IFRS® Standards

Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (Amendments to IAS 12)


The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IAS 12 Income Taxes.

The proposed amendment relates to the recognition of deferred tax when an entity accounts for transactions, such as leases or decommissioning obligations, by recognizing both an asset and a liability. The objective of this amendment is to narrow the initial recognition exemption in paragraphs 15 and 24 of IAS 12, so that it would not apply to transactions that give rise to both taxable and deductible temporary differences, to the extent the amounts recognized for the temporary differences are the same.

The AcSB’s due process includes:

  • ensuring that Canadian entities’ financial reporting needs are considered by the IASB; and
  • issuing the AcSB’s own exposure draft on each IASB proposal.

Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS® Standards for publicly accountable enterprises.

Staff Contact(s)

Katherine Knowlton, CPA, CA

Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to October 2018

  • Approving project

    The IASB approved the project in October 2018

    The IASB is expected to issue an Exposure Draft in July 2019

  • Consulting stakeholders
  • Deliberating feedback
  • Final pronouncement

Meeting & event summaries



This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.