Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (Amendments to IAS 12) [ED]
Comments are requested by November 14, 2019 |
|
Proposed effective date: |
At its meeting on November 18, 2020, the IASB tentatively decided that entities should apply the amendments for annual periods beginning on or after January 1, 2023, with earlier application permitted. |
Next steps: |
The IASB plans to issue the amendments to IAS 12 in May 2021 |
Last updated: |
March 2021 |
Overview
At its meeting on October 24, 2018, the International Accounting Standards Board discussed the IFRS Interpretations Committee’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.
The proposed narrow-scope amendment 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.
Other developments
March 2021
On March 26, 2021, IASB staff updated the Work Plan to indicate that the Board plans to issue the amendments to IAS 12 in May 2021.
October 2020
On October 30, 2020, IASB staff updated the Work Plan to indicate that the Board plans to issue the amendments to IAS 12 shortly (no date specified).
September 2020
On September 28, 2020, IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in October 2020.
July 2020
On July 23, 2020, IASB staff updated the Work Plan to indicate that the Board plans to decide the project direction in Q4/2020.
April 2020
On April 23, 2020, the IASB staff updated the work plan to indicate that the Board will decide the project direction (no date specified).
On April 17, 2020, IASB staff updated the Work Plan to indicate that the Board plans to review the Exposure Draft feedback in June 2020.
January 2020
On January 31, 2020, the IASB staff updated the Work Plan to indicate that the IASB expects to review the Exposure Draft feedback in Q2/2020.
November 2019
On November 25, 2019, the IASB staff updated the Work Plan to indicate that the Board plans to review the Exposure Draft feedback in Q1/2020.
July 2019
On July 29, 2019, the IASB® staff updated the work plan to indicate that the Board will review the feedback on the Exposure Draft (no date specified).
On July 29, 2019, the AcSB issued its exposure draft that corresponds to the IASB’s Exposure Draft on this topic. Comments are requested by November 14, 2019.
On July 17, 2019, the IASB published an exposure draft "Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Proposed amendments to IAS 12)" that aim at clarifying how companies account for deferred tax on leases and decommissioning obligations. Comments are requested by November 14, 2019.
April 2019
On April 12, 2019, the IASB® staff updated the work plan to indicate that the Board expects to issue an Exposure Draft in June 2019.
January 2019
On January 25, 2019, the IASB staff updated the work plan to indicate that the Board expects to issue an Exposure Draft in Q2/2019.
December 2018
On December 14, 2018, the IASB staff has added a new project to the work plan in respect of amendments to IFRS 17, indicating that the Board expects to issue an Exposure Draft in the first half of 2019.
November 2018
In November 2018, the IASB staff updated the work plan to indicate that the IASB expects to issue an Exposure Draft in respect of the narrow-scope amendment to IAS 12 in the first half of 2019.