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IAS 12 — Recognition of deferred tax assets for unrealised losses


This narrow-scope project arose out of the 2010-2012 cycle of annual improvements.  The proposals in ED/2012/1 Annual Improvements to IFRSs: 2010-2012 Cycle included proposals to amend IAS 12 Income Taxes to clarify when a deferred tax asset should be recognised for unrealised losses.

In response to constituent feedback on the proposals in ED/2012/1, the IASB decided at its December 2012 meeting that the accounting for deferred tax assets for unrealised losses on debt instruments should be clarified by a separate narrow-scope project to amend IAS 12.

Clarifying this issue requires addressing the question of whether an unrealised loss on a debt instrument measured at fair value gives rise to a deductible temporary difference when the holder expects to recover the carrying amount of the asset by holding it to maturity and collecting all the contractual cash flows.


Current status of the project

This project has been completed. The IASB issued Recognition of Deferred Tax Assets for Unrealised Losses on 19 January 2016.


Project milestones

December 2012 Narrow scope project added to the active agenda
20 August 2014 ED/2014/3 Recognition of Deferred Tax Assets for Unrealised Losses (Proposed amendments to IAS 12) published comments requested by 18 December 2014
19 January 2016 Recognition of Deferred Tax Assets for Unrealised Losses issued
effective for annual periods beginning on or after 1 January 2017

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