ED ASCG Interpretation 5 published

On 13 November 2025, the Accounting Standards Committee of Germany published the Exposure Draft of ASCG Interpretation (IFRS) No. 5 Accounting for Interest and Penalties Related to Income Taxes under IFRSs (ED ASCG Interpretation 5) 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 in financial statements prepared in accordance with IFRSs, as adopted by the EU.

In particular, the Exposure Draft proposes new rules for the presentation of interest and penalties related to income taxes in the statement of profit or loss in accordance with the new presentation requirements of IFRS 18.

ED ASCG Interpretation 5 is a revised version of ASCG Interpretation 4 (IFRS) Accounting for Interest and Penalties Related to Income Taxes under IFRSs. The publication of IFRS  18 Presentation and Disclosure in Financial Statements by the IASB in April 2024 required a revision of ASCG Interpretation 4 (IFRS). This Exposure Draft revises and replaces ASCG Interpretation 4 (IFRS).

Comments can be submitted until 28 February 2026 by written comment to info@drsc.de. You can download the Draft Interpretation here.