Deloitte comment letter on ED/2010/11 'Deferred Tax: Recovery of Underlying Assets'
We appreciate the fact that the Board is trying to address the difficult practical issues that can arise when calculating and measuring deferred taxes associated with assets that are remeasured or revalued at fair value. Although we agree that additional guidance would be useful in this area, we do not support the introduction of an exception to the existing principles of IAS 12.
Instead, we recommend the Board provides additional implementation guidance to illustrate how the existing principles within IAS 12 should be applied. In developing this implementation guidance, the Board should consider an approach based on an entity’s underlying business model, an approach that we believe to be consistent with the current requirements in IAS 12.52.