Document ID: chunk:federal_register_of_legislation:F2021L00963:body:0:p3
Version: federal_register_of_legislation:F2021L00963
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Character Range: 5701–8614

struck through and new text is underlined.

Effective date
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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 paragraph B14. An entity shall apply these amendments for annual reporting periods beginning on or after 1 January 2023. Earlier application is permitted. If an entity applies the amendments for an earlier period, it shall disclose that fact.
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Appendix B
Exceptions to the retrospective application of other Australian Accounting Standards
This appendix is an integral part of the Standard.
B1 An entity shall apply the following exceptions:
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(g) government loans (paragraphs B10–B12); and
(h) insurance contracts (paragraph B13); and.
(i) deferred tax related to leases and decommissioning, restoration and similar liabilities (paragraph B14).
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Deferred tax related to leases and decommissioning, restoration and similar liabilities
B14 Paragraphs 15 and 24 of AASB 112 Income Taxes exempt an entity from recognising a deferred tax asset or liability in particular circumstances. Despite this exemption, at the date of transition to Australian Accounting Standards, a first-time adopter shall recognise a deferred tax asset – to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised – and a deferred tax liability for all deductible and taxable temporary differences associated with:
(a) right-of-use assets and lease liabilities; and
(b) decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset.

Amendments to AASB 112 Income Taxes
Paragraphs 15, 22 and 24 are amended. Paragraphs 22A and 98J–98L are added. Deleted text is struck through and new text is underlined.

Recognition of deferred tax liabilities and deferred tax assets

Taxable temporary differences
15 A deferred tax liability shall be recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from:
(a) the initial recognition of goodwill; or
(b) the initial recognition of an asset or liability in a transaction which:
(i) is not a business combination; and
(ii) at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss); and.
(iii) at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.
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Initial recognition of an asset or liability
22 A temporary difference may arise on initial recognition of an asset or liability, for example if part or all of the cost of an asset will not be deductible for tax purposes. The method of accounting for such a temporary difference depends on the nature of the transaction that led to the initial recognition of the asset