CERTYNEX IFRS ACADEMY

Orsavel is in dispute with the taxation authority over a reassessment not yet decided. How do IAS 12 and IAS 37 interact for this dispute?

IAS 37 governs both recognition and disclosure of the pending tax dispute.

IAS 12 governs recognition, IAS 37 the disclosures about the tax contingency.

Only IAS 37 applies as long as the dispute is not decided.

No disclosure is given about a pending tax dispute.