Thursday 20 November 2014
The issue relates to measurement of current income tax on uncertain tax position.
The Interpretations Committee received a request to clarify accounting for assets and liabilities arising from uncertain tax positions (UTPs). It discussed the issue in January, May and July 2014 and noted that one of the principal issues in respect of UTPs is how to measure related assets and liabilities.
At its September 2014 meeting, the Interpretations Committee discussed several aspects of measurement of assets and liabilities on UTPs.
It tentatively decided to proceed with this project on measurement of UTPs, subject to further analysis and deliberations.
The Interpretations Committee also discussed whether detection risk should be reflected in the measurement of tax assets and liabilities arising from UTPs. It concluded that an entity should assume that the tax authorities will examine the amounts reported to them and have full knowledge of all relevant information (ie it should assume a 100 per cent detection risk).
The staff will present the additional analysis requested by the Interpretations Committee at a future meeting.
The Interpretation Committee tentatively decided to proceed with this project, subject to further analysis and deliberations
The Interpretation Committee asked the staff to analyse the question of measurement of income tax in the situation in which tax position is uncertain
The Interpretation Committee tentatively decided to add an issue to its agenda
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