Comparison of deferred tax materiality reporting in accordance with continental and Anglo-Saxon reporting system

Abstract

The paper is concerned with the influence of a financial reporting system on a deferred tax reporting. The continental and Anglo-Saxon reporting systems are compared. The materiality of the deferred tax item is used as a means for evaluation of the impact of deferred tax reporting. The category of deferred income tax is assessed on a sample of companies operating in the chemical industry (NACE 20.1) and reporting in accordance with the Czech accounting legislation (representative of continental reporting system) in the time series from 2005 to 2015. The results are compared with the results of author's previous study concerning the reporting of deferred tax according to IFRS (representative of Anglo-Saxon reporting system).