IASB publishes narrow-scope amendments to IAS 12 "Income Taxes"

IAS 12 requires the recognition of deferred tax assets on all deductible temporary differences (with exceptions) to the extent that it is probable that taxable profit will be available against which the temporary difference can be utilized.

IAS 12 provides examples of deductible differences that may result in deferred tax assets. One such example relates to assets that are fair valued or revalued without an equivalent change to the tax base. Today’s amendment includes a new worked example concerning a debt instrument carried at fair value.

In addition, today’s amendment clarifies that any restriction in tax law which limits the utilization of losses to deduction against income of a certain type must be taken into account when assessing the extent to which a deferred asset should be recognized. This is important in those jurisdictions where tax relief for unrealized losses from investments that are marked to market, may only be utilized against similar marked to market gains. 

Furthermore, the amendment allows that an estimate of probable future taxable profits may include the recovery of an asset for more than its carrying amount as long as there is sufficient evidence that it is probable that this will be achieved.

The amendment will be mandatory for accounting periods commencing on or after 1st January 2017, although earlier application is allowed. However, for entities reporting under EU requirements, the availability of early application is subject to the EU endorsement process.

 

Further details at IASB:  http://www.ifrs.org/Alerts/PressRelease/Pages/IASB-issues-narrow-scope-amendments-to-IAS-12.aspx

 
 

News

IAS 12 requires the recognition of deferred tax assets on all deductible temporary differences (with exceptions) to the extent that it is probable that taxable profit will be available against which the temporary difference can be utilized.

How do I read my eBook?

Your eBook should be available for download instantly. However, please allow a maximum of 24 hours for the book to be ready to download and view. Please note that you will receive a confirmation email which will inform you when your books are ready to download.

  • Download and install Adobe Digital Editions
  • Open Adobe Digital Editions and follow the steps to get started
  • Download your eBook from Emilewoolf.com and it will be opened by Adobe Digital Editions
  • Connect an eReader to transfer the eBook across using Adobe Digital Editions
  • Need more help? Read our FAQ below or contact us for assistance
Continue to basket

Item added to Basket

Continue Shopping Go to Basket