On 18 December 2014, FEE issued a comment letter to the IASB on the IASB Exposure Draft: Recognition of Deferred Tax Assets for Unrealised Losses.
FEE supports the IASB in its efforts to clarify this matter within the scope of IAS 12 – Income taxes. The concept of deferred taxes is not well understood by all constituents which has led to divergences in practice when it comes to the practical application of specific requirements. We also agree with the IASB that there is a need to clarify the application of IAS 12 to debt instruments carried at fair value by means of an illustrative example.
Although FEE supports the proposed amendments of IAS 12, in our detailed comments, we also suggest some possible changes and further clarifications in specific areas.
Related files:
Related links:
IASB Exposure Draft: Recognition of Deferred Tax Assets for Unrealised Losses