Chinese Business Review

The starting point for the research was the evidence of a possible contradiction in the provisions of IAS 12 on
\ngoodwill and deferred income taxes, i.e., about the need to calculate deferred income taxation on temporary
\ndifferences relating to all assets except for goodwill. This paper aims at exploring the degree of consistency
\nbetween the theoretical provisions of International Accounting Standards (IAS)/International Financial Reporting
\nStandards (IFRS) and their actual application by the management of Italian and Bulgarian listed companies, as
\nregards the accounting treatments of deferred income taxes relating to the item “goodwill”. The findings suggest
\nthat there are…