Hello Sir!
Hope you are doing well.
I don't have the latest SBR book so I don't have the information on the ED proposal related to the deferred tax.
I would be grateful if you could give a summary of it.
Ask the Tutor ACCA SBR
ED/2019/5/Deferred Tax related to Assets and Liabilities
Yes Professor, this area of current issue is also very very confusing!! can you pls brief us?
5y ago#2Lessee accounting;
On date lease starts, let us say that:
Lease asset = 100
Lease liability = 80
Do we recognise DT?
Some companies have nor been doing so. This is because IAS 12 has a strange exemption for 'initial recognition of transactions which on that date do not affect profit and loss'
The ED says you must reflect DT.
https://www.xrb.govt.nz/accounting-standards/standards-in-development/closed-for-comment/iasb-ed-20195/#:~:text=The%20IASB%20has%20recently%20issued%20an%20exposure%20draft%2C,for%20under%20IFRS%2016%20Leases%29%20and%20decommissioning%20obligations.
Be calm. (The reference above is a New Zealand document) but it summarises the rule.
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