IFRIC 21 clarifies when an entity recognises a liability for levies imposed by a government other than specified levies such as income taxes, fines and penalties. Applying IFRIC 21, an entity recognises a liability when it conducts the activity that triggers the payment of a levy under law or regulation. A liability is recognised progressively if the obligating event occurs over a period of time. If an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is reached.
In May 2013 the International Accounting Standards Board issued IFRIC 21 Levies. It was developed by the Interpretations Committee.