The Accounting Standards Board (AcSB) is participating in the IFRS Interpretations Committee’s project to provide guidance on how an entity should account for uncertainty over income tax treatments.
IAS 12 Income Taxes includes requirements on the recognition and measurement of current or deferred tax liabilities or assets, but does not provide specific guidance on how uncertainty about a tax treatment should be reflected in the accounting for income tax. The objective of the project is to provide such guidance.
The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IFRS Interpretations Committee and issuing the AcSB’s own document for comment on each IFRS Interpretations Committee proposal. Subject to the responses to the AcSB’s Draft Interpretation on whether the proposed Interpretation is appropriate for application in Canada, the AcSB expects that the IFRIC Interpretation will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRSs for publicly accountable enterprises.