The International Accounting Standards Board
(IASB) is seeking comments on a single proposed amendment to IAS 12
Under IAS 12, the measurement of deferred tax
liabilities and deferred tax assets depends on whether an entity
expects to recover an asset by using the asset or by selling the
asset. In some cases, it can be difficult and subjective to assess
whether recovery will be through use or sale.
The exposure draft, Deferred Tax: Recovery of
Underlying Assets, would provide a practical approach to these
cases. The amendment would introduce a presumption that an asset is
recovered entirely through sale unless the entity has clear
evidence that recovery will occur in another manner.
The presumption would apply when investment
properties, property, plant and equipment or intangible assets are
remeasured at fair value or revalued at fair value.
The deadline for comments is 9 November.
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