In line with the continuing adoption of International Financial Reporting Standards (IFRSs), the Financial Reporting tandards Council (FRSC) invites comments on a proposed new standard issued by the International Accounting Standards Board IASB):
The proposed standard retains the basic approach to accounting for income tax, known as the temporary difference approach. The objective of that approach is to recognize now the future tax consequences of past events and transactions, rather than waiting until the tax is payable. Although the proposed standard retains the same principle, the IASB proposes to remove most f the exceptions in IAS 12, to simplify the accounting and strengthen the principle in the standard. In addition, the IASB roposes a changed structure for the standard that will make it easier to use.
If adopted, the standard would replace the existing requirements in IAS 12, Income Taxes.
The FRSC invites comments on the exposure draft by 15 July 2009 to enable the Council to consider and include comments from Philippine respondents in its response to the IASB. Comments may be sent by e-mail to picpaadm@pldtdsl.net, or by mail, addressed to:
Carlos R. Alindada
Chairman
Financial Reporting Standards Council
PICPA House, 700 Shaw Boulevard, Mandaluyong City
Comments may also be sent electronically through the open for comment section at www.iasb.org on or before 31 July 2009, the IASB comment deadline.
The FRSC Invitation to Comment and the IASB exposure draft may be downloaded from the FRSC/PFRS website, within the PICPA website at www.picpa.com.ph. The exposure draft is also available on the open for comment section on www.iasb.org.