Shevlin, Terry, 2005. "Evidence for the Possible Information Loss of Conforming Book Income and Taxable Income," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 407-442, October.
    2. Hanlon, Michelle & Heitzman, Shane, 2010. "A review of tax research," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 127-178, December.
    3. Michelle Hanlon & Terry Shevlin, 2005. "Bank-Tax Conformity for Corporate Income: An Introduction to the Issues," NBER Working Papers 11067, National Bureau of Economic Research, Inc.
    4. Michelle Hanlon & Terry Shevlin, 2005. "Book-Tax Conformity for Corporate Income: An Introduction to the Issues," NBER Chapters, in: Tax Policy and the Economy, Volume 19, pages 101-134, National Bureau of Economic Research, Inc.
    5. George A. Plesko, 2007. "Estimates of the Magnitude of Financial and Tax Reporting Conflicts," NBER Working Papers 13295, National Bureau of Economic Research, Inc.
    6. Jeffrey L. Coles & Elena Patel & Nathan Seegert & Matthew Smith, 2022. "How Do Firms Respond to Corporate Taxes?," Journal of Accounting Research, Wiley Blackwell, vol. 60(3), pages 965-1006, June.
    7. Monterrey Mayoral, Juan & Sánchez Segura, Amparo, 2014. "Compensación fiscal de pérdidas: Determinantes de su activación, impacto en las cuentas anuales y aprovechamiento de los créditos," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 17(1), pages 17-29.
    8. Graham, John R. & Raedy, Jana S. & Shackelford, Douglas A., 2012. "Research in accounting for income taxes," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 412-434.
    9. Poterba, James M. & Rao, Nirupama S. & Seidman, Jeri K., 2011. "Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes," National Tax Journal, National Tax Association;National Tax Journal, vol. 64(1), pages 27-57, March.
    10. Bokulic, Caitlin & Henry, Erin & Plesko, George A., 2012. "Reconciling Global Financial Reporting With Domestic Taxation," National Tax Journal, National Tax Association;National Tax Journal, vol. 65(4), pages 933-959, December.
    11. Mihir A. Desai, 2005. "The Degradation of Reported Corporate Profits," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 171-192, Fall.
    12. Jordi Caballé & Ariadna Dumitrescu, 2016. "Disclosure of Corporate Tax Reports, Tax Enforcement, and Insider Trading," Working Papers 911, Barcelona School of Economics.
    13. Abdul Wahab, Nor Shaipah & Holland, Kevin, 2012. "Tax planning, corporate governance and equity value," The British Accounting Review, Elsevier, vol. 44(2), pages 111-124.
    14. Jennie Cho & Jilnaught Wong & Norman Wong, 2006. "Book‐Tax Differences and Inland Revenue Audit Adjustments in New Zealand," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(9‐10), pages 1650-1667, November.
    15. Jaafar, Aziz & Thornton, John, 2015. "Tax Havens and Effective Tax Rates: An Analysis of Private versus Public European Firms," The International Journal of Accounting, Elsevier, vol. 50(4), pages 435-457.
    16. Hope, Ole-Kristian & Ma, Mark (Shuai) & Thomas, Wayne B., 2013. "Tax avoidance and geographic earnings disclosure," Journal of Accounting and Economics, Elsevier, vol. 56(2), pages 170-189.
    17. Desai, Mihir A. & Dharmapala, Dhammika, 2006. "Corporate tax avoidance and high-powered incentives," Journal of Financial Economics, Elsevier, vol. 79(1), pages 145-179, January.
    18. Graham, John R. & Mills, Lillian F., 2008. "Using tax return data to simulate corporate marginal tax rates," Journal of Accounting and Economics, Elsevier, vol. 46(2-3), pages 366-388, December.
    19. Flagmeier, Vanessa & Müller, Jens & Sureth-Sloane, Caren, 2017. "When do managers highlight their effective tax rate?," arqus Discussion Papers in Quantitative Tax Research 214, arqus - Arbeitskreis Quantitative Steuerlehre.
    20. Lampenius, Niklas & Shevlin, Terry & Stenzel, Arthur, 2021. "Measuring corporate tax rate and tax base avoidance of U.S. Domestic and U.S. multinational firms," Journal of Accounting and Economics, Elsevier, vol. 72(1).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:arqudp:50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: http://www.arqus.info/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.