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The Interpretations Committee will consider this issue further at a future meeting

 10 May 2016


The Interpretations Committee received a request to clarify the determination of the expected manner of recovery of an indefinite-life intangible asset for the purposes of measuring deferred tax.

The Interpretations Committee observed that, when measuring deferred tax on indefinite-life intangible assets, an entity applies paragraphs 51 and 51A of IAS 12 in reflecting the tax consequences that follow from the expected manner of recovery of the carrying amount of those assets. However, during the discussion, an Interpretations Committee member suggested that the Interpretations Committee could go further in clarifying how to determine the expected manner of recovery in this situation by exploring the interaction between how an asset is amortised and the requirements in paragraphs 51 and 51A of IAS 12.

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The Interpretations Committee will consider this issue further at a future meeting.