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8.11 Change in tax laws, rates, and status
Publication date: 31 Mar 2023
us IFRS & US GAAP guide
The impact on deferred and current taxes as a result of changes in tax laws and tax rates may be recognized earlier under IFRS. Also, the impact of a change in tax status is typically reflected only in profit or loss under US GAAP, but could be reflected in different line items under IFRS.
US GAAP | IFRS |
US GAAP requires the use of enacted tax laws and tax rates when calculating current and deferred taxes. | Current and deferred tax are calculated using enacted or substantively enacted tax laws and tax rates. |
The tax effects of a change in tax status are recognized in income from continuing operations. | SIC 25 requires current and deferred tax consequences of a change in tax status to be included in net profit or loss for the period, unless those consequences relate to transactions and events that result in an entry to OCI or to equity in the same or different period. |
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