International Financial Reporting Standards abbreviated as IFRS is a standards regulatory body that dictates the regulations accounting processes should adhere to and goes ahead to define how specific kinds of accounting events as well as transactions are reported in the financial statement (Bothwell, 2013) . The International Accounting Standards Board (IASB) sets and amends financial statements. There are International financial standards that specify clearly how every accountant should maintain and also report their transaction accounts. The set of standards were developed to facilitate the establishment of a common language in accounting, hence accounts in different business could be easily understood from a certain company to another and from a particular country to the other. In maintaining transparency and stability of business across the world, they enabled investors and business to make informed financial decisions by allowing them to see how the company they wish to invest in has been.
Current tax planning strategies are considerably effected by International Financial Reporting Standards. IFRS had been predicted to facilitate comparability as well as the uniformity of financial reports and statements; nevertheless, most tax experts have already begun expressing specific concerns on the capability of the international financial reporting standards to effectively reflect the diverse tax regimes in the financial reports and statements (Leuz, 2010) . The IFRS code of revenue and the tax rules have grown for a long period of time with the current policies of accounting as the core set of rules in accounting transactions in income tax obligations. One effect of IFRS on current tax planning strategy is unitary taxation. Under normal circumstances the different components of the same group of a business firm are always considered as a single group according to the principles of consolidated financial reports. Nevertheless, the adoption of International Financial Reporting Standards changes this well-known concept of unitary taxation. According to (Lamb, 2009) , the effects of IFRS will depend on the connection between the range of adoption of the set standards and the tax as well as financial rules and requirements in that particular state. The adoption of IFRS has led to a greater level of variance in net income changes, changes in net income and cash flows as well as an increase in frequency of large losses and costs.
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The International Financial Reporting Standards has a significant influence on current tax planning strategies because it directly affects the adoption of tax reporting. The adoption of IFRS has adverse implications on published financial reports and statements (Chan, 2010) . It demands that tax consequences of all accounting transactions be acknowledged in the financial reports and statements. Hence, it demands full recognition of every deferred taxation beyond the present taxation. It is a fact for all business that their tax standings cannot be assessed solely based on their treatment of financial accountings. Taxes appear in the financial statements as either long term liabilities as well as assets and in the income financial statements together with the disclosure following the financial reports. According to (Mulyadi,2012), the primary objective of the tax planning strategy is to identify and relate tax treatments that have potential influence on the company’s profitability future. On the other hand, maximization of tax is not mainly the goal of effective and efficient tax planning. Tax planning is not necessarily equivalent to minimizing firm taxes but maximizing performance development together with the position of the company in future.
International financial reporting standards adoption has an effect on the current tax planning strategy since it directly impacts on tax avoidance (Barth, 2010) . IFRS was aimed at harmonizing the financial reports that firms and corporations present. At the beginning, the concept of adopting new standards in accounting was perceived not to have severe consequences in the field of taxation, considering that the main goal of international financial reporting standards is to offer more significant financial information to the specific users and that such set of rules are not aimed at serving any particular requirements, for instance that of tax authorities. Nevertheless, according to (Nissim, 2014) , changes in taxable income as well as tax planning strategy activities, more specifically in operations that that raises the rate of tax avoidance, may have happened due to the adoption of these particular standards. Nations with a high level of tax-book conformity that applied domestic accepted principles of accounting as a basis that has a strong link between indicated earning and the respective taxable income, required to define their standards for evaluating financial reports for tax needs.
The adoption of International Financial Reporting Standards will also have a direct impact on the quality of tax and accounting information. According to (Mulford, 2010) , the basic economic functions of accounting rules and standards are to offer an agreement on how important business and accounting transactions are supposed to be implemented. Ascertaining quality disclosure of financial information is also a mandate for lowering the asymmetry of information as well as solving problems in business. (Ball, 2010) , indicates that t he adoption of IFRS has led to better financial reports and information for the shareholders and the regulators, it has facilitated enhanced comparability, improved transparency of information and effective management and lastly they have increased the capability to secure across the border listing.
References
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Barth, M. (2010). international accounting standards and accounting quality . accounting research , 46.
Bothwell, J. (2013).Impacts of IFRS on the current tax planning startegies . an economic policy , 50-55.
Chan, M. (2010). Moving from tax-reliant accounting and its implications on taxation accounting research , 60-78.
Lamb, M. (2009). international variations in the connection between tax and financial reporting . accounting research , 188.
Leuz, C. (2010). politics and the economics in financial accounting. international standpoints on IFRS.
Mulford, C. (2010). the potential consequences of the elimination of LIFO as part of IFRS convergence. 24.
Mulyadi, M. (2012). international financial reporting standards on taxation. international commerce , 150-169.
Nissim, D. (2014). taxable income, future earnings and equity values. the accounting review , vol 29.
