Why is the taxes payable method not an accepted approach under IFRS? What difference explains why ASPE permits this approach in addition to the accrual approach?

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The Answer is IFRS does not allow the taxes payable method because it is neither consistent with accrual accounting generally nor with the IFRS Conceptual Framework. The taxes payable method is similar to cash basis accounting and does not reflect the effect of transactions when they occur. Not recording the effect of deferred taxes is inconsistent with the definition and recognition criteria for assets and liabilities. ASPE permits the taxes payable approach because of the different costs and benefits faced by private enterprises. This method is less costly, and the limited user base, being primarily owners and lenders, are more concerned about cash flows and can obtain information about deferred taxes should they need it.

Why Is the Taxes Payable Method Not an Accepted Approach