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Version date: 7 May 2021 - onwards
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Other considerations (paras. BC89-BC91)

Attribution of tax deductions to the lease asset or lease liability

BC89 Some respondents to the draft amendments suggested that the Board provide application guidance to help entities assess whether tax deductions are attributable to the lease asset or lease liability (see paragraph BC74). The Board decided not to provide such application guidance because the expected benefits of doing so would not outweigh the costs. The Board concluded that providing such guidance:

(a) was unnecessary to achieve the objective of the amendments - the amendments will result in entities recognising deferred tax for temporary differences that arise on leases (either on initial recognition or subsequently) regardless of whether tax deductions are attributable to the lease asset or lease liability; and

(b) could cause unintended consequences - any such guidance could affect how entities, in other situations, consider the applicable tax laws in determining the tax base of assets and liabilities.

Advance le

Comparing proposed amendment...