At its meeting in March 2016, the Interpretations Committee observed that the circumstances to which the requirements in paragraph 52B of IAS 12 Income Taxes apply are unclear. Nonetheless, the Interpretations Committee decided that the applicability of the requirements in paragraph 52B relating to the presentation of any income tax consequences of dividends should not be limited to only those circumstances described in paragraph 52A (ie circumstances in which there are different tax rates for distributed and undistributed profits).
Consequently, the Interpretations Committee decided to propose an amendment to IAS 12 to clarify that the presentation requirements in paragraph 52B of IAS 12 apply to all payments on financial instruments classified as equity that are distributions of profits, and are not limited to the circumstances described in paragraph 52A of IAS 12.
At is meeting in June 2016 the Board agreed with the Interpretations Committee’s conclusion that an entity should apply the presentation requirements in paragraph 52B beyond the circumstances described in paragraph 52A of IAS 12.
The Board also tentatively decided to include the proposed amendment in the next cycle of annual improvements (2015–2017). Additionally, the Board tentatively decided that an entity should apply the proposed amendment retrospectively and early application should be permitted.
In July 2016 the Board confirmed it is satisfied that the necessary due process steps for the Exposure Draft of Annual Improvements to IFRS Standards 2015–2017 Cycle have been completed. The Exposure Draft of Annual Improvements to IFRS Standards 2015-2017 Cycle was published in January 2017. The comment period ends on 12 April 2017.