EFRAG and FRC publish feedback statement on income tax discussion paper
08 Feb, 2013
The European Financial Reporting Advisory Group (EFRAG) and the United Kingdom Financial Reporting Council (FRC) have posted a feedback statement on Discussion Paper (DP) ‘Improving the Financial Reporting of Income Tax’. The feedback statement provides a summary of the main issues received from respondents along with the EFRAG’s and FRC’s responses to those issues.
Issued in December 2011, the DP’s objective was to stimulate debate on the accounting for income tax. The EFRAG and FRC received 29 comment letters regarding the DP, primarily from accounting organisations, national standard setters, preparers and business associations. The most supported proposals in the DP were (a) effective tax reconciliation; (b) improved disclosure on deferred tax assets and tax losses; and (c) recognition and measurement of uncertain tax positions. The least supported proposals by respondents were (a) reconciliation of the tax paid with the current tax expense; (b) discounting of deferred tax assets and liabilities; (c) disclosure on uncertain tax positions; and (d) disclosure that involves forward-looking and ‘entity-sensitive’ information.
The feedback provided will be used by the EFRAG and the FRC when meeting with the IASB on discussions for the improvement to IAS 12.
The press release and the feedback statement are both available on the EFRAG website.
