20/01/2012 | EFRAG’s endorsement advice and effects study report on the Amendments to IAS 12 Deferred Tax: Recovery of Underlying Assets

EFRAG has completed its due process regarding the Amendments to IAS 12 Deferred Tax: Recovery of Underlying Assets (‘the Amendments’) and has submitted its Endorsement Advice Letter and Effects Study Report to the European Commission.
	The Amendments introduce an exception in the form of a rebuttable presumption to the measurement principle in IAS 12. The Amendments require an entity to measure deferred tax on investment property carried at fair value, based on the tax consequences of selling that asset, unless an entity rebuts this presumption. EFRAG has issued its Endorsement Advice Letter and Effects Study Report relating to the endorsement of the Amendments for use in the European Union and European Economic Area. EFRAG supports the Amendments and has concluded that they meet the technical requirements of endorsement in the EU. EFRAG has also concluded that the benefits of the Amendments outweigh the costs. The Endorsement Advice Letter can be downloaded below and the Effects Study Report can be found here.
Document : EFRAG__Final_Endorsement_Advice_on_Amendments_to_IAS_12_-_Letter_to_the_European_Commission.pdf
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