The International Accounting Standards Board (IASB) has issued IFRIC 23 Uncertainty over Income Tax Treatments to specify how to reflect uncertainty in accounting for income taxes.
It may be unclear how tax law applies to a particular transaction or circumstance, or whether a taxation authority will accept a company’s tax treatment. IAS 12 Income Taxes specifies how to account for current and deferred tax, but not how to reflect the effects of uncertainty.
IFRIC 23 Uncertainty over Income Tax Treatments provides requirements that add to the requirements in IAS 12 by specifying how to reflect the effects of uncertainty in accounting for income taxes.
IFRIC 23 will become effective from 1 January 2019. More details can be accessed from the International Financial Reporting Standards (IFRS) website.
Source: IFRS, 7 June 2017