17. July 2019

IASB proposes ED/2019/5 with amendments to accounting for deferred tax

The IASB has today published for public comment Exposure Draft ED/2019/5 Deferred Tax related to Assets and Liabilities arising from a Single Transaction. The amendments clarify how companies account for deferred tax on leases and decommissioning obligations (further information).

According to the proposed amendments, the exemption in IAS 12 would not apply to leases and decommissioning obligations—transactions for which companies recognise both an asset and a liability. The proposed amendments would result in companies recognising deferred tax on such transactions.

The ED is open for comment until 14 November 2019.