Friday 22 May 2015
The issue relates to accounting for income tax assets and liabilities when there are tax uncertainties.
The Interpretations Committee discussed the issue in January, May and July 2014. At its July meeting, the Interpretations Committee decided that it should consider separately the question of recognition and the question of measurement of assets and liabilities when there are uncertainties in income taxes. (The agenda decision on the question of recognition was finalised. For further detail, see our July 2014 IFRIC Update.)
In accordance with the technical matters agreed by the Interpretations Committee at its November 2014 and January 2015 meetings, the draft Interpretation would be developed to provide guidance on the recognition and measurement of income tax payable (recoverable) when there are uncertainties for income taxes. The draft Interpretation would also include guidance on the determination of units of measurement for uncertainties and on assumptions for tax authorities’ examinations and would explain the existing relevant disclosure requirements.
At the April 2015 IASB meeting, the due process steps relating to the development and publication of the draft Interpretation were discussed.
The release of the draft Interpretation is expected in Q2 2015.
The IASB members confirmed that they are satisfied with the due process steps to date and therefore instructed the staff to begin the balloting process.
The Interpretations Committee discussed the proposed draft Interpretation. A draft Interpretation will be developed in line with the tentative decisions made to date.
The Interpretations Committee tentatively decided to develop a draft Interpretation, reflecting tentative decisions it had made at this meeting.
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