Synopsis of the FIRS' draft Information Circular on tax implications of IFRS adoption
Salient points for taxpayers
Federal Inland Revenue Service (FIRS) has issued a draft information Circular on the "tax implications of the International Financial Reporting Standard (IFRS) adoption". This is a proactive response to the financial Reporting Council Act, 2011 which gave effect to the July 2010's approval of the Federal Executive Council for the adoption of International Financial Reporting Standard (IFRS) by reporting entities in Nigeria.
The Eighteen (18) paged document detailed the tax treatments for changes in accounting for business transactions owing to the new standard requirement. Thirty Two (32) accounting standards with significant tax implications were discussed. Practical tax issues arising from the adoption of the new standards were addressed while requirements from FIRS for documentation that will accompany tax returns, going forward were also made. Read the full article