14/07/2021 - EFRAG seeks comments on its draft endorsement advice on Amendments to IAS 12
EFRAG is consulting on both its assessment of Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) (‘the Amendments’) against the technical criteria in the EU and on its assessment of whether the Amendments are conducive to the European public good. Comments are requested by 30 September 2021.
EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of the Amendments.
The Amendments revise IAS 12 to require entities not to apply the IAS 12 initial recognition exemption to transactions that, on initial recognition, give rise to equal and taxable temporary differences. The objective of the Amendments is to reduce the diversity that exists in practice.
The Amendments become effective for annual periods beginning on or after 1 January 2023, with earlier application permitted.
EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends its endorsement. EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.
EFRAG's draft endorsement advice letter is available here.
You are asked to provide your comments on the draft endorsement advice letter by downloading the invitation to comment (here), filling in the comments and submitting the response by clicking on the ‘Comment publication’ link below
Comments are requested by 30 September 2021.
For your information, EFRAG has also updated its Endorsement Status Report, which is available here.
