On 21 October 2015, the IFRS Interpretations Committee (‘IFRS IC’) published for public comment an Interpretation on how uncertainty over income tax treatments should affect the accounting for income taxes. In short, it is the IFRS equivalent of US GAAP Interpretation ASC 740-10 (formerly FIN 48).
Whilst the Interpretation is currently only in draft form, we anticipate that many entities will wish to take early action to assess its impact on their financial statements, and may wish to adopt it early. It is expected to be finalised in 2016, and so possibly will have effect for periods beginning on or after 1 January 2017. However, there is likely to be an opportunity for entities to adopt it for earlier periods.
You can find this Draft IFRS IC Interpretation on Uncertainty over Income Tax Treatments here.
PwC Tax Accounting Services drafted a document that provides an executive summary outlining nine suggested phases for implementing the Interpretation, including an illustrative estimate of the time required to complete each phase.
