The International Accounting Standards Board’s IFRS Interpretations Committee has issued this Draft IFRIC Interpretation on Levies Charged by Public Authorities on Entities that Operate in a Specific Market on 31 May 2012.

A public authority may impose a levy on entities that operate in a specific market, such as a specific country, a specific region or a specific market in a specific country. The Interpretations Committee was asked to consider how an entity would account for the payment of levies, other than income taxes, in its financial statements; specifically, when the liability to pay a levy should be recognised. The proposed guidance clarifies that the obligating event that gives rise to a liability to pay a levy is the activity that triggers the payment of the levy as identified by the legislation.

Invitation to comment

ASB invites comments on the said Draft from the public. The downloadable version of the Document is available at: http://www.ifrs.org/Open-to-Comment/Draft-Interpretation-Levies/Documents/DraftInterpretation_Levies_May2012_website.pdf

Comments would be most helpful if they indicate the specific paragraph or group of paragraphs to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.

Comments should be submitted in writing to the Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi-110002, so as to be received not later than August 30, 2012. Comments can also be sent by e-mail at asb@icai.org or edcommentsasb@icai.org.