Taxing GAAP and IFRS
- CHAPTER 1 INTRODUCTION
- 1.1 SECTION 48 FINANCE ACT 2005 AND DEFINITION OF GAAP
- 1.2 CONVERGENCE ISSUES - IRISH GAAP MOVING TOWARDS IFRS
- 1.3 THE PREVIOUS APPROACHES TO IFRS IN THE UK
- 1.4 ACCOUNTING BODIES REFERRED TO IN THIS TEXT
- 1.4.1 Accounting Standards Board (ASB)
- 1.4.2 Urgent Issues Task Force (UITF)
- 1.4.3 International Accounting Standards Board (IASB)
- 1.4.4 International Financial Reporting Interpretations Committee (IFRIC)
- 1.5 SAMPLE FINANCIAL STATEMENTS
- CHAPTER 2 INTERPRETATION OF SECTION 76A
- 2.1 APPLICABLE ACCOUNTING STANDARDS
- 2.2 INTRODUCTION
- 2.3 WHAT CONSTITUTES A TRADE?
- 2.4 ACCOUNTING ENTRIES VIS-À-VIS ACCOUNTING PRINCIPLES
- 2.5 IRISH CASE LAW PRIOR TO SECTION 76A TCA
- 2.5.1 Whimster & Co v CIR
- 2.5.2 Cork & County Property Company
- 2.5.3 Carroll Industries
- 2.5.4 First Report of the Commission on Taxation - Direct Taxation - July 1982
- 2.6 SECTION 76A
- 2.6.1 Economic Substance vis-à-vis legal substance
- 2.6.2 Interpretation of Section 76A & the potential persuasiveness of Gallagher v Jones
- 2.6.3 Use of Interpretation Act 2005 in interpreting Section 76A
- 2.6.4 Revenue interpretation of Section 76A
- 2.6.5 Transitional arrangements
- 2.7 CONCLUSION
- APPENDIX REVENUE'S TRADING OPTIONS
- CHAPTER 3 FIXED ASSETS
- 3.1 APPLICABLE ACCOUNTING STANDARDS
- 3.2 INTRODUCTION
- 3.3 CAPITAL-REVENUE DISTINCTION
- 3.4 PRE-FA 2005 CAPITALISED EXPENDITURE
- 3.5 POST-FA 2005 CAPITALISED EXPENDITURE
- 3.5.1 Interest and research & development expenditure
- 3.5.2 Capitalised labour
- 3.5.3 Section 766 Type Expenditure i.e., “R&D Credit” Type Expenditure
- 3.5.4 Capitalised patent royalties
- 3.6 ACCOUNTING TREATMENT - IFRS
- 3.6.1 Fixed assets – Property, plant and equipment
- 3.6.2 Measurement after recognition
- 3.6.3 Capitalised interest
- 3.7 INTANGIBLE ASSETS
- 3.8 ACCOUNTING TREATMENT - IRISH GAAP
- 3.9 CONCLUSION
- CHAPTER 4 FINANCIAL INSTRUMENTS AND FINANCIAL TRANSACTIONS
- 4.1 APPLICABLE ACCOUNTING STANDARDS
- 4.2 INTRODUCTION
- 4.3 TAXATION OF FINANCIAL INSTRUMENTS
- 4.3.1 The law prior to Finance Act 2005
- 4.3.2 Section 76A as inserted by FA 2005
- 4.3.3 Section 76B TCA as inserted by FA 2005
- 4.4 DEFINITIONS REQUIRED FOR ANUNDERSTANDING OF ACCOUNTINGASPECTS TOGETHER WITH ADISCUSSION OF THEIR “MEANING”
- 4.4.1 Fair value
- 4.4.2 Financial asset
- 4.4.3 Financial liability
- 4.4.4 Equity instrument
- 4.4.5 Discussions of the above definitions
- 4.5 ACCOUNTING FOR FINANCIAL INSTRUMENTS - IFRS
- 4.6 SCOPE OF THE FINANCIAL INSTRUMENTS STANDARDS
- 4.6.1 Additional definitions
- 4.6.2 Initial Measurement
- 4.6.3 Ongoing measurement
- 4.6.4 How is “fair value” determined?
- 4.6.5 Types of financial Assets
- 4.6.6 Derivatives
- 4.6.7 Embedded derivatives
- 4.7 HOW IS THE DECISION MADE IN CONNECTION WITH ASSET DESIGNATION?
- 4.8 TYPES OF FINANCIAL LIABILITY
- 4.9 IMPAIRMENT OF FINANCIAL ASSETS
- 4.9.1 Reversal of impairment adjustments in the future
- 4.9.2 Tax implications for impairment and general bad debt provisions
- 4.10 HEDGE ACCOUNTING
- 4.10.1 Fair value hedge accounting model
- 4.10.2 Cash flow hedge accounting model
- 4.10.3 Summary of cash flow hedge
- 4.10.4 Hedge of a net investment in a foreign entity
- 4.10.5 Criteria for hedge accounting
- 4.10.6 Impairment of an asset that was hedged
- 4.10.7 Examples of hedge accounting
- 4.11 FOREIGN CURRENCY TRANSACTIONS AND INTERACTION WITH IAS 39
- 4.12 RECLASSIFICATION OF FINANCIAL ASSETS
- 4.13 PRESENTATION OF FINANCIAL INSTRUMENTS IN THE FINANCIALSTATEMENTS - DEBT-EQUITYDISTINCTION
- 4.14 IFRS7
- 4.15 SECURITISATIONS
- 4.16 ACCOUNTING FOR FINANCIAL INSTRUMENTS - IRISH GAAP
- CHAPTER 5 SHARE-BASED PAYMENTS
- 5.1 APPLICABLE ACCOUNTING STANDARDS
- 5.2 INTRODUCTION
- 5.3 TAXATION OF SHARE-BASED PAYMENTS
- 5.3.1 The law prior to Finance Act 2005
- 5.3.2 Section 81(2)(n) TCA as inserted by FA 2005
- 5.3.3 Section 81A TCA as inserted by FA 2005
- 5.4 DEFINITIONS REQUIRED FOR AN UNDERSTANDING OF ACCOUNTING ASPECTS
- 5.5 ACCOUNTING FOR SHARE-BASED TRANSACTIONS - IFRS 2
- 5.5.1 Equity settled transactions
- 5.5.2 Cash settled transaction
- 5.5.3 Share-based payment transactions with cash alternative
- 5.5.4 Accounting for share-based transactions – Irish GAAP
- 5.6 CONCLUSION
- CHAPTER 6 TRANSITIONAL ADJUSTMENTSAND PRIOR PERIODADJUSTMENTS
- 6.1 APPLICABLE ACCOUNTING STANDARDS
- 6.2 INTRODUCTION
- 6.3 PRE FA 2005
- 6.4 POST FA 2005 AND FA 2006
- 6.5 SCHEDULE 17A TCA - TRANSITIONAL MEASURES
- 6.5.1 Amounts receivable & deductible (non-specific)
- 6.5.2 Bad debts
- 6.5.3 Transitional measures (gains & losses in financial instruments)
- 6.6 SECTION 95A TCA AS INSERTED BY FA 2006
- 6.7 PRELIMINARY TAX CHANGES
- 6.8 COMMENCEMENT DATE
- 6.9 ACCOUNTING TREATMENT - IFRS
- 6.10 ACCOUNTING TREATMENT - IRISH GAAP
- CHAPTER 7 TRADING STOCK, LONG-TERMCONTRACTS ANDWORK-IN-PROGRESS
- 7.1 APPLICABLE ACCOUNTING STANDARDS
- 7.2 INTRODUCTION
- 7.3 LONG-TERM CONTRACTS
- 7.4 ACCOUNTING TREATMENT - IFRS
- 7.4.1 Inventories
- 7.4.2 Net realisable value
- 7.4.3 Fair value
- 7.4.4 Measurement of inventories
- 7.4.5 Costs of inventories of a service provider
- 7.4.6 Recognition as an expense
- 7.4.7 Construction Contracts
- 7.5 ACCOUNTING TREATMENT - IRISH GAAP
- 7.6 WORK-IN-PROGRESS AND UITF40
- CHAPTER 9 LEASING
- 9.1 APPLICABLE ACCOUNTING STANDARDS
- 9.2 INTRODUCTION
- 9.3 TAXATION OF LEASING
- 9.4 THE LAW PRIOR TO FINANCE ACT 2005
- 9.5 SECTION 76A TCA AS INSERTED BY FA 2005 &SECTION 76D AS INSERTED BY FA 2006
- 9.6 ACCOUNTING FOR LEASES
- 9.7 IAS17
- 9.7.1 Meaning of Finance Lease
- 9.7.2 Accounting treatment of Finance Leases by lessees
- 9.7.3 Accounting treatment of Finance Leases by lessees
- 9.7.4 Financial instruments
- 9.7.5 Operating leases
- SIC27 – Evaluating the substance of the transaction, involving the legal form of a lease
- 9.7.7 SSAP21
- 9.7.8 Operating lease
- 9.7.9 Hire purchase contracts
- 9.8 CONCLUSION
- APPENDIX
- CHAPTER 10 FOREIGN CURRENCY TRANSACTIONS
- 10.1 APPLICABLE ACCOUNTING STANDARDS
- 10.2 INTRODUCTION
- 10.3 THE LAW PRIOR TO FA 2005/2006
- 10.4 POST-FA 2005
- 10.5 FINANCE ACT 2006 AND SECTION 79B -FOREIGN CURRENCY MATCHING
- 10.5.1 Foreign currency assets
- 10.5.2 Relevant foreign currency liability
- 10.5.3 Rate of exchange
- 10.5.4 Purpose of Section 79B
- 10.5.5 Foreign currency share capital
- 10.6 ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS
- 10.6.1 IFRS - IAS21
- 10.6.2 Functional currency
- 10.6.3 Fair value
- 10.6.4 Closing rate
- 10.6.5 Exchange difference
- 10.6.6 Monetary items
- 10.6.7 Summary of the approach required by IAS21
- 10.6.8 Initial recognition of a foreign currency transaction
- 10.6.9 Reporting at subsequent balance sheet dates
- 10.6.10 Recognition of exchange differences
- 10.6.11 Monetary items
- 10.6.12 Presentation currency
- 10.7 FOREIGN BRANCHES
- 10.8 IRISH GAAP - SSAP20
- CHAPTER 11 INCOME RECOGNITION
- 11.1 APPLICABLE ACCOUNTING STANDARDS
- 11.2 INTRODUCTION
- 11.3 TAX TREATMENT
- 11.4 ACCOUNTING TREATMENT - IFRS
- 11.4.1 Definitions
- 11.4.2 Matters not covered by IAS18
- 11.4.3 Measurement of revenue
- 11.4.4 Sale of goods
- 11.4.5 Rendering of services
- 11.4.6 Interest royalties and dividends
- 11.4.7 Examples from appendix to IAS18
- 11.5 IRISH GAAP - FRS5
- APPENDIX I: STOCKLENDING AND REPO TRANSACTIONS - REVISED TAX TREATMENT
- APPENDIX II: STOCKLENDING AND REPO TRANSACTIONS