EFRAG issues draft endorsement advice on amendments to IAS 12
11 Apr, 2016
The European Financial Reporting Advisory Group (EFRAG) has issued for comment its draft endorsement advice for the use of the amendments to International Accounting Standard (IAS) 12 ‘Income Taxes’ in the European Union (EU).
In January 2016 the International Accounting Standards Board (IASB) published Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12). The objective of the amendments is to clarify the requirements on recognition of deferred tax assets for unrealised losses in order to address diversity in practice in the application of IAS 12 Income Taxes.
EFRAG supports the adoption of the amendments and recommends their endorsement. EFRAG’s initial assessment is that the amendments meet the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.
EFRAG also considers that the overall benefits of the amendments are likely to outweigh the associated costs to implement them.
Comments are requested by 13 May 2016.
EFRAG has also updated its endorsement status report to reflect the issuance of the draft endorsement advice.
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