On 22 December 2017, the president of the United States signed into law the 'Tax Cuts and Jobs Act'. The Act is a sweeping reform of US taxation which is likely to have a significant impact on financial statements prepared under IFRS for entities with US operations.
Furthermore, because the Act became law on 22 December, its effects must be included in interim and annual reporting periods that include that date. The range and complexity of the Act means that companies with US operations need to analyse the impact of the Act in detail.
We discuss some of the issues that companies will face and our views on them in this IFRS Viewpoint.
The relevant International Financial Reporting Standards are:
- IAS 1 Presentation of Financial Statements
- IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
- IAS 12 Income Taxes
- IFRIC 23 Uncertainty over Income Tax Treatments