Hellenic Open University Conferences, International Conference on Business & Economics of the Hellenic Open University 2015

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Deferred Tax Assets from unused Tax Losses under the prism of Financial Crisis
Evangelos Chytis

Building: Titania
Room: Socratis
Date: 2015-02-07 04:00 PM – 06:00 PM
Last modified: 2015-01-27


This paper examines the role and importance of Deferred Tax Positions in Financial Statements, focusing not only on the size or changes but also identifying and categorizing their causes, by constructing through hand-collected dataa prototype Data Base. The sample consists of the largest financial and non-financial firms listed in the Athens Stock Exchange and covers the period from 2005 to 2012, after the mandatory adoption of IFRS. Employee Benefits are diachronically the most important sources of Deferred Tax Assets (DTAs), while Deferred Tax Liabilities (DTLs) arise mainly from Book-Tax differences related to depreciation from (PPE).

Additionally, I extend prior research (based on US GAAP data), and examine if the recognition of deferred tax assets coming from the carry forward of unused tax losses (DTA_TLC), especially under the prism of financial crisis, complies with the IAS 12 requirements, and whether internal and external corporate governance attributes, like ownership structure, auditor’s firm size and audit’s quality, possibly affect the recognition of DTA_TLC.Using a logistic multivariate regression model, my findings suggest that DTA_TLC are not recognized in accordance with the guidelines provided by IAS 12.The audit firm affects recognized amounts due to firm specific internal guidelines and due to the overall quality of the audit.


International Financial Reporting Standards; Deferred Taxes; IAS 12; Tax Loss Carry Forwards; Audit Firms; Corporate Governance