Accounting for PP&E under the IFRS component approach
Accounting for PP&E under the IFRS component approach
Insight

Tax uncertainties in the United States

KPMG’s in-depth comparison of the US GAAP accounting for uncertain tax treatments to IFRS includes examples to illustrate.

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.

Applicability

  • All companies

Relevant dates

  • Effective for annual periods beginning on or after January 1, 2019, with earlier application permitted

Key impacts

  • 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

Report contents

  • Understanding the concepts
  • Comparison of ASC 740 and IFRIC 23
  • Examples
  • Disclosures

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