On January 19, 2016 the International Accounting Standards Board (IASB) issued a press release announcing that it issued amendments to IAS 12 Income Taxes. According to the press release 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. The press release also notes that entities are required to apply the amendments for annual periods beginning on or after January 1, 2017.  Earlier application is however permitted.

The amendments to the Standard follow on from a recommendation by the International Financial Reporting Interpretations Committee.

IAS 12 provides requirements on the recognition and measurement of current or deferred tax liabilities or assets.  According to the press release the amendments issued on January 19, 2016 clarify the requirements on recognition of deferred tax assets for unrealised losses, to address diversity in practice.

Click here to be forwarded to the document “Recognition of Deferred Tax Assets for Unrealised Losses - Amendments to IAS 12”, as available on the website of the IFRS Foundation and the IASB, which will open in a new window.

The contents of the document include a.o.: 

·        Amendments to IAS 12 Income Taxes 

·        Amendments to the Basis for Conclusions on IAS 12 Income Taxes

·        Amendments to the Illustrative examples on IAS 12 Income Taxes

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