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ARTICLE · 01 MARCH 2006

How Will IFRS Affect Your Share Capital Account?

Clayton Utz
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The tax impacts of IFRS need to be considered now, particularly as they affect the share capital account and disqualifying account rules

AustraliaTax
Peter Van Den Broek
Peter Van Den Broek
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Key Points

  • The tax impacts of IFRS need to be considered now, particularly as they affect the share capital account and disqualifying account rules.

All Australian entities preparing financial reports under the Corporations Act 2001 must comply with the Australian equivalents to the International Financial Reporting Standards ("IFRS") for financial years commencing on or after 1 January 2005. Although most tax managers are already aware of this, they might not understand the full implications of IFRS for their entities’ share capital account. In this article, we’ll tease out some of those implications and also see its effects on the disqualifying account rules.

Reclassification of shares

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