IASB ED/2019/5

  • For-profit

Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Proposed amendments to IAS 12)

The IASB has recently issued an exposure draft, ED/2019/5 Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Proposed amendments to IAS 12).

The aim of the proposed amendments is to clarify how entities account for deferred tax on leases (accounted for under IFRS 16 Leases) and decommissioning obligations.

In specific circumstances, entities are exempt from recognising deferred tax when they recognise assets or liabilities for the first time (sometimes called “the initial recognition exemption”). There has been uncertainty about whether the exemption applies to leases and decommissioning obligations. To promote consistent application of IAS 12, the IASB has proposed narrow-scope amendments.

Under the proposals, the exemption in IAS 12 would not apply to particular transactions for which entities recognise both an asset and a liability (for example, leases and decommissioning obligations). The proposals would result in entities recognising deferred tax on such transactions.

Accessing the Consultation Document

IASB ED 2019/5   [link to IASB] 

Commenting on the Proposal

This is your opportunity to comment on these proposals.

Comments are due to the NZASB by 11 October 2019 and to the IASB by 14 November 2019. 

Send your comments—both formal and informal— to the NZASB using the secure upload form below. 

We also encourage you to send comments directly to the IASB, with a copy to the NZASB. Your comments can be made electronically to the IASB website by clicking on the following link https://www.ifrs.org/projects/open-for-comment/. First-time users must register with IASB to submit electronically.


Upload your submission here

Please use this secure online form.

It has been designed to make your upload safe, quick and easy. 

You can:

  • Upload an MS Word document (and a PDF file, if you wish); or
  • Write your comments below in the space provided.

You can upload up to TWO documents. 

Please note:

  • We would appreciate receiving a copy of your comments in electronic form (preferably Microsoft Word format).  This helps us to more efficiently collate and analyse comments. Please also specify the exposure draft number and title in your electronic file. 

  • Tell us on whose behalf you are making the comments (for example on behalf of a group or an entity).

  • We intend publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 1993 also applies.

  • If you have an objection to the release of any information contained in your comments, we would appreciate you identifying the parts of your comments to be withheld, and the grounds under the Official Information Act 1982 for doing so (for example, that it would be likely to unfairly prejudice the commercial position of the person providing the information).