New guidance for the recognition of levies imposed by government

New guidance has been issued in the form of IFRIC 21, that clarifies when a liability within the scope of IAS 37 – Provisions, Contingent Liabilities and Contingent Assets, should be recognised for levies imposed by government.

IFRIC 21 seeks to clarify obligating events that give rise to the recognition of a liability to pay levies, whether economic impulsion and the current status of the going concern of the entity could result in constructive obligations to pay levies by operating in the future and whether recognition of liabilities to pay levies could arise progressively over time.

For more information regarding this topic please refer to the SAICA website.


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