Issues In-Depth | November 2018

Tax uncertainties in the United States

Filed Under: IFRS

KPMG’s guidance on and interpretation of IFRIC 23. KPMG explains the accounting for uncertain tax treatments in detail, providing examples and a comparison between US GAAP and IFRS guidance.

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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Spotlight on contributors

Kayreen Handley

Kayreen Handley

Partner, DPP, KPMG US

+1 212-954-8288
Carlos R. Martinez

Carlos R. Martinez

Senior Manager, DPP, KPMG US

+1 212-954-6437
Julie Santoro

Julie Santoro

Partner, Department of Professional Practice, KPMG US

+1 212-954-1086