As part of the AcSB’s objective to maintain and improve a high-quality set of Part II standards, the AcSB considers improvements needed to current guidance. The AcSB also routinely monitors amendments made to other accounting frameworks for potential improvements to Part II. As a result of these activities, the AcSB identified an example in Section 3465 that is no longer applicable as a result of changes in income tax legislation. The AcSB also identified an amendment to U.S. Generally Accepted Accounting Principles (U.S. GAAP) eliminating the requirement to segregate deferred tax assets and liabilities into current and non-current components. In addition, the AcSB observed that International Accounting Standards Board’s (IASB), IAS 1 Presentation of Financial Statements does not permit classification of deferred tax assets and liabilities as current and non-current.

Consequently, the AcSB decided to amend Section 3465 to remove the outdated example and to require non-current classification of future income tax assets and income tax liabilities rather than require current and non-current classification of these assets and liabilities.

The amendments are applicable for annual financial statements relating to fiscal years beginning on or after January 1, 2020, with earlier application permitted.

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