IASB publishes amendments to IAS 12
On 7 May 2021, the IASB published the amendments to IAS 12, “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”. These amendments are intended to establish a general principle for the accounting treatment of deferred tax related to leases, and thus to reduce diversity in practice in this area.
Keywords: Mazars, Thailand, IFRS, IASB, IAS 12, Deferred tax, IFRS 16
16 July 2021
The amendments are mandatory for financial periods beginning on or after 1 January 2023. Early application is permitted (subject to their endorsement by the European Union).
However, if an entity wishes to change its accounting policy starting with the interim financial statements to 30 June 2021, enabling it to recognise deferred tax for leases accounted for in accordance with IFRS 16, it may do this by applying the principles set out in IAS 8 on changes in accounting policy. The impact of the change in accounting policy would then be recognised retrospectively in the opening balance of retained earnings for the first period presented. In other words, the entity may not yet apply the specific transition provisions set out in the amendments to IAS 12.
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