Analysis of FIRS draft Information Circular on tax implications of IFRS adoption (IFRS 1 and IAS 1)
In last week's edition of InsideTax, we provided an overview of the draft Federal Inland Revenue Service (FIRS) Information Circular ("the Circular") and highlighted the salient points to be noted by taxpayers. Over the course of the coming weeks, we will examine some of the accounting standards treated in the circular and other practical issues relating to the standards based on our experience.
On first adoption of IFRS, entities are required to evaluate all assets and liabilities pursuant to the new accounting requirements. Adjustments required to move from NGAAP to IFRS on first-time adoption of IFRS are largely in three fold. Adjustments required to move from NGAAP to IFRS on first-time adoption are largely in three fold. De-recognition of previously recognized assets or liabilities not permitted under IFRS; recognition of previously unrecognized assets or liabilities; and reclassification of assets or liabilities in line with IFRS. Read the full article