The European Financial Reporting Advisory Group (EFRAG) recommended the European Commission to adopt a new interpretation of IFRIC 23 “Uncertainty on calculation of the income tax”.

It should be recalled that the International Financial Reporting Standards Board presented this interpretation at the beginning of June this year.

The European Advisory Group on Financial Reporting has come to the conclusion, during the analysis conducted in accordance with the standard procedure, that IFRIC 23 meets all the technical criteria for recognition, as well as the interests of the European business community. In fact, IFRIC 23 “Uncertainty on calculation of the income tax” will come into effect in the European accounting and reporting system in 2018.

It should be noted that interpretation of IFRIC 23“Uncertainty on calculation of the income tax” is intended to clarify the procedure for accounting of the income tax in a situation when it is unknown whether the tax authority will agree with one or another interpretation of the requirements of tax legislation.