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IAS 12 Discounting of current taxes payable

Date recorded:

Issue

Is it appropriate to discount current taxes payable under IFRSs when an agreement with the taxing agency has been reached to permit the entity to pay such taxes over a period greater than twelve months?

 

Decision not to add

June 2004

 

Reason

The general view of the IFRIC was that current taxes payable should be discounted when the effects are material. However, it was noted that there is a potential conflict with the requirements of IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. As the IASB has tentatively decided to withdraw IAS 20, the members agreed that the issue of discounting current taxes payable should no longer be uncertain and that the topic need not be added to its agenda.

 

IFRIC reference: IAS 12