IASB interpretation addresses uncertainty in accounting for income taxes

The International Accounting Standards Board (IASB) issued an interpretation Wednesday that specified how organisations should reflect uncertainty in their accounting for income taxes.

IAS 12, Income Taxes, describes how organisations should account for current and deferred tax, but the standard does not address how the effects of uncertainty should be reflected.

IFRIC 23, Uncertainty Over Income Tax Treatments, adds to the requirements in IAS 12 by specifying how the effects of uncertainty in accounting for income taxes should be reflected.

IFRIC interpretations are developed by the IFRS Interpretations Committee to address specific application issues. When ratified by the IASB, IFRIC Interpretations form part of the authoritative IFRS requirements.

The interpretation takes effect on January 1st 2019 and is available for eIFRS Professional subscribers at the board’s website.

Ken Tysiac ( is a CGMA editorial director.