The Accounting Policy & Practice Report ® provides financial accounting policy makers, advisors, and practitioners with the latest news, expert insights, and guidance on emerging, evolving, and complex accounting issues. Expert News & Commentary.
By Stephen Bouvier
LONDON—The International Accounting Standards Board announced March 31 it is seeking comments on proposals to replace its income tax accounting standard.
In a press notice, IASB Chairman David Tweedie said IASB's aim in replacing the existing International Accounting Standard 12,Income Taxes, “is to achieve a clearer, more principle-based standard that will make the accounting requirements on income tax easier to understand and apply and will also result in more consistent reporting.”
The board has said it will hold a Webcast on the proposed standard “soon.” IASB staff have posted a flowchart and examples on the IAS 12 project page. Comments are due July 31, 2009.
Under the new proposals, IASB said it wants to retain the temporary differences approach to income tax accounting while at the same time removing the exceptions found in IAS 12 at the moment.
Applying a temporary difference approach, an entity would recognize the tax consequences of an event immediately instead of waiting for tax or an allowance to be paid.
Although the proposals retain IAS 12's approach to income taxes, the introduction to the new standard lists no fewer than 14 changes.
Part of Convergence Effort
IASB's work on income taxes forms part of its convergence effort with the U.S. Financial Accounting Standards Board to reduce the differences between international financial reporting standards and U.S. generally accepted accounting principles.
As the basis for their work on tax accounting, the two boards agreed to eliminate the various exemptions available under both IAS 12 and Statement of Financial Accounting Standard 109, Accounting for Income Taxes.
According to the introduction to the exposure draft, FASB has said “it will solicit input from U.S. constituents by issuing an Invitation to Comment containing the IASB's proposed replacement of IAS 12.”
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)