| This summary of Accounting Standards Board (AcSB) projects has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further deliberations by the AcSB. Decisions to publish Handbook material are final only after a formal ballot process. |
Status: Project scope and objective modified following review of comments received on Exposure Draft.
Background
Activities to Date
Next Steps
Related Information
Contact Information Background IAS 12 Income Taxes (like Section 3465) is based on the temporary difference approach whereby an entity recognizes deferred tax assets and liabilities for temporary differences and for the carryforward of unused tax losses and tax credits. The International Accounting Standards Board (IASB) issued an Exposure Draft of proposed changes to IAS 12 in March 2009. The AcSB intends to incorporate changes made by the IASB to IAS 12 into Part I of the CICA Handbook – Accounting. The IASB will not complete these changes until sometime in 2011 and they will not be effective until after the adoption of IFRSs in Canada.” Activities to Date The IASB has issued an Exposure Draft, “Income Tax,” proposing a new standard to replace the income tax requirements in IAS 12, Income Taxes, SIC 21, “Income Taxes — Recovery of Revalued Non-Depreciable Assets,” and SIC-25, “Income Taxes — Changes in the Tax Status of an Enterprise or its Shareholders.” The Exposure Draft proposed clarifying various aspects of IAS 12, eliminating a number of differences between IAS 12 and FAS 109 and modifying or eliminating a number of exceptions to IAS 12. The AcSB has also issued an Exposure Draft proposing to incorporate the new income tax standard proposed by the IASB into Canadian GAAP. On July 31, 2009, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft. The letter does not support the project proceeding in its current form. Instead it suggests the project be re-scoped to consider a more fundamental review of accounting for income taxes, or deferred to allow constituents and the IASB to focus on projects currently of higher priority. The letter included an appendix prepared by AcSB staff providing detailed comments on a number of the proposals. The AcSB letter posted by the IASB, is available here. Following a review of comments received on the Exposure Draft, the IASB tentatively decided to revise the objective and scope of its income tax project. The current objective of the project is to resolve problems in practice under IAS 12, without changing its fundamental approach, and preferably without increasing divergence from US GAAP Next Steps Staff expects the AcSB to issue an ED and a final standard shortly after the IASB issues its equivalent documents. Related Information Contact Information Questions or comments on this project should be directed to: Karlene Mulraine, CA
Principal, Accounting Standards
Telephone: +1 (416) 204-3466
Fax: +1 (416) 204-3412 Canadian Accounting Standards Board
277 Wellington Street West
Toronto ON M5V 3H2 Canada |