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Submission to AASB on accounting for the proposed Minerals Resources Rent Tax (MRRT) and Petroleum Resource Rent Tax (PRRT)

Published on: 11 Nov 2011

A recent submission made by Deloitte (Australia) to the Australian Accounting Standards Board (AASB), dealing with accounting for the proposed MRRT and PRRT that are currently being considered by the Australian Parliament. In response to diversity in practice that emerged on Australia's transition to IFRSs in accounting for the existing smaller scoped form of PRRT, the AASB issued Interpretation 1003 Australian Petroleum Resource Rent Tax, which requires PRRT to be accounted for as an income tax. The submission argues the Interpretation "effectively represents the elimination of accounting policy options under Australian Accounting Standards that are available to entities that report under International Financial Reporting Standards (IFRS) as promulgated by the IASB".

The submission also recommends "that Interpretation 1003 (along with other Australian 'domestic' Interpretations) should be reassessed by the AASB for possible withdrawal. Such a withdrawal would deal with issues such as inconsistencies with the AASB's own objectives in relation to full convergence with IFRS and permit Australian entities to consider global practice in this area when setting their accounting policies. It would also serve to address misconceptions Australia is 'not fully compliant' with IFRSs, and set a leading example for other jurisdictions in Asia-Oceania and more broadly."

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