01/12/2021 - EFRAG’S Endorsement Advice on Deferred Tax Related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
EFRAG has completed its due process regarding Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) and has submitted its Endorsement Advice Letter to the European Commission.
The Endorsement Advice Letter to the European Commission can be found here.
On 7 May 2021, the IASB issued Deferred Tax related to Assets and
Liabilities arising from a Single Transaction (Amendments to IAS 12) (‘the
Amendments’) which were initially issued as an exposure draft ED/2019/5 in July
2019.
The Amendments revise IAS 12 to require entities not to apply the IAS 12
initial recognition exemption to transactions that, on initial recognition,
give rise to equal and taxable temporary differences. The objective of the
Amendments is to reduce the diversity that currently exists in practice.
The Amendments are effective for annual periods beginning on or after 1
January 2023. Earlier application is permitted.
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 the technical endorsement criteria of the IAS Regulation
and are conducive to the European public good. It therefore recommends their
endorsement. EFRAG's recommendation can be found 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 on EFRAG's web page.
