KPMG's Issues In-Depth considers the accounting for tax uncertainties. Outlining a framework and using a series of examples, we compare the US GAAP accounting to the new IFRS guidance that becomes effective January 1, 2019.
- Effective for annual periods beginning on or after January 1, 2019, with earlier application permitted
- IFRIC 23 provides guidance on when to recognize uncertainties over income tax treatments
- Under IFRIC 23, a tax uncertainty is recognized if it is not probable that the tax authority will accept the tax treatment on examination
- This approach differs from US GAAP, which may result in a different accounting
- Understanding the concepts
- Comparison of ASC 740 and IFRIC 23