Companies Should Consider Reporting Tax Liabilities: AASB

Sometimes it’s unclear how tax law applies to a company transaction or circumstance and how the ATO will treat it. New guidance from the International Financial Reporting Standards Interpretations Committee (IFRIC) explains how companies should reflect this uncertainty in their accounting for income taxes.

Although the new guidance isn’t in effect until January 2019, the Australian Accounting Standards Board (AASB) recommends that all Australian companies reassess whether to record a tax liability in their 2017 reporting.