PBR: Revenue defers tax effects of IAS39

In its Pre Budget Report document on the tax implications of IFRS, the Revenue focused heavily on issues surrounding the financial instruments standard, but admitted that it was too soon to be able to judge how this standard will affect its income streams.

As a result, the tax effect of most transitional adjustments had been put off until its impact was clearer.

‘The Inland Revenue clearly recognised they needed to defer finalising the IAS39 tax impacts because they haven’t been able to get that finally agreed in an appropriate timeframe to be effective from 1 January,’ said PricewaterhouseCoopers tax director Gillian Wild.

‘Given the uncertainty this brings, we may start to see some UK companies hesitating over when they adopt IFRS as a choice at entity level.’

Related reading