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IAS 12 — Recovery of underlying assets


This project grew out of the IASB-FASB convergence project on income taxes, where the IASB issued ED/2009/2 Income Tax in March 2009. On the basis of the joint IASB-FASB discussion in October 2009, the IASB decided not finalise the proposals in the exposure draft, but instead undertake some limited scope amendments to IAS 12 Income Taxes.


Current status of the project

This project has been completed.  The IASB issued Deferred Tax: Recovery of Underlying Assets (Amendments to IAS 12) on 20 December 2010, which mends IAS 12 to provide a presumption that recovery of the carrying amount of an asset measured using the fair value model in IAS 40 Investment Property will, normally, be through sale..


Project milestones

October 2009 The IASB and FASB decided not to finalise the proposals in the IASB's proposals in ED/2009/2 (arising under the comprehensive income taxes project), instead opting for limited-scope amendments to IAS 12.
10 September 2010 Exposure Draft ED/2010/11 Deferred Tax: Recovery of Underlying Assets (Proposed amendments to IAS 12) published Comment deadline 9 November 2010
20 December 2010 Deferred Tax: Recovery of Underlying Assets (Amendments to IAS 12) published Applicable to annual periods beginning on or after 1 January 2012

Related Discussions

  • Income taxes – Recovery of underlying assets

  • Dec 03, 2010

  • The staff presented the IASB with a summary of the responses received on the Exposure Draft 'Deferred Tax: Recovery of Underlying Assets' published in September 2010. The board considered (1) the scope of the exception and (2) agreed on an effective date of 1 January 2012.

  • Income taxes – Recovery of underlying assets

  • Aug 24, 2010

  • In preparation of the issuance of the exposure draft 'Deferred Taxes: Recovery of Underlying Assets', the staff shared a pre-ballot draft with certain constituents to obtain feedback. This process identified five primary issues the staff brought back to the IASB for reconsideration.

  • Income taxes

  • Jun 20, 2010

  • The IASB considered two practice issues, being deferred tax on property remeasurement at fair value and uncertain tax positions, as well as five proposals from the exposure draft that were very popular with respondents.