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IFRIC 23 (IAS 12 LINK) - Coggle Diagram
IFRIC 23 (IAS 12 LINK)
REASON FOR IT?
suggests which recog & meaure. requirements of IAS 12 to apply when there's uncertainty over inc tax
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excl "other taxes, levies, interest & penalties" not in IAS 12 scope
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TALKING POINTS
Change in facts & circumstances
- considered change in estimates ito IAS 8
Detection Risk
- assume that SARS will detect any issues
Covers Tax (A)s & (L)s
- IAS 37 would only recog contingent (A)s w/ virtual certainty BUT IFRIC 23 just requires probability
Penalties, Interest, Levies, Other Taxes
- normally IAS 37 deals w/ them
What was the treatment before?
- w/ IAS 37 when we didn't think tax authorities would select us, we wouldn't think we'd have a present obligation & outflow for taxes txs
- Implication - realise a provision of zero