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IASB agreed to finalise the proposed amendments to IAS 12

 23 June 2015


In August 2014, the IASB published for comment the Exposure Draft ED/2014/3 Recognition of Deferred Tax Assets for Unrealised Losses (Proposed amendments to IAS 12) to clarify the accounting for deferred tax assets for unrealised losses on debt instruments measured at fair value. The comment period ended on 18 December 2014.

At its March 2015 meeting, the IFRS Interpretations Committee (the 'Interpretations Committee') decided to propose to the IASB that it should proceed with the proposed amendments, subject to some changes to the proposed wording.

At its meeting on 23 June 2015, the IASB was presented with a summary and an analysis of the 68 comment letters received on the Exposure Draft as well as the recommendations from the Interpretations Committee.

The IASB decided that it should proceed with finalising the proposed amendments, subject to some revisions to the proposed wording as follows:

  1. revise the example illustrating paragraph 26(d) to clarify that the debt instrument is measured at fair value and remove information that is superfluous to the objective of the example, and add an explanation about the identification of the tax base in paragraph BC6.
  2. clarify the transition requirements.
  3. revise the proposed guidance relating to recovery of an asset for more than its carrying amount in a way that enhances understanding and reduces the risk of an arbitrary estimate of probable future taxable profit.
  4. clarify that 'taxable profit excluding tax deductions' used for assessing the utilisation of deductible temporary differences is different from 'taxable profit on which income taxes are payable'.
  5. shorten Illustrative Example 7 and amend it to be consistent with the guidance in paragraph 63 on allocation of deferred tax between profit or loss and other comprehensive income.

All IASB members agreed with the decisions.

Next steps

At the July 2015 meeting, the IASB will consider the due process steps that the IASB has taken to date before issuing the final amendments to IAS 12.



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