EFRAG requests comments on its draft endorsement advice on Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12)

EFRAG is consulting on both its assessment of the Amendments against the technical criteria in the EU and on its assessment of whether the Amendments are conducive to the European public good.

​EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12) ('the Amendments').

The objective of the Amendments is to clarify the requirements on recognition of deferred tax assets for unrealised losses in order to address diversity in practice in the application of IAS 12 Income Taxes.

The Amendments become effective for annual periods beginning on or after 1 January 2017, 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.

The draft endorsement advice can be found here and the invitation to comment here.

Comments are requested by 13 May 2016.

EFRAG has also updated its Endorsement Status Report, which can be downloaded here.

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