Document ID: chunk:federal_register_of_legislation:F2021L00963:body:0:p2
Version: federal_register_of_legislation:F2021L00963
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first time. The amendments clarify that the exemption does not apply to transactions for which entities recognise both an asset and a liability and that give rise to equal taxable and deductible temporary differences. This may be the case for transactions such as leases and decommissioning, restoration and similar obligations. Entities are required to recognise deferred tax on such transactions.
The Standard amends AASB 1 to require deferred tax related to leases and decommissioning, restoration and similar obligations to be recognised by first-time adopters at the date of transition to Australian Accounting Standards, despite the exemption set out in AASB 112.

Application date
This Standard applies to annual periods beginning on or after 1 January 2023. Earlier application is permitted.

Accounting Standard AASB 2021-5
The Australian Accounting Standards Board makes Accounting Standard AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from a Single Transaction under section 334 of the Corporations Act 2001.
                      Keith Kendall
  Dated 22 June 2021  Chair – AASB

Accounting Standard AASB 2021-5
Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from a Single Transaction

Objective
This Standard amends AASB 1 First-time Adoption of Australian Accounting Standards (July 2015) and AASB 112 Income Taxes (August 2015) as a consequence of the issuance of International Financial Reporting Standard Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) by the International Accounting Standards Board in May 2021.

Application
The amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 1 and AASB 112 set out in AASB 1057 Application of Australian Accounting Standards.
This Standard applies to annual periods beginning on or after 1 January 2023. This Standard may be applied to annual reporting periods beginning before 1 January 2023.
This Standard uses underlining, striking out and other typographical material to identify some of the amendments to a Standard, in order to make the amendments more understandable.  However, the amendments made by this Standard do not include that underlining, striking out or other typographical material.  Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.

Amendments to AASB 1 First-time Adoption of Australian Accounting Standards
Paragraph 39AH is added. In Appendix B, paragraph B1 is amended and paragraph B14 and its heading are added. Deleted text is struck through and new text is underlined.

Effective date
 ...
39AH AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and Liabilities arising from a Single Transaction, issued in June 2021, amended paragraph B1 and added