08/06/2016 - EFRAG's Endorsement Advice on Amendments to IAS 12 Recognition of Deferred Tax Assets for Unrealised Losses
EFRAG has completed its due process regarding Recognition of Deferred Tax Assets for Unrealised Losses: Amendments to IAS 12 and has submitted its Endorsement Advice Letter to the European Commission.
In January 2016, the IASB issued Recognition of Deferred Tax Assets for Unrealised Losses: Amendments to IAS 12 ('the Amendments') which were initially issued as an exposure draft ED/2014/3 in August 2014.
The Amendments, effective for annual periods beginning on or after 1 January 2017, clarify the requirements on recognition of deferred tax assets for unrealised losses in order to address diversity in practice in the application of IAS 12 Income Taxes.
EFRAG has submitted its Endorsement Advice relating to the Amendments for use in the European Union and European Economic Area. EFRAG assesses that the Amendments meet all technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommends their endorsement. EFRAG's recommendation is explained in the letter to the European Commission and the accompanying appendices.
The Endorsement Advice Letter to the European Commission can be found here.
EFRAG has also updated its Endorsement Status Report, which can be downloaded here.