As you are kindly aware that the Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB). In this regard, it may be noted that IFRS Standards are being issued/revised by the IASB from time to time. As a part of convergence with IFRS Standards, Ind AS may be issued/revised corresponding to the IFRS Standards. Accordingly, whenever any amendments are made or new IFRS Standard/IFRIC by the IASB, the Accounting Standards Board (ASB) of the ICAI considers and issues amendments to Ind AS. While doing so, keeping in view the Indian conditions and circumstances, wherever considered appropriate, necessary changes are also proposed to the Ind AS.

In this regard, the Accounting Standards Board has issued Exposure Draft of amendments in Ind AS 12 corresponding to IASB’s amendments in IAS 12 on Deferred Tax related to Assets and Liabilities arising from a Single Transaction.

The draft amendments aim at narrowing the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The aim of the draft amendments is to reduce diversity in the reporting of deferred tax on leases and decommissioning obligations.

The downloadable version of the Exposure Draft is available at: https://resource.cdn.icai.org/66631asb53794.pdf

Comments can be submitted using one of the following methods, so as to be received not later than October 25, 2021:

How to comment

Comments on the abovementioned Exposure Draft may be submitted through any of the following modes: