The International Accounting Standards Board (IASB) recently issued an Exposure Draft, “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”, which is available on the IASB website.
The IASB proposes to amend IAS 12 to require an entity to recognize deferred tax on initial recognition of particular transactions to the extent that the transaction gives rise to equal amounts of deferred tax assets and liabilities. Specifically, the proposed amendments relate to certain transactions for which an entity recognizes both an asset and a liability, such as leases and decommissioning obligations.
The IASB’s Exposure Draft includes a Basis for Conclusions that is not part of this Exposure Draft. This material may provide useful information to stakeholders.