Tax Accounting: Tax positions in the individual and consolidated financial statements

The accounting for current and deferred taxes in individual and consolidated financial statements (including reporting packages) according to Austrian GAAP (UGB), IFRS and US GAAP remains a challenge for many companies. Due to the high regulatory requirements regarding tax positions and the necessary disclosure in the notes to the individual and consolidated financial statements, many companies have increasingly focused on the topic of tax accounting.

A key issue of tax accounting is the calculation and recognition of current and deferred tax positions. In this context, issues such as the recognition and valuation of deferred taxes, tax planning calculations or tax rate reconciliation further increase the demands on the tax and accounting departments.

In addition to the standard compliance requirements for the recognition of current and deferred taxes in the individual and consolidated financial statements (including reporting packages), complex issues often arise regarding specific topics that require a particular review of deferred taxes – for example, the accounting of business combinations and restructurings or within tax groups.

Furthermore, the current and deferred taxes recognized in the reporting packages are now part of the Global Minimum Tax (Pillar II) calculation and a crucial factor when determining the amount of any additional tax (“top-up tax“). In this regard, they are also included in tax returns (GloBE information return, local QDMTT tax return). The recognition of deferred taxes can therefore lead to material effects.

We are happy to assist and advise you on all tax accounting matters to minimise risks and improve the quality of tax positions in the financial statements.

How we can assist you

• Calculation and review of current and deferred taxes in individual and consolidated financial statements as well as in quarterly financial statements and reporting packages
• Support in all areas of tax accounting, e.g. the analysis of deferred taxes, tax balance sheets/comparison of balance sheets and the valuation allowances of deferred taxes
• Advice on accounting for tax risks and uncertain tax positions
• Advice on special issues according to national and international accounting standards
• Consulting related to tax positions for acquisitions and the integration of tax reporting for acquired entities
• Assistance with the preparation of mandatory disclosures on current and deferred taxes in the notes to the individual and consolidated financial statements
• Support in optimising tax reporting processes as well as implementing IT solutions in tax accounting and tax reporting
• Customised workshops for your team, including numerous practical examples and best-practice approaches regarding deferred taxes