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The increasing divergence between accounting practice and taxation law: the case of in-substance debt defeasance

Published on 01 Jan 05 by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE

A perennial issue of debate is the merit of aligning accounting practice and taxation law. The adoption of international financial reporting standards (IFRS) on 1 January, 2005 will result in changes to Australian accounting practice, thereby disturbing any degree of alignment that currently exists. This article will examine this in the context of in-substance debt defeasance arrangements. Doing so will demonstrate the disparity between the proposed accounting and existing tax treatment of the insubstance defeasance of debt and serve as one example of the widening divergence between accounting practice and taxation law upon the adoption of IFRS.

Author profiles:

Assoc Prof Leslie Nethercott
Les is an Associate Professor for the School of Accounting at Latrobe University. Current at 01 April 2010 Click here to expand/collapse more articles by Les NETHERCOTT.
 
Dean HANLON
Dean is a Lecturer in the Department of Accounting and Finance, Monash University.
Current at 1 September 2013
Click here to expand/collapse more articles by Dean HANLON.
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