Tax Accounting And COVID-19: Reporting The Impact - Tue 19 May 2020

Host: Richard Williams/Julie Hughff

Presenters: Alexandra Warren, Stephanie Hurst

Accounting for income taxes can be inherently judgmental, and calculating tax provisions in uncertain times as a result of COVID-19 presents further challenges. How can tax teams navigate uncertainty to report the impact in financial statements with confidence and clarity? We’ll discuss:

• Deferred tax asset recognition in the context of a revised expected future profit profile.
• Interim reporting – forecasting an annual effective tax rate and dealing with one-off tax adjustments.
• Accounting for new legislative relief measures – where and when should these be recorded?
• Accounting for the tax consequences of changing cash needs – unanticipated distributions and impact on ETR.
• Tracking and assessing uncertain tax positions associated with a changing tax risk profile.

We will explore the practical aspects of these issues and share insights from relevant discussions with a variety of organisations.