EFRAG has issued an Invitation to Comment relating to the endorsement for use in the EU of the IFRIC Interpretation 21 Levies. Comments are requested by 2 September, 2013.
The IFRS Interpretations Committee received a request to clarify what the obligating event is that gives rise to the recognition of a liability for levies and was informed that there was diversity in practice in the timing of recognition of the liability to pay a levy.
In May 2013 the IASB issued IFRIC 21 'Levies', an Interpretation on the accounting for levies imposed by governments. The Interpretation clarifies that the obligating event that gives rise to a liability is the activity that triggers the payment of the levy, as identified by legislation.
EFRAG requests comments to the endorsement for use in the EU of the IFRIC Interpretation 21 Levies. EFRAG is consulting both on its assessment of this Interpretation against the technical criteria for the endorsement in the EU and on its initial assessment of the costs and benefits that would arise from their implementation and application in the EU. EFRAG’s initial assessment is that IFRIC Interpretation 21 Levies satisfies the technical criteria for EU endorsement and EFRAG should therefore recommend its endorsement.
Press release
© EFRAG - European Financial Reporting Advisory Group
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