The Grant Thornton International IFRS team has published Insights into IFRIC 23.
Effective for financial years beginning on or after January 1, 2019, IFRIC 23 Uncertainty Over Income Tax Treatments (the “Interpretation”) requires entities to consider the potential for adverse tax determinations being made by taxing authorities while under a hypothetical tax review – and record a liability (and expense) where such a finding is considered “probable”. Many entities may not experience a financial impact as a result of this, but the Interpretation remains applicable and certain disclosures may be appropriate.
The publication Insights into IFRIC 23 provides an overview of IFRIC 23, explaining the relevant definitions, the initial tax assessment and subsequent measurement, together with some practical application and examples.
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IFRS Adviser Alert | Insights into IFRIC 23