SIC-21 — Income Taxes – Recovery of Revalued Non-Depreciable Assets



  • Issued: July 2000
  • Effective date: 15 July 2000
  • Superseded by, and incorporated into, IAS 12 Income Taxes, by Deferred Tax: Recovery of Underlying Assets, effective for annual periods beginning on or after 1 January 2012

Summary of SIC-21

SIC-21 deals with cases where a non-depreciable asset (freehold land) is carried at revaluation under IAS 16. No part of the carrying amount of such an asset is considered to be recovered through its use. Therefore, SIC-21 concludes that the deferred tax liability or asset that arises from revaluation must be measured based on the tax consequences that would follow from the sale of the asset rather than through use. In some jurisdictions, this will result in the use of a capital gains tax rate rather than the rate applicable to corporate earnings.

Click for IASC Press Release on SIC-21 (PDF 36k).

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