The International Accounting Standards Board recently issued IFRIC 23, “Uncertainty over Income Tax Treatments,” to clarify the application of recognition and measurement requirements in IAS 12, Income Taxes, when there is uncertainty over income tax treatments. Companies may need to reassess current practice in recognizing and measuring uncertain tax treatments in financial statements prepared in accordance with International Financial Reporting Standards (IFRS).
For companies reporting financial information under both IFRS and U.S. Generally Accepted Accounting Principles (U.S. GAAP) and for preparers with a history and knowledge of the U.S. GAAP guidance in this area, understanding the differences in the requirements between the two bases of accounting may be an important distinction.
Read an October 2017 report [PDF 143 KB] that includes observations with respect to the requirements and compares the guidance under IFRS to the guidance under U.S. GAAP: What’s News in Tax: Accounting for Uncertainty in Income Taxes under IFRS and U.S. GAAP
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