What will be the impact of IFRS16 implementation to retained earnings and deferred tax.

Question

Please explain with hypothetical example

Answer 1

IAS 12 Income Taxes will be affected here in Uganda, because the income tax Act Cap340 S.51 still believes in both operating and Financing Leases.

I think it's going to be leading to Understatement of Deffered Tax and Overstatement of retained earnings

Thanks.
MALOBA ENOSI
+256786624348
malobaenosi@gmail.***
MAKERERE UNIVERSITY BUSINESS SCHOOL