Biotech Values

[biomaven0]

the reported income-tax rate on IFRS financial statements a number that is biased high relative to the tax rate actually paid to taxing authorities. If this is correct, it seems like an undesirable property for an accounting framework

The IFRS logic was that if the tax deduction exceeded the amount of compensation cost, then that indicates that the deduction relates not only to compensation cost but also to an equity item. Hence any excess over compensation costs goes directly to equity rather than flowing through the income statement.

It can be argued either way - personally I think the existing US approach is fairer. It's certainly less volatile.

Peter