EFRAG issues final endorsement advice on Amendments to IAS 12
02 Dec, 2021
The European Financial Reporting Advisory Group (EFRAG) has issued its final endorsement advice letter 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. The Amendments are effective for annual periods beginning on or after 1 January 2023, with earlier application permitted.
EFRAG recommends the endorsement of the Amendments. EFRAG’s assessment is that the Amendments meet all the technical endorsement criteria of the IAS Regulation and are conducive to the European public good.
A press release and the endorsement advice letter to the European Commission are available on the EFRAG website. EFRAG has also updated its endorsement status report.
