The International Accounting Standards Board® (the Board) today issued amendments to IAS 12 Income Taxes. The amendments, Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to IAS 12), clarify how to account for deferred tax assets related to debt instruments measured at fair value.
IAS 12 provides requirements on the recognition and measurement of current or deferred tax liabilities or assets. The amendments issued today clarify the requirements on recognition of deferred tax assets for unrealised losses, to address diversity in practice.
Entities are required to apply the amendments for annual periods beginning on or after 1 January 2017. Earlier application is permitted.
The amendments to the Standard follow on from a recommendation by the International Financial Reporting Interpretations Committee® (the Interpretations Committee).
Further information about the amendments can be accessed here.