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