ARTICLE · 19 NOVEMBER 2019

Changes To Reporting Tax Uncertainties – AASB Interpretation 23

Duff and Phelps

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Recently, there have been a number of changes to Australia's financial reporting landscape that have received a large amount of publicity from advisory firms.

AustraliaTax

Stean Hainsworth

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Recently, there have been a number of changes to Australia's financial reporting landscape that have received a large amount of publicity from advisory firms. Some of these include changes to the revenue recognition rules as well as changes to the treatment of both financial instruments and leases. One issue that has probably not received as much publicity as the others but applies to financial years commencing from January 1, 2019 is AASB Interpretation 23, which addresses the uncertainty over income tax treatments. AASB 23 is the Australian equivalent of IFRIC 23 and is similar to the well-known U.S. accounting standard, FIN 48 (now ASC 740). AASB 23 requires a change in how Australian reporting entities calculate and record their current tax liabilities in their financial statements.

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