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EFRAG issues draft endorsement advice on Amendments to IAS 12

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

15 Jul 2021

The European Financial Reporting Advisory Group (EFRAG) has issued a draft endorsement letter and a separate invitation to comment relating to the use in the European Union (EU) of 'Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12' (the Amendments).

The Amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations.

EFRAG recommends the endorsement of the Amendments. 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.

Comments are requested by 30 September 2021.

For more information, see the press release, the draft endorsement advice letter and the invitation to comment on the EFRAG website.  EFRAG has also updated its endorsement status report to reflect the draft endorsement advice.

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