Deferred Tax Items

D

Drmorbid

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
Can someone please explain the difference between Enacted tax rate and Enacted or Substantively enacted tax rate. These are used to measure deferred taxes and I am having real hard time understanding the difference between the two. I’ve tried to google the subject but there isn’t much coming up in search reasults. You are my only hope guys.
 
US GAAP says you use the enacted tax rate; i.e., the tax rate that is in effect now.
IFRS says that you can use the enacted tax rate (as above) or a substantively enacted tax rate; i.e., a rate that isn’t yet in effect, but is fully expected to be in effect soon (as, for example, it’s been voted into law, but doesn’t take effect until next year).
 
You must log in or register to reply here.
Back
Top