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One gives guidance on how uncertainty over income tax treatments should affect the accounting for income taxes and the other addresses which exchange rate should be used to report foreign currency transactions when payment is made or received in advance.
Interpretations form part of the authoritative IFRS requirements. They are developed by the Interpretations Committee, which works with the IASB to provide guidance on specific implementation issues, helping those using IFRS and supporting consistency in application.
Uncertainty over income tax treatments
IAS 12 Income Taxes provides requirements on the recognition and measurement of current or deferred tax liabilities or assets, but does not provide specific guidance for how uncertainty about a tax treatment should be reflected in the accounting for income tax. Consequently, the Interpretations Committee proposes an Interpretation to provide that guidance.
Foreign currency transactions and advance consideration
IAS 21 The Effects of Changes in Foreign Exchange Rates sets out requirements about which exchange rate to use when recording a foreign currency transaction on initial recognition in the entity’s functional currency. However, the Interpretations Committee observed diversity in practice in circumstances in which consideration was received or paid in advance of the recognition of the related asset, expense or income. Consequently, the Interpretations Committee proposes an Interpretation to provide guidance in these specific circumstances.