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Russia Introduces IFRIC 23: Uncertainty Over Income Tax Treatments
The recent Order of the Ministry of Finance of the Russian Federation of 12.12.2017 No. 225n "On enacting the document of the International Financial Reporting Standards within the territory of the Russian Federation" has enacted IFRS "Clarification of IFRIC 23: Uncertainty over Income Tax Treatments" within Russia.
This document explains how the recognition and measurement requirements of IAS 12 are to be applied when there is uncertainty over income tax treatments. In this case, the entity must recognize and assess its current and deferred tax assets or liabilities in accordance with the requirements of IAS 12 on the basis of taxable profit (tax loss), tax base, unused tax losses, unused tax benefits and tax rates determined in accordance with the explanation.
The new document comes into force in Russia for voluntary application from the day of its official publication and for mandatory application within the timeframe specified within the document (for annual periods beginning on or after January 1, 2019).
Translated by Alinga Consulting Group.
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