ED ASCG Interpretation 1 published

Today, the Accounting Standards Committee of Germany published the Exposure Draft of ASCG Interpretation (IFRS) No. 1 Accounting for Interest and Penalties Related to Income Taxes under IFRSs (ED ASCG Interpretation 1) for public comment.

This Exposure Draft addresses the accounting for interest and penalties related to taxes within the meaning of section 3(4) of the AO (Abgabenordnung, Fiscal Code of Germany) that relate to current income taxes within the meaning of IAS 12.5 (interest and penalties related to income taxes) in financial statements prepared in accordance with IFRSs, as adopted by the EU.

According to the Exposure Draft, interest and penalties related to income taxes shall be accounted for in accordance with IAS 37.

If an entity changes its accounting treatment because of this Interpretation, the lack of previous guidance means that this does not constitute the correction of an error, but rather a change in accounting policy within the meaning of IAS 8.

Comments can be submitted until August 31, 2018 by written comment to info@drsc.de. You can download the Draft Interpretation here.