Deloitte comment letter on IFRS Interpretations Committee agenda decision on presentation of payments of non-income taxes
Deloitte's IFRS Global Office has submitted a letter of comment to the IFRS Interpretations Committee on its Tentative agenda decision: IAS 1 Presentation of Financial Statements and IAS 12 Income Taxes – Presentation of payments of non-income taxes.
In the comment letter, we agree with the decision not to add this item onto its agenda, however we note that there appears to be an inconsistency in the tentative agenda decision. "[T]he production-based royalty payments being, in themselves, outside the scope of IAS 12 is stated as an assumption but this then is followed by a number of statements explaining why the Committee believes this to be the case". We recommend that the tentative agenda decision be amended.