Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction – International Accounting Standards Board

Date recorded:

At its meeting on October 24, 2018, the International Accounting Standards Board (the Board) discussed the IFRIC’s recommendation to propose a narrow-scope amendment to IAS 12, Income Taxes. The proposed amendment relates to the recognition of deferred tax when an entity accounts for transactions, such as leases or decommissioning obligations, by recognizing both an asset and a liability. Following a discussion, the Board tentatively decided to propose a narrow-scope amendment that would narrow the initial recognition exemption in paragraphs 15 and 24 of IAS 12 so that it would not apply to transactions that give rise to both taxable and deductible temporary differences, to the extent the amounts recognized for the temporary differences are the same.

Review the IASB Update and podcast on the Board's Web site.

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