EFRAG requests comments on its draft endorsement advice on Amendments to IAS 12
16 July 2021
In May 2021, the IASB issued amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction (the Amendments) that clarified that the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition and entities are required to recognise deferred tax on such transactions.
EFRAG has issued a draft endorsement advice letter and an invitation to comment relating to the endorsement for use in the EU of the Amendments. EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends its endorsement.
EFRAG’s endorsement advice and invitation to comment may be accessed here. Comments are requested by 30 September 2021.