The IFRS revenue recognition and leasing standards, IFRS 15 and IFRS 16, will have important tax accounting implications, particularly for companies operating internationally. The IFRS standards are different from the related US GAAP standards, ASC 606 and ASC 842, so although there is some overlap in the tax accounting that will result there are some important differences. This paper highlights some of the key consequences of the new standards for tax accountants, looking at both the direct results of the new standards and at some of the indirect result
In order to make the transition to the new standards as smooth as possible, tax teams should involve themselves throughout the implementation process. In putting together an action plan for tax, they should: