News
IASB issues narrow-scope amendments to IAS 12 Income Taxes
01-Mar-2016
The International Accounting Standards Board® (the Board) issued amendments to IAS 12 Income Taxes. The amendments, Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12), clarify how to account for deferred tax assets related to debt instruments measured at fair value.
IAS 12 provides requirements on the recognition and measurement of current or deferred tax liabilities or assets. The amendments issueed today clarify the requirements on recognition of deferred tax assets for unrealised losses, to address diversity in practice.
Entities are required to apply the amendments for annual periods beginning on or after 1 January 2017. Earlier application is permitted.
The amendments to the Standard follow on from a recommendation by the International Financial Reporting Interpretations Committee® (the Interpretations Committee).
The objective of this project is to clarify the accounting for deferred tax assets for unrealised losses on debt instruments measured at fair value. A revised draft amendment to IAS 12 Income Taxes was published for comment in August 2014.