NEW YORK - The IFRS Interpretations
Committee discussed the following matter and tentatively decided not to add a
standard-setting project to the work plan. The Committee will reconsider this
tentative decision, including the reasons for not adding a standard-setting
project, at a future meeting. The Committee invites comments on the tentative
agenda decision. All comments will be on the public record and posted on our
website unless a respondent requests confidentiality and we grant that request.
We do not normally grant such requests unless they are supported by good
reason, for example, commercial confidence.
Tentative Agenda Decision
Open for comment until February 6, 2026
The Committee discussed whether an entity
applying IFRS 18 is permitted to present taxes or other charges that are not
income taxes within the scope of IAS 12 Income Taxes:
in the ‘income tax expense or income’ line item of the statement of profit or loss required by paragraph 75(a)(iv) of IFRS 18
2.in the income taxes category of the statement of profit or loss.
The Committee was informed of different
views about whether an entity may present taxes or other charges that are not
income taxes within the scope of IAS 12 in the line item ‘income tax expense or
income’ required by paragraph 75(a)(iv) of IFRS 18 or as an additional line
item in the income taxes category of the statement of profit or loss.
Applying the Requirements in IFRS
Accounting Standards
The Committee observed that, applying IFRS
18, an entity presents the line item ‘income tax expense or income’ in the
income taxes category of the statement of profit or loss.
As required by paragraph 67 of IFRS 18, an
entity classifies in the income taxes category of the statement of profit or
loss tax expense or tax income that is included in the statement of profit or
loss applying IAS 12 (and any related foreign exchange differences).
The Committee therefore concluded that,
applying IFRS 18, an entity is not permitted to present taxes or other charges
that are not income taxes within the scope of IAS 12:
1.in the ‘income tax expense or income’ line item of the statement of profit or loss required by paragraph 75(a)(iv) of IFRS 18
2.in the income taxes category of the statement of profit or loss.
The Committee noted that in accordance with
paragraph 24 of IFRS 18, an entity presents additional line items and subtotals
in a primary financial statement if such presentations are necessary for the
statement to provide a useful structured summary.
Conclusion
The Committee concluded that the principles
and requirements in IFRS Accounting Standards provide an adequate basis for an
entity applying IFRS 18 to determine how it presents in the statement of profit
or loss taxes or other charges that are not income taxes within the scope of IAS
12.
Consequently, the Committee [decided] not
to add a standard-setting project to the work plan.
The deadline for commenting on the
tentative agenda decision is February 6, 2026. The Committee will consider all
comments received in writing by that date; agenda papers analyzing comments
received will include analysis only of comments received by that date.
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