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AASB publishes agenda decisions on MRRT

  • AASB (Australian Accounting Standards Board) (lt blue) Image

23 Feb 2012

The Australian Accounting Standards Board (AASB) has issued two agenda decisions related to accounting issues arising from Australia's proposed Mineral Resource Rent Tax (MRRT).

The agenda decisions deal with the following:

Scope of AASB 112 Income Taxes

At its December 2011 meeting the AASB considered the issue of whether the proposed MRRT, which passed the Australian House of Representatives on 23 November 2011, would be an income tax within the scope of AASB 112 Income Taxes (equivalent to IAS 12 Income Taxes).

The AASB thinks that existing guidance in Australian Accounting Standards and Interpretations is sufficient to address the issue of whether the proposed Australian MRRT, if legislated in its current form, should be accounted for as an income tax, either by applying the requirements of AASB 112 directly, or by applying the requirements of AASB Interpretation 1003 by analogy.

The agenda decision is available on the AASB website.

Substantive enactment of resource rent tax bills

At its December 2011 meeting, the AASB considered the issue of when it would be appropriate to conclude that substantive enactment of the proposed Minerals Resource Rent Tax Bill 2011 and Petroleum Resource Rent Tax Assessment Amendment Bill 2011 (the ‘resource rent tax Bills’) has occurred. The resource rent tax Bills passed the House of Representatives on 23 November 2011.

The AASB thinks that existing guidance in Australian Accounting Standards and Interpretations is sufficient to address the issue of when substantive enactment has occurred, and the Board does not expect that significantly divergent interpretations would arise in practice.

The agenda decision is available on the AASB website.

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