Evaluation of change of a buyer's financial status by exclusion of deferred taxes in the system of accounting convergence in the situation of payment delay (installment) by IFRS

The article focuses on analyzing the impact of deferred taxes in case of payment delay (installment) on the quality of financial statements. The use of fair value assessment in accounting determines the appearance of a two-component structure of the initial cost of related assets, liabilities and capital: 1) fair value of assets equal to the fair value of liabilities (capital); 2) difference between the transaction price and the fair value of assets (liabilities, capital). Appraisal of assets, liabilities and capital as per fair value and their recalculation predetermines the appearance of operations on the occurrence and repayment of deferred taxes in the accounting, what causes fluctuations in the indicators of liquidity, financial stability and profitability of an enterprise. In case of payment delay (installment) deferred taxes can be excluded through convergence of accounting and tax accounting. The authors propose to use a model for convergence of accounting and tax accounting based on a modified purchase/sale contract, and consider its impact on the changes in the financial performance of an enterprise. The application of the modified contract allows to neutralize the negative impact of deferred taxes on the financial statements. The convergence of accounting as per the proposed model will reduce the complexity of accounting, the likelihood of errors, will contribute to improving the quality of financial statements of an enterprise, increase its creditworthiness and investment attractiveness. Application of the modified contract will allow organizations to completely get rid of the negative impact of deferred taxes on financial statements.