10. Adoption Statement – NSA IAS 12

Adoption of Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)

1The UK Endorsement Board is designated under regulation 2(1) of The International Accounting Standards (Delegation of Functions) (EU Exit) Regulations 2021 No. 609¹ (“the Delegating Regulations") for the purpose of enabling it to exercise functions of the Secretary of State under Chapter 3 of Part 2 of The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 No. 685² (“the Regulations").

2The UK Endorsement Board, in exercise of the powers conferred by regulation 6(1) of the Regulations, adopts the following amendment to international accounting standards published on 7 May 2021 by the International Accounting Standards Board (IASB), for use within the United Kingdom:

1. Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)

3In accordance with regulation 7(1) of the Regulations, the UK Endorsement Board is of the view that:

1. the standard³ is not contrary to either of the following principles—
   1. an undertaking's accounts must give a true and fair view of the undertaking's assets, liabilities, financial position and profit or loss;
   2. consolidated accounts must give a true and fair view of the assets, liabilities, financial position and profit or loss of the undertakings included in the accounts taken as a whole, so far as concerns members of the undertaking;
2. the use of the standard is likely to be conducive to the long term public good in the United Kingdom; and

cthe standard meets the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.

4In accordance with regulation 8 of the Regulations, the UK Endorsement Board is of the view that adequate consultation with persons representative of those with an interest in the quality and availability of accounts, including users and preparers of accounts, has been undertaken before the adoption decision.

5The adopted amendment to international accounting standards in paragraph 2:

1. must be used for financial years beginning on or after 1 January 2023;
2. may be used for financial years beginning before 1 January 2023.

6The text of the adopted amendments to international accounting standards is set out in the annex to this statement.

Approval by the UKEB Board

Adoption of Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) published in by the IASB was approved for adoption by all 13 members of the UK Endorsement Board.

30 November 2022

Footnotes