The International Accounting Standards Board (IASB) published proposed amendments to IAS 12 Income Taxes on 20th August 2014.
IAS 12 addresses the accounting for income taxes, including deferred tax assets. The amendments published propose guidance that clarifies how to account for deferred tax assets related to debt instruments measured at fair value.
The draft amendments are proposed in response to diversity in practice and are relevant in circumstances in which the entity reports tax losses.
The issue originated from a submission to the IFRS Interpretations Committee (the ‘Interpretations Committee’). In response, the Interpretations Committee recommended that the IASB should amend IAS 12.
Comment letter deadline
The Exposure Draft was open for comment until 18 December 2014.