In 2011, the IASB issued new standards on consolidated financial statements and joint arrangements, effective for years beginning on or after 1 January 2014. These could lead to changes in both the measurement and presentation of investments in group financial statements, for example, a change to or from full consolidation, proportional consolidation or equity accounting. As a result, temporary differences calculated under IAS 12 on such investments may need to be reassessed, as will the effect on the group’s effective tax rate. Understanding the effects early will be important to efficient implementation and the management of stakeholder expectations regarding the effective tax rate in future years.
