Overview of IFRIC23: Uncertainty over Income Tax Treatments and what this means

MGI Worldwide’s Global IFRS Group has prepared a short paper that provides an overview of IFRIC 23 to help fellow members in their discussions with their clients.

IFRIC 23 is the IASB’s equivalent of US GAAP interpretation ASC 740-10 (formerly FIN 48) and was issued in June 2017. It is applicable for reporting periods beginning on or after 1 January 2019. Early adoption is permitted. 

IFRIC 23 addresses an observed diversity in practice of recognition and measurement of income tax liabilities (or assets) when there is uncertainty in the application of the tax law, i.e. when there is uncertainty over whether the tax authorities accept the tax positions taken by the reporting entity. IFRIC 23 applies to current and deferred income taxes and gives guidance on necessary disclosures.

Contact MGI Worldwide’s Global IFRS Experts

MGI Worldwide’s team of Global IFRS Experts deal with IFRS on a daily basis, share knowledge and best practices, and ensure the correct application of IFRS on a global consistent basis. For more information visit www.mgiworld.com/globalifrs 

DOWNLOAD THE IFRIC23 PAPER HERE