IASB issues IFRIC 23 Uncertainty over Income Tax Treatments
IFRS News | 20 June 2017
This edition outlines a new Interpretation, IFRIC 23 Uncertainty over Income Tax Treatments, issued by the International Accounting Standards Board (‘IASB’).
The Interpretation sets out how to determine the accounting tax position when there is uncertainty over income tax treatments.
The Interpretation requires an entity to:
- determine whether uncertain tax positions are assessed separately or as a group; and
- assess whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings:
- If yes, the entity should determine its accounting tax position consistently with the tax treatment used or planned to be used in its income tax filings.
- If no, the entity should reflect the effect of uncertainty in determining its accounting tax position.
Effective date: annual periods beginning on or after 1 January 2019.
Transition: either full retrospective application or modified retrospective application without restatement of comparatives.