The US standard setters are set to adopt their first IFRS rule wholesale into
US accounting, in the form of IAS 12, which deals with tax.
But the standard could leave investors uncertain as to how tax positions
would be accounted for, since the US standard, FIN 48, tells companies how to
account for uncertainty in tax positions, and specifically requires companies to
include information about potential tax liabilities – information previously
hidden with other potential liabilities.
But IFRS does not have a recognition threshold. The IASB, CFO.com reported,
is likely to require companies to factor the potential uncertainty of a tax
position, regardless of how small this may be, into the amount of taxes reported
on the financial statement.
The way in which this liability is measured could also differ from US
The Financial Accounting Standards Board is expected to announce a resolution
in the next few months.
Report argues that the government must change the way it makes tax and budget decisions
The new team will begin their new roles on May 9, 2017 for a year term
Committee expresses concern about costs to businesses and April 2018 implementation date
Andrew Tyrie airs views on the Finance Bill, 'Making Tax Policy Better' report, and Brexit