IASB addresses uncertainty in accounting for income taxes

IFRIC 23 adds to the requirements of IAS 12.

The International Accounting Standards Board (IASB) recently issued an interpretation to specify how organizations should reflect uncertainty in their accounting for income taxes.

IAS 12, Income Taxes, describes how organizations should account for current and deferred tax, but the standard does not address how the effects of uncertainty should be reflected.

IFRIC 23, Uncertainty Over Income Tax Treatments, adds to the requirements in IAS 12 by specifying how the effects of uncertainty in accounting for income taxes should be reflected.

IFRIC interpretations are developed by the IFRS Interpretations Committee to address specific application issues. When ratified by the IASB, IFRIC Interpretations form part of the authoritative IFRS requirements.

The interpretation takes effect on Jan. 1, 2019, and is available for eIFRS Professional subscribers at the board's website.

Where to find December’s flipbook issue

The Journal of Accountancy is now completely digital. 

 

 

 

SPONSORED REPORT

Get Clients Ready for Tax Season

This comprehensive report looks at the changes to the child tax credit, earned income tax credit, and child and dependent care credit caused by the expiration of provisions in the American Rescue Plan Act; the ability e-file more returns in the Form 1040 series; automobile mileage deductions; the alternative minimum tax; gift tax exemptions; strategies for accelerating or postponing income and deductions; and retirement and estate planning.