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EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of IFRIC Interpretation 23 Uncertainty over Income Tax Treatments ('IFRIC 23').
The objective of IFRIC 23 is to clarify how uncertainties over income tax treatments are reflected in determining taxable profits, tax bases, unused tax losses and tax rates when applying the recognition and measurement requirements in IAS 12 Income Taxes. The Interpretation applies to income taxes within the scope of IAS 12.
IFRIC 23 becomes effective for annual periods beginning on or after 1 January 2019, with earlier application permitted.
EFRAG's overall preliminary assessment is that IFRIC 23 satisfies the criteria for endorsement for use in the EU and therefore recommends its endorsement.
EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.
Comments are requested by close of business on Monday 9 October 2017.