On 7 June 2017, the IFRS Interpretations Committee (IFRS IC) issued IFRIC 23 with the aim to clarify uncertainties around the application of IAS 12 in relation to the accounting of Income Taxes.
IFRIC 23 deals with the following key areas:
- Whether an uncertain tax treatment should be treated separately or together with other uncertain tax treatments.
- Assumption taken by an entity over taxation authorities’ examinations.
- Determination of the taxable profit, tax rates, tax bases, unused tax credits, and unused tax losses based on whether the entity concludes that the tax treatment will be accepted by the tax authorities.
- Reassessment of the entity’s judgement if facts and circumstances change.
IFRIC 23 is effective for annual reporting periods beginning on or after 1st of January 2019.
Read more here: https://www.iasplus.com/en/standards/ifric/ifric-23
