Adviser alert – March 2018
Potential accounting consequences of the US tax reform for IFRS preparers
The Grant Thornton International IFRS team has published IFRS Viewpoint – Potential accounting consequences of the US tax reform for IFRS preparers. The IFRS Viewpoint series provides insights on applying IFRS in challenging situations. Each edition will focus on an area where the standards have proved difficult to apply or lack guidance. This edition provides guidance on the potential accounting consequences arising from the recent reform of the United States’ tax system.
On December 22, 2017, the President of the United States (US) signed into law the ‘Tax Cuts and Jobs Act’ (Act). The Act is a sweeping reform of US taxation which is likely to have a significant impact on financial statements prepared under IFRS for entities with US operations. Furthermore, because the Act became law on December 22, 2017, its effects must be included in interim and annual reporting periods that include that date. The range and complexity of the Act means that companies with US operations need to analyse the impact of the Act in detail. This IFRS Viewpoint addresses some of the issues that entities will face when doing so.
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