Deadline reminder – ED on Deferred Tax
02 Nov 2010
We remind you that comments on the Exposure Draft ED/2010/11 Deferred Tax: Recovery of Underlying Assets are due on 9 November 2010.
Under IAS 12, the measurement of deferred tax liabilities and deferred tax assets depends on whether an entity expects to recover an asset by using the asset or by selling the asset. In some cases, it is difficult and subjective to assess whether recovery will be through use or through sale. To provide a practical approach in such cases, the proposed amendment would introduce a presumption that an asset is recovered entirely through sale unless the entity has clear evidence that recovery will occur in another manner.
Click for our earlier story on ED/2010/11 Deferred Tax: Recovery of Underlying Assets.
