IAS 12Chapter 12Lesson 2
IFRIC 23 (2): measuring the uncertainty, staying consistent, reassessing
Step 1 of 9Learning objectives
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When it is not probable that the authority will accept a treatment, the entity reflects the uncertainty using the method that better predicts the resolution: the most likely amount (binary or concentrated outcomes) or the expected value (dispersed outcomes). It applies consistent judgements to current and deferred tax. It reassesses when facts change or new information arises (audit, new rule, expiry of the right to examine); the effect is a change in estimate, with IAS 10 deciding for events after the reporting period.
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Learning objectives
- Calculate the effect of an uncertainty using the most likely amount and the expected value.
- Choose the method that better predicts the resolution (binary or dispersed outcomes).
- Account for the effect on current and deferred tax consistently.
- Analyse the effect of new information as a change in estimate, including after the reporting date.